Leelanau Commissioner Update May 2025
Millage Rate Set; Public Input Needed for 2026 Budget
May 28, 2025
It’s hardly a consolation, but the average property tax will increase 3.1 percent in Leelanau County and across the state. Most property tax bills had increased 5 percent each of the previous two years due to high inflation.
The Leelanau County Board of Commissioners voted this month to continue with the highest rate allowed by the state Constitution — as in past years — although that rate is less than the rate levied a year ago.
Commissioners voted 5-1 to establish an operating property tax rate of 3.2520 mills, down from the 3.3083 level in 2024. However, because the state set the rate of inflation at 3.1 percent, that is the maximum amount your tax bill can increase for most local taxes. New millages or higher property tax rates approved in elections are the exceptions.
I voted in the majority, although I understand and sympathize with my colleague Will Bunek. He sought to reduce the tax rate slightly to take in $100,000 less in revenue.
I feel the seven-member Board of Commissioners seated Jan. 1, which has only two members from the previous board, should participate in one budget cycle before considering a reduction of the property tax rate. I can see some rough weather ahead for county finances. The budget approved last fall did not include funding for Teamsters union wage increases of 10 percent over three years, and negotiations continue for new contracts for law enforcement unions. Also, an estimated $1 million in expenses required to complete the universal broadband project were carried into the 2025 fiscal year by the previous board.
Leelanau County budgets have increased dramatically over the past few years, propelled by much higher property tax revenue. The operating millage rate approved in May is estimated to generate $13.7 million. In 2022, the operating property tax brought in $11.1 million. That represents a nearly 23 percent increase over three years.
Clearly, the present board has work to do to counteract pressure to continue spending increases. At our last meeting I called for an early start for the budget process. We will be working with Administrator James Dyer in June to set up an outline of the process.
Your participation is encouraged and welcomed.
The county also levies millages specifically for senior citizen programs and early childhood development that were not discussed in May but will become topics during the budget process.
Housing Continues as Problem in County, USA
May 28, 2025
I had a recent conversation about the continued problem of finding a place to live in the county. She related that a friend had bought a house costing somewhere around $250,000 about five years ago, and now it’s worth three times that amount — and hardly affordable.
And interest rates have risen from around 3 percent to 7 percent. Even if a family managed to buy a $350,000 home at 6.5 percent interest, the house payment comes to $3,484 per month on a 30-year mortgage. That’s without property taxes or maintenance. In the first year, interest would total $22,634, with only $3,912 paid on principal.
I recall getting hired as a cub reporter for the Leelanau Enterprise more than 45 years ago. I slept on couches for six months before finding a roommate and an apartment. The problem is much worse today.
I’d like to say that there’s an all-encompassing answer, but we have to be honest. This is a problem entangled in the fabric of Leelanau County and all of America. Here it will take the work of nonprofits, the county Land Bank to secure tax-reverted property when possible, and buy-in from townships and villages that control local zoning ordinances to move the needle.
Shortly after taking office I suggested discontinuing the county “Housing Action Committee” that had canceled three out of four meetings in 2024 due to lack of quorums. The county would be better served by helping to establish an independent task force that can meet with potential builders and donors while working independent of the constraints of government. At least one commissioner would become a part of the group. A Benzie commissioner told me the system seems to be working in his county.
I also think it’s important to temper goals with reality. One group is suggesting that Leelanau needs to have 2,335 housing units built by 2027. If three people lived in each unit, the county population would grow by 33 percent in two years. I don’t believe rapid growth in the name of any cause is supported by residents who enjoy the quiet, rural nature of the county.
At the May meeting I asked for discussion on a suggestion I made back in January. One way the county could help quickly would be to set aside building fees incurred for the construction of affordable housing. Perhaps the fees could be waived on homes less than, say, 1,200 square feet. Or pick a different number.
While one commissioner opined — in so many words — that the savings would not be worth the trouble, I differ. Taking $1,500 or so off the cost of a home would help. So would elimination of permit fees charged by the Soil Conservation District as well as townships and villages.
Not all baseball games are won by home runs. A combination of many efforts — not one big swing — has the best chance of improving the housing situation in Leelanau County.
The discussion was forwarded to the board’s Building Committee, which plans to meet with the County Building Safety Office.
