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City taxes may rise next year

Property and water increases on slate for Mount Pleasant

By: Frank Wisswell

Issue date: 10/17/07 Section: News
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A proposed Mount Pleasant millage increase designed to help fund the Borden Building renovation could increase taxes for city residents,

The millage would go into effect if commissioners approve the 2008 city budget, scheduled to be voted on at the Dec. 17, meeting. The property tax is currently 15.45 mills and the increase would add .6 mills.

The change would mean an owner of a $100,000 home would see a $15 yearly increase on their city tax bill and an owner of a $400,000 business would see a $60 increase.

During a special Monday meeting, Nancy Ridley, Mount Pleasant finance director. said she still hasn't found out how much money the city would be receiving from the state of Michigan for the 2008 fiscal year.

"The economy of Michigan is going to continue to play a role," Ridley said. "We need to continue to keep our eye on it."

The special meeting was designed to answer commissioners' questions about the 2008 operating budget.

The city also will raise the price of water in 2008 to compensate for shrinking water revenues. Residents can expect to pay an average of $16.80 more per year for water.

Small businesses in Mount Pleasant can expect an annual increase of $40.80 a month, although Ridley said it was difficult to estimate.

"There's no such thing as a typical small business," she said.

Ridley said even though the city announced a "break even" budget for 2008, the city had financial problems as late as 2005. Ridley said in 2005, the city noticed growing expenditures.

She said the city has worked in the last three years to balance the budget. Although no cuts were made in 2008, Ridley said the state's budget could negatively affect Mount Pleasant in the future.

"We're not out of the woods just yet," Ridley said. "If the state's not going to solve their budget problem, we're going to be in that position again."

The city of Mount Pleasant also is planning to spend $60,000 next year on a survey to determine what public services citizens value and what services are needed.

"(The goal of the survey is) to build a baseline to determine our decision-making process in the future," said Kathie Grinzinger, city manager.

Commissioner David McGuire said $60,000 is too much to spend on a study.

He suggested the city could do the same study for less through CMU.

"We have a university down here. I think we need to use it," McGuire said. "I'd rather give the university $5,000 for the same product."

The city also is planning on spending money in 2008 on energy-saving measures at some of their facilities.

The Department of Public Works, water and wastewater treatment plants, and city airport all get energy-effecient upgrades in the next year's budget.

Ridley said the city is expecting the energy savings to pay for themselves within three years.



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