City Council Proposes Lower Property Tax Rate and Budget Increase for 2024

Bay City officials are gearing up for a budget that promises to lower property tax rates while addressing essential city services. During the recent City Council Workshop, the proposed property tax rate was revealed to decrease by one penny, bringing it down to 0.55772. This marks a significant achievement, as it reflects a cumulative reduction of nine cents over the past six years.

City leaders highlighted the importance of balancing the budget through various revenue streams, including a projected $141,000 increase from tourism, which will bolster the general fund. However, residents can expect a slight increase in garbage rates, averaging 3%, to offset rising contractor costs.

The budget overview indicated a general fund increase of 2%, driven by heightened activity in building and permitting, which is expected to generate additional revenue. The city is also working to keep water and sewer rates as low as possible while covering necessary debt payments.

A notable discussion point was the impact of Tax Increment Reinvestment Zones (TERs) on the city's financial strategy. Officials emphasized the potential benefits of maintaining these zones, which can help capture growth and provide funding for public infrastructure projects. The complexity of tax rate calculations was acknowledged, with plans to consult experts for further clarity.

Overall, the budget reflects a commitment to fiscal responsibility while ensuring that essential services and infrastructure projects continue to receive necessary funding. City officials are set to reconvene on August 26 to further discuss rates and finalize the budget, aiming to keep Bay City on a path of sustainable growth and community development.