City Council Minutes

Present: Mayor Christopher Johnson, Councilmembers Kevin Hartshorne, Jerry Mittman, Thomas Swigart.

Absent: Mayor Protem Carolann Ayers (excused)

Also Present: City Manager Gary Word, Assistant City Manager/Finance Director Nicolette Bateson, DPW Director James Gallogly, Parks and Recreation Director Traci Sincock, Deputy City Clerk Carol Kasprowicz; Plante & Moran Associates Frank Audia, Beth Bialy, and Kris Wood; MML Representative Michael Brady, Plymouth City Manager Paul Sincock, City of Plymouth Mayor Stella Green, Commissioners Daniel Dwyer, Ronald Loiselle, Michele Potter, Phil Pursell, David Workman and 17 citizens.

Citizen Comments: None

Presentation: "System Failure / Michigan’s Broken Municipal Financial Model" / Plante & Moran

Frank Audia of Plante & Moran and Mike Brady of the Michigan Municipal League led a detailed presentation explaining the ramifications of the legislative measures of the General Property Tax Act in implementing Proposal A and the Headlee Amendment. A significant effect is the reduction of allowable millage rates of Michigan cities and townships while, at the same time, negating any possible increased tax revenue from "uncapped" property. The millage rate has been affected by cumulative years of Headlee adjustments, which has resulted in many cities reaching their maximum level of millage as dictated by their individual charters, State statute, or vote. Local officials were urged to contact their State legislators to correct the specific implementation measures of the General Property Tax Act that is causing loss of tax revenue and the lowering of the millage ceiling.

An informal question and answer period followed the presentation. Mayor Johnson thanked Audia and Brady for their insights and urged all present to contact their legislators on this matter.

Respectfully submitted,

Carol T. Kasprowicz
Deputy City Clerk