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1. What will the ballot question say?

RENEWAL OF SEPARATE TAX LIMITATION PROPOSAL

As provided in MCL 211.2015c, by petition from the tax allocation board, shall the separate tax limitations, first established in 1968, be renewed and established for a period of four (4) years, 2018 through 2021, inclusive, or until altered by the voters of the County, for the County of Lenawee, the Townships therein, and for the Lenawee Intermediate School District, the aggregate of which shall not exceed 7.05 mills, as follows:

Mills

County of Lenawee                                                            5.75

Townships                                                                             1.00

Lenawee Intermediate School District                        0.30

Total                                                                                        7.05

2. What will the proposed impact be on my taxes?

The Countywide impact expected 2018 additional levy on $100,000 home:

• ½ mill
• $25 per year without township levy
• For 50% of population $25 per year
• Others range from $25 - $43 per year

3. What will Lenawee County do if the renewal passes?

If the renewal passes Lenawee County will be able to continue services that the residents of Lenawee County expect.  At the same time, the Lenawee County Board of Commissioners will continue to be good stewards of taxpayer dollars.  It is not expected that the maximum levy rate will be applied any time soon.  The determination of the millage rate in any given year will be subject to the requirements of the Uniform Budgeting Act which requires the Board of Commissioners to hold a public hearing on the budget including the millage rate.

4. What services will continue as a result of the renewal?

The Michigan Constitution and state laws require that counties perform certain functions.  These are often referred to as mandated functions.  Other services have evolved over time in Lenawee County because they met the needs of our citizens.  Some of these services are:

• Specialty Courts are not mandated but they provide a focused effort to meet the needs of certain offenders and they reduce the number of people in the jail and therefore the cost of running the jail.
• The Economic Crimes Unit in the Prosecutor’s Office serves many purposes.  The diversion program provides offenders with a means of meeting their obligations without a criminal record.  The program recovers lost monies for local businesses that would otherwise be uncollectable.  This is not a mandated service.
• Senior services in the county include centers, in-home care and transportation to appointments.  The home delivered meal program alone delivers over 800 meals daily.  Some of these services are covered by dedicated revenues specifically for senior services; however, Lenawee County currently funds senior services beyond the dedicated levy.  Lenawee County’s investments in senior services are really pay back for the tremendous investment they have made in this community.
• The Sheriff Department road patrol provides law enforcement coverage for most of the townships and also provides coverage for some smaller villages.  While not a mandated function it is a very important part of investing in safe and secure communities.
• Maurice Spears Campus provides a youth detention facility in the county so that we do not have to send juvenile offenders out of county.  While care of children is a county responsibility it is not mandated that each county maintain its own youth detention facility.
• Lenawee County’s contribution to Lenawee Now to promote economic development is a major investment in job attraction and retention.  Lenawee County is by far the largest public sector contributor to Lenawee Now and has continued that commitment even in the face of significant budget cuts, however, this is not a mandated service.
• MSU Extension and 4-H programs are a big part of growing up in rural Lenawee County.  The investment by Michigan State Extension and Lenawee County in educational and development programs offered is a benefit to the entire county and the leadership programs are an investment that last a lifetime.  While funds spent on Extension programs are a sound investment in the future, these are not mandated services.
• The Solid Waste Department is not a mandated service, however, the department has coordinated and funded recycling efforts to keep hazardous and nuisance waste from adversely impacting the quality of life in Lenawee County.  From tire collections to coordination of the hazardous waste collection to a drop off station for those communities that do not have other recycling options, this department improves the environment in Lenawee County every day.   
• The Veterans Relief Fund is not mandated, however, it is an example of Lenawee County investing its resources in those who have served our country.  The fund has provided emergency assistance to county veterans when they need it most.  And the Veterans office in Lenawee County serves all of the veterans of the County overseeing nearly 50 million dollars in benefits and services to veterans.
• Lenawee County residents have been very generous in donating land to the County to be used for parks.  This investment in the future needs ongoing support from the County to maintain and improve the recreational opportunities at the parks.

5. What County services are MANDATED and which are NON-MANDATED?

The table below lists most of the mandated and non-mandated services.  There are also county departments that exist in support of both mandated and non-mandated functions such as the Maintenance Department, Information Technology and Administration.

