Increase to county's economic development millage? Commissioners want more public input
Washtenaw County officials are considering passing an increase to an economic development millage -- but want more public input as talks progress on the millage rate and its allocation.
The issue is one commissioners have been debating for about a month, as it has moved out of the Ways and Means committee Sept. 5 and into the general board meeting Sept. 19. At the most recent meeting, commissioners tabled the issue after Commissioner Conan Smith proposed a greater increase to the millage to fund the Aerotropolis.
The millage will come before the Board of Commissioners about 6:45 p.m. Wednesday night in conjunction with a public hearing, as the hearing will be held before commissioners issue a final vote. The board meets at 220 North Main St. in Ann Arbor.
Conan Smith
Ryan J. Stanton | AnnArbor.com
Conan Smith cited the decrease in property tax values of about 2.7 percent from 2011 to 2012 as a factor in dwindling public coffers. He also noted median household income in Washtenaw County has increased by 8 percent from 2011 to 2012.
Though the board had a public hearing Sept. 19 on the proposed 0.05 mill tax rate, Conan Smith brought an official amendment forward that proposed a rate of 0.06 mills after the hearing - a move that Commissioner Ronnie Peterson said he found to mislead the public.
Several commissioners requested a second public hearing be conducted at the next full board meeting Wednesday to give time for input on the proposed increase from 0.05 mills to 0.06 mills.
Last year, commissioners voted 7-3 to renew the agriculture and economic development levy -- commonly known as an Act 88 millage -- at a rate of 0.05 mills. Commissioners Dan Smith, Alicia Ping and Wesley Prater voted against the increase, and Peterson was absent.
A tax rate of 0.05 mills raises $683,095 per year and a rate of 0.06 mills would raise $838,578 per year, and mean a payment of $5 or $6 per year, respectively, for a homeowner with a house with a taxable value of $100,000.
The county board can levy up to half of a mill without holding public hearings because of the authority granted to the entity under Public Act 88, according to the county’s corporation counsel Curtis Hedger.
The last day the county can approve the millage rate in order for it to make the December tax assessment is Nov. 7.
Commissioners Dan Smith, Ping and Peterson have stated in previous board meetings this year that they oppose the increase to the millage.
The millage would assessed on the December tax rolls, collected in the county’s Economic Development and Agriculture Millage Fund and be distributed among several institutions.
Resolutions for the 0.05 mill and 0.06 mill tax rates both include the following allocations:
- $200,000 for Ann Arbor SPARK and $50,000 for its associated nonprofit SPARK East
- $100,000 for the Eastern Leaders Group
- $82,500 for the Michigan State University Extension 4-H Program
- $15,000 for the 4-H Youth Show
- $15,000 for the Food Systems Economic Partnership
- $15,000 to the MSU Extension for economic development in the local food system
However, the resolutions differ on how much should be allocated to the Washtenaw County Office of Community and Economic Development.
The initially proposed resolution calling for a 0.05 mill tax rate would distribute $140,331 specifically to the Office of Community and Economic Development and $65,264 specifically for the office’s Heritage Tourism promotions in Washtenaw County.
The newer resolution calling for a 0.06 mill tax rate - which would raise $155,483 more than the 0.05 mill rate - includes a specific $50,000 allocation for the Aerotropolis, and the remaining balance of $311,078 to be given to Public Act 88 efforts of the Office of Community and Economic Development including heritage tourism, the Food Policy Council, Workforce Development Board and the Economic Development Corporation.
Amy Biolchini covers Washtenaw County, health and environmental issues for AnnArbor.com. Reach her at (734) 623-2552, amybiolchini@annarbor.com or on Twitter.
Comments
Roger Kuhlman
Wed, Oct 3, 2012 : 3:05 p.m.
Washtenaw County does not need more development and more People moving here! Why does government have to grow and grow and demand more and more taxes from taxpayers? Does the government work for us or we work for the government? Our political elites need to be thinking about the average working citizen in Washtenaw who is having a hard time in this Recession-bound enconomy when some special interest proposes a new government project requiring more public monies.
snapshot
Wed, Oct 3, 2012 : 1:54 a.m.
