MARQUETTE, MI— The Marquette City Commission is considering increasing the City’s operating millage by 2.6731 mills this fiscal year to help alleviate a $1.9 million budget shortfall.
In a special meeting Monday night, City Manager Karen Kovacs said lower state revenue sharing, the Headlee Amendment, decisions by the Michigan Tax Tribunal, and the loss of major taxpayers like the Presque Isle Power Plant contributed to the deficit.
“Our tax base, while it’s going up, is not going up steady enough to cover our expenses, which are also increasing.”
Kovacs said right now officials’ major concern is keeping enough money in reserve.
“At this point, per our fund balance policy, we would hit that trigger mark—that we would have to take certain measures in order to get us to have the minimum amount of fund balance—we would hit that in Fiscal Year 2024. We would exhaust and be in the red completely and have no reserves, be $660,000 in the negative of our reserves, by 2025 if we do nothing.”
Kovacs noted the City was fortunate to have federal COVID money to pay for some necessary projects this past year, but going forward in 2022, the City has used all one-time sources.
The added millage would generate about $1.5 million in revenue. The average resident would pay an extra $226 per year, or $18.34 per month. Tax bills for average commercial properties would rise $965 per year, or $80 per month.
The Commission did not make a decision regarding the proposal at the special meeting. It will likely hold a vote in mid to late June.
