One of the biggest items facing City Council on Monday was deciding what to do about making bond payments without projected tax increment finance income available to pay the debt as a result of the stalled development project at Grand Landing.
Based on talks Monday night, to help with this debt, it is proposed to leverage an additional 0.75 mill, eliminate leaf removal, and the city calendar will be halted in an effort to help pay off future debt at Grand Landing.
City Finance Director Jim Bonamy said there is chance that the city will need $4.8 million to pay debt service from 2014-16, and these savings and millage would help the city make these payments. In addition, Bonamy mentioned taking $500,000 from the fund balance during the next several years to help pay off those expenses.
McGinnis said a 0.75-mill levy on a home valued at $150,000 would result in an additional $50 to $60 per year on its property tax bill.
Another highlight in the proposed budget was the increase in the city’s water and sewer rates for 2011-12.
Based on data provided by the city, as of July 1, residents would pay $35.39 per month for water and sewer based on the proposed 12-percent rate increase for the year. According to McGinnis, 100 percent of the 12-percent increase will go to the sewer fund for 2011.
To read more of this story, see today's print edition of the Grand Haven Tribune.