ATLANTA — Montmorency County officials had to streamline the county’s 2025 budget after voters in August nixed a proposed higher tax rate, but the county did so with no major cuts, Aprille Willaimson, the county’s controller, said.

Instead, the county relied on strategic negotiating for reduced contract costs, including costs for deductibles, insurances, capital equipment purchases, and information technology.

“I was able to work with our insurance agents to get our annual increase for health insurance down, because we were looking at a very large increase to both employees and the county,” Williamson said. “Just being more diligent in reviewing county expenditures, reviewing contracts, removing redundancies helped save a lot of money.”

All told, the county trimmed about $92,000 from its roughly $5.5 million annual general fund spending plan. The county still plans to add more than $80,000 to its cash savings account by the end of the year.

The cuts were necessary after voters in August voted 52% to 48% to allow a 0.7091-mill reduction to the county’s tax rate. Had the higher tax rate stood, the owner of a $100,000 house would have paid about $35 per year in additional taxes and the county would have taken in more than $400,000 a year in additional revenue.

The proposal would have allowed the county to override a section of state law known as the “Headlee amendment,” which automatically lowers local governments’ tax rates if the growth in tax revenue exceeds the rate of inflation.

Twice in 2024, voters in Alpena County rejected a similar so-called “Headlee rollup,” forcing Alpena County to eliminate seven full-time jobs, including a sheriff’s deputy and the county’s deputy on the Huron Undercover Narcotics Team.

In Montmorency County, Williamson reported the higher tax rate had previously offset increasing costs of about $350,000 annually.

“We historically balanced our budget with a $200,000 surplus, but, this year, we are only sitting at a surplus of $80,000, which doesn’t leave a lot of room for unexpected expenses,” Williamson said.

Williamson said the county had received assistance with funding from the federal American Rescue Plan Act in 2023, but that help was not as extensive in 2024, and none of those funds were available in 2025.

In 2024, the county was able to increase police union contracts for salaries, which Williamson noted the county wanted to see happen.

Now, in the new year, continued variables may impact the budget.

Williams identified property taxes as an ongoing issue and a reminder of the fluctuating nature of county revenue.

She also expressed the importance of preparation, stating, “Wasteful spending and not setting up contingency funds could be harmful to the county. Luckily, we have done a lot of work in the last few years to protect ourselves against large cuts.”

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