Grand Traverse County is in a “very strong financial position” heading into 2024, according to County Administrator Nate Alger, with revenues expected to increase by 7.6 percent next year – jumping from $43.6 million in 2023 to just under $47 million estimated in 2024. Those revenues are largely due to increased taxes from rising property values. After reviewing revenues last week, county commissioners will discuss some expenditures today (Wednesday) – though Alger said he plans to stay conservative in spending, keeping as close as possible to a status quo budget until some key county strategic plans are completed.

Finance Director Dean Bott said Grand Traverse County has a “very, very strong tax base and taxable value, which is what drives our tax revenue” – the county’s largest funding source. Grand Traverse County is expected to collect more than $32.4 million in taxes in 2024, compared to $29.4 million this year. Countywide, the taxable value of property climbed more than nine percent in the last year, from $6.38 billion in 2022 to nearly $7 billion in 2023. Taxable values are highest in the City of Traverse City, Garfield Township, and Peninsula Township, in that order. “There’s a lot of construction (and) uncapping when properties are sold,” Bott said.

When staff put together the budget, they are “as conservative as possible” when it comes to revenue projections, Alger said. “We’re in a very strong financial position,” he said. “Revenues are going up...our debt is relatively low.” But even with millions of dollars more projected to come into county coffers, Alger said officials shouldn’t “just spend money to spend money. We want to have a purpose for the funds coming in.”

For that reason, Alger said he intends to present a balanced budget for 2024 that hews closely to the 2023 budget in terms of staffing and services. Several departments have requested to add employees, with seven full-time positions requested across the equalization, emergency management, district and circuit courts, environmental health, building code, and mechanical departments. Commissioners will discuss those requests today, but they have not been included in the personnel costs projected for 2024, according to a memo from Bott. Alger said he cautioned department heads he wants to keep “as close as possible to a current services budget.”

While the county is seeing a “healthy increase” in revenues, it’s also facing inflationary increases and rising personnel costs, particularly in the wake of approved wage hikes for employees. The county has committed to costly IT upgrades and is also in the process of completing a facilities master plan, with early drafts showing recommended improvements to county buildings and campuses totaling tens of millions of dollars. Before the county makes a “big jump in any level of the expenditure side of our budget,” Alger said, it should finish that plan and determine what direction commissioners want to go in pursuing facility upgrades. “We would like to have some flexibility within our budget” to address those options, Alger said.

Commissioners will also discuss vehicle requests and the county’s capital improvement plan today. The Sheriff’s Office is seeking to add nine patrol vehicles at a cost of nearly $356,000, while the Public Works Department is looking to add three trucks for $185,000. Facilities management has made recommendations for 2024 capital projects ranging from Civic Center improvements to roof repairs at the law enforcement center and prosecuting attorney’s office to remodeling work at the Governmental Center and courthouse. Jail, Hall of Justice, and Health Services building repairs are also recommended, as are park improvements like bathroom and signage upgrades at Medalie Park and replacing the VASA driveway and the Power Island dock.

Commissioners have signaled their desire to look at the budget more holistically, comparing past years to 2024 projections to identify revenue and spending trends and more closely examining all of the county’s various funds – not just its general fund. “We really want to see the bigger picture,” said Commissioner TJ Andrews. Alger noted the county hasn’t had a working strategic plan since 2015, but is now in the process of developing one – another key document that could guide budgeting going forward and help commissioners and staff better align spending with priorities. Chair Rob Hentschel agreed that “working towards that more unified strategic plan” is important, though he said the county has made “great strides” in its financial stability in recent years even without one. “There’s great things going on at this county,” he said.