Saginaw officials will ask voters to let them increase tax take

Saginaw voters will decide in November whether to eliminate the city’s longstanding cap on the amount of money it can raise through a property tax, taking their first vote on the question since 2009.

A proposal on the ballot will ask voters to amend section 45 of the city charter, which currently limits the city’s general operating property tax levy to 7.5 mills or $3.8 million, whichever is less. If voters approve the proposal, the city will eliminate the $3.8 million revenue cap while retaining the city’s 7.5 mill operating tax limit.

The Saginaw City Council voted unanimously on June 8 to place the proposal on the ballot.

Before 1979, Saginaw’s city property tax levy was capped at 10 mills. Voters approved a ballot initiative that year, led by Saginaw United Taxpayers, which reduced the tax burden on property owners to 7.5 mills and established a revenue cap of roughly $3.8 million.

Saginaw voters have rejected seven attempts since then to repeal or raise the cap. In a 2009 election, 74% of voters opted to retain the cap.

Restore Saginaw, a citizen group formed in 2024 to call for repealing the cap, helped get the proposal onto the November ballot, according to former mayor Floyd Kloc, a supporter of the idea. The group asked the City Council in December 2025 to place the issue before voters and has pledged to campaign for its passage.

Some residents said city officials will need to explain how they would use the additional revenue that would come with a “yes” vote. During a public comment period at the June 8, 2026, council meeting, taxpayer Charles Allen said previous attempts to remove the cap failed because they lacked sufficient transparency.

“It keeps getting on the ballot, and it keeps getting voted down,” Allen said. “It’s because there’s an issue with the transparency. The people want to know what you’ll do if the tax cap is lifted.”

Gary Becker, another resident who spoke at the meeting, said that the city has raised revenue through fees and other sources.

“It’s been voted down seven times. You keep saying that we’re living on 1979 funds. We’re not. You’ve come up with hundreds ... or thousands of new fees,” Becker said, citing fees on water, sidewalk permits, and other items that raise city revenue.

Saginaw had about 77,500 residents when it adopted the tax cap. The population has fallen to about 43,000 in 2026, a decline of roughly 45%, according to census data.

In an August 2025 presentation, City Finance Director Lori Brown said the city’s charter structure is unusual because it includes both a millage limit and a hard dollar cap on revenue.

While the city is authorized to levy 7.5 mills for operations, the tax cap reduced that rate to 6.3365 mills in 2025 to keep revenues below the charter’s $3.8 million limit, Brown said.

As a result of the cap, an expanding tax base, brought on by inflation, new construction or increasing property values, does not automatically generate additional city revenue. Officials say that the restriction makes it more difficult for them to keep pace with rising labor, infrastructure and other operating costs.

Brown estimated the restriction has limited city revenue by an average of $630,000 per year since its inception.

The Michigan Banner reported that Saginaw’s annual general fund budget was less than $24 million in 1979. The city’s fiscal year 2025-26 budget is based on $45.1 million in general fund revenue, with a total city budget of $203.8 million.

Official data show that the city’s operating millage accounted for about 11% of the typical Saginaw property tax bill in 2025. A separate voter-approved police and fire assessment accounted for another 13%, generating about $3.7 million for city services. The November proposal would affect only the city’s general operating millage.

Mayor Brenda Moore said in her 2025 State of the City address that the tax cap leaves the city operating under outdated financial constraints. The city, she said, is tied to a “1979 budget.” The city plans to focus on educating residents about what the cap is and how it affects long-term planning and services, according to the mayor.

Moore said that raising the cap would have a positive long-term impact on municipal finances.

“It’s not about the money right now,” she said. “It’s about generations that come after me.”

A separate state-imposed tax cap would apply to Saginaw even if voters approve the City Council’s ballot measure. The city could still be subject to the Headlee Amendment in the Michigan Constitution. That provision requires voter approval for new or increased millages and lowers tax rates when property values rise faster than inflation.

State Rep. Amos O’Neal, D-Saginaw, along with 12 co-sponsors, introduced House Bill 4121 to prohibit local governments from imposing revenue caps on property taxes. The legislation would remove Saginaw’s $3.8 million cap while leaving the 7.5-mill limit in place. It has not moved out of the House Committee on Government Operations.

Neither O’Neal nor Moore responded to a request for comment.