Mandated Functions

• Courts
• Jail
• Constitutional Offices
• Care of children
• Defense of indigent offenders
• Public health
• Equalization
• Veterans Affairs
• Drain Commission
• Medical Examiner

Non-Mandated Services

• Public Transportation
• Road and Marine Patrol
• MSU Extension and 4-H
• Economic Development
• Senior services
• Parks
• Specialty Courts
• Recycling
• Conservation Service
• Economic Crimes – Loss Recovery

6. What does the 2018 Budget A and Budget B summary look like?

 

2018 Budget A & B Summary

7. Why did the Lenawee County Board of Commissioners initiate discussion about the Tax Allocation Board?

Lenawee County has struggled to provide adequate funding for services since the start of the 2008 Great Recession.  After eight years of cuts, adjustments and transfers the commission has run out of options to keep the current service levels and keep up with facility demands within the existing revenue structure.

8. What information did the Tax Allocation Board consider to determine the best course of action?

The Tax Allocation Board reviewed financial information from all of the local units of government that levy allocated millage.  Presentations were made to the board by representatives of all types of local units.

9. Was renewal of the previous tax limitation the only option that the allocation board considered?

No, the Tax Allocation Board had several options and gave consideration to all.  They reviewed doing nothing, which would have left local units with no change in their revenue options.  They reviewed setting new millage limitations, which could have reallocated millages.  Finally, they reviewed renewal of the previous limitation which they determined would provide local units options and not create the confusion of setting new limitations.

10. What exactly did the Tax Allocation Board do?

The Tax Allocation Board petitioned the County Board of Commissioners to place renewal of the 1968 tax limitations on the first available ballot.  The renewal will last four years, 2018 through 2021 inclusive, or until changed by the voters of the county.

11. What governmental bodies are effected by the tax limitation renewal?

The authority of the Tax Allocation Board is limited to the levy rate for the County of Lenawee, all of the general law townships in the county and the allocated portion of the Lenawee Intermediate School District levy.  Those governmental bodies whose millages are not affected by the renewal are cities, villages, charter townships and the charter millage portion of the LISD.

12. What action has the Lenawee County Board of Commissioners taken?

The Lenawee County Board of Commissioners, on a unanimous vote, received the petition from the Tax Allocation Board and placed the renewal on the first available ballot.  Given the time frames involved that is the November 7, 2017 election.

13. The economy has been improving for several years now and the unemployment rate has dropped; why is the Lenawee County revenue stream so flat?

Michigan counties are limited in their revenue options by state statute.  Like all counties in Michigan, the majority of Lenawee County’s general revenue, that funds operations, comes from the property tax.   This dependence on the property tax has been a struggle for the County due to several factors:

• In the three years immediately following the recession the tax base of the County declined each year resulting in reduced operating revenue for general services.  
• The growth in the tax base is constitutionally limited and tied to the Consumer Price Index.  So for the last few years, with a CPI of less than 2%, the County tax base has been flat.  
• There was no limit on how rapidly property values could fall but there is a very specific limit on how quickly they can increase.  What took a short time to loose will take many years to recover.

14. Why didn’t Lenawee County have a rainy day fund to get through the tough spots?

Lenawee County did have reserves however, it has been necessary to use general fund reserves and transfers from non-general funds to maintain services for the last eight years.  With the rising costs of doing business money management is no longer enough to keep moving forward.

15. Why not cut expenses and reduce costs?

Lenawee County has taken several steps over the last eight years to reduce costs and contain expenses.  For example:

• Lenawee County was an early adopter of defined contribution retirement.  Over 50% of County employees are now on this plan.
• Lenawee County created an incentive program to encourage some workers to retire reducing total employment, costs and not adding to the unemployment rate.
• Lenawee County switched to high deductible health insurance plans.
• Lenawee County employees received no pay increase from 2010 through 2013 and absorbed increase benefit costs at the same time.
• Lenawee County has never provided post-employment healthcare.
• Lenawee County improved energy efficiency in all County buildings.  Two buildings, the Judicial Building and Human Services Building, are Energy Star rated at 90+ percent.  In addition to saving energy and expense this has the added benefit of making the Human Services Building an attractive office space. 
  • Lenawee County also has the unique benefit of having many of our social service programs housed in a single building.  The Human Services Building is an investment on the part of the County made nearly 30 years ago to create a one stop shop for a variety of county, state and federal services.  It is a real asset to the County and a benefit to the public that know they can receive most of their services in the same building.  
• Lenawee County developed a Capital Improvement plan to maintain County facilities and equipment.  We are planning for the future as opposed to operating on an emergency basis.
• Lenawee County works with other counties and jurisdictions to reduce costs.•Lenawee County created specialty courts to address the causes of criminal behavior and reduce jail costs.
• Lenawee County created a land bank to repurpose problem tax foreclosed properties and address blight conditions.