DDA millage tax capture questioned

By Megan Kelley
Review Writer
LAKE ORION — The Lake Orion Village Council unanimously approved the public transportation agreement between the North Oakland County Transportation Authority (NOTA) and Oakland County at the council’s meeting on March 13 meeting
According to village Manager Darwin McClary, the agreement generates approximately $2.8 million in 2023 for NOTA through the Oakland County Public Transportation millage.
Recently, the NOTA board passed the agreement contingent on the approval of all north Oakland County municipalities in NOTA’s operating area: Orion, Oxford and Addison townships and the villages of Leonard, Orion and Oxford.
The 10-year transportation millage is a result of the Oakland County millage that voters passed in November 2022 and replaces NOTA’s pre-existing millage from .25 to .95 mills. The millage includes NOTA along with WOTA (West Oakland Transit Authority), SMART and OPC, said NOTA Executive Director Lynn Gromaski.
“Even though this is a 10-year millage, it’s a three-year contract and it’s a one-year funding mechanism. So, it’s just one year because they’re just not sure what’s going to happen in this one year and they want to see how the actual expenses play out so they can come up with the amount that they’re going to give us the two remaining years,” said Gromaski.
According to Gromaski, the agreement also includes $650,000 to expand the parking lot at NOTA but does not include new vehicles.
The village of Lake Orion is the last of the six communities to have this agreement brought to them for approval.
“What this all has to do (with) is access to transportation for our seniors, our low-income folks and a tremendous boost to our NOTA and their access. But, in addition, it’s required under this contract to be approved by each of the communities in our footprint,” said council President Jerry Narsh.
Councilmember Michael Lamb expressed concern about the transportation millage, asking if there was going to be any degradation of service.
Gromaski quelled his concern, saying that they will actually be adding three additional routes for NOTA users.
“We’re primarily looking at just seniors, disabled and low-income (people); those are our three areas that we serve and Oakland County agrees and we will continue to do that,” Gromaski said. “I know eventually they wanted to expand to the general public and some fixed routes but it’s not going to impact our community.”
With the previous NOTA millage, NOTA was receiving about $880,000, but with the new transportation millage, NOTA is receiving $2.8 million.
Village resident Cory Johnston spoke during public comment to ask if the millage money from those who live in the Lake Orion Downtown Development Authority (DDA) district goes toward the NOTA and the Oakland County Public Transportation Millage, or the DDA.
McClary fielded the question, telling Johnston and the council that the DDA does capture a portion of the NOTA millage.
“I saw some numbers from 2021, at that time it was about $8,000, it’s probably closer to $10,000 now,” McClary said.
Johnston spoke again to express his distaste for the operations of the village and the DDA.
“Tonight, I hear that even if I vote for a millage I think is useful, the money goes to the DDA, not to what I voted for. The DDA likes to promote itself as taking money voted for parks, for OCC (Oakland Community College) now the transportation millage and it goes to a body that doesn’t answer to anyone, as far as I can tell,” Johnston said. “They’re not voted (for), they weren’t created by a vote (of the people). Why would I vote for any millage when I live in the DDA district unless I want to give more money to the DDA? It makes no sense to me. I am quite upset by that.”
Township Supervisor Chris Barnett spoke during public comment to defend the DDA’s tax capture.
“The best thing that the township has done in the 10 years that I’ve had the privilege of serving, is to create the Corridor Improvement Authority, which is a tax capture identical to the DDA. We did $8 million of improvements, we widened Brown Road, created an economic development boom that’s happening still on Brown Road, on our north side of the Auburn Hills, Orion border. We also did $4 million of beautification, streetscape, on Baldwin. If left up to the road commission, we have a great relationship, but if left to the road commission we would have had grass,” Barnett said. “We have amazing fountains and sidewalks and street lamps because of the tax capture.”
Barnett added that there is oversight of the DDA for residents because the DDA is simply a recommending body and the village council approves the DDA budget. Additionally, the village council president appoints members of the DDA Board.
“Elections matter. Residents do have a say because they elect their leaders,” Barnett said. “I’m a big proponent because I’ve seen firsthand the benefits. Not one person paid one additional penny in taxes in the Brown/Baldwin Corridor Improvement Project, yet we got $8 million of benefit that would have gone to other places.
“The best tool available to local governments are tax captures that are done right and done appropriately,” said Barnett.
The Lake Orion Village Council’s next meeting is at 7:30 p.m. March 27 in council chambers at Village Hall, 21 E. Church St.