In the heart of Bay City’s bustling city hall, council members gathered on July 22, 2025, to dissect the financial health of the city, focusing on four major funds: the general fund, public utility fund, airport fund, and hotel-motel fund. The atmosphere was charged with anticipation as officials presented a comprehensive overview of the city’s fiscal performance, revealing both challenges and promising trends.

The general fund, a critical component of the city’s budget, reported revenues totaling $15.8 million, representing 83% of the budget. Property tax collections were robust, with $5.3 million received, nearly hitting the budgeted target. However, sales tax revenue showed a slight decline, down 1.91% from the previous year, raising concerns about future economic activity. Despite this dip, projections indicate that the city may still exceed its budgeted sales tax figures, a hopeful sign as summer and back-to-school spending approaches.

Expenditures from the general fund stood at $13.7 million, or 68.3% of the budget, with only a few departments exceeding the 75% threshold due to necessary infrastructure repairs. The city’s reserve levels remain strong, exceeding the minimum policy of 25%, which allows for funding of non-recurring expenditures like emergency repairs.

Turning to the public utility fund, revenues were reported at 82% of the budget, buoyed by increased construction activity leading to higher water and sewer tap fees. Expenditures were notably low at 61%, indicating prudent financial management. The fund’s reserve is projected to be approximately 36% by year-end, providing a cushion for essential infrastructure repairs.

The airport fund showcased impressive performance, with revenues exceeding expectations at 110% of the budget, largely due to T-hanger rentals and grants. However, expenditures were at 80%, necessitating future budget amendments to address a negative fund balance.

In contrast, the hotel-motel fund reported a revenue increase of 105%, driven by strong hotel activity and interest income. The fund’s beginning balance was a healthy $1.1 million, and despite budgeting only $200,000 for the year, the ending balance is projected to be around $900,000.

As the meeting progressed, discussions also touched on the potential impact of upcoming industrial turnarounds on hotel tax revenues, with council members considering strategies to monitor and support local businesses during this period.

In a final note, the investment report highlighted a successful quarter, with earnings of $328,000, a significant increase from the previous year. The city’s investment portfolio remains diversified and liquid, ensuring financial stability amid fluctuating market conditions.

As the council concluded its meeting, the financial summaries painted a picture of a city navigating challenges with resilience, poised for growth while maintaining a vigilant eye on its fiscal responsibilities. The discussions underscored the importance of strategic planning and community engagement as Bay City continues to evolve and thrive.