Extra-Voted Millage FAQ
Why is the board asking for an extra-voted millage?
The township receives guaranteed, i.e., allocated dollars through property taxes, sales tax, and other areas of revenue that cover regular/mandatory operational expenses, including election costs, salaries and tax collections. However, our township is unique in that we have 19 parks and park areas and two "villages" that have no local governments of their own. Upkeep and capital improvements in these areas cost money, and those dollars come from this extra-voted millage.
How would the money be spent?
Mostly on parks and capital improvements. In most years, our allocated budget covers our regular operating budget. In some years, however, it comes up a few thousand dollars short, whether it be to election costs, or unforeseen expenses. However, we envision that of the roughly $200,000 collected, $90,000 will cover normal park operations, $30,000 is available for park repairs, maintenance and improvements, $30,000 for immediate and short-term capital needs and the other $50,000 for long-term capital improvement plans, like sidewalks, roads and other infrastructure projects. Any dollars left unspent would be allocated to the capital improvement fund.
How long is the millage term, and how much will it collect?
3 years, generating $199,945 in year one, based on a millage rate of .3920 ($0.392 per $1,000 of taxable value). Growth in new construction will determine subsequent years.
How much will it cost me?
For a $300,000 ($150,000 taxable value) home, the millage would cost about $60, and be applied to the winter tax bill.
Is this a new tax?
Technically, yes, as it must be renewed. However, this millage is lower than the previous extra-voted millage supported by township voters in 2020. That millage expires this year.
Does the township plan to raise any additional taxes?
No. And any other millage increase would also require voter approval.
Is this the same millage rejected in May?
Not exactly. We've cut the millage by about 10% since, based on budget savings we've seen this year, and also provided a clearer picture of spending needs. In addition, we've assured the public that there will be no board-initiated property tax increases over the millage's lifetime.
What happens if it's rejected again?
We'd have to make it work in the near term, but it's not sustainable. We can apply funds from other sources -- Metro, ARPA (Covid Relief Funds), Capital Improvements -- to cover some areas of spending. But those funds have strings attached -- restrictions on how they can be spent -- and would be drained almost entirely over three years. Either significant cuts in park maintenance and capital improvement projects, or alternative tax/revenue sources, would be necessary beyond 2023.