This is that 1919 antiquated law that the commissioners used to implement higher property taxes while circumventing the electorate. Pretty tricky for those of you who oppose an emergency manager law and any other legislation that reins in government spending because it circumvents the "democratic" process. You have no problem however, curcumventing MY democratic rights by IMPOSING tax increases without allowing me to "vote". You call that good government? I don't. I call it hypocritical.
rsa221
Tue, Oct 2, 2012 : 2:56 a.m.
So not enough $ for the HSHV contract, but $250,000 for SPARK?? Transparency of SPARK's accounting should be mandatory if this millage passes (I am voting against it personally).
rsa221
Tue, Oct 2, 2012 : 3:15 a.m.
*$250,000 extra
walker101
Mon, Oct 1, 2012 : 4:41 p.m.
"Families are doing better, but the government has fewer resources to maintain that prosperity for those in need," Conan Smith said? Really now, gas at almost $4.00 a gallon, food prices are up, property values are down and now you want to tax more? I get it now, tax all of us a little more that are lucky to have a job a since the government is going broke. How about paying what is due first before you ask for a handout?
Vivienne Armentrout
Mon, Oct 1, 2012 : 4:25 p.m.
The Aerotropolis allocation is a good example of the conflation of a politician's personal interests with his duties as an elected official. When we talk about "conflict of interest", it usually is taken to mean a direct payment in a quid pro quo arrangement, or a direct financial interest in a business that is getting a contract, etc. But often the effect of a decision extends beyond such direct benefits to an overall extension of power and influence. Mr. Smith is the executive director of the Michigan Suburbs Alliance, an economic development nonprofit, for which he received (according to its 2011 Federal form 1099) in excess of $120,000 total compensation. Since he has been on the BOC, the county has joined this organization (which had in 2011 a total revenue in excess of $3 million) and is part of a separate energy office under the auspices of the MSA. In addition, he sought successfully to have the Washtenaw County BOC accept membership in the working group to achieve a Regional Transit Authority. Thus, he joined 4 chief elected officials to become one of the Big Five. He has been very instrumental in Metro Detroit politics and economic initiatives, all of which presumably play to the advantage of his organization. The Aerotropolis allocation falls right into place in this scenario. Incidentally, I discuss the RTA briefly in a recent update on transit issues. http://localannarbor.wordpress.com/2012/09/30/the-transit-picture-in-ann-arbor-and-environs-still-a-ball-of-confusion/
Lastand
Mon, Oct 1, 2012 : 4:16 p.m.
Has Conan Smith ever worked a real job? Or has he been feeding off the public trough his whole like?
Lastand
Mon, Oct 1, 2012 : 4:18 p.m.
Sorry about that, like=life
Larry Baird
Mon, Oct 1, 2012 : 4:07 p.m.
Sorry, but the average joe's income did not increase 8% last year. Between all the housing foreclosures and recently condemned affordable housing units within the county, many of the county's poorest families were forced to leave in search of jobs and affordable housing elsewhere. Meanwhile, the city of Ann Arbor's real estate market continued to attract higher income households who can afford to pay the higher property taxes. So in effect, the county is becoming more "affluent" due to population migration. Just keeping raising our taxes and we will see this trend continue.
Alan Goldsmith
Mon, Oct 1, 2012 : 3:49 p.m.
Looks like Conan Smith has been learning quite a few tricks hanging out with Bob Ficano. You know, the Fab Five.
Basic Bob
Tue, Oct 2, 2012 : 1:55 a.m.
Birds of a feather
John S. Armbruster
Mon, Oct 1, 2012 : 3:46 p.m.
If Smith is serious he should seek professional help that would let him understand that his fantasy world is not real. Virtually none of this Aerotropolis is in Washtenaw. The rest is in Wayne County, the land of bribes, corruption, and criminal activity. This is one of Ficano's pet project and lots of money has been thrown away already. Why should taxpayer dollars be used in something will likely end up as part of a criminal conspiracy?
