ADRIAN — City officials say long-term tax rollbacks are continuing to limit available revenue, contributing to current budget pressures.
During a recent budget work session, officials noted the city’s operating millage has dropped from 15 mills to approximately 13.5 mills over time. The reduction is tied to Michigan’s Headlee Amendment, which requires local governments to roll back millage rates when property values grow faster than inflation.
That rollback is estimated to reduce city revenue by roughly $600,000 to $700,000 annually.
City leaders say restoring that funding level would require a Headlee override, which must be approved by voters. Previous attempts to pass an override have not been successful.
Officials say the ongoing reduction in revenue is a key factor behind the city’s focus on maintaining core services while limiting new spending.