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Committee backs updated tax‑sharing agreement with Wyoming, DDA after debate over DDA capture
Summary
Kent County’s committee endorsed a replacement tax‑sharing agreement with the City of Wyoming and the Wyoming Downtown Development Authority that would formalize the DDA’s decision not to capture five county special millages going forward in exchange for dollar‑for‑dollar county support from the general operating mill; commissioners asked for five‑year proformas and raised objections about DDA boundary expansion and TIFF practice.
The Kent County Finance & Infrastructure Committee voted to recommend that the Board of Commissioners authorize an updated tax‑sharing agreement with the City of Wyoming and the Wyoming Downtown Development Authority (DDA).
Staff described the 2014 agreement and explained that while the city historically remitted amounts captured from certain millages back to the county, two more recent special millages (Ready by Five and zoo/museum) were not included in the original agreement. Under the proposed new agreement the City of Wyoming and the DDA would formally forgo capture of the county’s five dedicated special millages going forward. In return, the county would contribute tax revenue to the DDA from its general operating mill on a dollar‑for‑dollar basis with the city, consistent with the county’s economic development policy. Corporate counsel will review the final agreement prior to execution.
Several commissioners pressed staff for more detailed financial projections and a five‑year spreadsheet showing the dollar flows and the net effect on county general operating revenue. Commissioner Pacqua requested the proforma to understand whether the county is effectively remitting dollars that the DDA would otherwise capture. Staff said the Wyoming DDA plans to expand its borders, which could change projected captures, and agreed to provide updated numbers to the full board.
Other commissioners voiced broader concerns about DDAs and tax‑increment financing (TIFF) practices: Commissioner Ponstein criticized DDAs’ tendency to expand and capture tax dollars meant for county services and argued for re‑examining how local units use TIFF; Commissioner Coleman explained why Kent County adopted a more restrictive economic development policy after the Great Recession and discussed limits and tradeoffs of TIFFs and DDA capture.
Vice Chair Hildebrand moved the recommendation and Commissioner Coleman supported it. After discussion and staff commitments to provide additional fiscal detail for the board packet, the committee approved the recommendation by voice vote.
