Title
Resolution to Correct 2020 Property Tax Millage Rates for Fiscal Year 2021 and Reaffirm the Adopted Ann Arbor City Budget for Fiscal Year 2021 (7 Votes Required)
Memorandum
Public Act 38 of 1999 requires the millage reduction fraction used for Headlee Calculations to be rounded down to four places when establishing tax rates for a taxing jurisdiction. The 2020 millage reduction fraction for the City of Ann Arbor was rounded up when it should have been rounded down. The correct 2020 millage reduction fraction for the City of Ann Arbor millage rates for tax year 2020, Fiscal Year 2021 is 0.9911.
Ann Arbor City Council adopted Property Tax Millage Rates with the incorrect millage reduction of 0.9912 applied for Fiscal Year 2021. Staff became aware today, June 15, 2020, that the correct millage reduction fraction for Fiscal Year 2021 is 0.9911, as approved by Washtenaw County Equalization.
The corrected 2020 millage rates for the City of Ann Arbor as approved by Washtenaw County Equalization are shown below. The correction in millage rates result in a loss of $9,743.
Staff
Prepared by: Jerry Markey, City Assessor
Reviewed by: Matthew V. Horning, Interim Financial Services Area Administrative and CFO
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas City Council approved millage rates for Fiscal Year 2021 that had the incorrect millage reduction fraction;
Whereas City Council recognizes the incorrect millage reduction was applied when calculating millage rates for Fiscal Year 2021; and
Whereas City Council accepts the corrected millage rates calculated using a millage reduction fraction of 0.9911;
RESOLVED, That the corrected millage rates shall be levied for the City of Ann Arbor for FY 2021
RESOLVED, that City Council reaffirm its adoption of the FY 2021 Budget and Related Property Taxes subject to the above millage rates.
Sponsored by: Mayor Taylor