Michigan City to study fees, consider food‑and‑beverage tax and purchasing consolidation

At the March 6 workshop, Michigan City officials outlined a program of revenue measures and internal efficiency steps to help offset lower revenues and shrinking riverboat receipts.

The administration said it has commissioned a fees study to identify outdated charges that date to the 1970s–1990s and to recommend consolidation of ordinances into a single schedule. "We have some fees that were established in the seventies, eighties, nineties... That have never changed," an administration speaker said. Staff said departments will review suggested fee changes and the administration plans one consolidated ordinance listing the city’s fees.

The controller said the city will add merchant or credit‑card fees for transactions such as planning and admission fees. Officials also discussed consolidation of purchasing to capture savings across departments, with the goal of lowering recurring contractual service costs.

As a potential new revenue source for parks and tourism‑related services, the administration raised the idea of a food‑and‑beverage tax that would require state legislative approval. The administration gave an example of the local impact: roughly $0.50 on a $50 meal. The mayor/administration said it has talked with legislators and other mayors about the option and may ask the council for a supporting resolution in the fall.

Officials said these revenue measures will be studied further and that any ordinance or support resolution would return to the council for formal action. No votes were taken at the workshop.