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City identifies $275,394 in missed PILOT distributions, vows corrections

Boyne City Commission · January 13, 2026
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Summary

Finance staff identified approximately $275,394 in unpaid payments-in-lieu-of-taxes (PILOT) due to taxing jurisdictions dating back to 2009 and 2015; staff said systems have been corrected and distributions will be made, and commissioners asked for root-cause analysis and confirmation future payments will be timely.

City staff disclosed that payments-in-lieu-of-taxes tied to certain properties were not distributed to taxing jurisdictions for multiple years. The clerk’s office identified roughly $275,394 owed to jurisdictions covering different periods for two properties: the lake parcel dating back to 2009 and park-related PILOT payments beginning in 2015 through 2024.

Staff said the discovery followed a records review and that corrective action has begun; the city will make the backlog distributions and has adjusted revenue tracking to prevent recurrence. Commissioners emphasized transparency and asked for an explanation of the root cause and for confirmation that going forward PILOT distributions will be processed on schedule.

The amounts will affect the general fund because prior distributions were not executed; staff said the payments are statutory distributions and will be made as required by state law. Commissioners requested a formal report documenting which years are affected, exactly which jurisdictions will receive funds, and the steps taken to prevent future omissions.

There was no vote on the informational item; staff said a follow-up report will be provided to the commission with documentation of the reconciliation and timelines for payment.