Stories indexed with the term ‘property taxes’

Washtenaw County board of commissioners meeting (April 16, 2014): Most local governments in Washtenaw County will see increases in tax revenue this year, according to the 2014 equalization report that county commissioners approved on April 16.

The report was presented by Raman Patel, the county’s long-time equalization director. “Washtenaw County is showing improvements in the market,” he told commissioners. “We are slowly regaining our county’s equalized base. It appears that the worst part of the decline in market value is behind us.”

For 2014, taxable value in the county increased 2.02% to $14.18 billion. That’s a greater increase than the 1.68% climb in 2013, and an improvement over declines seen in recent years. Patel cautioned that several factors are impacting revenue for local governments, including the phase-out of personal property taxes, a variety of exemptions, and tax capture from entities like downtown development authorities.

More of the tax burden is also being shifted to residential property owners, he noted, compared to other categories, like commercial property. The category of residential property accounts for 67.34% of total property value in the county. Five years ago, in 2009, it was 63%.

In other action on April 16, commissioners gave initial approval to distribute proceeds from a countywide tax on hotels and other accommodations. For 2013, $472,846 was available for distribution. If the resolution is given final approval, the county will keep 10% ($47,285) to pay for enforcement of the accommodation ordinance. The remainder will be divided between the Ann Arbor Convention & Visitors Bureau ($319,171) and the Ypsilanti Convention & Visitors Bureau ($106,390).

During public commentary, Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, and Jason Morgan, director of government relations for Washtenaw Community College, highlighted the union training programs that will be coming to the area this summer. The CVBs have been instrumental in recruiting these kinds of events to Washtenaw County.

Commissioners also gave initial approval to the annual Urban County action plan, which outlines proposed projects funded by the U.S. Dept. of Housing and Urban Development. The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships.

Final authorization was given to a two-year pricing proposal – for 2016 and 2017 – to provide police services to local municipalities through contracts with the county sheriff’s office. And commissioners gave final approval to a new brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town.

In other action, the board passed a resolution declaring April 13-19 as National Public Safety Telecommunicator Week in Washtenaw County. They also honored Dr. Eugene Glysson, who had served on the county’s board of public works (BPW) since 1986, and was its chair since 1996. He died on April 2.

Several issues were raised during public commentary, including concerns about emergency sirens installed by a pasture in Scio Township. The owner told commissioners that the sirens spook his horses, causing a dangerous situation if anyone is riding them or standing nearby. Other topics discussed by the public included the creation of a new group to help end homelessness, called Our 2020 Vision, and efforts by University of Michigan students to reduce the use of plastic bags by imposing a per-bag usage fee. They’re garnering support in part through a MoveOn.org petition. [Full Story]

Washtenaw County commissioners have approved the 2013 apportionment report – giving details of the 2013 taxable valuations for property in the county, broken down by municipality. Board of commissioners action came at its Oct. 16, 2013 board meeting. The report also includes the amount of millages levied and the dollar amounts collected in taxes. December tax bills will be mailed out to property owners based on these calculations. [.pdf of 2013 apportionment report]

In April, the county’s equalization department produces an annual report describing Washtenaw County’s total equalized (assessed) value of property. The report is part of a state-mandated equalization process, and gives an indication of how much revenue the county will receive from property taxes in the coming year. … [Full Story]

Washtenaw County board of commissioners meeting (April 17, 2013): Major budget issues were the focus of the April 17 county board meeting, including news that tax revenues in 2013 will be higher than anticipated.

After several years of reporting declining tax revenues, Raman Patel – the county’s equalization director – gave commissioners a report showing stronger signs of economic recovery, reflected in a 1.68% increase in taxable value. That translates into an estimated $2.327 million more in property tax revenues for county government than had been budgeted for 2013. [.pdf of Patel's presentation]

Also related to the budget, commissioners gave initial approval to a four-year budget planning cycle, a change from the current two-year cycle that’s been in place since 1994. Voting against the item was Ronnie Peterson (D-District 6). He and other commissioners expressed a range of concerns, including the fact that commissioners are elected every two years and therefore might not be able to contribute adequately to setting budget priorities. Although Peterson remained unconvinced, several commissioners observed that the annual budget affirmation process acted as a fail-safe, allowing the board to make adjustments based on changing priorities.

Another item that could have a dramatic impact on the county’s budget was only briefly mentioned: A proposal to issue up to $350 million in bonds to fully fund the county’s pension and retiree healthcare plans. It would be by far the largest bond issuance in the county’s history. County administrator Verna McDaniel plans to make a formal presentation about the proposal at the board’s May 2 working session. She distributed materials on April 17 to help commissioners prep for that meeting. [.pdf of bond proposal handout]

Commissioners also took a final vote officially to dissolve a countywide public transit authority known as the Washtenaw Ride. There was no discussion, but Conan Smith (D-District 9) – a vocal advocate for public transit – cast the sole vote against the resolution.

Other action handled by the board included a federal weatherization grant, a public hearing for the Urban County strategic plan, and resolutions honoring county employees and residents. Among them was Leila Bauer, the county’s chief deputy treasurer who is retiring after 41 years with the county. She received a standing ovation from the board. [Full Story]

After several years of reporting declining tax revenues, Raman Patel had good news for Washtenaw County commissioners: Stronger signs of economic recovery, reflected in a 1.68% increase in taxable value. Patel, director of the county’s equalization department, briefed commissioners on the 2013 equalization report at the board’s April 17, 2013 meeting. The board later unanimously approved a resolution accepting the report.

Equalized (assessed) value is used to calculate taxable value, which determines tax revenues for the county as well as its various municipalities and other entities that rely on taxpayer dollars, including schools, libraries and the Ann Arbor Transportation Authority, among others.

