Photo by Caroline Miller
The Chelsea City Council meets at Chelsea City Hall on Tuesday, Sept. 15, 2026.
The Chelsea City Council this week approved a $28.2 million budget for fiscal 2027, which is 31% more than the 2026 budget of $21.6 million.
Most of this increase is associated with ongoing capital projects funded with $8.2 million the city borrowed in 2026, but the city also continues to experience economic growth and is expecting several commercial developments to come online during 2027, City Finance Director Wayne Barber said.
The city has about $4.2 million remaining from the 2026 bond proceeds that have been designated for projects at Chelsea High School, City Hall expansion improvements, converting tennis courts into pickleball courts, and park improvements, Barber said.
The 2027 budget also includes other significant capital projects, with the city securing $2.4 million in grants for pedestrian and streetscape improvements along Chesser Drive, from Chesser Plantation to Atchison Drive. The total anticipated cost is about $3 million, Barber said. The city also is planning improvements to Stanley Road and the Shelby County 47 and U.S. 280 area, which would be funded from state gas tax revenues and state capital improvement funds, he said.
Revenues for 2027 are projected to be $23.3 million, up 7% from $21.7 million in 2026, with the primary increases coming from taxes and revenues from licenses and permits.
Tax revenues are projected to rise by 7.05% from the 2026 budget, reflecting actual growth experienced in 2026 plus a 3% growth assumption for 2027, Barber said.
With more stores expected to open in Chelsea in 2027, sales tax revenues are projected to grow by 3%, and revenue from the simplified sellers use tax (which comes from online sales) is projected to grow by 6% over 2026 collections, Barber said.
Revenue from licenses and permits is expected to increase by 29%, primarily due to the city’s decision to administer the permitting process in-house rather than contracting with the county, he said.
The 2027 budget includes $7.9 million for salaries, payroll taxes and retirement expenditures for city employees, compared with $6.8 million in the 2026 budget. The $1,152,940 increase in personnel costs can be attributed to several factors, including implementation of the city’s new pay scale for non-Fire Department employees, a 5% step increase for fire personnel, an estimated 3% increase in health insurance costs and an increase in the retirement contribution effective Oct. 1, Barber said.
The budget also includes $64,500 for vehicles, with the city contracting with Enterprise Fleet Management for seven fleet vehicles that will be provided through 60-month equity leases and include fixed maintenance programs.
In other business Tuesday, the City Council approved a resolution authorizing Mayor Cody Sumners to renew the city's contract with the Shelby County Commission for law enforcement services through the Sheriff's Office. The 12-month agreement, running through Sept. 30, 2027, with automatic annual renewals through fiscal 2029, calls for the city to pay roughly $1.73 million for its first year covering 12 contracted deputies and money for criminal investigations. Overtime would cost extra. The contract also opens the door for the city to hire its own school resource officers beginning in August 2028.
The council also on Tuesday:
- Approved a new employee classification and compensation plan for the city, effective Oct. 1
- Increased transport billing rates for Chelsea Fire & Rescue ambulance services
- Approved a license for Waldo’s Chicken and Beer to sell liquor
- Declared some outdated office electronic equipment as surplus and authorized its disposal
- Raised the city's assessment letter request fee to $50, plus a $50 expedite fee for last-minute requests
- Authorized the mayor to sign agreements for maintenance services with TK Elevator, Taylor Generator and Vanguard Cleaning Services
- Approved an agreement for BrainCo Technologies to provide the city’s Building Services Department with commercial plan review software
- Established rental policies and fees for use of the Senior Lodge
