City officials in Bay City are set to explore the allocation of a $5 million fund received from United Bridge Partners. This amount was part of a lease agreement involving two of the city’s drawbridges. The primary objective is to channel these funds into much-needed street repairs, which could significantly enhance the current road project budget. While this financial boost presents an opportunity for leveraging grant matches, it may not entirely cover all the city's aspirations. Consequently, there's a consideration for introducing a local streets millage to supplement these efforts.

Potential Use of the $5 Million Fund

The $5 million obtained through leasing the Independence and Liberty bridges offers a substantial increase to Bay City's road improvement budget. Presently, the budget stands at around $2 million, primarily sourced from Michigan's Public Act 51 of 1951. By integrating the additional funds, the city aims to amplify its ability to secure matching grants that often require immediate financial availability. However, despite the availability of these funds, they might fall short of achieving all the city's objectives for infrastructure enhancement.

With the infusion of $5 million into the city’s road project budget, Bay City aspires to more than double its financial capacity for infrastructure improvements. This injection comes from a renegotiated 75-year lease with United Bridge Partners. Officials emphasize that while these funds remain earmarked for street projects, their potential alone might not suffice to realize all desired outcomes. Therefore, the presentation scheduled for the commission meeting highlights the importance of securing grant match opportunities, noting that immediate access to funds enhances the likelihood of attaining such grants.

Evaluating Local Streets Millage

Given the constraints of the available funds, city officials are contemplating the introduction of a local streets millage. Grants typically target major road enhancements, including commercial routes and heavily used residential paths. A millage, however, would focus more specifically on local street upgrades. Financial projections suggest that 1 mill could yield approximately $675,000 annually, equating to about $50 per $100,000 of home value for residents. If the city opts for a 2 mill millage, the annual revenue could reach about $1.3 million, costing residents roughly $100 per year.

While paving costs vary between $270,000 to $2 million per mile based on road conditions, addressing underground infrastructure remains crucial. City officials highlight that initial millage efforts will prioritize resurfacing roads with minimal impact or well-conditioned infrastructure. This approach ensures that funds are utilized efficiently, focusing on areas where improvements can be most effective without necessitating extensive underground work. By evaluating both the financial implications and the specific needs of local streets, Bay City aims to create a comprehensive plan that balances fiscal responsibility with necessary infrastructure development.