HART - Last Tuesday’s Hart City Council passed several important resolutions related to the financial operations of the city.
A Truth in Taxation hearing was held prior to approval of the Fiscal Year 2026 millage rates and tax levy. “As the taxable values on properties increase, the Headlee Amendment reduces the millage rate by a fraction,” City Manager Rob Splane explained during the public hearing. “And by having a public hearing, we are able to freeze the millage rate and avoid reduction. Even though we have to publish it as a ‘tax increase,’ it’s not an increase in tax - it’s maintaining the present rate. By holding a hearing, we are able to take action at the council level, rather than have to go to a public vote.”
Later in the meeting, the city council formally adopted and levied the following tax rates for 2025: Operating 12.4733; Streets 1.9672 (voted November 2024) and Cemetery 0.4925 (voted November 2018) for a total millage rate of 14.9330. With the approval, the current millage rate reduction fraction will be 0.9836.
Council also adopted the rates and charges for FY2026, effective for utility services received after July 1, 2025. “A lot of these rates have been determined in council actions over the past year. We’ve held various rate studies to make sure the rates we are charging are sustainable,” Splane said.
With regard to the city’s electric rates, Splane shared that the electric rates paid by the city’s residents are the lowest of all city customers and 20 percent below the state average. However, the infrastructure to provide electricity to city residents is also some of the most costly to upkeep.
As far as water rates, the city is waiting to hear the results of a water rate study. “I anticipate we will need to increase rates as a result,” said Splane.
The massive capital improvement project taking place at the city’s BioPure wastewater facility is being funded by a 25-year bond secured by the city in 2022. “The Michigan (Department of) Treasury holds us to rate increases we agreed to in the bond,” Splane reminded the council.
Finally, Splane noted that solid waste rates are set by the city’s waste hauling company. The city is only the fiduciary for any collected funds. The city does not make or hold any money for that service. Monthly rates cover weekly pick-ups and the curbside pick-up of large items once each spring, explained Splane.
Council member Catalina Burillo noted that while the city’s residential electricity rates are 20 percent below average, Oceana County wages and income are also below the state average as well. Council member Andrew Mullen added, “I’m happy to see the increases are very small. My concern is if we don’t take incremental actions, we’ll have to bump (rates) up to a 25 percent increase at some point in the future.”
With the approval of the millage rates and rate increases for 2025, Council also adopted the city’s Fiscal Year 2026 Budget for July 1, 2025 to June 30, 2026. Splane said the documentation included in the council’s June 10 packet was exactly as it was presented two weeks prior, when the city held a public hearing, and they, as well as the public, were given a chance to offer feedback. Approval was given for budgeted revenues totaling $2,499,410 and budgeted expenditures totaling $2,209,227. A full budget report is available to the public on the city’s website or at the city office.
Lastly, the council gave authorization to the Michigan Department of Transportation’s (MDOT) “Jurisdictional Transfer of Road Segment” and approved the proposed “Memo of Understanding.”
The said transfer refers to a .72-mile portion of State Street, from the four-way stop on Polk Road to Johnson Street in downtown Hart. For a one-time payment of $2,450,257.12 from MDOT Act 51 funds, the city will take over responsibility for the aforementioned road segment. After some research, the city countered MDOT’s first offer. “With the urging of the Oceana County Road Commission and city engineers, MDOT has come up $350,000,” Splane said. “I believe this is the best offer we’re going to get.”
Councilor Betty Root asked Splane if the Oceana County Road Commission would be taking care of the Polk Road corridor. “Hopefully we can bid our projects together. There will be public input when the time comes,” he answered.
Mullen asked if MDOT had any reconstruction expectations. “The design is up to us; beautification and safety options as well. However, funds are not for infrastructure located under the road,” said Splane.
Burillo asked about snow removal and if funds could be used for those expenses. Splane answered, saying Act 51 money can be used for snow removal and supplies like salt to maintain the roadway in snowy conditions.
Splane added the city will have to prove expenditures, and whatever is left over after five years will need to be returned, but in the meantime, these funds will be held in an interest-bearing fund until they are used.
