SAGINAW -- As Saginaw city leaders continue talks about contracting for police services with Saginaw County, one local organization is talking about repealing the city's 34-year-old property tax cap as a means to bring in more revenue.
Grady Holmes, Jr., executive director of the nonprofit The Ezekiel Project, is offering to help the city launch a 90-day campaign to talk to residents and see whether they would be willing to lift the tax cap.
In 1979, the city established a tax cap that either sets a millage rate of 7.5 mills for the city's general operating millage or limits the total tax the city can collect through that millage to about $3.8 million.
Though voters have rejected proposals to raise or get rid of the cap several times, some people are saying now might be the time to consider such a move.
Holmes said people might be willing to pay more property taxes for better public safety services.
“There's things that I know the residents want, and I know there's things that they're upset about,” Holmes said. “And I want to bring everyone together because we've got to change the culture in this community."
Saginaw Mayor Greg Branch said lifting the tax could conceivably help the city’s budget woes, but that it’s not likely to pass in time to affect the 2013-2014 budget.
“I don't think lifting the tax cap solves all of our problems, because if you look at other cities throughout Michigan, they've got the same problem, and they don't have a tax cap,” Branch said.
In the meantime, City Manager Darnell Earley said during Monday’s council meeting that he is pursuing a policing contract with the county sheriff.
During his public safety presentation to the council, Earley recommended reducing the fire department from 51 to 36 positions in addition to the 80-officer contract with Sheriff William Federspiel, which Assistant City Manager Phil Ludos presented last month.
Earley said he and Ludos plan to meet with Sheriff Federspiel Tuesday morning to further discuss the policing contract.
