Property values up, tax rate dropped

Harbor Springs to lower city millage tax rate for 2009

Thanks to another year of increased property values, the city of Harbor Springs will be levying a lower property millage tax rate for 2009.

City council reviewed a memo on the 2009 tax rate projections from city clerk/treasurer Ron McRae at its regular meeting Monday night, April 20.

According to McRae’s memo, the city’s property taxable value increased from $224.3 million in 2008 to $237.6 million in 2009. City assessor Tim Grimm compiled the figures.

The city has budgeted some $1.369 million in expenses for 2009, McRae noted. To generate the needed revenue, McRae said a millage tax rate of 5.7618 mills would need to be levied. A mill is equal to $1 in property taxes for every $1,000 in assessed taxable value.

In 2008, the city property tax levy was 5.8658 mills.

In his memo, McRae noted that excluding debt retirement and street and sidewalk repairs, the city ‘s operating portion of the millage levy decreased from 4.8364 mills in 2008 to 4.8009 mills in 2009, or a reduction in operating expenses of slightly less than one percent.

Even though the city is levying a lower tax in 2009, state “Truth in Taxation” law requires the city to conduct a public hearing on the millage levy. Without holding a public hearing, the most the city could levy would be 5.5 mills, McRae said.

Council agreed to conduct that hearing Monday, May 18.

-Charles O’Neill

This is part of the April 22, 2009 online edition of Harbor Light Newspaper.

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