Zeeland Township Considering Millage Rate Cuts

By Greg Chandler
Zeeland Record


Zeeland Township taxpayers could see a cut in their tax rates under the new township budget that is being worked on.

The Township Board on Aug. 10 by consensus directed Township Manager Josh Eggleston to draft a budget proposal for 2027 that would lower both the township’s operating millage as well as the voted millage for roads. The township could cut the operating levy from its current 2.75 mills to 2.5, and the road millage from its current 0.9919 mills to 0.5 mills.

“This is not a final decision. (The millage rates) are established with the budget approval in September,” Eggleston said.

The township has significant reserves in both its general fund and its road fund, leading Township Treasurer Melissa Veldheer to propose cutting both levies.

“I think people deserve some kind of a break, in combination, and we can still keep our resources where they need to be,” Veldheer said.

The township last cut millage rates back in 2022, reducing the operating levy from 3.25 to 2.75 mills and cutting the road millage from two mills to one. That same year, voters approved increasing the tax to pay township firefighters from a half-mill to a full mill. 

Even with the reduction in those tax rates, it hasn’t necessarily translated into lower property tax bills for homeowners. Veldheer says property values in the township increased by 9% two years in a row, negating any potential cost savings from the 2022 millage cuts.

“I would say most people’s … tax bills stayed the same from the prior year to the current year because that tax millage savings on the township offset some of the ­inflation in the taxable value,” she said.

The township ended last year with a $1.72 million general fund surplus, boosting its total general fund reserves to $19,506,364. Of those reserves, $16,121,696 has been committed to various township projects, leaving an unassigned fund balance of $3,119,644, an amount representing 87 percent of current spending in the general fund, according a recent audit of the township’s finances by the public accounting firm Siegfried Crandall PC.

Meanwhile, the fund balance in the road fund went over the $6 million mark last year, with a surplus of $693,557 boosting those reserves to $6,091,688, ­according to the Siegfried Crandall audit.

“I feel like we have justified our fund balance, but I can’t justify it indefinitely if we’re growing at 9%,” Veldheer said. “I think we can live with some reduction.”

The township took in $1,923,257 in tax revenue from the operating millage last year. If that levy were reduced to 2.5 mills, the operating revenue this year would be reduced to $1,911,093, according to township documents.

The road levy generated $693,701 for the township in 2025. Cutting that tax to a half-mill would reduce the revenue for this year to $382,219, according to township documents.

If there was no reduction in the two millages, the township would receive an additional $363,612 in tax revenue this year, Veldheer said.

For the owner of a $600,000 home with a taxable value of $300,000, if both cuts were enacted, their property tax bill would be cut from $1,715 to $1,493. The operating tax cut would reduce that portion of the bill from $825 to $750, while the road millage reduction would cut that portion of the tax bill from $297 to $150, Eggleston said.

Township Supervisor Kerri Bosma, a real estate agent, expressed concern about reducing the tax rates too steeply and having to go back later and increase them, which she says could present a problem for homeowners who pay their 
property taxes out of their escrow account.

“We have to be very mindful of that,” Bosma said. “I’m not saying to collect tax dollars that aren’t needed, but we just have to be careful … when we’re changing the numbers, that can really cause some angst to some individuals.”

Trustee Dave Barry supports reducing both levies, saying it gives the board an opportunity to act on its values of being fiscally conservative.

“Part of being fiscally conservative is being good stewards of the resources,” Barry said. “The township has clearly demonstrated that because of the great financial position they’re in. The boards before us have been frugal in their resources and spending to create significant value.”

The Township Board is scheduled to hold a budget workshop on Sept. 1 at 5:30 p.m., prior to its regularly-scheduled meeting.

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