CHEBOYGAN — The Cheboygan City Council approved a budget for the 2025-26 fiscal year and a new ordinance governing short-term rentals in the city during their meeting on Tuesday, June 24.
Council signed off on $4.1 million spending plan for day-to-day operations that is basically flat with this year’s budget. City manager Dan Sabolsky said this budget should leave a reserve fund of about $1 million next year, equal to the current reserve amount.
Sabolsky said the city has incurred about $900,000 in expenses related to the March 28-30 ice storm that ravaged Northern Michigan. About $200,000 has already been spent and there are about $700,000 in pending expenses, such as debris clearance and removal. The city has applied for financial help with the expenses from the Federal Emergency Management Agency. He expects to hear from the agency later this year.
The $4.1 million budget includes approximately $1.9 million for public safety services. About $1.3 million of that will come from the city’s general operating fund and nearly $600,000 from the five-mill levy for police and fire services.
Councilwoman Mary Darling is still not pleased with that millage and said it is too much for many residents on fixed incomes who are struggling with higher living expenses. It prompted her to vote no on the budget while council members Adam Bedwin, Hayley Dodd, David Martin, Diane Mills and LeRoy Ormsbee were yes votes. Mayor Brett Mallory did not attend the meeting.
Sabolsky said the budget will also include funds for another police officer and a code enforcement officer.
“We will do a rental inspection program and have zoning fees. When we collect that money we can then hire a code enforcement officer,” he said.
For the owner of a property that has a taxable value of $100,000, they will pay a little over 20 mills in property taxes, or about $2,046, next year. The 20 mills includes 14.46 mills for city operations, the five-mill police and fire levy and one mill to refund a bond.
Meanwhile council adopted a new ordinance that will regulate short-term rentals in the city. The old ordinance was approved back in 2010 before online marketplaces like Airbnb and Vrbo became more prominent in the lodging industry.
The new ordinance, which becomes effective in 20 days, limits the number of permits for short-term rentals to 12 and none will be allowed in a residential area. Sabolsky said there are some short-term rentals currently operating in residential areas that will have to eventually close.
“The old (ordinance) said no short-term rentals were allowed in R1 (residential zoning) districts. So if they were never legal they can’t be grandfathered in. At some point they will have to phaseout operations,” he said.
— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.
This article originally appeared on Cheboygan Daily Tribune: Cheboygan council approves 2025-26 budget, new short-term rental ordinance
Reporting by Paul Welitzkin, Cheboygan Daily Tribune / Cheboygan Daily Tribune
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