RUKiddingMe
Mon, Oct 1, 2012 : 3:43 p.m.
I also can't help but be amused/enraged by the whole "things are getting a little better, so let's increase taxes" approach.
mtlaurel
Mon, Oct 1, 2012 : 4:15 p.m.
per capita income is$32,200 which is up 1.86% from 2011, but still down .7% over 3 yrs. High income earners here are growing in numbers but there is a growing number falling below poverty line. The middle group is flat or shrinking. The middle group is likely to feel home price increases and food/fuel/fees/goods/service rises...he can't defend a statement like that-purposely left vague-as we can see,SOME people are doing better.
RUKiddingMe
Mon, Oct 1, 2012 : 3:41 p.m.
This Conan Smith is the guy who was found to owe on overspedning (or inappropriately spending) per diem money? And he never paid it back> Why is this guy still employed by anything having to do with government? And can someone, ANYONE, please, PEASE tell me where I can see what SPARK has actually DONE with the money they get? What direct, measurableservice have they provided, or benefit have they caused, in exchange for that money? HOW DOES SPARK SHOW WHAT THEY HAVE DONE WITH THE MONEY THEY GET AND WHETHER IT'S WORTH THE MONEY!???!!!
A2comments
Mon, Oct 1, 2012 : 2:47 p.m.
Those who wish to express their view directly to Mr. Smith can contact him at his Washtenaw County office via his email address - SmithCo@ewashtenaw.org.
rsa221
Tue, Oct 2, 2012 : 3:06 a.m.
It's definitely worth trying, but I received a very rude reply when I wrote in about the HSHV issue. The expression "fell on deaf ears" comes to mind.
Rick Stevens
Mon, Oct 1, 2012 : 2:10 p.m.
More money to the black hole known as 'SPARK' - don't ask for any accountability or transparency. Even though more of your money will be given to SPARK as taxpayer you're not entitled to see their audits or to demand a thorough independent audit of their off the wall (up and down and all over the place) 'job creation' numbers. Accountability is for the little people, not for 'job creators' (ha) like SPARK. Come on Washtenaw County -- demand the audits and make them public AND get real about job creation (if any). Will all on the Washtenaw board state on the record that they will never take a position at SPARK or at least wait 5 years? Just asking... Crony capitalism - alive and well in Washtenaw County.
dotdash
Mon, Oct 1, 2012 : 1:11 p.m.
Okay, here's my feeling. I don't have time to figure out if giving more money to SPARK, this new Aerotropolis, to the 4H -- if any of that will be good for the county in the long run. I would love to be able to trust the county commissioners with those decisions. However, in order for us to trust them to make those decisions, they probably should stop with all the sneaky stuff like increasing the amount of the millage after the public meeting is over and finding new taxing authority in out of date law code. Tax revenues have decreased -- but they were set up that way to remove some tax burden from property owners during downturns. That's a *feature* of the taxing system, not a *bug* that has to be fixed by increasing rates. One gets the feeling they are bound and determined to do what they want, regardless of the systems put in place by the law and spirit of the law. I don't mind the taxes at all, by the way. I just want some people with integrity to decide that that is well-spent money. I'm not seeing the integrity part.
Jim Osborn
Mon, Oct 1, 2012 : 12:53 p.m.
Is there a court order? If so, then can the sherriff make Conan pay us back?
Veracity
Mon, Oct 1, 2012 : 12:50 p.m.
Asking for money that will be distributed at the whim of a few government officials without any community input is being very trusting. The money collected will be used as inducements and incentives for taking risk with citizens tax dollars. If the start-up companies need seed money they should apply for grants and take out loans rather than receiving gifts from local government. What has been the success rates for Ann Arbor Spark, Spark East, Eastern Leaders Group and other entities that have received funds previously. What have the tax payers gained from these investments? How has the money provided to these organizations been used and who are the decision makers? Should we trust that tax payer moneys will be well invested and likely to benefit the community, especially when the successes (if any) of previous financial investments are not shared with tax payers?
outdoor6709
Mon, Oct 1, 2012 : 12:47 p.m.
