Financial study warns Zeeland could lose roughly 38% of taxable value if ZGS plant closes

City staff and outside consultants warned that Zeeland faces a substantial fiscal risk if the Consumers Energy generating facility referred to as ZGS stops operating.

Assistant City Manager/Finance Director Kevin Plockmeyer introduced a financial sustainability study at a Dec. 1 study session. Consultants John Kaczor of Municipal Analytics and Nate Geinzer of Double Haul Solutions presented the model and its findings, saying the study examined scenarios including the potential loss of about 38% of the city’s taxable value if ZGS ceases operations.

Presenters said the study’s goals were to identify the fiscal impact, review current operations and management policies, benchmark against peers, evaluate intergovernmental service and revenue options and develop a forecast model under multiple scenarios. The report also proposed strategies the city could pursue to build resilience, including facilities upgrades to reduce operating costs, housing and strategic reserves and pursuing cost-neutral downtown parking solutions.

As next steps, the presenters recommended establishing strategies to manage 10–15 years of elevated tax receipts while also preparing for possible declines, and beginning negotiations on new terms for the city’s 425 agreement well before the current agreement expires. The study session adjourned after council members received the presentation; the transcript records the presentation summary and recommendations but does not record a formal council vote on specific fiscal measures.

The report’s 38% figure is presented in the meeting record as an estimate from the consultants’ modeling; council members and staff will need further detail from the full study and follow-up analyses to determine policy responses and confirm the estimate’s assumptions.