ANNUAL BUDGET PRESENTED

FISCAL YEAR 2025 - 2026

At their May 12, 2025 meeting the City Commission will review the proposed Fiscal Year 2025-2026 budget. The budget reflects our ongoing commitment to transparent, strategic, and community-centered financial planning. Developed through close collaboration across departments, this budget aligns resources with City priorities to strengthen services, invest in our workforce, and enhance the infrastructure that supports daily life.

Major Investments

Major investments include creating a dedicated Information Technology Fund, allocating $253,400 to the Streets Capital Projects Fund for Complete Streets initiatives, and consolidating street construction funding for clearer tracking. Capital projects feature the final phase of bridge rehabilitation with the North Union Street Bridge, critical water system upgrades at the Commons, and over $8 million in wastewater treatment improvements, including solar and battery storage projects. The City will also complete the Brown Bridge property acquisition, supported by a voter-approved use of Brown Bridge Trust Fund dollars and a Michigan Natural Resources Trust Fund grant.

Proposed Staffing

Key staffing additions include six firefighters to launch the City’s new Primary EMS Transport program (funded by the voter-approved EMS millage), along with new or expanded roles in police, municipal utilities, IT, parks, engineering, and the marina.

The budget advances high-quality services, resilient infrastructure, and a forward-looking financial outlook, ensuring the City is well-positioned to meet both current and future needs.

Budget Transparency Dashboard

New this year, the City has a Budget Transparency Dashboard powered by ClearGov to make our finances more accessible and understandable to residents.

This interactive online tool allows you to explore the City’s revenues and expenditures per capita — meaning it shows how much is spent or collected on average for each person living in the City. You can see where City funds come from (revenues) and where they go (expenditures), broken down by key service areas like public safety, parks, streets, and utilities.

A key feature of the dashboard is that you can enter your own property tax amount (be sure to include only the City portion, not county or school taxes, etc.) to see exactly how your individual tax dollars contribute to City services. This personalized view helps residents understand how much they are paying per capita toward things like public safety, road maintenance, recreation, and other essential services.

By providing this tool, the City aims to strengthen financial transparency and help residents see how public dollars are allocated and used to support the community.

STRATEGIC PLANNING UPDATE

COMMUNITY SURVEY OPEN & COMMUNITY SUMMIT

Following an extensive community engagement process that began in the fall of 2024, the City of Traverse City has reached a major milestone in its strategic planning efforts. After months of gathering community input, exploring priorities, and envisioning the City’s future, six key strategic focus areas—known as the Strategic Pillars—have been identified. Now, the City invites residents to take part in the final survey to help prioritize these Strategic Pillars and the 24 proposed Strategic Actions that will guide the Strategic Action Plan.

The final survey seeks community feedback on the importance of each pillar and action, ensuring the plan reflects the values and aspirations of residents.

Six Strategic Pillars

1. Building a Thriving Year-Round Economy: Expand business diversity and innovation capability to build a year-round economy.
2. Proactively Manage Urban Design: Proactively manage urban design to protect local character and community feel.
3. Strengthening Place-making and Neighborhood Character: Protect the character of downtown and neighborhoods.
4. Fostering a Regional Collaborative Approach: Help manage resources, utilities, and climate adaptation while leading on key issues.
5. Building Socio-economic Systems and Amenities: Work to create a “complete community” that has demographic balance.
6. Supporting Environmental Sustainability: Help adapt to a changing world and support a thriving ecosystem.

The survey is an opportunity for all residents to weigh in on how the City should move forward in building an equitable and sustainable future.

Take the Survey

Save the Date: Community Summit

The public is invited to participate in the Community Summit to Monday, May 19, 2025 from 4:30 - 6:00 pm. At the Community Summit, the City’s draft Strategic Action Plan will be reviewed. 

Event Details

Monday, May 19, 2025

4:30 – 6:00 pm

Senior Center, 801 E. Front Street

Registration is encouraged but not required.



Register to Attend

CDBG 2025-2026 PLAN

RESILIENT COMMUNITY

In 2024, the City officially became a Community Development Block Grant (CDBG) Resilient Community, marking its first year of five years as an entitlement grantee. This designation allows the City to directly receive federal funding to address affordable housing, homelessness, and infrastructure needs for low- and moderate-income residents.

A 30-day public comment period for the 2025-2026 plan is required for each year’s plan to ensure community voices are heard in shaping local investment priorities.

CDBG funds can be used for:

• Housing (e.g. Rehabilitation, etc.)
• Public Infrastructure/Facilities Improvements
• Public Services

Funds assist Low-to-Moderate Income (LMI) individuals and families

• Low- and Moderate-Income Persons (Area/ClientBased)
• Prevention or Elimination of Slums or Blight
• Meet Community Development Needs Having a Particular Urgency

Draft Annual Action Plan for Program Year 2025/2026

The draft goals and proposed spending allocations are summarized below. The full Draft Annual Action Plan for Program Year 2025/2026 is attached. [Note that HUD has not announced grant amounts for any grantee entitlement communities as of this date and timelines and allocations may shift as a result.