Housing Starts Drop — Among Other News
May 28, 2025
In other developments at the commissioner meetings held May 13 and 20:
Building Safety Director Amber Weber provided an update on her department showing that new home starts stood at 187 in 2022 and 181 in 2023, but dropped to 154 in 2024. Building Official Weber also provided information on five affordable housing projects in the county. She was knowledgeable and helpful.
Six requests for Tribal monies through what is referred to as 2% funding were given green lights. Four would directly pay government programs and two would go to nonprofits. A county policy was approved at the same meeting. The actions received much media attention.
I voted to send to the Tribal Council all six applications, then I cast the sole vote against the policy. While I agree with the premise that the funds should be reserved for direct government services because they are paid in place of property taxes, trying to force such a restriction on the Tribe is untenable and possibly counterproductive. It’s the Tribal Council — not the County Board — that has the final say in which applications get funded. The new policy will not push nonprofits away. I voted against the policy because it requires the county administrator to evaluate applications to determine if they meet the Tribe’s criteria, then requires the administrator after six months to report to the County Board on whether the funds were properly used. Those responsibilities rest with the Grand Traverse Band of Ottawa and Chippewa Indians and not county government.
Not to bore you on finances, but please bear with me for one last topic. The past County Board approved a resolution to pay the unfunded portion of the Point Broadband project through the Delinquent Tax Revolving Fund (DTR). The fund is sizable. A County Board policy basically restricts expenditures from the DTR to projects on the county Capital Improvement Plan — which excludes broadband because the county does not own the network of fiber wires being laid in the ground. Instead, the network is owned by Point Broadband. The county paid and continues to pay a private company to build a market here.
That decision was made years ago, and I have no interest in digging up history. But I am worried about the county following its own policies.
I suggested a motion reading:
“By its vote today authorizing payment to Point Broadband through a withdrawal from the county Delinquent Tax Revolving (DTR) Fund, the Leelanau County Board of Commissioners recognizes the action as a one-time exception to its DTR policy. That policy remains in effect and should continue as guidance for future financial planning and decisions in Leelanau County.”
While I lacked support to place the topic on the agenda, I am requesting that we approve the motion in June.
Only One Union Contract Approved
April, 2025
County residents may have heard that a union contract has been approved by the County Board of Commissioners, although there is some confusion over which set of commissioners approved the contract.
The contract covers members of the Teamsters Union, which represents most workers in the County Building. Their former contract expired on Dec. 31, the same expiration date as the union contracts for law enforcement officers in the Sheriff’s Office and 911 Dispatch. Those unions did not begin negotiations until the current board was sworn in on Jan. 1.
Present commissioners have held three closed sessions to discuss progress on new law enforcement union contracts. Our hope is to avoid binding arbitration.
The Teamsters contract included a significant change, increasing the standard work week for employees from 35 hours to 40 hours. Its other major financial impact is to provide wage increases of 3%, 3%, and 4% over the three years of the agreement.
Five new members of the current seven-member County Board had no input in negotiating or approving the contract. The contract offer was extended on Dec. 30 at a special meeting of the previous board. Union members initially rejected the offer in a first vote, but then approved the identical contract in a second vote held early in the new year. The offer did not return to the new County Board for a vote.
No provisions for increased hours and wages authorized by the contract were included in the 2025 budget. Estimates I requested from county officials for the increased cost came in at $230,000 to $240,000. No cost estimates were provided to commissioners prior to union approval of the contract.
The cost for higher wages was not included in the 2025 county budget. The outcomes of all union negotiations will have a major impact on county finances this year.
One question I’ve been asked is whether the increased hours were needed in all county offices, especially during slower periods. I cannot answer that definitively. We have a dedicated workforce for which I am grateful. Still, this was a sweeping decision that should be revisited and evaluated for efficiency.
One benefit that could be provided to residents would be to extend department and elected officials’ office hours from 9 to 5 to 8:30 to 5 or even 8 to 5. (The Building Department is already open 8 to 4 to better accommodate contractors.) I have brought this suggestion up at two meetings and plan to continue pursuing the expansion of office hours. I hope department heads, elected officials, and employees will give this serious consideration, as they are dedicated public servants. The County Board has no authority to set hours for the offices of elected officials.
