Headlee Ballot Proposal

Why it is critical to vote Yes.

Our biggest challenge today is one that most people don’t know exists, is hard to explain, difficult to understand, but hopefully simple to solve. 

It is called the Headlee Rollback Reset.  It is a proposal on the ballot this November and you should VOTE YES.  Voting yes will keep local control of your property tax rate for the next generation.  Voting no will force council to cut vital services, making Holland a less attractive place to live.

Despite what you may have heard, THIS BALLOT PROPOSAL DOES NOT RAISE TAXES. Your city council has not raised the property tax rate in 14 years and doesn’t see a reason to increase them in the future. We are asking the people of Holland to let us continue to decide the appropriate tax rate rather than be forced to cut services. 

This is the most important issue during my time as Mayor. If nothing is done, revenue will shrink while costs rise, meaning fewer first responders and neglected parks and roads.

Check the city website to learn more. If you don’t have the time to do more research yourself, please remember that every member of council voted to put this on the ballot so residents could vote to keep local control.

It’s Complicated – So Here’s a Summary.

The City of Holland millage rate is governed by the Holland City Charter which limits the tax rate to 17.5 mills.

The Headlee Amendment (a State Law) reduces that rate over time.

Because of Headlee, Holland’s maximum rate has been reduced to just 14.4480 mills.

This Headlee reduced millage can only be adjusted by a vote of the people.  City Council currently (and for the last 14 years) levies 13.8692 mills, far less than the Charter maximum.

But within the next few years the Headlee maximum will fall below our current rate requiring City Council to cut valued city services.  

City Council unanimously voted to place a proposal on the ballot asking the people of Holland to reset the maximum limitation so it will again align with the City Charter.

Council has indicated it does not intend to raise the rate from the current 13.8692 mills and has not raised the rate in 14 years.

Your City Council is made of people with a wide range of viewpoints and opinions and EVERY ONE of them voted to put this on the ballot. EVERY SINGLE ONE.

If this does not pass, your locally elected City Council will lose the ability to decide the appropriate millage rate for the people of Holland. It will be automatically lowered every year and the city will not be able to keep up with inflation. This will require city council to start cutting city services.

Voting YES does not raise your taxes.

Voting YES keeps your tax rate the same as it has been for the last 14 years.

Voting YES keeps local control.

Voting YES keeps Holland - Holland.

If You are really into the details, Here is The Technical Explanation

The City of Holland currently levies significantly less than the maximum limitation (17.5 mills) allowed by our Charter and has maintained the same millage rate of 13.8692 mills for the past 14 years. In fact, we have NEVER levied the full 17.5 mills. The proposition is to "override" the current Headlee reduced millage (14.4480) before it continues to be reduced below the levied millage rate (13.8692) as a proactive measure. (See the graphic above)

What Does That Mean?

A “Yes” vote would override the mandated reduction and reset the maximum allowable Holland City millage rate to align with the 17.5 mills designated in our City Charter. This Headlee override and reset can only happen by a vote of the people.

The city currently levies only 13.8692 mills and City Council has been clear of their intent not to raise the actual levied millage rate of 13.8692 mills. Remember, Council has not raised that rate for 14 years.

A “No” vote would allow a state mandated reduction in our maximum allowable rate “a Headlee Reduction” to push that maximum rate below our current 13.8692 mills.  Our current Headlee maximum allowable rate is only 14.4480 mills.  Without a reset, we expect our Headlee maximum to fall below our current rate, reducing city resources.

“We chose to put this on the ballot now because we want to be proactive to protect the city against state mandated Headlee rate reductions that would surely require a reduction in valued city services. We believe it is important to plan ahead and be transparent with the people of Holland.”

 Headlee vs Proposal A – How is MY tax bill calculated?

Tax bills are generated by multiplying two numbers: the millage RATE of all taxing authorities' times the taxable VALUE of property.

The current ballot proposition only addresses the maximum millage rate the City is allowed to charge. And Council has voted to levy significantly less than the maximum for 14 years in a row.  This ballot proposition has nothing to do with the value of your property, now or in the future.

How your property is assessed (valued) for property tax purposes is governed by another law, often referred to as Proposal A.  Proposal A is designed to manage the increase in the taxable value of your property year to year. Proposal A limits that taxable increase to 5% or the rate of inflation, whichever is less.

 This ballot question will not change the protections of Proposal A.

If you would like more information, we are having an open house on Tuesday, October 21, at 7:00pm in City Hall.