Citing financial hardships, Eaton County officials are forming a committee to consider allowing a higher tax rate on its residents.
The Board of Commissioners voted unanimously Wednesday to create a group to review current permitted tax levels and propose changes. That's as the county claims it's been dealing with financial struggles, including difficulties with retaining employees due to uncompetitive salaries.
Without additional revenue, officials say they could see a "mass exodus" of staff that would force services to be scaled back.
"We want to avoid that," said Board Chair Jim Mott. "We got a lot of good and talented people that work at Eaton County, and we want to retain them and provide the services to the public."
Eaton County hasn’t adjusted its limit on tax rates since 1978. In recent years, the county has been relying on federal and state grants to fill budget gaps and conduct its business, and part of the funding was used to award retention bonuses to employees.
But much of that funding has dried up — and the county faces a projected budget shortfall.
An estimate indicates expenditures will exceed revenue in the near future, leading to a $23.4 million fund balance deficit in two fiscal years.
Mott said that deficit could force cuts to a number of services, including public safety programs in the sheriff's department.
“We possibly may not have a road patrol," he added. "The prosecutor's office, they will be lacking staff. Practically every department in the county will be short-staffed."
The County Advisory Tax Limitation Committee, which will be made up of residents, municipal leaders and school board representatives, can recommend changes to how the amount officials can levy in taxes. Officials say a potential increase would provide additional revenue to pay for existing services and address other building and infrastructure needs.
The Eaton County Board of Commissioners is expected to review the proposed tax amount changes next month. Those recommendations would need final approval from voters, and the county is aiming to put a possible millage on the November ballot.