If voters approve a proposal for Ann Arbor Public Schools to annex Whitmore Lake Public Schools, homeowners in the Ann Arbor district will pay 0.25 mills more than they do now.
But without annexation, tax rates would go down by 0.19 mills.
That means theres a 0.44-mill difference between the rate Ann Arbor homeowners would pay with annexation compared to without annexation.
Voters from the two school districts will decide Nov. 4 whetherAnn Arbor Public Schools will annex the 944-student district, taking on Whitmore Lake students, staff, buildings and debts.
Heres how millage rates would change based on whether or not annexation passes, according toinformation from Stauder, Barch amp; Associates, an Ann Arbor-based financial advisory firm.
Resident tax rates
- If Ann Arbor Public Schools annexes Whitmore Lake, the debt millage rises from 2.45 mills this year to 2.75 mills in 2015 and the hold harmless millage falls by about 0.05 mills from 4.49 mills to 4.44 mills. The net increase over this years rate is 0.25 mills.
- If the annexation fails, the debt millage falls from 2.45 mills to 2.37 mills and the hold harmless millage falls by about 0.11 mills from 4.49 mills to 4.38 mills. The net decrease is 0.19 mills.
- With annexation, the residents exchange a 0.19-mill cut for a 0.25-mill increase, which is a differenceof 0.44 mills.
Business tax rates
- If voters approve annexation, Ann Arbor businesses in 2015 would pay a non-homestead rate of 21.75 mills, whichis 0.3 mills more than the current rate of 21.45 mills.
- Without annexation, the tax rate falls by 0.08 mills to 21.37 mills in 2015.
- Business owners would exchange a 0.08 cut fora 0.3 mill increase, which is a 0.38-mill difference.
If annexation is approved, thedebts from both districts will bespread across both communities through the debt millage, said Deb Mexicotte, Ann Arbor schools Board of Education president, at an Oct. 14 community forum.
Were taking on the whole thing and theyre taking on our whole thing, she said.
Ann Arbor schools has about $175 million in debt from infrastructure and building improvements, saidMarios Demetriou, the Ann Arbor schools assistant superintendent of finance and operations. Whitmore Lakes debt is about $60 million.
Ann Arbor taxpayers will pay off the districtsdebt millage in 14 years if the districtdoesnt annex Whitmore Lake.
Without annexation, the debt millagewill decrease slightly each year through 2028 when taxpayers pay it off, according to the tax ramifications document.
If the district does annex the Whitmore Lake school district, the debt millagewill increase by 0.25 mills to 2.75 mills from 2015 through 2018 for Ann Arbor and Whitmore Lake homeowners. After that, the debt millagewill decline each year through 2032 when taxpayers pay it off, according toStauder, Barch amp; Associates.
With annexation, Whitmore Lake taxpayers would have decreased tax ratesbecause the taxes are spread through both Ann Arbor and Whitmore Lake. Whitmore Lake schoolstaxpayers also will no longerpay the districtsrecreation millage.
Whitmore Lake homeowners would pay 2.75mills in the debt millage in 2015, which is a 5.21-mill decrease from the current debt millage tax rate of 7.96 mills. The residents also will pay 4.9 mills in Ann Arbor Public Schools taxes, including the hold harmless millage, sinking fund and tech bond.
If voters approve annexation, businesses inWhitmore Lake would pay 21.75 mills, which is 4.81 mills less than thecurrentrate of 26.56 mills.
If the annexation fails, Whitmore Lake homeownerswill start paying 9.86 mills next year, which is a 1.9-mill increase from the 2014 rate.
Tax rates would fallto 9.46 mills in 2016 and 9.4 mills through 2037, according to Stauder, Barch amp; Associates. The tax rate drops to 9.05 mills in 2038.
Businesses would pay 28.46 mills next year if annexation fails, which is a about a 1.9-mill increase in the tax rate.