This is a slush fund to give money to political allies. What is Eastern Leaders group? Food Ploicy council? More dictates from government?
SEC Fan
Mon, Oct 1, 2012 : 1 p.m.
It is interesting that the vast majority of this money is going towards "economic development" activities...and Mr. Smith is Executive Director of the Michigan Suburbs Alliance...
Ron Granger
Mon, Oct 1, 2012 : 12:46 p.m.
How, exactly, does SPARK spend the $250,000? And, Eastern Leaders $100K? This is pork barrel washtenaw.
Ron Granger
Mon, Oct 1, 2012 : 12:43 p.m.
"Conan Smith brought an official amendment forward that proposed a rate of 0.06 mills after the hearing - a move that Commissioner Ronnie Peterson said he found to mislead the public." Way to go Conan. Your pattern of dealing with public money is becoming predictable. Aerotropolis? Is that some kind of joke? It isn't even in our county.
Tom Whitaker
Mon, Oct 1, 2012 : 5:24 p.m.
Almost all of Willow Run airport is in Van Buren Charter Township, except maybe a hangar or two. Van Buren is in Wayne County.
SEC Fan
Mon, Oct 1, 2012 : 12:56 p.m.
Agree with first statements, but the Aerotropolis (sounds like a comic joke)...actually does include Washtenaw county as the Willow Run Airport is part of the development plan.
SEC Fan
Mon, Oct 1, 2012 : 12:42 p.m.
Anyone got a list of all the taxes that are being proposed? The ones I remember: Economic Development Millage 0.06 Art Tax 0.1 New Library 0.56 Transit Tax 0.584 So we're at 1.304 increase in millage...gonna be a long year...
Tom Whitaker
Mon, Oct 1, 2012 : 12:40 p.m.
Not only should this millage not be increased, but any local funding for SPARK ought to be eliminated. Use the savings to properly fund animal control services from HSHV. Aerotroplis? This latest scheme to socialize development costs and privatize the profits is not even in Washtenaw County. I'm a life-long Democrat, but if I lived in Conan Smith's district, I'd be voting for John Floyd.
dotdash
Mon, Oct 1, 2012 : 12:14 p.m.
What is this Aerotropolis? It sounds like just a fancy name for tax support for the Detroit airport -- which is in Wayne County. Is there anything else to it?
Kyle Mattson
Mon, Oct 1, 2012 : 12:33 p.m.
DD- The Aerotropolis zone includes DTW and Willow Run airports, see a map here: http://www.detroitregionaerotropolis.com/ It also crosses over into Washtenaw County just west of Willow Run.
dotdash
Mon, Oct 1, 2012 : 12:30 p.m.
Thanks, AMOC. I see now there is a separate article on it. It seems as if all the development is aimed at DTW (Wayne County), with Willow Run (Washtenaw) being on the back burner. Is that accurate?
AMOC
Mon, Oct 1, 2012 : 12:22 p.m.
Sorry, typo. "both", not "eboth".
AMOC
Mon, Oct 1, 2012 : 12:21 p.m.
The Aerotropolis is a unified plan for economic development in the areas of Willow Run Airport and Detroit Metro Airport. The focus is on getting businesses to locate along the section of I-94 in between the two airports, becaus eboth people (Metro) and materials(Willow Run) can be easily transported by air. This is a boon to developers of office / technical parks along I-94, and a boondoggle to the rest of us.
Barzoom
Mon, Oct 1, 2012 : 12:13 p.m.
The answer to everything....if the economy starts to improve...raise taxes to take advantage. If the economy is in decline and property values drop...raise taxes to make up for decreased revenues.
Alan Goldsmith
Mon, Oct 1, 2012 : 12:13 p.m.
