During the recent City Council Budget Workshop held on March 22, 2025, in Ferndale, Michigan, city officials discussed the implications of the proposed millage rate for the upcoming fiscal year. The council is considering a voter-approved millage rate of approximately 5.442 mills, which represents a significant increase from the current rate of 4.2808 mills due to the Headley rollback mechanism that has affected tax rates over the years.

City officials emphasized that while the new rate may feel like an increase for residents, it is essential to clarify that the effective tax burden could be less than anticipated. The council noted that the initial year of the new rate would likely result in an increase of about $75 to $175 annually, depending on the taxable value of individual homes. However, they also pointed out that this increase could be subject to further rollbacks, potentially reducing the overall impact on taxpayers.

The discussion highlighted the complexities of property tax calculations, particularly how increases in taxable values can offset changes in millage rates. Officials reassured residents that, even with the proposed increase, the overall tax bill would likely not exceed a 2% rise, translating to an estimated additional cost of $5 to $15 per month.

As the council prepares for the upcoming vote on the millage rate, they aim to provide transparency and clarity to residents about the potential financial implications. The meeting underscored the importance of understanding how local tax policies can affect community funding and services, setting the stage for further discussions as the city navigates its budgetary priorities for the coming years.