MONTAGUE — The Montague city council unanimously approved the city's budget and tax rate for the 2025-26 fiscal year at its regular meeting Monday, lowering the property tax millage rate it will collect from 16 mills last year to 15.75.
The move came after a June 2 budget work session. The council expressed its pleasure with the city's financial health - the water fund being used to complete state-mandated replacements of any water delivery pipes that are made of lead is the only large ongoing debt obligation the city has - and noted that strong financial management is the reason it was able to lower the millage rate.
It likely also helps the city that property values in the area, as is the case nationwide, have significantly increased in recent years, enabling the city to collect more total tax revenue even while lowering the rate. City manager Jeff Auch presented graphs while outlining the budget, showing that the majority of city funding comes from the millage, with 31% coming from state revenue sharing and 15% from other sources.
The city also remains well above the recommended 25% fund reserve and has 42.5% of its annual revenues in reserve (the 2025-26 budget projects $2.34 million in total revenue). Auch said city staff has long emphasized keeping an extra $1 million in reserve whenever possible in addition to the recommended 25%, leading to the large cash reserves.
Some large projects being budgeted for this year include impovements to the Maple Grove Park, road work on Hunt and Park streets in the city and a plow truck being purchased. The latter cost will be split over two fiscal years.
In recommending council approval of the budget, council member Laura LaGuire said the budget reflected the work session discussions. Council priorities were an incremental reduction in the city's millage rate, the use of the general fund's reserves to aid other funds when possible, and continuing park improvements.
The city council unanimously approved the wording of an application of inquiry it will provide to interested parties regarding the Ferry Street land it has been discussing in recent months. The council will not make the green space at the corner of Ferry and Dowling streets available for development but will allow the development of the adjacent lots. Council member Paul Schultz suggested, and the council agreed, to add a prohibition on the use of grills on the roof of any proposed development for fire safety reasons.
During the public comment period, residents expressed concern about a proposed Bowen Street planned unit development, with one saying they were skeptical a development there would improve the city and another sharing issues with the clear-cutting that would be necessary for the project's construction.
