Traverse City News and Events

City Commissioners Approve Tax Increase, Budget

By Beth Milligan | June 5, 2018

Traverse City commissioners Monday approved the city's 2018-19 budget, along with several related items aimed at boosting revenues to city coffers, including a 1-mill increase to the city’s millage rate.

Commissioners voted 6-1 to approve next year's budget and to raise the city’s millage rate from 11.1167 to 12.1167. The increase will generate approximately $876,000 annually in additional revenue, according to City Manager Marty Colburn, and will cost the average residential taxpayer $144 extra per year. The funds will go toward making bond payments for sidewalk repairs and gap infill throughout the city.

Commissioners also approved charging a a .5 percent property tax administration fee that would raise $212,000 annually in revenue next year. The fee would cost a property owner with a $4,000 tax bill an additional $19.92 per year. Commissioner Brian McGillivary was the sole 'no' vote against approving the city's budget, millage rate increase, and property tax administration fee.

Commissioners Monday also unanimously agreed to raise the city's water and sewer rates to help pay for major upcoming infrastructure projects, which include the repairing of a water reservoir on Barlow Street, construction of a new two million-gallon water reservoir, and the city’s planned switch from analog meters to smart meter.

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