Corporate Tax Breaks, Residential Water & Sewer Rates Increases on Council Agenda

 01/13/2014 - 02:38

Saline City Council will consider tax cuts for a couple of Saline corporations and water and sewer rate increases for residents when it meets at 7:30 p.m. Monday night.

MMI Engineered Solutions, at 1715 Woodland Dr., is planning a $2.2 million investment, which includes a $1.3 million 2250 ton molding machine among three molding machines. The investment also includes a material handling system expansion and plant configuration. MMI makes component applications for the heavy truck market and does material handling. The investment is expected to create three jobs.

The city's Special Projects Commission voted to recommend council grant a four year tax abatement on the investment.

Conversely, the Special Projects Commission voted to “not recommend” city council approve JAC Products' request for a tax break on a $9.3 million investment.

The JAC Products facility is currently the subject of a property tax appeal in the Michigan Tax Tribunal, with approximately $1 million in cash value in contention. According to a recommended resolution, there is a possibility that the taxable value of the property could be significantly reduced, therefore, granting a tax abatement could impede the city's financial viability and impede city operations.

JAC Products said the $9.3 million investment would create four jobs. The investment includes three presses worth about $2.3 million, each.

The Special Projects Commission is also requesting council adopt revisions to the Industrial Facilities Tax Exemption evaluation guidelines. The new guidelines would separate real and personal property during the review process. The recommended changes also increase the “scoring” that applications get for new jobs created by investments. In addition, some of the unmeasurable environmental stipulations have been replaced by points for LEED and Green Globes certification. Businesses will also get credit for the amount of time they've operated in the city.

City Council is expected to pass a resolution setting higher water and sewer rates. Higher rates would help the city cover expenses as the city expects to see an $80,000 reduction in billable revenue from its largest industrial user. The rate study calls for lower water rates but higher sewer rates. Here's how the changes would impact the typical residential user:

Billing Year Quarterly Bill % Increase
June, 2013 $189.59  
June, 2014 $198.80 4.9
June, 2015 $203.78 2.6
June, 2016 $218.40 7.2
June, 2017 $227.50 4.2

City council will also discuss the DPW roof repair project. The consent agenda includes a recommendation to adopt a resolution to deny a lawyer's Freedom of Information Act request for Saline Police Department manuals.

City council is scheduled to go into executive session to discuss a confidential written legal opinion and consider the purchase of real property.

Tran Longmoore
Tran Longmoore founded The Saline Post on Aug. 15, 2012. Follow him on Twitter at @tranlongmoore. Follow The Saline Post @thesalinepost. Follow The Saline Post on Facebook by clicking here.