Added on August 12, 2019  Sara Swanson

Huge turnout at Village-to-City Q&A session

Why is the Village looking at becoming a city? Are we even big enough to be a city? Will we turn into Chelsea if we become a city? Will fire service be disrupted? Will taxes go up? Will taxes go down? Will residents get to vote on this?

More than 70 residents turned out Monday night for the Manchester Village Council’s question & answer session held during their regularly scheduled meeting. These questions, along with many others, were asked by the crowd and answered by Village Council president Pat Vailliencourt. The room was so packed that the every wall that could be stood against was full; a few latecomers turned and left as there was not even standing room.

Vailliencourt started the meeting after the pledge of allegiance, with a moment of silence for the 22 people who lost their lives in two mass shootings last weekend as well as those injured. She asked, “When do we demand something be done? No one can say this won’t happen in our community. Something has to change or it will happen again and again.” 

The Q&A session was divided into eight topics: Why, Our government/taxing structure, Citizens Advisory Committee, Advantages/disadvantages, Concerns of residents, Fire service, Division of assets/next steps, and Council concerns. For each topic, Vailliencourt first gave a presentation then opened it up to questions. Additionally, there were charts on multiple walls showing estimated transition costs to become a city, the millage village residents currently pay, and the list of steps the village would need to go through to become a city, among others.

Vailliencourt addressed the topic of broadband right off the bat. She stated, “This is NOT because of broadband; but that did bring some critical issues to the forefront. It showed the diversity of our needs, but also taxing disparities and potential liabilities for village residents.” She explained that it would be irresponsible for the Village Council not to investigate city hood as it is the Council’s responsibility to look at what government structure best serves their residents and taxpayers, and to investigate how they can ensure tax dollars are being spent in the best way possible for village residents.

Villages are not a primary unit of government. The State of Michigan has two primary forms of government: cities and townships. A village is part of the township, which means village residents pay village taxes and township taxes, as well as supporting two units of government. Becoming a city would remove the village from the township and residents would only support one unit of government. 

In 2019 village tax payers will pay to the township an operating millage of .8939 or $56,300, which will go towards assessing, tax collecting, voting services, township personnel salaries, township equipment, township facilities, and projects determined by the township board. Village residents also pay .3477 or $21,899 for a township road millage which does not pay for any street/road expenses within the village limits. Although village residents would need to take on the expenses of voting, assessing, and tax collecting, village residents would no longer pay these millages if the village became a city. These are separate from the fire millages. 

Vailliencourt stated, “If your council did not investigate city hood, we would be making the decision, alone, without taxpayer input, that these taxes and fees are justified.”

A village resident asked why the village didn’t become a city years ago. Vailliencourt answered, "It is not an easy decision. It is tough. Look at Facebook. I’m hoping I don’t come out of this tarred and feathered.”

One question asked was if we could have our own police department and stop contracting with Washtenaw County Sherif Department. Vailliencourt answered that is a decision separate from the city hood process. We had our own police department and switched to contracting because it was significantly less expensive. The switch took us from policing making up 85% of the budget to 40%. In recent years, the expensive of contracting has climbed; although we are not to the point that it makes financial sense to consider our own department again, we are getting closer. 

Another audience member pointed out that there are multiple models on which cities can run, and asked which the village council is looking at. Vailliencourt answered that near the end of the process a charter commission would be elected, do research and make that decision, and would write a City Charter under one of those models. One possible city model might be identical to the village’s current model. 

Vailliencourt addressed income tax, when asked by an audience member and was emphatic that the council is not considering an income tax and there has never been any discussion of an income tax. 

Vailliencourt then explained the make-up and role of the Citizens Advisory Committee, volunteers who committed a large number of hours to research the process of becoming a city, explore the advantages and disadvantages, and submit a report to the Village Council with a recommendation whether or not to pursue city hood. The committee returned a recommendation to pursue city hood. 

Read the full report here.

An audience member pointed out that it was unsettling that two of the Citizens Advisory Committee members put their houses up for sale in order to move--not only out of the village, but out of state. Vailliencourt explained that when offered the positions on the council neither had their house up on the market, and when one committee member’s house sold he notified Vailliencourt immediately and resigned. She reiterated that they were both fully committed. Rick Finger, a committee member, stood up in the audience and assured the group that they spent hundreds of hours working on this and the fact that their houses were up for sale had no impact on the results. "There was no hidden agenda," he stated.

