(C) Daily Kos
This story was originally published by Daily Kos and is unaltered.
 . . . . . . . . . .



Detroit Public Library grateful for millage renewal, weary of tax captures [1]

['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']

Date: 2024-08-13  

A week ago today, Detroit voters approved the renewal of the millage for the Detroit Public Library. This means that the Main Library and most of the branches can keep their doors open for the next ten years. The millage of 3.9943 mills doesn’t sound like very much to an individual homeowner, but among all the homeowners in Detroit it adds up to 85% of the library’s operating budget.

Last Wednesday, the library sent out a thank you message to their mailing list.

Thank you, Detroit! The overwhelming support we received indicates that Detroiters value and appreciate the important role the Detroit Public Libraryplays in providing access to information, technology and programs that enhance the quality of life. We look forward to continuing and improving our services and resources for another 10 years.

The message also included some unofficial numbers.

The unofficial results posted by the Detroit Election Commission indicate the proposal received 63,494 “Yes” votes (85.8%) and 10,509 “No” votes (14.2%). This renewal will provide funding for library services for July 1, 2025 to June 30, 2035.

But the library won’t be getting the full millage amount. Voters were informed about the so-called “tax captures” in the official ballot language for last decade’s millage renewal, which stated in part that

3.9943 mills will raise estimated revenue of $37,700,000 the first year, if approved, levied, and 100% collected. Of this, 5% may be captured by the tax increment authorities under the Detroit Economic Growth Corporation, as required by state law.

A memo linked from the Detroit Public Library website explains that

Michigan State tax increment financing laws allow Detroit’s City government to “capture” portions of dedicated millage revenues and use those funds for economic development projects. Michigan has several tax increment financing authorities (TIFA) authorized to use TIF financing. One authority in the City of Detroit is the Detroit Downtown Development Authority (DDA). This authority may capture property taxes in its district based on the increased value of properties. ... The DDA is allowed to capture any additional property tax increases for the remaining years of the tax capture agreement. Yet, the Library will only receive the property tax based on the initial taxable value of $1 million annually for the remaining years of the tax capture agreement.

Clear as mud, huh?

It’s bad enough to siphon off 5%. But it’s actually worse than that.

Since 2017, the amount of captured millage revenue has annually exceeded the voter approved 5% cap. A memo dated February 9, 2018, was sent to the Honorable City Council of Detroit from the City of Detroit’s deputy corporation counsel. It stated that “the 5% reference was presented in an information matter, rather than as a substantive part of the proposal and certainly not as a legally binding cap” and therefore “has no legal effect on the TIF captures.”

Geez. So is anything stopping the DDA from stealing the whole millage? Could the DDA decide to shutter the library just to put a few bucks more in the pockets of people who already have much?

For perspective, the memo compares the millage situations for the Detroit Institute of Arts (across the street from the Main Library) and the Detroit Zoo. According to the memo, back in 2013, Lt. Governor Brian Calley (R-Michigan, 2011 — 2018)

signed a series of bills that allow the Detroit Zoo and the Detroit Institute of Arts to receive 100 percent of millages funding those institutions. Indeed, after signing the bills, Lt. Governor Calley stated that “voters approved millages to support these cultural icons, and these bills guarantee that the voice of the voters in southeast Michigan is not only heard, but followed.”

But the big difference between the Detroit Institute of Arts and the Detroit Zoo (which is actually located in Royal Oak) is that they’re funded by tri-county millages (Detroit is a big part of Wayne County). Heaven forbid that any millage money approved by Macomb or Oakland County voters be stolen for purposes those voters did not approve. No one cares about the will of Detroit voters.

[END]
---
[1] Url: https://www.dailykos.com/stories/2024/8/13/2262863/-Detroit-Public-Library-grateful-for-millage-renewal-weary-of-tax-captures?pm_campaign=front_page&pm_source=more_community&pm_medium=web

Published and (C) by Daily Kos
Content appears here under this condition or license: Site content may be used for any purpose without permission unless otherwise specified.

via Magical.Fish Gopher News Feeds:
gopher://magical.fish/1/feeds/news/dailykos/