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File #: 18-1010    Version: 1 Name: 6/18/18 Resolution in Support of Fiscal Responsibility to Save MI Communities
Type: Resolution Status: Passed
File created: 6/18/2018 In control: City Council
On agenda: 6/18/2018 Final action: 6/18/2018
Enactment date: 6/18/2018 Enactment #: R-18-232
Title: Resolution in Support of Fiscal Responsibility to Save Michigan's Communities
Resolution in Support of Fiscal Responsibility to Save Michigan's Communities
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.
Prepared by: Tom Crawford, Financial Services Area Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator
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;


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