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Lathrup Village weighs a PA33 millage offset, police staffing and steep utility rate increases as budget gaps loom
Summary
City staff presented multiple budget scenarios that rely on a temporary PA33 millage (0.5–1.5 mills) and suggested offsetting road millage to keep resident tax bills neutral; council discussed cuts that could include eliminating part-time police positions and suspending a $50,000 retiree-health contribution. Water and sewer rate hikes of more than 10% were projected.
Lathrup Village staff presented a draft budget that includes multiple scenarios—no PA33 (deep cuts), a 0.5-mil, 1.0-mil or 1.5-mil temporary PA33 assessment—and recommended options to offset any new PA33 revenue with a corresponding reduction in the road millage to produce a neutral tax result for residents.
City administrator Mike Green told the council staff created discrete models so members could see trade-offs: suspending the PA33 would force significant service cuts, while a 1.0-mil PA33 combined with a one-mil reduction in the road millage would be roughly tax-neutral for homeowners but preserve capacity to pay for police staffing, capital purchases and limited COLA adjustments.
Council and staff reviewed several key budget trade-offs. The city currently budgets a $50,000 annual contribution to its retiree health funding vehicle (OPED) but staff said that payment is optional and the OPED balance (described as roughly $450,000–$500,000 in the discussion) would allow skipping the contribution for one or two years without falling below thresholds.
Public safety funding was a major focus. Police leadership described an aging vehicle fleet — including a detective car with roughly 180,000 miles — and the operational value of part-time patrol officers, which staff estimated cost approximately $100,000 in total; eliminating part-timers would increase overtime costs and reduce scheduling flexibility. Staff estimated a fully topped-out patrol officer, including benefits, could cost roughly $120,000 annually.
On utilities, staff warned of double-digit increases: an estimated 12.5% water increase and roughly a 15% sewer increase driven by GLWA and Evergreen-Farmington rate changes and new bond obligations; staff said the Evergreen–Farmington district planned a rate roll-out in mid-August with an effective date of July 1 for the rates.
Council members asked staff to present clear, line-item trade-offs tied to each PA33 option, to attach numbers to services preserved by PA33 (for example, police patrol and vehicle replacement) and to continue budget conversations in study sessions prior to the formal public hearing scheduled for May.
