Past Issues‎ > ‎Budget‎ > ‎

Revenues

The following information is from a document distributed at the January 8, 2011 budget work session. A pdf file of that document is attached below.

                                                            Tax Revenues

Millage

Authorization

Expiration

Original

FY2011

Gap

General Operating

City Charter

 

7.5

6.1682

-1.3318

Employee Benefit

City Charter

 

2.5

2.0560

-04440

Transportation

City Charter

 

2.5

2.0560

-0.4440

Total General Fund


 

12.5

10.2802

-2.2198

 

 

 

 

 

 

Refuse Collection

Council

 

3.0

2.4670

-0.5330

Debt

Voted

FY2014

Varied

0.5000

 

Street Repair

Voted

FY2013

2.0

1.9944

-00056

Park Maint. & Cap. Impvt

Voted

FY2014

1.1

1.0969

-0.0031

Open Space Acquisition

Voted

FY2035

0.5

0.4779

-0.0221

Subtotal

 

 

 

6.5362

     

  Total City

    
  16.8164
 

The City’s total Taxable Value is estimated to be $4.46 billion, which is a reduction of 2.0% from FY 2011.

Both Taxable Values and Tax Rates are expected to decline.


Three Options for Increasing Revenue:

Option #1: Headlee Override With Existing Levies

  • Residents could vote for a Headlee Override for the General Operating Levy to restore it to what the City Charter initially authorized Council to have levy authority for (which is 7.5 mills). This equates to approx. $5.9 mil. in restored authorization.

Option #2: Headlee Override With Reduced Levies

  • Residents could vote for a Headlee Override which offsets reductions in other millages. For example:
  • A Headlee Override could be sought for the General Operating Levy in an amount equal to how much the Debt millage is falling from its FY2O1 1 level. This would keep millage rates flat instead of declining.

Option #3: Restructure the Way the City is Funded

  • If a local income tax is approved by voters, the City’s Charter requires the entire General Operating Levy to be eliminated. This would substantially reduce the amount of property taxes collected in exchange for instituting an income tax. The income tax would represent approx. 65% of tax revenues and property taxes approx. 35%. Depending on how the income tax would be structured, additional revenue may be possible up to $12 million.

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Ann Arbor Neighborhoods,
Jan 11, 2011, 1:21 PM