Traverse City Record-Eagle

Region

May 29, 2010

Levy to increase .38 mills

City is close to finalizing budget for 2010-2011

TRAVERSE CITY — A city commissioner's quest for lower taxes next year won't be realized, and residents will see a minor increase over this year's levy.

The city is close to finalizing its 2010-11 budget, and residents' total levy will increase about 0.38 mills over 2009-10, thanks to a dedicated police and fire pension millage.

That means an increased tax of about $28, based on an average residential property taxable value of $75,351.

Commissioner Mike Gillman in recent months pushed to see the city lower its millage rate. The city stands to be more competitive in attracting business and residents if it lowers its tax burden, he figured.

But City Manager Ben Bifoss said a lower millage could have jeopardized commissioners' plans to spend a hefty $1 million on infrastructure next year, so Gillman abandoned the idea.

"I reluctantly gave up this year the millage decrease idea, but I have not given it up as a long-range goal," he said.

Gillman also was behind a proposal to guarantee at least $1 million in infrastructure spending a year for the next 15 years. A lower millage would have damaged the infrastructure plan within the confines of next year's budget, but Gillman believes it's possible in coming years to both lower taxes and maintain infrastructure spending.

The solution: Find savings elsewhere. Gillman was a member of the Citizen's Operational and Financial Analysis Committee, or COFAC, a local citizens group formed in 2007 to examine city finances.

Among COFAC's ideas was orchestrating savings by merging the city's fire or police forces with neighboring departments. Gillman, part of a growing chorus of residents calling for a change in police and fire structure, thinks it's something that needs to be explored.

"I think it's obvious that the (potential savings) are in the public safety arena," he said.

Bifoss couldn't say what will happen with police and fire in the near future. As for a tax reduction, he said commissioners could cut the city's millage in half, if they wanted. Reductions are always possible, but are tied to service.

"We could operate on half the levy, but there'd be half as much activity going on," he said. "It's just a matter of what level of service people want ... Could we (cut the millage)? Absolutely. Could it affect services? Absolutely."

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