Grand Traverse County commissioners will review the county’s proposed 2026 budget today (Wednesday) – a nearly $56 million general fund budget that shows strong revenue growth due to rising property taxes, includes a $3.9 million debt payment for pension bonds, and allocates a $3 million general fund payment toward the county’s LaFranier Road campus expansion next year. Commissioners will also discuss the possibility of reviving a planning department, something it’s lacked since 2018.

According to a memo from County Administrator Nate Alger, the 2026 budget is balanced, reflects “conservative revenue and expenditure projections,” and expands county services. Grand Traverse County has a “strong revenue position,” Alger wrote, due largely to “strong growth” in the taxable value of local properties. That figure rose 7.5 percent over the last year, from $7.6 to $8.1 billion. “Property taxes remain our primary revenue source, and we are estimating our 2026 tax revenue to be $38,427,000,” Alger wrote. The trend is one likely to “continue in the years to come,” he added.

The county’s pension debt appears to be stable, with the 2024 audit showing the county is 91.65 percent funded on its liability. The county will make both a $3.9 million bond payment toward its pension debt and an additional $1.4 million payment to its provider in 2026. The county is also 68.45 percent funded on its other retirement benefits; the state of Michigan requires at least 40 percent. 

While staffing growth is minimal, capital investment is a heavy focus in 2026. The county plans to combine a $3 million general fund allocation with other funding sources – Alger previously said those could range from proceeds from the sale of PACE North building to the county’s fund balance – for a down payment of up to $13 million toward Project Alpha, the county’s LaFranier expansion. That project has a $26.2 to $27.6 million price tag and could break ground in the spring. A high down payment will reduce the amount the county has to bond and save it considerable interest over time.

Beyond Project Alpha, roughly $2.5 million in capital projects are planned in 2026. However, thanks to unused funds from previous years and reimbursement from the City of Traverse City for shared repairs at the Governmental Center, no new funding is requested for those projects. A variety of improvements to the Governmental Center, Historic Courthouse, Hall of Justice, Civic Center, Medalie Park, Natural Education Reserve, GT County Jail, and Law Enforcement Center are planned.

The proposed budget is still subject to change, Alger said. Commissioners recently approved two planning contracts – one for a new jail/justice facility, one for the future of Governmental Center and other county campuses – totaling about $385,000. Those costs weren’t yet known when the draft budget was being finalized, Alger said.

Commissioners last week also approved contributing up to $1,000 to each employee’s retirement savings plan, a potential cost of up to $500,000 that still needs to be incorporated into the budget. The county has also discussed undertaking an operations audit, which could range from $300,000 to $800,000. Alger noted $950,000 in contingency funds are included in the budget that could help address some of those issues.

Another outstanding item is the possibility of resurrecting a county planning department, also being referred to as a community development department. After former County Planning Director John Sych resigned in early 2018, the county didn’t fill his position and later dissolved its planning commission. Officials at the time didn’t see the point of county planning, as zoning decisions are made at the township/city level. Sych, however, emphasized the importance of county planning, noting that Grand Traverse County is the third fastest-growing county in Michigan and plays a “critical role in land use development, land redevelopment, and land preservation.”

The county later hired a community development coordinator, Maxwell Cameron. He presented the results of the county’s latest community survey to commissioners last week and discussed how “community development and planning could plan an important role” in addressing issues ranging from housing to mobility to economic development. Commissioners agreed Cameron is likely overextended and could use more support, though some preferred the language of “community coordination” or “development” as opposed to “planning” when discussing a new department. “We don’t want another layer of bureaucracy,” said Commissioner Darryl Nelson.

However, Commissioner Fern Spence said planning is “much more” than zoning, comparing it to a conductor of a symphony coordinating disparate efforts into a cohesive approach. Grand Traverse County should play a key strategic role in coordinating regional planning efforts, several commissioners agreed. Commissioner Ashlea Walter said the county has “seen the repercussions” of eliminating its planning department. Referencing issues from aging infrastructure to a lack of affordable housing to increasing traffic, Walter said the county lacked a ”regional plan for managing sustainable growth.”

Alger said in his budget memo that the administration recommends adding two full-time employees under planning/community development should commissioners decide to move forward. Initial costs are expected to be about $300,000.

Following today’s review, commissioners are expected to hold a public hearing and vote to approve the budget on December 17.