Can AnnArbor.com please ask Mr. Smith about the money he hasn't paid back? I believe there was actually an editorial that pushed for this to happen. Can we have a followup? Thanks.
Basic Bob
Tue, Oct 2, 2012 : 1:51 a.m.
Why bring in an outside independent auditor and then, as chairman, refuse to honor the findings for himself personally as others did? He leads by example.
Treelover
Mon, Oct 1, 2012 : 11:29 a.m.
NO MORE TAXES!!!
HB11
Mon, Oct 1, 2012 : 11:23 a.m.
Stand your ground, commissioners Smith, Ping, and Peterson!!
pseudo
Mon, Oct 1, 2012 : 11:09 a.m.
Nope, I don't think so...just guessing but that case hasn't really been made. The big allocations are the problem here. the smaller ones, those that already fit in the budget are good - worthy of support but those bigger ones? Not so much.
Bob W
Mon, Oct 1, 2012 : 10:55 a.m.
There seem to be too many who think this country is out of the woods economically. Look around, there are still many headwinds. Pass all these taxes and if things fail to continue to improve and we head back into recession, we will still be saddled with all these new taxes. First a new library, now this millage, etc. I agree with a previous poster, read our lips, no new taxes!!
average joe
Mon, Oct 1, 2012 : 10:44 a.m.
"Conan Smith noted.........median household income in Washtenaw County has increased by 8 percent from 2011 to 2012." I find this very hard to believe, even if he is just including those that are employed. I assume Mr. Smith has data to support this(?)
SEC Fan
Mon, Oct 1, 2012 : 5:30 p.m.
@larry. he didn't say the "average" joe's income increased...he said "median" income increased. big difference.
Larry Baird
Mon, Oct 1, 2012 : 4:02 p.m.
Sorry but, the average joe's income did not increase 8% last year. Between all the housing foreclosures and recently condemned affordable housing units within the county, many of the county's poorest families were forced to leave in search of jobs and affordable housing elsewhere. Meanwhile, the city of Ann Arbor's real estate market continued to attract higher income households who can afford to pay the higher property taxes. So in effect, the county is becoming more "affluent" due to population migration. Just keeping raising our taxes and we will see this trend continue.
GoNavy
Mon, Oct 1, 2012 : 10:40 a.m.
A mill here, a mill there - everybody has their hands out. "It's only a mill! It's for economic development! How can you be against it?" Death by a thousand cuts, that's how.
DonBee
Mon, Oct 1, 2012 : 10:30 a.m.
Typical Conan Smith and the Washtenaw Political Scene Overall... Find a loophole that lets them raise taxes for one thing, so they can shift the taxes they already get to something else. Also typical is looking for any tax they can raise without a vote of the tax payers. Mr. Smith likes OPM (Other People's Money) and is from a family with a long history of OPM consumption. He does not care what it costs you, he only cares about his pet causes. Taxation with his representation - OH YEAH!
Treelover
Mon, Oct 1, 2012 : 11:30 a.m.
Well Said, please remember at election time!!
Bcar
Mon, Oct 1, 2012 : 10:27 a.m.
NO MORE TAXES! READ our lips!
A2comments
Mon, Oct 1, 2012 : 10:26 a.m.
Conan, pay us back!
Basic Bob
Tue, Oct 2, 2012 : 1:47 a.m.
Smith's refusal to pay back a very small amount of money confirms that the whole per diem fiasco was a partisan hit on a popular commissioner running for state office. It would have jeopardized Ouimet's political career to refuse to pay, I can only hope that the same applies to Conan and the rest of the hit squad.
Alan Goldsmith
Mon, Oct 1, 2012 : 10:24 a.m.
Conan Smith is very generous when it comes to my tax dollars and Ann Arbor SPARK but I'm guessing he still hasn't paid back the expense account funds he owes yet? When he mans up and does that THEN we'll talk about more funds to a private organization that refuses to opens its financial records for review.