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Traverse City adopts $126 million 2026–27 budget with $42 million tied to strategic plan
Summary
The city commission adopted a $126 million fiscal 2026–27 budget that allocates about $42 million toward the community‑driven strategic action plan and approved related tax‑levy resolutions after a public hearing and debate about TIF and pilot program impacts.
Traverse City’s City Commission adopted the fiscal 2026–27 budget on May 18, approving a package of tax‑levy and budget resolutions after a public hearing and discussion among commissioners.
City Manager Benjamin presented the budget as the first he prepared in office, saying the plan covers roughly $126,000,000 across all funds and links approximately $42,000,000 of that total to the commission’s community‑driven strategic action plan. He reminded commissioners the figures can be revisited during the year and described plans to convene an ad hoc committee in September to review the city’s fund balance policy and long‑term cost pressures.
During the statutorily required public hearing, resident Brad Bimber focused on the city’s millage rate and the effect of tax increment financing (TIF) arrangements, saying TIF programs — including TIF 97 and Old Town TIF — divert revenue from the city’s operating millage and raise the tax rate citywide. Another commenter, Larry Gershbacher, questioned utility billing practices after a reported $150,000 loss tied to credit‑card payments to Traverse City Light & Power.
Commissioners asked staff to clarify multi‑year revenue projections and the representation of possible TIF expirations in the consolidated fund forecasts. Laurie Bohack (deputy DDA director) explained that projections included the potential expiration of TIP 97 and that staff were planning for a worst‑case scenario in the out‑year consolidation.
Several commissioners also pressed for continued attention to the fiscal impact of long‑running pilot programs that reduce city tax receipts; staff provided a summary table showing the city’s cumulative pilot‑program concessions and projected ongoing impacts.
The commission voted to adopt the budget and related resolutions — including tax levies, capital improvement plans and the Traverse City Light & Power budget — by a single omnibus motion. The motion passed by roll call. The adopted budget takes effect immediately, and adjustments may be made by future amendments.
What’s next: staff will return with further financial policy work and the ad hoc committee will review the fund balance policy in September.
