The Michigan City Parks and Recreation Board approved its 2026 operating budget on Aug. 6 after staff said revenue projections were down and expenses were being pared to avoid deficits.
Superintendent Shannon told the board that the department had added about $30,000 in projected zoo revenue by planning fee increases that will take effect in October and recommended modest fee adjustments such as credit-card service charges. “We also added approximately $30,000 in revenue to the zoo because we'll be introducing some fee increases in October that would take effect next year,” Shannon said.
The board approved the budget by voice vote. The board debated several line items during the discussion, including a projected decline in parking revenue, vacation and sick leave buyback variances, and capital requests. A motion to approve the park department’s 2026 budget was made and seconded, and the chair indicated the motion carried on a voice vote.
The budget discussion centered on two persistent constraints: the department’s revenue streams are weather dependent and some state-level funding is declining, and the department must plan 18 months ahead for operations such as golf and zoo programming. Shannon explained the department relies on the prior full year — 2024 — when forecasting revenues. “We rely a lot on the last full year's revenues, so we use 2024,” she said.
Board members pressed staff on specific lines. A board member asked whether Millennium Plaza rental revenue was realistic after low activity in 2024; staff replied the 2026 projection was reduced because rentals were down and the department aimed to be “extremely realistic” given weather variability. Board members also asked about parking revenue; staff said parking was running roughly $80,000 behind last year at the same point, partly because of colder weather earlier in the season.
Shannon said the department is on a department-managed spending freeze to avoid overspending, and that quarterly variance reports would drive midyear adjustments. “We are on a mandated spending freeze in our department, mandated by me, not the city government,” she said. If revenues fall short, staff will pull back discretionary expenses.
Capital items discussed remain largely separate from the operating budget approval. Staff said the mayor and city controller are reviewing capital recommendations, including a pickup truck with plow and a utility “gator” for maintenance, and the mayor was exploring alternate funding for two new parking lots at Washington Park that would not be part of the department’s operating budget.
Public comment during the budget discussion included questions about funding for neighborhood parks (staff said neighborhood parks are funded through city capital and not the parks’ operating budget) and clarification about expected parking revenue for the current year.
The board approved the budget and will continue quarterly monitoring and line-item transfers as needed.