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Editor’s Note: Earlier today we inadvertently reposted a story on this subject from last week.
LUDINGTON — The Ludington City Council will meet in special session Tuesday evening to consider formally ending proposed public safety and street lighting special assessments that would have generated a combined $633,525 annually.
The special meeting is scheduled for 6 p.m. Tuesday, Oct. 6, at the Ludington Municipal Building. The agenda calls for the council to consider resolutions rescinding the street lighting and public safety special assessment proceedings, along with a resolution directing City Manager Kaitlyn Aldrich to prepare a list of potential cost reductions if the city faces a budget deficit.
Aldrich is recommending the council withdraw both proposed assessments following public opposition to the plans.
In a memorandum to Mayor Mark Barnett and the council, Aldrich said approximately 250 people either spoke or submitted written comments regarding the assessments. Concerns included affordability, the assessment process and whether other options could be used to address the city’s financial needs.
Aldrich wrote that the public’s participation influenced her recommendation and said she hoped withdrawing the proposals would help restore confidence between the city and the community.
The council voted Sept. 28 to continue the special assessment process following public hearings. The public safety assessment was proposed to raise $489,075 annually for police and fire services, while the street lighting assessment would have raised $144,450 annually.
The assessments were proposed as the city works to address an ongoing imbalance between General Fund revenues and expenditures. The city’s preliminary 2027 operating deficit was projected at $523,800.
Aldrich said withdrawing the assessments does not eliminate that financial problem. Instead, she said the city will need to develop the 2027 budget without the anticipated assessment revenue and consider reductions involving services, programs and the timing of expenditures.
Continuing with the assessment process would also result in additional expenses. Aldrich estimated the next mailing to property owners alone would cost about $20,000, in addition to further work by the city assessor, legal counsel and city staff.
The city will continue looking at other possible sources of revenue, including grants, a city income tax and a possible lodging tax. However, Aldrich said none currently provides a dependable source of revenue sufficient to replace the budget decisions facing the council.
A city income tax would require voter approval and would apply to income earned by people who live or work in Ludington. The city is also participating in discussions regarding a possible lodging tax, though that option would depend on state legislative action and would not presently provide an available source of revenue for the 2027 budget.
The city is also expected to continue a review of costs and efficiencies as it prepares next year’s spending plan.
Under another resolution on Tuesday’s agenda, if a 2027 budget deficit is projected, Aldrich would be directed to provide the council with a list of costs, expenses or services that could be reduced or eliminated. She would also recommend priorities among those potential reductions.
The council will also continue addressing organizational changes involving city finances, including recruiting a Finance Director and preparing information regarding a possible charter amendment.
If approved Tuesday, the resolutions would formally rescind the street lighting and public safety special assessment district resolutions adopted in September and end the current assessment proceedings.
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