Vailliencourt outlined the advantages and disadvantages of becoming a city. Advantages included eliminating dual taxation and paying for two sets of government salaries and expenses, many of which are duplicative, simplifying the government, becoming a primary unit of government, an opportunity to update the charter to modernize it, and reducing liability exposure.

Expanding on the point of liability exposure, she stated that if a major township road project was done, if major renovations were done to the township hall, or if there was a court settlement against the township, as part of the township, village residents are equally liable. She also pointed out that there are about 250 more non-village Manchester Township residents who are registered voters than village residents who are registered voters, implying that if a vote happened on an expensive project that the township’s rural residents supported but village residents did not, village residents could be outnumbered at the polls.

The Citizens Advisory Committee determined that becoming a city would save homeowners with a taxable value of $100,000 approximately $73.82 annually and non-homestead property owners with a taxable value of $100,000, $90 annually. These numbers take into account paying for services the village would have to take over from the township as well as paying for fire service. 

Disadvantages of becoming a city included that city residents would not be able to serve on township boards or vote in township elections, and that the city would be responsible for assessing, tax collection, and voting, as well as contracting for fire coverage. The biggest disadvantage discussed was that the relationship between the village and the township would change.

Vailliencourt stated, “Disagreements and hard feelings have already been expressed. In some ways this is like a divorce. Emotions, personalities, fear of the unknown and resistance to change all create stress, confusion, and incorrect information being distributed. For the sake of the entire Manchester community, if we do become a city, we hope we can resolve our differences and continue to work together.” She added that this is probably the biggest reason this hasn’t been done in the past. 

Vailliencourt was asked if becoming a city would help fill vacant storefronts. She stated that whether a community is a city or village doesn’t make a business successful--a supportive community does. She added though that a lower tax rate may make a city more attractive to new businesses and that Jonesville, a community of a similar size who recently became a city, has found that having a tax assessor assessing downtown buildings reportable to the City Council instead of the township board did work better for them. She was then asked if we became a city, would the city use the previously assessed tax values or reassess everyone. That has not been decided yet, but is an option.

Vailliencourt was asked whether city status could help with more state or federal funding. She did not want to say yes to this because this has not been researched yet, but she gave the example of Denise Collins, owner of Frank’s Place who found some grants she could have applied for to help with renovating the restaurant if Manchester was a city but could not because we are a village. Vailliencourt added that Jonesville has stated that they did find this to be the case.

She then addressed concerns of residents. The first mentioned was being a city is different and many residents, such as being a “quaint” village. Vailliencourt stated, “We do NOT have to change the way we operate or the way we look. We will still be the same quaint community we are today. We can establish a city government that mirrors our current structure. It does not need to affect existing contracts, agreements, events, or the service of the Fire Department.” 

Vailliencourt addressed the cost to the Village of becoming a city. The breakdown is available in the Citizens Advisory Committee report but the takeaway is that there would be a one time expense of $65,000 and an annual increase in expense of $32. Village manager Jeff Wallace stated later in the meeting that he is conservative in his budgeting and the village is unlikely to actually spend the full $65,000. 

Whether or not the village will attempt to annex property has been widely discussed throughout the process so far. Vailliencourt stated, “If the council votes to proceed, it is our intent to submit to the state boundary commision our existing boundaries. They have the right to make modifications but it will not be requested by us.” She also explained that becoming a city does not make it easier to annex property after the fact. Cities have one fewer step to go through, but the decision whether or not an annex occurs is made exactly the same way for cities and villages. She also clarified that annexation is something property owners request, and that property can also leave a village (or city) by the same process, although it is more expensive. 

She went on to dispel misconceptions being spread on social media that the village would need additional infrastructure to become a city. No additional infrastructure is needed to become a city and no changes in zoning or ordinances are needed. The township would not need to move our of their current offices or move the Fire Department. She added, “Our daily lives will really not look any different until it is time to vote or pay taxes here at the hall.”

Changes to the Fire Department is another widely discussed topic in relation to city hood. Currently village residents, like all Manchester Township residents, pay for fire protection with two millages--fire department operating millage and fire department equipment millage. Three other townships--Bridgewater, Sharon, and Freedom--all contract with the Fire Department to receive fire coverage. As a city, Manchester would contract for Fire Services just like the other townships do. Instead of paying a fire millage directly to the township like we do now, city residents would pass and pay a millage to pay for the fire contract. 

