Facing declining property tax revenues, the city of Mt. Clemens — located in Macomb County — is expected to approve a ballot measure Monday night to increase property taxes, the Macomb Daily reports.
The city, like most in the state, has been socked hard by a stagnant economy, record high unemployment and crashing property values. As a result, Mt. Clemens is facing nearly $1 million in deficits this budget year. Adding to the financial crisis is a 24 percent increase in employee health care costs — $800,000 for current employees and $1.4 million for retirees.
To fill the hole in the budget, city officials are likely to approve a ballot measure meant to override the Headlee Amendment. The amendment caps property tax assessments.
The City Commission will ask voters to approve overriding the Headlee amendment to restore 1.29 mills to the city’s millage rate. The move would raise about $500,000 and cost the average homeowner about $55 a year, officials said.
Making the crunch more difficult, 42 percent of the city’s property is exempt from tax assessments because it is owned by the county government or by nonprofit entities.
Even if voters approve the tax hike, the city could still see a decrease in the number of Macomb County Sheriff deputies patrolling city streets during the day. Officials say they would eliminate one deputy started in December, decreasing to three daytime officers, but continuing four on both the afternoon and night shifts.
Mt. Clemens is not the only city facing a possible tax increase. Officials in the city of Lansing could vote as soon as Monday night on a proposal to increase property tax rates by .4 mills. That vote could be changed if a proposal floated last week becomes a reality. That proposal would put city employees on 26 furlough days. That move would save the city from a tax increase, and prevent it from shifting to a Monday to Thursday work schedule– which Mayor Virg Bernero had recommended as part of his budget plan. In Lansing, the city is facing a $12 million budget hole.