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Sept. 29, 2004
By JOHN CHARLES ROBBINS
Staff writer
For the first time in 10 years, Ottawa County commissioners have increased the county's property tax rate.
Facing declining revenues and skyrocketing costs, the county board on Tuesday unanimously approved a one-tenth of
a mill increase by setting the 2004 millage rate at 3.5 mills.
For a county resident whose home has a taxable value of $50,000, the increase of one-tenth of a mill will mean an
extra $5 a year in property taxes.
The extra one-tenth of a mill will bring an additional $800,000 to the county.
"None of us take any particular pleasure in raising the millage rate," board Chairman Dennis Swartout said.
"But times have changed in the last 10 years. We're dealing with a new environment.
"Hopefully, the economy will turn around and revenue streams will be improved," he said.
Ottawa County is the second-fastest growing county in the state, yet for the better part of the last 10 years the
county has had the lowest millage rate of the 83 counties in Michigan.
Swartout noted the genuine pride on the part of county commissioners who for a decade kept the millage rate at the
same level, and in some cases, lowered the rate.
"When times were good, Ottawa County was good in returning money to taxpayers' pockets," County Administrator
Al Vanderberg said.
Why is money so tight for the county?
Along with a sagging economy, revenues from long-lucrative sources have declined and dried up, including state revenue
sharing, the cigarette tax and the single business tax. Health insurance costs have also swelled substantially in recent years,
while interest earned on savings has dropped.
Vanderberg and finance director Rosemary Zink worked up long-range budget projections showing a budget deficit of
more than $4 million by the end of 2006 without a hike in the millage rate and other cost-cutting measures.
A do-nothing approach would have continued annual deficits of that magnitude through the year 2010, when the projected
deficit that year would reach $4.2 million, Vanderberg said.
A gradual hike in the property tax during the next three years, through 2007, would trim back that projected 2010
deficit to a much more manageable $640,000, he said.
County property owners can expect another one-tenth of a mill jump next fall and again in September 2006.
Even with the millage increase, county officials will have to dip into reserve funds to balance the 2005 budget.
For now the county is looking at a freeze on new jobs in 2006, Vanderberg said.
A hiring freeze in 2005 was not viewed as practical or possible, Vanderberg told commissioners, because most of the
new hires will go to staff the new circuit court judge's office, and to man the addition to the county jail.
Serious belt-tightening in the form of program cuts is a year away, officials said.
In early 2005 a complete appraisal of discretionary programs and services will be made, with an eye toward trimming
non-mandatory expenses.
Commissioners will be asked to evaluate and rank the importance of those programs.
"So we're not just shooting out blindly," Vanderberg said.
Contact John Charles Robbins at (616) 546-4269 or john.robbins@hollandsentinel.com.
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