25LINKBUDGET(FULL) - Flipbook - Page 58
City of Plymouth 2024 / 2025 Budget
is less than 2/10 of 1% of the total SEV of the City. Under the statute, the City could grant
abatements up to 5% of the City SEV.
For the 2024 tax year the DDA will capture $62,988,659 in taxable value, subject to the process
of tax appeals and reclassification of personal property accounts within the DDA. Total
captured taxes have increased from $599,745 in the 1998/1999 fiscal year to a high of
$1,110,546 in the 2008/09 fiscal year, the last year permitted for the capture of school taxes
related to the final payment of outstanding debt on projects that were in existence when the
law was changed in 1994. Net captured taxes for the current fiscal year are projected to be
$1,202,697 but the anticipated levy in the new 2024/25 fiscal year is expected to increase to a
new high of $1,265,053 due to additions in the DDA district.
Under the current DDA plan, the City’s General Fund is set to forfeit $506.327 in tax revenue
to the DDA. However, due to the capability to capture from other taxing entities, $573,561 in
taxes can be reinvested into the City’s downtown. Additionally, the DDA will capture $89,390
from the Street Debt Retirement Funds and $95,775 from the Waste and Recycling Fund.
The initial impact of tax capture resulting from Brownfield projects occurred during the 2005
tax levy. Captured tax value for 2005 totaled $2,263,816, resulting in a relinquishment of
$24,899 in operating taxes from the General Fund. By 2008, the captured value had peaked at
an all-time high of $17,458,609. However, due to the prolonged slump in the housing market,
captured values steadily declined each year thereafter, reaching a low of $10,934,970 for the
fiscal year 2013/14. They rebounded to $13,932,015 in the 2016/17 fiscal year. With the
finalization of the Daisy Square tax capture in June of 2017, the 2017/18 tax capture was
reduced to a new low of $979,756. Since that fiscal year, there has been a steady increase in
value. The tax capture for 2024/25 will again increase to $20,664,849 with completion for the
Starkweather School property and the Pulte Project Phase One completion.
To date, there has been approximately $4,449,060 in captured taxes from the six projects that
have been reinvested in site remediation. Additionally, the City has received a $1,000,000
grant from the State of Michigan Department of Environment, Great Lakes and Energy (EGLE)
to assist with the Townes at a Mill Street Project.
Most future development projects of any size outside of the DDA district will likely involve a
Brownfield request. Such requests will freeze taxable values on these projects at their predevelopment values, which, in some cases, will be zero due to current exemptions on the
properties. These frozen values will last for a number of years depending on the nature of the
approved Brownfield plan. Eventually, the developments will result in significant gains to the
taxable value of the City. In the short term, however, little, if any, benefit in taxes will be
realized until the costs of environmental remediation are paid back from proceeds of the tax
capturing process.
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