For 2013, taxable value in the county increased 1.68% to $14.2 billion. That’s an improvement over declines seen in recent … [Full Story]

The city of Ann Arbor has mailed out its 2013 property assessment and taxable value notification letters, and has posted a fact sheet explaining how those calculations are made. The website includes two examples, and an explanation of the appeals process. [Source]

A preliminary apportionment report for Washtenaw County – giving details of the 2012 taxable valuations for property in the county, by municipality – was presented to county commissioners at their Oct. 17, 2012 board meeting. The report also includes the amount of millages levied and the dollar amounts collected in taxes. December tax bills will be mailed out to property owners based on these calculations.

In April, the county’s equalization department produces an annual report describing Washtenaw County’s total equalized (assessed) value of property. The report is part of a state-mandated equalization process, and gives an indication of how much revenue the county will receive from property taxes in the coming year. [See Chronicle coverage: "Report: Better-Than-Expected '12 Tax Revenue"]

Later … [Full Story]

Ann Arbor city council working session (Feb. 13, 2012): At a working session last Monday, the council took its first look at the budget for fiscal year 2013, which starts July 1, 2012. Continued from a budget committee meeting on Dec. 12, 2011 was the theme that this year is the second year of a two-year planning cycle – and the city financial staff are approaching it that way.

With the exception of one significant change – adding one police officer instead of cutting nine – the blueprint for this year’s budget will, with some slight revisions, follow the plan put in place last year. That includes a plan to eliminate five firefighter positions, pending labor negotiations with the firefighters union.

At the December budget committee meeting, city administrator Steve Powers described this year as taking a “breather” – while stressing that the review of the organization is an ongoing process.

The relative luxury of essentially following the second year of a two-year plan is made possible this year by positive news and outcomes on several fronts.

But at Monday’s working session, the city’s chief financial officer, Tom Crawford, urged a cautious approach, given pending uncertainties about the basic structure of funding local governments in Michigan. Among those uncertainties is the future of the personal property tax, which could drop the city’s general fund revenue by $1.76 million, if that tax were to disappear completely. He advised the council not to use one-time positive outcomes to increase expenditures. Instead, he recommended that the city should strive to increase its fund balance reserve to 15-20% of expenditures – it currently stands around 13%, or $10.5 million. The general fund budget for the city this year calls for $78,321,015 in expenditures.

One of those positive outcomes is the retiree health care funding level for FY 2013, recommended by the city’s actuary – $12.4 million. The city’s planned cost for FY 2013 was $15.3 million. But Crawford is recommending that all but $400,000 of that $2.9 million savings should continue to be paid into the city’s voluntary employees beneficiary association (VEBA), to reduce unfunded liabilities and to guard against future liabilities. The potential $2.9 million savings is a citywide figure.

But as a result of another VEBA-related policy choice that Crawford is recommending, the city’s general fund – out of which basic services like police, fire, planning, and the like are paid – would see a roughly $1 million boost. That policy change would start treating retiree health care as a true pre-funded system, instead of the current pay-as-you-go hybrid. The current hybrid pay-as-you-go approach places a higher burden on those funds that have a relatively large number of associated retirees – workers who were paid out of that fund while they worked for the city. [As of December 2011, the city's general fund had 366 active employees and 532 retirees.] Crawford’s recommended approach focuses on the gaps in pre-funding, which puts the financial burden where most of the liability is currently accruing – active employees. And that would translate to a $1 million general fund savings, compared to the current approach.

Crawford put specific pieces of positive budget news in the context of general positive news, suggesting that the city has now seen the worst of the 2008 economic downturn. Unemployment numbers are dropping – in the Ann Arbor area, unemployment stood at 5.5% in December. And state sales tax receipts are coming off depressed levels – that’s important, because the “revenue” in state shared revenue (the amount the state distributes to local units of government) comes from state sales tax receipts.

Among the specific pieces of positive news Crawford presented to the council was the expectation that the city would break even on the current budget year (FY 2012), which ends June 30, 2012. The city had expected to tap the general fund reserve for $1.1 million this year. In the previous year (FY 2011), the city also essentially broke even, when it had anticipated needing to spend $1.5 million from its fund balance reserve.

Compared to what was anticipated in the two-year plan for FY 2013, on the revenue side several categories are expected to increase. Additional expenses, compared to the two-year plan, include adding a police officer instead of eliminating nine positions.

The net effect of all the changes from the two-year plan is a $1.6 million surplus of recurring revenues against recurring expenses for FY 2013. Of that surplus, Crawford is recommending that the council allocate $150,000 for a pilot program for recruiting police officers. But the rest he’s advising the council to add to the fund balance reserve to guard against leaner years projected in FY 2015-16.

The police recruitment program would allow potential hires to work under the direction of an Ann Arbor police officer before being hired on as a sworn officer. The program’s rationale was described by police chief Barnett Jones at the Feb. 13 working session as stemming from the hiring process to fill nine officer positions that came open at the end of 2011, due to retirements.

Jones gave a presentation of year-end crime reports showing that crime in major categories is trending down for Ann Arbor. Despite the net gain of 10 officers now anticipated for FY 2013, compared to the AAPD staffing levels in the two-year plan, the department’s 118 sworn officers leave Jones 32 short of the 150 that he described at the working session as the “perfect” number of officers for Ann Arbor.

After the jump, this article includes charts and graphs of crime reports, more detail on the impact of retiree health care on the budget, the budget outlook for FY 2013, and the city council’s work schedule for ratifying the FY 2013 in late May. [Full Story]