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Regular Meeting July 28, 2026
Village of Marcellus Council Proceedings
President Irwin called the regular meeting of the Marcellus Village Council to order at 7:00 p.m on July 28, 2026, in the Marcellus Village Hall. Trustees present: Markle, Engstrom, Haley M., Haley G. and Watts. Trustee Webb was absent.
Agenda
Motion by Irwin, supported by Engstrom, to approve the agenda with the following addition:
- Under President's Report
e Add Item A. Bluegill Frolic e Add Item B. July 27, 2026, Storm
Ayes: All. Nays: None. Motion carried. Minutes
Motion by Haley M., supported by Markle, to approve as presented and place on file the minutes of the July 14, 2026, regular meeting. Ayes: All. Nays: None. Motion carried.
Bills
Motion by Haley G., supported by Engstrom, to authorize the payment of bills in the amount of $80,913.80. Roll Call Vote — Ayes: Markle, Haley M., Irwin, Haley G. and Engstrom. Nays: Watts. Motion carried.
Consent Agenda
Motion by Engstrom, supported by Haley G., to receive and place on file all items on the Consent Agenda. Ayes: All. Nays: None. Motion carried.
Andy Campbell — Bendzinski & Co. Municipal Financial Advisors/AP Grant Water Rate Study
Andy Campbell, of Bendzinski & Co., formerly of Baker Tilly Municipal Advisors, LLC, presented the Village Council with the updated Water Rate Study Report dated June 23, 2026. The study is part two of the activities funded by a $15,000 Affordability and Planning (AP) Grant from the State of Michigan, which covered both rate studies. He shared the following schedules and appendices related to the report:
1. Comparative Detail of Operating Expenses 2. Schedule of Existing Debt Service
3. Schedule of Capital Improvements
4. Cash Flow Analysis
Mr. Campbell reviewed the water systems customer base and noted the existing bond obligations, which included the 2020 refunding (refinanced) bonds and the 2022A and 2022B revenue bonds, which require an average annual payment of approximately $145,000. He highlighted the Capital Improvements Plan, which outlines cash-funded improvements and debt- funded water main replacements over the next five years, an annual $40,000 set aside for emergency repairs and a $1 million grant/earmark for Water Treatment Plant improvements.
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Regular Meeting July 28, 2026
Village of Marcellus Council Proceedings
Mr. Campbell stated that while the Village has in recent years implemented 2% annual rate increases, rising operational and maintenance costs (current inflation forecasted at 4% to 5%) and capital project needs mean a 2% increase will cause cash reserves to fall below zero by 2029. As a result, Bendzinski & Co. recommends a minimum annual increase of 8% starting in 2027 to maintain positive cash reserves and support system capital improvement needs.
In addition, Mr. Campbell stated the fund is being properly managed, but he is raising an “orange flag” due to significant cost increases, He reminded the Council that the current debt structure provides no relief until 2036 when the refunded bonds are paid off. He also noted that grant funding is becoming less available, with the State advising municipalities to plan on receiving only 20% to 25% grants.
He added that cash reserves falling below $200,000 would be concerning as that level is essential for operations. Under the current 2% increase, which raises the average $64.70 monthly bill by $1.25, the Water Fund will run out of money in 2029 if the Village proceeds with the Capital Improvements Plan as scheduled. He stated that Bendzinski is recommending an 8% increase which would raise the average bill by $5.18 per month.
Motion by Irwin, supported by Haley M., to reschedule the water rate increase discussion to August 11, 2026, Village Council meeting. Roll Call Vote - Ayes: Haley G., Engstrom, Irwin, Haley M., Markle and Watts. Nays: None. Motion Carried.
Alisa Burleigh — Regina's Request for Liquor License Approval
The Village Council received a request from Alisa Burleigh, owner of Regina's at 103 and 111 East Main Street, to release her liquor license from escrow with the Michigan Liquor Control Commission. Invin moved, supported by Haley G., to approve the request to release the liquor license from escrow and resume operations. Roll Call Vote — Ayes: Haley M., Engstrom, Markle, Irwin and Haley G. Nays: Watts. Motion Carried.
