Over the next two to three years, Traverse City could lose a third of its city employees to retirement, according to local officials.
City Manager Benjamin Marentette called it “likely the largest wave of employee exits this organization has ever seen."
The upcoming retirement wave in the city’s services comes as the population’s age remains increasingly higher than the state average. About 24% of Traverse City’s population is over the age of 65, compared to 19.6% statewide, according to 2024 U.S. Census Bureau estimates.
Marentette presented a plan to hire an independent third-party consultant to examine city services and recommend actions for a workforce strategy to city commissioners Monday evening.
The consultant would look at organizational structure and effectiveness, with a goal to modernize processes. Marentette said modernization could look like consolidating overlapping responsibilities and utilizing technology when applicable.
The project would also evaluate workforce capacity. The consultant will examine where the highest service demands are, what areas are most at risk when it comes to retirement and recruitment, how the city should adapt to seasonal demand changes, and what kinds of internal opportunities are available for current and future staff.
Marentette said the project would not be “an employee or organizational reduction initiative… this is a strategic look at how we are going to look and exist over the next 20 to 30 years.”
Commissioners will need to approve the funding for the consultant. Commissioner Kevin Funk expressed concern about the cost of the endeavor during the commission meeting. "Are we thinking this is $30,000? Are we thinking this is $150,000," Funk said.
Marentette did not give an amount.
“It will not be cheap,” Marentette said. “It’s an important investment, I think, into our future.”
Local officials are concerned that the retirements will lead to staffing issues down the line.
"You've got some current, full-time employees that may have 20, 30 years' worth of experience on everything," Commissioner Heather Shaw said.
"You ask any department... all of them will tell you that 'we're drowning in work. We need more people,'" Funk said.
Marentette acknowledged the rising cost of living in Traverse City, saying that wages and benefits will be evaluated to support employee needs.
“This is an expensive place to live. Housing costs continue to rise,” Marentette said.
The average home value in Traverse City is $446,706. The state average is $266,292, according to Zillow data. According to a 2023 Housing North report, Grand Traverse County has a housing gap of 11,361 units and is at risk of losing residents to other communities.
