Policy Recommendation

The Ann Arbor Area Chamber of Commerce does not support the 2006 Parks Millage that will be on the ballot Tuesday, November 7. The proposal raises the millage rate for parks maintenance and capital improvements by 20%, from .91 mills to 1.1 mills. The Chamber recognizes the importance of the parks system to the quality of life and economic success of the Ann Arbor area, but we do not think a 20% increase is appropriate given current economic conditions. We do agree with many of the other aspects of this proposal and would support a renewal millage at .91 mills.

The City of Ann Arbor did an outstanding job involving the community and taking input from stakeholders on this proposal. The process was open and transparent. We encourage the city to follow a similar format in the future.

Millage—Positive Aspects

- Maintaining and improving the quality of life in the Ann Arbor area is important to the long-term success of the Ann Arbor area business community.
- City staff ran an excellent community input process, taking feedback from a number of stakeholders.
- The city demonstrated that there is a clear need for improved park maintenance and focused the proposal around this need.
- The proposal is an improvement over the current maintenance and capital improvement millages, and it gives the city more flexibility.
- Ann Arbor City Council passed a resolution tying park general fund revenues to non-safety services as a means of preventing a major shift of park general fund dollars to the millage.

Millage—Concerns

-Raising the millage from .91 mills to 1.1 mills is a 20% increase, which is not appropriate given current economic conditions
- The city is asking for additional funds to provide services it ought to be able to provide without additional revenues.
- Increasing health care and pension costs are the cost drivers that put pressure on the city and local governments to seek higher millages and these costs still need to be addressed
- The City may not be able to adequately address the capital needs of the system if funds are focused primarily on park maintenance

Background

In November 2000, the Park Rehabilitation and Development Millage was approved by Ann Arbor voters. The six-year tax millage of .4725 mils (reduced by the required millage reduction to .4528 mills) funded the City’s park and recreation capital improvement programs from July 2001 through June 2007. The capital improvements focused on four park and recreation service areas (recreation facility rehabilitation and improvements; city-wide neighborhood park rehabilitation and improvements; active park improvements including bicycle facilities, pathways, and trail linkages; and natural parks and historic preservation).

In November 2002, residents of Ann Arbor also approved a four-year millage of .4725 mils (reduced by the required millage reduction to .4616 mills) for park repair and restoration for natural area preservation, forestry and horticulture in parks, and non-routine repair and restoration activities for the park system infrastructure.

With the two park millages expiring on June 30, 2007, the Parks Advisory Commission and City staff sought public input during several community conversations about a variety of issues including:

- What are the operational and financial implications to the City of Ann Arbor’s parks and recreation system? 
- What are the financial options for consideration to meet the future operational needs of the City’s parks and recreation system?

At the conclusion of this process, city staff recommended combining the two millages into one capital improvements and maintenance parks millage at 1.25 mills. 70% of millage funds would be allocated for maintenance activities and 30% for capital improvements. This shift away from a 50/50 split between maintenance and capital improvements was based on input from the community, and the proposal gives the city the flexibility to make a 10% shift in the allocation on an annual basis.

City Council reviewed the staff recommended 1.25 mill proposal, lowered the proposed millage amount to 1.11 mills and voted in August to put the millage on the ballot in November. The proposed millage is for six years, 2007-2012.

For more information on the parks millage proposal, go to www.a2gov.org/CommunityServices/Parks/CommunityConversations.html.