President's Report
Bluegill Frolic
President Irwin reported that the Bluegill Frolic has reached and exceeded its goal to raise $32,000 by approximately $1,300.
Monday Night's Storm President Irwin addressed the significant storm damage from the July 27, 2026, storm and
reported that the DPW has all the local roadways open and will continue to clean up the downed limbs and trees as quickly as possible.
Clerk's Report CHILL, MI Neighborhood and MIN 2.0 Updates
MSHDA CHILL, MI Neighborhood and MIN 2.0 team member Seth Carlson provided an update on the Village's three housing rehabilitation programs. He noted that they are currently working with four different cohorts and are 2 weeks ahead of schedule.
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Regular Meeting July 28, 2026
Village of Marcellus Council Proceedings
2026 Budgets
Village Manager/Clerk Terrill presented proposed amendments and changes to the Village budgets, reported on the condition and expected revenues and expenses for all Village funds for FY 2026 and shared the following information for each of the Village funds:
General Fund (101)
The amended 2026 General Fund budget updates the beginning fund balance and several revenue and expenditure categories. The beginning fund balance increased after year-end entries were completed. Revenues rose due to added grant funding and updated reimbursements. Expenditures increased for DPW wages and related benefits, hall repair and maintenance, insurance, and attorney and forensic engineer costs for the Downtown Beautification Project, while other departments remained largely unchanged. The CHILL program, MI Neighborhood 2.0, and the state MI Neighborhood grant all show matching revenues and expenditures because they are reimbursement-based, including remaining state grant revenue and project costs carried into 2026. Outside of these grant programs, higher DPW wages/benefits, hall repairs, and insurance reflect increased workload and costs. The ending fund balance increased with the updated beginning balance and added grant revenue, but the fund remains tight because grant dollars cannot be used for general operations such as wages, utilities, insurance, or routine maintenance.
Major Street Fund (202)
Major Streets shows reduced expenditures. Total expenses decreased because capital outlay of 53,000.00 was removed. Winter repair increased and non-motorized improvements increased to support sidewalk work which is where a portion of the removed capital outlay was redirected. The Village's transportation asset management plan is nearing completion and will guide project scheduling over the next one to two years as the Village works to secure grant funding to support those improvements.
Local Street Fund (203)
Local Streets shows increased operational costs. Expenses increased for wages, winter repair, non-motorized improvements to support sidewalk work on local streets and equipment rental. This reduces the ending balance from 41,389.00 to 38,869.00. The Local Street Fund is included in the Village’s TAMP, which will guide us in project scheduling as we work to secure grant funding to support local street improvements.
Municipal Street Fund (204)
Municipal Streets shows reduced expenditures. Capital outlay decreased because planned storm water system work was deferred and will be scheduled alongside a major or local street project when that work occurs. Repair and maintenance increased and vehicle rental increased but the reduction in capital outlay was larger than the increases in other categories. As a result, the ending fund balance increased from 104,525.00 to 142,066.00 which is about 38,000.00 higher than originally budgeted.
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Regular Meeting July 28, 2026
Village of Marcellus Council Proceedings
Sewer Fund (590)
The Sewer Fund shows increased operating expenses for wages and related expenses. Capital outlay increased for capital improvements, but it is possible these improvements will be pushed into next year, Depreciation was removed from the amended budget because it is not a cash expense. The bond principal payments to Huron Bank are also not operating expenses because they reduce the liability rather than count as expenditures, but they are shown in the budget so Council can see the cash impact. The budget reflects long-term capital planning, including scheduled sludge removal in 2033 and 2034 and ongoing preparation for future needs. Sludge removal is estimated at around $1 million per lagoon, and the Village is saving for this work to reduce or avoid borrowing when the project occurs. One positive factor is that the Huron Bank bonds will be paid off in 2036 so the Village will no longer have that expense.