Vailliencourt quoted Manchester Township attorney Jesse O’Jack and former township supervisor Ron Mann, “this would be an easy transition and would not affect the services of the fire department.” She continued that this change would give the Fire Department the opportunity to look at changing its structure and become a Fire Authority, but that that is a completely separate decision from city hood.

A village resident asked if the city had a contract for fire services, if village residents would be charged run fees for using the fire department (as happens under some contracts). Vailliencourt answered no. Fire service for city residents would be indistinguishable from how it is now. 

On the topic of division of assists, Vailliencourt stated, “The village has equity in any township assets which were acquired with village residents’ tax dollars and in any liabilities currently held by the township. They will be divided. There are state formulas to ensure this is done fairly.” She stated that O’Jack has stated that there is no reason for this to be a huge financial burden to either the village or township. 

The process to become a city is a complex process that would take about two years and would have village resident input all along the way. Village residents will need to sign petitions and eventually have to vote on whether or not to become a city. The whole process is outlined in the Citizens Advisory Committee report. Some of the Village Council, including Vailliencourt herself, are up for election in 2020. She pointed out that this means that if the village goes ahead with becoming a city, it will fall on the shoulders of newly elected council members. She also affirmed that she will be running for reelection. The next step in the process is that the Village Council needs to vote whether or not to proceed. That vote did not happen at the meeting last night, but may happen within the coming weeks. 

Finally, Vailliencourt addressed concerns of Village Council members. “Relationships with our neighbors is a great concern," she said. "The only township city hood has any direct affect on is Manchester Township. Our estimates, not confirmed by the township, is that they would have a net loss of about 13% of their income or $58,000, taking into consideration we would continue to pay for fire via a contract and the loss of expenses they would have because of not performing services for the city … This would not have a devastating effect. The township is financially secure … as of June 30, 2018 there was a combined fund balance in their general and other accounts of over $1.6 million. This does not include funds in their fire operating and equipment accounts.”

Vailliencourt stated the the village council’s second major concern is how to correct incorrect information, assumptions, and rumors and get correct information to residents so they can make the decision based on facts and not “wild Facebook postings.” She noted that postcard mailings seemed to be effective, as it brought a huge crowd to the question and answer session.

At the end of the meeting Vailliencourt asked for a show of hands from village residents in the audience who support cityhood after hearing everything said that night. More than half of those present raised their hands.

Reflecting on the meeting afterwards Vailliencourt stated, "I was extremely pleased with the turnout at the meeting, and with number of village residents who attended. I hope it was beneficial, and helped everyone to learn what it does and does not mean to become a City ... At the end, the straw vote showed an amazing support, that it is worthwhile to investigate city hood. Most important to me [is] that our residents understand, if we don't look at this, then we as Council alone would be making [the] decision that it's justified the way we are taxed and the fees that we pay."

Jeff Wallace added, "The meeting went great! Whenever we get an opportunity to interact with a large number of residents who take the time out of their busy schedule to understand an issue, that is important to the Village Council. This allows (council) to make a more informed decision on the residents' behalf. This is an important part of the process.

"Being able to review the work completed by the dedicated citizens on the Citizens Advisory Committee Report and support their decision to become a city is beneficial to the taxpayers of the village. Accurate information can be explained, and inaccurate information can be dismissed. I think the meeting went well with the Village President and Village Council laying out the information in a concise manner and answering all questions asked.

"Much appreciation to the residents that showed up," Wallace concluded. "Hopefully we will get more opportunities to present the information or they can also reach out to village trustees or staff to get answers to questions any village resident may have if that is more convenient."

If you were unable to attend the meeting, read the complete Citizens Advisory Committee report online on the Village’s website https://vil-manchester.org or stop by the village office in person. Vailliencourt asked people, if they have questions about city hood to call the village office and talk to her or Wallace. She gave out her home phone number and invited attendees to call her at home with questions.

She stated, “Please, if you hear a rumor, if you are told something that someone ‘knows to be true’ or you read something on Facebook, question it. Most of what you hear will not be based on knowledge or facts. If anyone disagrees with anything that has been presented tonight challenge them, ask for facts. Challenge me, your Village president. Please, ask on what basis they are making these statements.”

Manchester Township will be holding a special meeting next Tuesday, August 13th at 6 pm in the Township Hall located at 275 S. Macomb Street before their regular board meeting, as they meet with an attorney who specializes in issues arising from villages pursuing city hood. That meeting is open to the public.