The City Administration has outlined four broad spending categories, estimated to cost between $6.2 million and $7.4 million. If the millage is approved, it would generate approximately $834,000 in the first year and $7.2 million over the eight-year period. While it appears the taxes collected could support the proposed projects, a specific specific spending plan has not been provided.
If the millage is approved by the voters, the City of Plymouth could issue bond based on the millage revenue, which may not require additional voter approval if the bonds align with the millage’s intent. However, bond issuance would need City Commission approval and must comply with Michigan state law. If bonds are issued, a portion of the millage revenue would be used to cover the bond’s interest payments. For example by the fiscal year 2033/2034 when the the 2024 Street Bond is paid off, the city will have paid $1,191,900 in interest on the $5,030,000 borrowed. The chart below was taken from page 79 of the city’s 2023/2024 budget.
Administrative Recommendation included in the agenda for the April 15, 2024, City Commission Meeting included the following statements related to this question:
“It should be noted that the department needs are extensive, and this proposal would still need to be a “grant heavy program.” This means that the department would need to be constantly applying for grants and partnerships to bring in revenue beyond the millage rate.”
“The millage money could be used as “seed money” to help bring larger scale projects into play. The availability of grants would affect the overall spending plan. For example, the department has already applied for grants for window replacements at the Plymouth Cultural Center.”
“This funding plan will not address all parks and recreation needs across the city, but this would provide us with a significant opportunity to seek grants to expand projects well beyond the available millage money. Again, we stress that the final spending plan would be subject to the actions of the City Commission over the life of the millage and will be affected by a number of factors, including pricing. This is really no different than our road projects as we are annually affected by the price of asphalt, concrete, interest rates, and labor and the Commission directs the budget on a year-to-year basis.”
As we have only been provided with broad categories of potential spending with gross approximations of costs, it is impossible to know what progress can be made. Additionally, there is a high probability that the list will change as the City Commission has full discretion on how it will be spent as long as it is used to “acquire, construct, improve, furnish, operate and maintain parks and recreation facilities.” The ballot language does not restrict the City Commission to any of the projects listed in the broad categories or any specific project for that matter.
It’s important to note that the city’s 5-Year Strategic Plan includes the key objective to “Improve existing and pursue additional recreational and public green space opportunities and facilities for all ages.” Once the millage is passed, these funds could be used to purchase property for recreational use without needing further voter approval. This could align with what is referred to as “seed money” in the quote above, potentially enabling larger-scale projects to move forward.