Water Fund (591)
Water Fund revenue shows a change in the way revenues are distributed. You will see billing revenue increased and LCR billing revenue decreased because the Village combined these revenues beginning in January 2026. Operating expenses were increased for wages and related expenses. The Water Fund continues to maintain a cash balance that is higher than recommended in the 2026 water rate study completed by Andy Campbell, but this balance is temporary. The study recommended a minimum annual rate increase of 8.0% and presented two rate paths for council consideration: a 2.0% annual inflationary increase that would not keep pace with rising operating costs or capital needs, and an 8.0% annual increase beginning in 2027 that would maintain adequate cash reserves and support long-term capital planning.
The Village is actively managing significant capital needs identified in the Village's Capital Improvement Plan and the 2026 water rate study, including water treatment plant improvements, generator replacement, and substantial watermain projects scheduled throughout 2026 through 2031, with additional capital projects continuing through 2036. The study shows more than $1 million in cash-funded watermain replacements in the next three years, along with a major debt-funded watermain project of approximately $1.3 million planned for 2031. The Village also needs to set aside $40,000 annually for emergency repairs and capital planning. The $1 million Congressionally-funded water treatment plant project is expected to begin in 2027 in addition to the generator replacement project, which will hopefully be funded by the FEMA grant submitted this month. These items fall within the short-term planning window of the next one to three years. The higher cash balance reflects the timing of these scheduled improvements and the Village's effort to maintain rate stability over the long term while reducing future bonding debt by cash-funding improvements where feasible.
Garbage Fund (596)
Garbage Fund revenue remained stable with billing revenue unchanged from the adopted budget. Operating expenses decreased slightly. Wages and related expenses remained consistent with the adopted budget, with modest increases in health insurance, short-term disability/life insurance and operating supplies. The Garbage Fund is operating within the rate structure which is sufficient to cover contracted service costs and routine administrative expenses for 2026.
Motion by Irwin, supported by Engstrom to approve and place on file the Manager/Clerk’s report on all 2026 budgets for all funds and to approve the amendments for all Village funds. Roll Call Vote — Ayes: Watts, Engstrom, Markle, Haley G., Irwin and Haley M. Nays: None. Motion Carried.
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Regular Meeting July 28, 2026
Village of Marcellus Council Proceedings
Reminder of Public Hearing August 11, 2026 ~ Zoning Board of Appeals — 396 Elm Street
Village Manager/Clerk Terrill reminded the Council of the public hearing regarding a Variance Request for 396 Elm Street will be August 11, 2026, at 7:15 PM.
DPW
June 2026 DPW Report
Motion by Irwin, supported by Haley M., to receive and place on file the June 2026 DPW Report. Ayes: All. Nays: None. Motion Carried.
Toolbox
Motion by Markle, supported by Haley M., to approve the purchase of a toolbox from Harbor Freight in Three Rivers, Michigan, at a cost not to exceed $1,800.00. Roll Call Vote — Ayes: Engstrom, Irwin, Haley M., Markle, Haley G. and Watts. Nays: None. Motion Carried.
Personnel Committee
Parks & Recreation Employee
Motion by Haley M., supported by Watts, to approve the advertising and hiring of a Parks & Recreation Employee, starting full-time at a wage of $19.00 per hour, plus bencfits to maintain the Village Parks/Grounds and assist the DPW as needed. Roll Call Vote — Ayes: Haley M., Watts, Markle, Engstrom, Irwin, Haley G. Nays: None. Motion Carried.
Planning Commission
Planning Commission Chair James R. Thomas, Jr., reminded Village Council members of the Planning Commission's Public Hearing for consideration of repealing Section 19.13, Keeping of Animals, which is scheduled for August 12, 2026, at 7:00 p.m. during the Planning Commission's rescheduled regular meeting.
Adjournment
Motion by Markle, supported by Haley M., to adjourn at 8:17 p.m. Ayes: All. Nays: None. Motion passed.
} ‘ ‘ / bee < _ Debbie Garcia Dennis Irwin Deputy Clerk Village President
Text extracted from the official record; formatting may differ.