Title
Resolution in Support of Fiscal Responsibility to Save Michigan's Communities
Memorandum
Staff recommends the attached resolution advocating for the State to ensure cities and villages are funded in a manner which is viable and sustainable and requests full funding for State Shared revenue.
Staff
Prepared by: Tom Crawford, Financial Services Area Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, All Michigan cities and villages are facing unprecedented fiscal stress;
Whereas, The Michigan Legislature has systematically failed to fully fund statutory revenue sharing;
Whereas, Since 2002 the State of Michigan has diverted $7.5 billion dollars away from local service delivery and used those dollars to fund state operations;
Whereas, The city of Ann Arbor would have received $ 45,712,771.63 in statutory revenue sharing since 2002 had the Legislature fulfilled its obligation to fully fund the program;
Whereas, Property taxes are the primary source of revenue for Ann Arbor's General Fund budget;
Whereas, The Headlee Amendment and Proposal A combine to lock-in a huge fiscal deficit in a community's property tax revenue;
Whereas, The city of Ann Arbor's voters approved a general operating millage permitting City Council the authority to levy up to 7.5 mills that Headlee and Proposition A subsequently reduced to 5.9407 mills;
Whereas, This reduced cap in the general operating millage represents the capacity to annually levy $8.9 million in 2018, which represents a significant loss in financial flexibility for City Council to consider as it manages through business cycles, supports needed infrastructure improvements, and pays down outstanding debt obligations;
Whereas, The implementing language of Proposal A eliminated "roll-ups" as provided for in the Headlee Amendment, the elimination of this self-correcting mechanism creates an almost permanent reduction of the millage authority of local government;
Where...
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