Saugatuck's budget includes city hall upgrades

Jul. 1—SAUGATUCK — The city of Saugatuck approved Monday a $3.9 million budget for the next fiscal year, reflecting the city's lowest tax rate in two decades.

The city plans to levy 14.25 mills in local property taxes, most of which is the city's 11.0348-mill operating tax, a decrease from last year's rate of 14.6683 mills.

The next fiscal year begins today, July 1.

The tax rate is the maximum allowed by law, and the year-over-year decrease is thanks to the Headlee Amendment, which places caps on the amount of tax revenue growth.

The city is planning several major public projects in the next year, including a $180,000 investment in the Wicks Park bandstand and $130,000 for renovations to the deteriorating city hall.

The city is planning $25,000 in upgrades to the council chambers to reconfigure the space and make it possible to continue offering remote meeting access to residents. The move to Zoom during the pandemic dramatically increased public participation in the council's meetings.

Campbell Road will also be reconstructed between Manchester Drive and Park Street at a total cost of $700,000, split evenly between the cities of Saugatuck and Douglas.

City staff who prepared the budget said they aimed to "move the city forward in a positive, calculated and cautious manner," given the COVID-19 pandemic's expected hit to property tax revenue and uncertain economic forecasts.

COVID-19's effects on the city were not all negative, however.

Oval Beach, the city's second-largest source of income, had its best year in recent memory owing to the closure of many surrounding beaches because of high water and erosion and the demand for outdoor activities during the pandemic. The city took in more than $100,000 in extra revenue in the 2020-21 fiscal year due to the popularity of the beach.

City treasurer Peter Stanislawski reported Oval Beach passes are selling at a more typical rate this year. The city has budgeted for $475,000 in revenue from the attraction for the 2021-22 fiscal year.

— Contact reporter Carolyn Muyskens at [email protected] and follow her on Twitter at @cjmuyskens.

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