Summary
The Leelanau County Board of Commissioners held a budget work session on August 19, 2025, chaired by Steve Yoder, with Commissioner Mark Walter absent. The board approved the agenda (motion by Wessell, seconded by Robbins, 6-0). The session centered on commissioners stating individual budget priorities—including software upgrades, MERS funding, county parks funding, child care vouchers, and transparency in accounting—followed by extensive discussion with Administrator Jim Dyer, Finance Director Cathy Hartesvelt, Treasurer John Gallagher, and Chief Deputy Clerk Jennifer Zywicki about revenue-driven budgeting, staffing, and capital planning.
Public Comments
No public comments were made during either public comment period.
Parks and Recreation Matters
Commissioner Campbell listed properly funding County Parks as a priority. Administrator Dyer noted a Myles Kimmerly master plan exists for park development and suggested the board could plan a two-year project (2027-2028) budgeting roughly $1 million for major park enhancements, to be discussed further at a future CIP-focused work session.
Infrastructure Projects
Commissioner Bunek raised the aging roof at the Law Enforcement Center (nearing 20 years old, with an expected 30-year lifespan) as a needed future capital project, noting the facility’s debt would be paid off in 2028, freeing funds for such work. Chairman Yoder agreed the roof should become a priority. Treasurer Gallagher discussed the DTR fund (approximately $3.8 million) as the source for capital project draws and said he needs board direction, including a CIP spread over three to four years, to plan disbursements.
Other Business
Commissioners discussed Child Care Vouchers funded through the Early Childhood millage; Allgaier warned vouchers weren’t what voters approved and urged caution, while Wessell and Bunek recommended seeking a legal opinion and consulting the Leelanau Early Childhood Development Commission before acting. Commissioner Bunek suggested Early Childhood services could be put out for bid rather than automatically funded. Treasurer Gallagher also raised concerns about the 911/Emergency Management budget (currently costing the General Fund about $1.2 million after an expired millage) and suggested a cost study, as well as potential review of jail bed costs, raised by Commissioner Robbins. Chairman Yoder noted a GFOA report will be presented at the next budget work session.
Financial Summary
Finance Director Hartesvelt reported that an ARPA expense of over $800,000 had incorrectly rolled into the 2026 budget; correcting this reduced the fund-balance-forward figure needed to balance the budget from $1.124 million to $317,000. Only a negotiated 3% wage increase for Teamsters 214 General Union is currently budgeted; other union wages remain unresolved pending negotiations. MERS pension funding includes a budgeted additional $250,000 payment for 2026, though Wessell expressed concern this is insufficient, noting funding dropped from about 90% to 88%. Treasurer Gallagher estimated total reserves (General Fund, DTR, money markets) at roughly $5 million, with the DTR fund holding about $3.8 million; he said he would be comfortable maintaining a $4 million minimum. Commissioner Campbell estimated actual tax revenues could run $200,000–$300,000 higher than budgeted due to equalization changes.
Action Items
Administrator Dyer will seek a legal opinion on implementing Child Care Vouchers and develop a proposal in consultation with the Early Childhood Development Commission before any changes are made. Treasurer Gallagher will prepare a holistic financial/software (ERP system) presentation for a future work session, per Wessell’s request. Finance Director Hartesvelt will issue corrected budget worksheets reflecting the ARPA correction. Chairman Yoder will distribute a GFOA report before the next budget work session.