Politics & Government

Poll: Farmington Voters May Face Millage Question This Year

City manager Vince Pastue tells officials he will present a recommendation as part of this year's budget process.

In an effort to create what he calls a "sustainable budget", city manager Vince Pastue is proposing that a capital improvements millage be presented to voters this year. 

During a Monday night city council study session, Pastue said the separate millage for projects like sidewalk replacement, road and building improvements, would allow for better and more efficient planning. The millage would also ease the burden on the city's operating fund, he said. 

Among the potential uses for funds generated by the millage would be sidewalk improvements to make the city more walkable and major urban forestry projects. In Floral Park subdivision, Pastue said, a number of large trees are rotting from the inside and are "starting to become a safety hazard."

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"They'll need to be replaced, and we don't have the money to do that," he said. 

While Pastue proposed 2.5 mills for an indefinite period of time, council member JoAnne McShane said she was not comfortable with an open-ended tax, because if the economy turns around, the city's tax revenues will improve. She also wanted to see "tighter projections" for proposed expenditures. 

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"I think 10 years would be an appropriate time to get many, many of these projects done," she said. 

Pastue explained that he recommended the indefinite term because officials may want to take on debt for larger capital improvement projects. He said the city couldn't pledge debt payments from the separate fund if it was authorized for a specific length of time. 

Residents currently pay 14 mills for city operations, increased from 12.1524 mills after officials this year shifted 2.0976 mills that had been levied for debt that was retired in November 2010. They also increased the road improvement millage this year from .75 to 1 mill.

Pastue proposed adding millage language that would terminate the road tax, making the effective tax increase 1.5 mills. The proposed millage would not affect the city's operating millage cap of 16.5 mills.

Council member Bill Galvin asked whether Pastue was looking at other spending cuts and possible mergers, in addition to a with Farmington Hills. 

"We've cut the administrative areas about as far as we can," Pastue said. Because about half of the general fund expenditures are for public safety, he added, "that's where the cuts would have to come from."

Galvin said he doesn't want to be back in the same spot in future years. "You can't tax yourself out of a problem," he said. "We need to look at the expense side of the ledger as well."

Pastue said in addition to the shared dispatch proposal, he's looking at changes to retiree health benefits that would reduce expenditures. 

Council member Greg Cowley said raising taxes would not help when it comes to attracting businesses to the community. He wondered whether Pastue had a "Plan B" if voters did not approve a millage. 

Pastue said there definitely would be more special assessments to property owners for infrastructure improvements. "It'll be maintenance at best, and even that would be a challenge," he said of the city's capital needs. 

That's the trade-off, he added. Without money to fix roads, sidewalks and other infrastructure, the city would become physically unattractive. "Capital improvements are very visible, and all of these things do matter to prospective residents," he said. 

On the other hand, Pastue said, "If you're going to levy a millage, you'd better make (the city) pretty darn appealing."


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