From Roads To Parks, What's In Cedar Spring's New City Budget?

CEDAR SPRINGS — If you want to know what Cedar Springs is focusing on in the year ahead, the new city budget offers a pretty clear answer: keep services steady, regroup financially after an expensive year, and prepare for the next round of big projects.

That means no dramatic cuts to what residents rely on every day. It also means no big list of major street projects like last year. Instead, city leaders say this is a budget built around stabilization, timing, keeping up infrastructure, and rebuilding reserves after a year that brought major costs, and one sizable challenge.

After meeting with City Manager Darla Falcon and Finance Director Emily Landon, one message came through clearly: residents, they said, will see little change in day-to-day city services under the new budget, even as the city works through rising costs, a lighter road construction schedule and the financial effects of recent legal battles.

For residents, the most noticeable changes will likely be in taxable value and utility bills. Finance Director Landon said homeowners can expect about a 2.7% taxable value increase and a 2.4% utility rate increase, while most millage rates remain unchanged. The rubbish millage rate, she said, will be reduced and will help offset some of the overall increase.

That utility increase is no unilateral decision, expressed Landon. Rather, it is tied to a policy the city adopted in 2021, when the City Council approved Ordinance No. 227. The ordinance requires annual increases to water and sewer service and ready-to-serve rates each July 1, based on the greater of 2% or the Midwest Consumer Price Index. This year’s 2.4% increase, she says, reflects that formula and represents the minimum required under it.

City Manager Falcon said the budget reflects a city that is growing, but also one that is taking a more conservative approach after a couple years of significant spending. Developments such as White Creek Flats and White Pine Trails are expected to increase Cedar Springs’ taxable value in coming years, helping strengthen the city’s financial position. In the meantime, she said the next couple of years will be focused on rebuilding reserves and positioning the city for future needs and grant opportunities.

One of the biggest differences from last year is roads. Falcon said the city had five major street projects in the previous budget cycle, including a major maintenance project on Ash Street, but none of that scale are planned this year.

That doesn't mean road work has disappeared. Director Landon pointed to East Muskegon Street as an example of how the city is trying to manage immediate needs while waiting for a larger reconstruction project. A full overhaul of East Muskegon is planned for 2028 at a total estimated cost of $2.3 million, with the city’s share expected to be about $320,000 after grant funding. This will include water and sewer maintenance, as well as new curbing and gutters. Until then, the city plans to spend about $50,000 this year to smooth the rough road.

The city is also continuing to invest in facilities and emergency services.

Falcon said the new City Hall remains a major part of the city’s long-term planning. The purchase of the Rowland property and renovation costs total about $5 million. Falcon said the current City Hall, which has limited gathering and voting spaces, no longer meets the growing city’s needs. The council determined Cedar Springs is outgrowing the existing building as the city’s population continues to rise.

Public safety is another major focus. Falcon says the city expects to receive a new fire truck in January 2027. The fire department has also added two new paid-on-call staff members, both already fire-certified, with one also holding EMT basic certification, reducing training costs for the city.

The budget has also been shaped by significant outside pressures. The city reports one of the largest was legal spending tied to PFAS litigation, which cost the city more than $1.5 million during the 2024-25 fiscal year.

The lawsuit was filed by an Algoma Township couple and their neighbors after PFAS was found in their home's wells near the Russell Ridge area, about three miles south of town. The plaintiffs alleged the contamination came from the city’s water discharge site near Indian Lakes Road. The city disputed that claim and said testing found no PFAS chemicals on or near the site. A judge reportedly ruled in the city’s favor in May 2025, though the plaintiffs appealed to the Michigan Court of Appeals later that September. The outcome of the lawsuit is still yet to be seen.

Officials said the city is also missing expected revenue tied to marijuana tax distributions. Cedar Springs had anticipated about $156,000, but that money is not currently being received because of an ongoing dispute over the taxation of marijuana businesses.

Falcon said one of the most important things for residents to understand is that city finances operate through separate funds, each dedicated to different purposes such as streets, water or sewer. That means money collected for one system generally cannot simply be shifted to cover another need.

Taken together, the budget paints a picture of a city in a transition year: maintaining services, slowing down after a costly stretch, and positioning itself in a strong position for the future.

For residents, the message from city officials is straightforward: ask questions, stay informed and get answers from the source.

“We’re an open book,” Falcon said. “Our finances are posted to the city's website, and residents are always welcome to come in and review them for themselves. Facebook isn't in the source. We welcome people to come see the numbers firsthand."

The city's budget packet can be found here.