News Photo by Julie Riddle At the Rogers City Police Department building on Wednesday, Officer John Alley, left, and Sgt. Brad Haske of the RCPD process drugs seized during a suspected drugged driving stop in Rogers City on Friday night.

ROGERS CITY — Residents in Rogers City could pay more for police protection if the city loses a property tax dispute with Carmeuse Americas next month.

The idea of a special assessment to help cover the cost of the police department was discussed at a special budget workshop on Feb. 9 and City Manager Joe Hefele will present more information about it at an upcoming budget workshop.

The amount of the assessment, if needed, has not been determined.

Carmeuse is challenging the assessed value of the limestone plant in Rogers City. The city has the plant valued at about $20.6 million, while Carmeuse claims it is only worth $8.5 million.

Act 33 of 1951 – the Police and Fire Protection Act – allows municipalities that offer police and fire services to create a district and implement an assessment to help pay for them.

A public hearing must be held before the Rogers City City Council can add the tax to the tax bill.

Mayor Scott McLennan said with the outcome of the tax dispute with Carmeuse pending, the city is taking a proactive approach to find a way to recoup lost property tax revenue if the city loses. He said the city is still investigating what an assessment means for the city’s budget, for residents or if it is necessary.

Should the Michigan Tax Tribunal rule in favor of the Carmeuse, Hefele said the lost revenue would be in the ballpark of about $100,000 and directly impact expenditures from the general fund.

Hefele said the total cost of police department operations will be determined, which will help determine how much an assessment would cost taxpayers if it is implemented.

McLennan said the city is looking into an assessment but it doesn’t mean one will be utilized. He said all options are being considered, including allowing marijuana businesses to operate in the city and collecting the tax revenue from them to make up for the loss of money, should the tribunal rule in Carmeuse’ favor.

“The reality is, if this happens it would be a huge loss of revenue,” McLennan said. “We are just looking at a couple options for different ways to backfill the loss of money, if we lose. Let’s gather the facts, see what the pros and cons are, and see what we need to do. We may look at this and decide it is not what we need to pursue.”

Hefele said the city’s 2022-23 budget shows a revenue shortfall of about $100,000, but the ruling on the tax tribunal case could impact it.

The budget year runs from April 1 through March 31.

Hefele said the city is fortunate to have a police department that operates year round, 24 hours a day and believes residents will want to keep it that way.

“It is pretty unique,” he said. “Especially for a community of this size.”

Overall, Hefele said, the city’s savings are solid. He said there is enough money set aside to run the city for eight months if all funding dried up. But it is important, Hefele said, to make sure the city’s savings remain strong in case funds are needed for emergency repairs or unexpected expenses.

A special meeting of the council is scheduled for Thursday where the board is expected to go into closed session to discuss its strategy for the upcoming tax hearing. The meeting begins at 5 p.m.