FAQ

What does Proposition 1 do?

Prop 1 gives voters the power to approve or reject the adoption, approval, or extension of Tax Increment Financing (TIF) districts in our city. It doesn't end TIFs, but ensures citizens have a say in these significant financial decisions that affect our property taxes.

Why is Proposition 2 necessary?

Prop 2 is a safeguard measure. It's designed to void any extension of TIF97 that might be enacted without voter approval before the November 2024 election. This ensures the democratic process we're fighting for with Prop 1 isn't circumvented.

What are the financial implications if TIF97 is extended?

The impact would be substantial. While TIF97 has diverted $17 million in city tax revenue over the past 26 years, projections show an extension could divert $121-139 million over the next 32 years. This could lead to higher property taxes or reduced city services.

How would an extended TIF97 affect other local institutions?

Other local authorities would also lose significant funding. For example, Northwestern Michigan College (NMC) could lose an estimated $17 million over 32 years.

What happens when TIF97 ends as scheduled?

The diverted tax revenue would return to the city's general fund and other taxing authorities. This would allow for more flexible spending on citywide priorities and fulfill the original 30-year investment promise.

Will Prop 1 affect brownfield projects?

Yes, it will require voter approval for brownfield TIFs as well. Given that these projects can divert millions in tax dollars, it's appropriate for taxpayers to have a say.

Who is behind Props 1 and 2?

These propositions are a grassroots effort by Traverse City residents. Over 1,400 registered voters signed our petitions, including former mayors, city commissioners, and DDA board members. We're working to make the city's use of TIF programs accountable to all residents.