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Mount Clemens hears assessor’s explanation of ‘truth in taxation’ as residents face about 5% average increase

Mount Clemens City Commission · June 6, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

At a public hearing on June 3, contract assessor Darren Cross explained how Headlee rollback calculations and rising taxable values can raise city tax bills even as millage rates fall; commissioners pressed for local options and clarity about impacts on residents.

The Mount Clemens City Commission on June 3 held a public hearing on the city’s proposed 2024 tax millages, during which contract assessor Darren Cross gave a detailed explanation of truth-in-taxation rules and the Headlee rollback formula that govern local property-tax calculations.

Cross, identified in the meeting as the contract assessor, told the commission the process informs the public when the city will collect more tax revenue in the upcoming budget year than in the prior year. He said the millage-reduction fraction was applied across the city’s operating, pension and Dial-A-Ride millages and that the Downtown Development Authority’s (DDA) millage was calculated differently and received no rollback this year.

Why residents may still pay more: Cross said that although the city’s millage rate is reduced by the rollback, taxable value increases driven by new construction and other assessment adjustments typically outpace that reduction. ‘‘You’re rolling your millages back, but you’re still getting an increase in tax revenue,’’ Cross said, adding that the statewide consumer-price-index cap produced an average citywide increase of about 5 percent this cycle.

Commissioners pressed Cross and staff on what residents should expect. Commissioners noted recent large increases and asked whether the city can influence the state CPI cap and rollback law; staff and Cross replied that those are set at the state level and that constituents should contact their state representatives and senators for statutory change. Cross also said that some homeowners may see larger or smaller changes depending on new construction or property improvements.

No substantive public objections were raised during the hearing. After questions and discussion, the commission closed the public hearing by roll-call vote.

Why it matters: The discussion clarified a common point of confusion — that a lower millage rate can coincide with a higher tax bill when assessed values rise — and underscored the limited options available to the commission under state law. Commissioners said they will continue to monitor impacts and provide information to residents.

Next steps: The commission noted that the tax rates as presented are part of the FY 2024–25 budget adoption process and that any changes to the state caps or rollback calculations would require action at the state level. The hearing record will be part of the commission’s budget file and the commission will finalize budget adoption as scheduled.