South Macomb Oakland Regional Services Authority (SMORSA)
City of Eastpointe
Welcome to the South Macomb Oakland Regional Services Authority (SMORSA) site for the City of Eastpointe. Here you will find any pertinent information that you need to understand the upcoming millage referendum through the SMORSA.
SMORSA is the South Macomb Oakland Regional Services Authority, a joint collaborative public financing organization founded by the cities of Eastpointe and Hazel Park to utilize funding options that are available for emergency services, as outlined in Public Act 57 of 1988.
The primary role of the authority is to contract back to the respective cities for fire and rescue services that would be provided by each existing department as governed by existing city management and adopted City Council budget and policy. The funding will come from a 14 mill referendum if passed by the electorate.
"Shall the Authority levy up to 14 mills on the taxable value of applicable real and personal property located within the Authority, for a period of 20 years, from 2015 through 2034 inclusive, in order to fund emergency services for the City of Eastpointe, County of Macomb, State of Michigan? If approved and levied in its entirety, this millage would raise an estimated amount of $5,893,265.62 for emergency services in the first year."
Do we need the millage if the economy improves and raises property values?
Yes, we will still need the millage because Proposal A caps Taxable Value increases at 5%, or the rate of inflation, whichever is smaller. Even if housing values increase at 8% annually and the City is able to implement a full 5% increase each year, neither assessed nor taxable values will achieve the 2007 peak in the next decade.
In short, the City's General Fund, which is used to supplement the Public Safety Millage (renewed in August 2014), will be depleted in June 2016 and Eastpointe will enter a state of insolvency, which could lead to a State-appointed emergency financial manager.
When is the millage referendum on the ballot?
The millage referendum will be on the ballot for the election on Tuesday, February 24, 2015. If the millage passes, the 14 mill tax levy will be assessed for 20 years, and at that point in 2034 would expire.