HOLLY, Mich. – The Holly Village Council approved a four-mill special assessment this week, forcing residents and business owners to shoulder an immediate tax increase.
The unanimous decision comes as the village faces a $600,000 budget shortfall.
“There was either we had to cut a lot of the police department or a lot of the fire department, or go for a state takeover of us. Or we had to raise the millage rate,” said Council Member Daniel Wendel.
Dana Julian is both a resident and a business owner.
She’s worried that the assessment could mean higher rent for her pet store, Furbaby Boutique, located in Holly’s downtown.
“I have only been two years and three months, and I am not operating at a profit yet, and if my bills increased that much, I may not be able to afford to stay open,” Julian said.
Village President April Brandon addressed Holly’s financial challenges in a statement to Local 4: “We didn’t create this problem—we inherited a hidden deficit, though we don’t believe it was intentional. None of us knew about it until this year.”
According to village records, the millage rate has dropped to 11.32 mills for fiscal year 2025, a significant reduction due to Headlee Amendment rollbacks since 1982.
The tax increase has drawn mixed reactions from Holly residents. While some understand the necessity, others worry about the financial burden, particularly for those on fixed incomes.
“Nobody likes to have their taxes raised, but in this case, we had to have police and fire protection. I think they need to go to work on what happens from here,” said Holly resident Dick Rossell.
Elderly residents expressed particular concern about the sudden increase in the number of cases.
“I don’t like it because it is too hard, especially if you get older,” said Rosie Church, a Holly resident.
The assessment’s impact will vary based on property values.
Wendel, who also serves on the council, said he expects to pay an additional $350.
“Trust me, I’m on a fixed income. I understand. I know a lot of my residents are on fixed income,” Wendel said.
Village officials had to act quickly to meet state requirements for a balanced budget submission.
The decision was made after multiple public hearings and budget discussions throughout May and June, during which officials explored various options, including potential service cuts and alternative funding mechanisms.
“We are looking at long-term solutions to lower taxes again and address revenue to afford the services we are legally tasked with providing,” Brandon said.
