Ypsilanti voters reject Water Street debt retirement millage and income tax
Ypsilanti voters rejected two revenue-generating proposals city officials said were necessary to avoid deep cuts to city services, according to initial election results.
Both were rejected by wide margins. According to unofficial results posted by the Washtenaw County Clerk's office, the Water Street proposal was defeated with a 63.67 percent "no" vote. The 1-percent income tax proposal was defeated with a 64.39 percent "no" vote.
Steve Pepple | AnnArbor.com
The proposals were integral parts of a five-year financial plan developed by city staff and city council that officials said would help avert a $6.1 million deficit projected for 2017.
The income tax was set at 1-percent for residents and corporations, and 0.5-percent for those employed in the city. It was projected to generate $10 million over the five-year span.
The Water Street debt retirement millage residents saw on the ballot was for 4.94 mills in fiscal year 2013. That rate would have grown to 7.12 mills by 2017. But as part of the five-year plan, city council voted to use savings to pay half the Water Street debt. That would have allowed the city to cut the millage rate in half.
In that scenario, homeowners would have paid a millage rate of 2.35 mills in fiscal year 2013, and would have grown to 3.55 mills by 2017.
The city is paying $30 million on its Water Street bond debt. It must continue to make payments through 2031, and the amounts will grow to $1.7 million annually by 2015.
The full millage was projected to generate $7.7 million.