Property tax constraints and fiscal health in rural communities: A case study of Fennville, Michigan
This case study examines the fiscal health of the City of Fennville, a small, rural community in western Michigan. In particular, it assesses how the City's financial well-being and future sustainability are largely influenced by its administrative context, namely Michigan's property tax and assessment regulations, as well as the economic development strategies it has implemented in response. The analysis relies on common fiscal indicators, contextualized by the City's policy decisions and rural character, and capital improvement planning. Overall, the analysis finds that Fennville's deteriorated liquidity and increased reliance on external revenue reflect deliberate policy decisions rather than fiscal distress. The report concludes with four recommendations: continuing to build the administrative capacity that has made the City grant competitive, tracking the effects of its tax base strategy, maintaining the fiscal discipline needed to replenish reserves, and securing a new anchor customer for the municipal water system.