City considering tax levy to pay Grand Landing debt

Grand Haven officials got a first look at the 2011-12 city budget during a work session at the Grand Haven Community Center on Monday night. City administrators have prepared a balanced budget with reserves in place to sustain services - with $10.1 million in revenue and $10.3 million in expenditures. Officials will use the more than $3 million in fund balance to make up any deficiencies.
Alex Doty
Apr 13, 2011

 

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.

Comments

Say no to new taxes

Great news! A property tax increase to pay for the "Grand Mistake". When these projects are proposed the public is told they will "pay for themselves" with taxes generated by the new development, now you see who ultimately bears the risk, the taxpayer. Next time the City wants to play developer get signed contracts in place BEFORE committing millions of the taxpayers hard earned money to a project like this.

dickdevoss

This is a great, the city makes another bad decision and then ask's the tax payer to foot the bill, The people of the city of Grand Haven have been taken to the cleaners for the past 8 years with the poor leadership from the top on down.. With people like Pat McGinns and mayor “McCheese” Roger Bergman running the show in grand haven the tax payer will foot the bill for there lily white world of downtown grand haven.

Band71

Thanks so much to the city for their excellent planning that continues to put the needs of the tax payers, the people last. They had no interest in the thousands who said "we do not want to be a condo town" when this whole project was in the works and now we are stuck paying for it? I want my time share then. If I have to pay for the flop, then I get my week and so do all the other tax payers. Poorly planned to say the least, what a disappointment, not to mention the millions spent on the "snow melt" project and now the city bathroom on the beach, no limit to the spend, spend, spend attitude while we try to figure out where to come up with all this extra money they think we tax payers have sitting around. I also see many homes in GH city not being taken care of, campers, boats, moving trucks and all kinds of vehicles parked in yards and on the streets for months and months at a time and the city does nothing about it, just raise taxes to pay for their ridiculous pet projects. This decline is alarming and the safeness of the city is also decreasing.

 

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