Traverse City commissioners tackled a busy agenda Monday that included discussion on how to spend funds from a planned tax increase on residents, changes to the zoning rules for Eighth Street and septic rules for homeowners, and increasing the salary of City Manager Marty Colburn.

Tax Increase
City commissioners plan to hammer out exactly how to divide an estimated $867,000 from raising taxes on residents this year among various city sidewalk and street projects.

Commissioners in June voted 6-1 to raise the city’s millage rate by 1 mill, from 11.1167 to 12.1167. The increase will cost the average residential taxpayer $144 extra per year. Colburn asked commissioners Monday to pass a resolution more specifically detailing that the millage increase will go toward sidewalk and complete street improvements. But commissioners said they first wanted to have more discussion about how exactly the funds will be spent – including the possibility of bonding up to $4.9 million for citywide sidewalk improvements – and formed an ad hoc committee that will draft a policy for spending the millage funds.

Commissioner Richard Lewis pointed out the commission hasn’t yet had a final vote to approve bonding the citywide sidewalk project, though the board has had multiple discussions on bonding and has previously expressed support for pursuing that path. Lewis said commissioners should create a policy that outlines what percentage of millage funds each year are spent on sidewalk versus street improvements, and have a full discussion on whether bonding is the best option for sidewalk upgrades.

“The issue is do we want to do (sidewalk improvements) in a three-year period, or…put the same amount of money that we’d be paying bonds on (and spread the funding out) over a 15-year period and probably accomplish more,” Lewis said. “Until we adopt the resolution to issue bonds, it’s still an open question.”

Commissioner Brian McGillivary agreed with creating a spending policy for millage funds, saying it would help provide direction for future leadership if there’s turnover in city administration or the city commission. He said the policy could set a “minimum toward sidewalks” and detail what percentage of funds would go toward roads or other projects. Lewis, McGillivary, and Mayor Jim Carruthers will sit on the ad hoc committee that will bring a recommended policy back to the entire commission for approval.

Septic Rules
Some city residents who use septic tank systems could be required instead to connect to the city sewer system after commissioners changed the ordinance rules Monday.

The city’s rules previously required buildings within 200 feet of a public sewer to connect to the city system and banned such properties from using on-site private sewage disposal systems. Commissioners voted 6-1 to extend the distance to include all buildings within 500 feet of a public sewer, with McGillivary opposing the motion. A memo from City Engineer Tim Lodge and Director of Municipal Utilities Art Krueger indicated at least two projects have recently come forward that were just outside of the 200-foot requirement and expressed concerns about those sites using septic tanks instead of public sewer.

“Recently, a property owner on Boardman Lake has challenged our position that they should be required to extend the public sewer to service their property,” Lodge and Krueger wrote. “This change will assure the requirement that they connect to the public sewer. We also had a request to install a private drain field along Airport Access near the Coast Guard property, which is an environmentally contaminated property. Both of these situations are just outside of the 200-feet distance in our current ordinance…we recommend this change to ensure the necessary environmental protections to our natural resources and environmentally impacted properties.”

Colburn told commissioners staff didn’t know exactly how many septic systems are in use in city limits or would be affected by the ordinance change, though he said employees were compiling that data. But he said the rule change would help protect both the environment as well as the city by reducing the likelihood of a failed septic system in city limits. “There is case law in place where cities are actually held accountable for the failure of these types of systems,” Colburn said. The rule change will go into effect September 14.

Eighth/Hall Street Changes
City commissioners approved several changes to development rules along Eighth and Hall streets Monday.

The zoning changes to the city’s D (development) districts were recommended by city planning commissioners. Chief among the changes is banning any new driveways from being built on Eighth Street between Woodmere Avenue and Union Street – unless properties have no other access through alleys or side streets. Other changes include increasing front-yard setbacks from three feet to five feet, and requiring buildings to be 25 feet from the water. The ordinance overhaul also reduces the first-floor minimum height requirement from 15 feet to 14 feet, and eliminates off-street parking requirements for properties within 500 feet of a transit center. The rule changes go into effect September 14.

City Manager Salary
Finally, city commissioners approved an increase to Colburn’s salary Monday and expanded some of the city manager’s benefits. Commissioners agreed to a $3,000 salary increase – from $115,000 to $118,000 – and increased Colburn’s annual vacation time from three to four weeks. The board, however, rejected a request from Colburn to have an automatic cost-of-living increase each year that would range between two and four percent of his salary, preferring instead to negotiate increases annually based on performance reviews and the city’s fiscal health.