The City of Dowagiac’s newly cemented $3 million budget does more than set the course for the upcoming fiscal year.

It also sets the stage for the next decade of improvements inside the city limits.

Members of the Dowagiac City Council unanimously authorized the passage of the city’s FY 2015-16 budget during a special meeting at city hall Monday evening. With a number of longstanding expenses related to energy and the city’s industrial park property expected to be paid off by next year, the recently passed financial plan is described as a “transition budget,” that will set the stage for the city for the next 10 years, said City Manager Kevin Anderson.

“Once we finish those items, that really sets the community up from a cash flow standpoint to be able to look at those major projects that have been setting on the side and can really advance the cause of the community over the long haul,” Anderson said.

General fund revenue streams are expected to improve in the upcoming fiscal year, which begins in October, allowing the city to remain in the black with a $24,470 surplus. While taxable property values are projected to stay around the same level as the last project, the city will likely see more dollars from the Michigan state shared revenues fund due to increased sales tax revenue, Anderson said in a memo to the council.

Among the major projects included in the upcoming budget are the recently approved improvements to the city’s wastewater treatment plant and sewage systems, the latter of which will be mainly funded through a state wastewater grant the city applied for nearly two years ago, Anderson said.

“It’s a 90 percent paid grant, so it will cover a large amount of costs,” Anderson said.

Another highlight the city manager pointed out in the upcoming budget was the number of contracts the city has in place with various local entities, including the Cass County Drug Enforcement Team for public safety and Southwestern Michigan College for the local history museum.

“We have about 50 agreements overall,” Anderson said. “It’s amazing what those partnerships have done to help us contain costs and hold the line on solid revenues over the years as well.”

As in previous budgets, the city’s solid waste fund continues to present a challenge, due to costs of monitoring the former city landfill site on Nubour Road. With current revenue streams not able to match the expense of this obligation, the new budget projects a millage rate of 2.8, up from 1.98, to make up the difference.

“We’re not going to have to go as far as we though we would, given the level of testing and costs of some of the construction, so I think that’s a good sign,” Anderson said.

Another issue the plan projects is an increased price of wholesale energy from Indiana Michigan Power, which could necessitate a 3.5 percent rate hike for city electric customers, Anderson said. The city manager advised that the council not take action on any utility rates until early summer or late fall, though.