Goal One: Assist with the construction and rehabilitation of affordable housing and lowering the economic barriers to such housing for low- and moderate-income households, seniors, and persons experiencing homelessness. Working with partners including non-profit affordable housing developers (such as HomeStretch Nonprofit Housing Corporation), public housing organizations (the Traverse City Housing Commission), non-profits including local continuum of care organizations (including Goodwill of Northern Michigan and the Coalition to End Homelessness).

Goal Two: Support community and economic development projects, including public facility or infrastructure improvements and social services in qualifying low- and moderate-income areas. Working with City Parks and Recreation and Engineering departments to identify high priority infrastructure needs in qualifying low- and moderate-income areas.

Goal Three: Support shelters and services for persons experiencing homelessness or persons at-risk of homelessness through capacity building and staffing assistance.

Final approval will be sought from the City Commission for the 2025/2026 Annual Action Plan at the second public hearing scheduled for May 12, 2025, after the public input period has elapsed, in order to meet HUD timelines. 

WATER SERVICE LINE REPLACEMENT - MAY 9TH AND WEEK OF MAY 12TH

Michigan's 2017 Lead and Copper Rule (LCR) designates galvanized water services as lead service lines if they "are or ever were" connected to a lead gooseneck, requiring utilities to pay for replacing private water services from the curb stop to the building. Lead goosenecks, installed before the mid-1940s, are 3-foot lead pipes used between the brass connection to the water main and a galvanized pipe.

The City has since installed copper services and has no known fully lead service lines. Not all private galvanized lines need replacement; those originally connected to City-owned copper services don't require replacement. The water service line replacement project started in May 2025 and is anticipated to be completed in fall 2025.

Beginning May 8th and through the week of May 12th, the project will be conducted on the 800, 1000, 1100, and 1200 blocks of W. Front Street, and the 400 block of Cedar Street. The work will cause sidewalk and intermittent street closures.

IMAGINE

ROTARY SQUARE

OPEN HOUSE

The Downtown Development Authority (DDA) is inviting the community to its second "Imagine Rotary Square” open house, where attendees will get a first look at preliminary design concepts and share their feedback on the future of Rotary Square.

The open house will take place on Thursday, May 15th from 4:30-7:00 pm at Rotary Square (the corner of State and Union Streets), with remarks at 5:30 pm. Attendees will have the opportunity to explore potential design concepts for the Square, share their preferred elements from each design and learn more about the design process and considerations.

The open house is part of “Imagine Rotary Square,” a public engagement initiative comprised of a series of public workshops and informational sessions to engage community members and welcome contributions to the design of the Square. Feedback from the open house will inform the completed conceptual design expected later this summer.

SMART COMMUTE WEEK

Smart Commute Week promotes alternative transportation by working with local partners to support healthy, active, and sustainable commuting year-round.

Join the 31st Annual Smart Commute Week, June 2–6! This fun, free celebration encourages cycling, walking, busing, and carpooling, with daily free breakfasts for smart commuters and the popular Commuter Cup Challenge — a friendly, all-ages competition where teams earn points and win prizes for every smart commute trip.

COMMUNITY BLOOD DRIVE

Be a hero and join us for a Community Blood Drive hosted at the Governmental Center in the lower level cafeteria on May 14, 2025, from 10 am to 2:30 pm.

Appointments are preferred, but walk-ins welcome. Call 1-866-MI-BL00D.

Pro-Tip: Make sure to EAT a healthy MEAL and DRINK plenty of WATER before donating. 

CONGRATULATIONS

DEPUTY CLERK, SARAH LUTZ RECEIVES INTERNATIONAL DESIGNATION

We are thrilled to share that Sarah Lutz, Deputy City Clerk, has recently earned the prestigious Certified Municipal Clerk (CMC) professional designation from the International Institute of Municipal Clerks!

This accomplishment is a testament to Sarah’s unwavering dedication to continuous development, her commitment to the highest standards of professionalism, and her strict adherence to the principles of ethical conduct.

The CMC designation is recognized internationally and represents a significant achievement in the municipal clerk profession, highlighting both advanced knowledge and a deep commitment to serving the public effectively.

Sarah’s passion for excellence and her tireless work ethic have been invaluable to the City Clerk’s Office and the broader City organization. We are proud to celebrate this milestone with her and look forward to seeing her continued leadership and contributions as she serves our community.

Congratulations, Sarah! Your hard work and dedication inspire us all.

IN THE COMMUNITY

SKYLINE & SHORELINE

Several staff members attended the Skyline & Shoreline: West Bay Aerial Mobility Showcase on May 6 at Discovery Pier in Traverse City. This unique event, hosted by Traverse Connect, featured live demonstrations of drone technology in action — including simulated search and rescue missions with the U.S. Coast Guard, overwater drone-based water sampling, and LIDAR underwater terrain mapping.

It was a valuable experience that gave the team a firsthand look at cutting-edge innovations in public safety, environmental monitoring, and geospatial analysis, sparking thoughtful conversations on how emerging technologies may intersect with local government work in the future.