Politics
Collingwood's State Aid Formula Shifts, Aligns With Mid-Sized Cities
Collingwood receives state municipal aid calculated on the new per-capita and property-value formula, placing its allocation in line with mid-sized communities such as Riverside and Oakfield.
How we reported this
The Municipal Funding Reform Bill passed the state legislature on June 22 and takes effect with the fiscal year beginning July 1, 2027. It replaces the prior fixed-block grant system with a formula that weighs resident population counts and total assessed property values when distributing annual municipal aid.
State budget documents show the change arrives after the previous authorization lapsed at the end of fiscal 2026. Cities must now submit updated population and valuation data by September 15 each year to receive final figures. Collingwood submitted its 2025 census adjustment and 2026 assessment roll last week.
Local Service Budgets
Under the revised formula Collingwood’s per-resident allocation sits at the statewide median for communities between 15,000 and 30,000 residents. That places it ahead of smaller towns such as Willow Creek but behind larger centers such as Riverside, which reports higher property values per capita. City staff have begun recalculating line items for street resurfacing, park maintenance and the public library operating subsidy.
Residents who use the Collingwood Recreation Center on Elm Street will see no immediate change in program fees next year, because the legislation directs that existing recreation grants remain level for two transition years. Library hours at the Main Street branch, however, depend on the final aid number the state releases in October.
Next Steps for City Government
The Collingwood City Council is scheduled to hold a public hearing on the revised budget on August 12. Staff will present three scenarios based on a 2 percent variance in the state aid estimate. The legislation requires any surplus or shortfall to be reconciled in the mid-year budget amendment due by January 31, 2028.
Policy analysts at the state legislative research office note that 47 municipalities will receive higher per-capita amounts than under the old system while 62 will receive lower amounts. Collingwood falls in the unchanged group once its updated valuation data are applied. The state Department of Revenue will publish the complete municipal aid table on its website by October 1.