How Bay City is run
Who runs Bay City, what it costs, and where your money goes
The city manager, council pay, the budget, your property tax bill and who provides each service, from Bay City's own public documents. Every number links to its source and says which year it describes. Checked Oct 10, 2026.
Who runs Bay City
A city manager hired by the council runs the city day to day. The council sets policy, adopts the budget and sets the tax rate.
What they are paid
- City pays 10.5% of base salary into a 401(a) retirement account
- Car allowance of $100 a week
- Extra $5,000 a year while living in an owner-occupied home in the city
- Three months' salary as severance if removed without cause during the first term
- Contract runs through June 30, 2028, then renews for one year unless the commission gives notice
Bay City city staff
317 full-time-equivalent positions, including Public safety (police and fire) 90, Electric utility 52, Sewer 42, General government 40, Public works 34, Water 30, Other (inspections, recreation, development) 29. FY2024-25. City of Bay City · Dec 18, 2025
The budget lists positions and salary totals by department. We found no list of individual employees' pay. We name pay only for elected officials and the city manager.
Is Bay City in the red?
Cities must pass a balanced budget, so "profit" and "deficit" mean something different here. The useful questions: does the city's everyday money (the general fund) cover its everyday costs, how much does it keep in savings compared with its own target, and how big are its pension and debt bills.
Savings against the city's own target
Unassigned general fund balance: $5.4M (2025-06-30). The city's own target: Commission policy: keep unassigned plus committed general fund balance between 15% and 20% of the previous year's amended spending budget. Balance above 20% has usually been moved to the Public Improvement Fund. The city meets this target. City of Bay City · Dec 18, 2025
Bar: unassigned savings of $5.4M. Line: the amount the city's target calls for.
Why we skip the "budgeted deficit": many cities plan to dip into savings, then spend less than planned. The audited result tells you what really happened.
Where the money comes from and goes
The general fund only: the city's everyday money for FY2026-27.
Comes from
- Taxes$12.6M · 43%
- Intergovernmental (state and federal)$7.3M · 25%
- Transfers from other funds$4.3M · 15%
- Charges for services$3.8M · 13%
- Licenses and permits$483,939 · 2%
- Other (interest, rent, fines, miscellaneous)$536,458 · 2%
Goes to (FY2026-27)
- Public safety$17.6M · 61%
- Administration$2.3M · 8%
- Parks$2.1M · 7%
- Public works$1.8M · 6%
- Finance$1.7M · 6%
- Transfers to other funds$1.1M · 4%
- Legislative and executive$937,031 · 3%
- Other (planning, economic development, legal, environmental)$1.4M · 5%
Your property tax bill: who gets it
Rates as listed in the city's audit. Michigan homesteads are exempt from up to 18 mills of school operating tax, so most homeowners pay less than the total shown.
27¢
of each property-tax dollar goes to the city of Bay City
- City of Bay City16.9615 · 27%
- School district31.7602 · 50%
- Bay County12.9759 · 20%
- Community college2.0559 · 3%
- Total (mills)63.7535
2025 direct and overlapping property tax rates in Bay City. City of Bay City · Dec 18, 2025
Who provides your services
Not everything in Bay City is run by the city. Who provides a service decides whose budget pays for it and whose election decides it.
- PoliceThe cityBay City Department of Public SafetyCity of Bay City · Dec 18, 2025
- FireThe cityBay City Department of Public SafetyCity of Bay City · Dec 18, 2025
- ElectricityThe cityCity electric utilityThe city buys power through the Michigan Public Power Agency.City of Bay City · Dec 18, 2025
- WaterThe cityCity water utilityThe city buys its water from the Bay Area Water Treatment Plant.City of Bay City · Jun 23, 2026
- SewerThe cityCity sewer utilityCity of Bay City · Dec 18, 2025
- StreetsThe cityCity of Bay CityCity of Bay City · Dec 18, 2025
- ParksThe cityCity of Bay CityCity of Bay City · Dec 18, 2025
- AirportThe cityJames Clements Airport (city-run)City of Bay City · Dec 18, 2025
Compared with similar cities
The cities in this state closest in population that we cover. Read it for scale, not as a ranking: cities provide different services.
| Per city | Port HuronMI | JacksonMI | Bay CityMI | MidlandMI |
|---|---|---|---|---|
| Residents | 28,273 | 31,022 | 31,868 | 42,806 |
| Top administrator's base pay | Not confirmed | $185,000 | $165,000 | Not confirmed |
| Council member pay | Not confirmed | $10,403 | $8,000 | Not current (2023) |
| General fund per resident | $1,548 | $1,243 | $908 | $1,523 |
| Debt per resident | $3,394 | $1,398 | $1,010 | $738 |
| Unfunded pension per resident | $1,463 | $953 | $743 | $2,094 |
| City staff per 1,000 residents | 9.0 | 7.4 | 9.9 | 8.4 |
Figures as shown in each city's section, divided by its population. Years differ by state, and pension figures are measured differently in each state (each city page says how).
What Bay City publishes
What a resident can find online today. A "no" is something you can ask the council to publish.
- Yes: Adopted budget posted onlineAdopted budgets from 2021 through 2027 are posted in the city's Archive Center. City of Bay City · Oct 10, 2026
- Yes: City manager's contract findable onlineThe new manager's employment agreement is in the July 20, 2026 commission agenda packet. City of Bay City · Jul 20, 2026
- Yes: Council votes recorded member by member onlineFull minutes in the agenda packets list each commissioner's yes or no vote. City of Bay City · Jul 20, 2026
- Yes: Meeting videos and minutes onlineAgendas, packets and meeting synopses are posted online. Meetings stream on the city's YouTube channel. City of Bay City · Oct 10, 2026
- Yes: Council pay stated in a public documentCompensation Commission minutes set $8,000 for commissioners and $9,500 for the mayor. City of Bay City · Sep 8, 2025
Questions to ask your council
- General fund revenue exceeded spending by $469,923 in FY2024-25, but transfers of $3.5 million cut fund balance by $1.78 million. How does the commission decide how much reserve to move into capital projects?
- Unassigned general fund balance was $5.4 million on June 30, 2025, within the 15% to 20% target. With state revenue sharing projected to fall in 2027, where in that range will the city aim to stay?
- The police and fire pension plan was 76.58% funded on June 30, 2025, with an $18.7 million net pension liability. What contribution plan will close that gap?
- The new city manager's contract sets a $165,000 base salary. What goals will the commission use at his first annual review?
The fiscal year starts July 1. The FY2026-27 budget was presented to the commission on May 11, May 18 and June 1, 2026. The commission held the public hearing and adopted the budget and millage rates on June 15, 2026. See who is running for council
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