On May 4, 2021, all registered voters in the Northville Public School District will have the opportunity to vote on an Operating Millage proposal that would renew the current millage rate of 19.2383 mills on all non-homestead property for five years, 2022 to 2026. This millage applies only to non-homestead property such as businesses, rental properties, and second homes. Even though owners of primary residences are not affected, state law requires a district-wide election to approve the Operating Millage.
This millage generates about $10 million annually for Northville schools, representing 13% of the overall General Fund budget. The money received from the Operating Millage supports the District’s day-to-day operations, including payment of salaries and benefits, classroom supplies and materials, and student transportation and building maintenance. Failure to pass the millage renewal would result in a significant loss in operating revenue for the school district beginning in 2022.
This is not a new tax. This millage was last approved by voters in November 2011, when voters approved a millage rate of 20.9100 mills. That millage has been reduced to 19.2383 through subsequent Headlee Amendment adjustments as noted below. The District is seeking to renew the reduced rate of 19.2383 mills.
Additionally, this millage is vital to ensuring the District receives the full per pupil allocation from the state. In order to receive this full allocation, school districts must levy the statutory maximum operating millage of 18 mills. Although the current ballot proposal requests 19.2383 mills, the District cannot levy more than 18 mills, just as occurring today. The remaining 1.2383 mills would serve as a hedge against future Headlee adjustments, thereby ensuring the District can continue to levy 18 mills and receive the full per pupil allocation from the state.
In summary, this millage maintains the current school tax for business owners, is not levied on primary residential property -- but represents a significant source of operating revenue for the District.