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MOUNT CLEMENS — In response to upheaval at the federal level, Mount Clemens city commissioners sent a statement calling on its representatives to be careful.
Commissioners on March 3 unanimously approved a resolution calling on the members of Michigan’s congressional delegation to preserve federal tax exemptions for municipal bonds.
“Local governments of all sizes rely on tax-exempt municipal bonds as a critical tool to finance infrastructure projects and essential public services,” Mount Clemens City Manager Gregg Shipman said. “These bonds help fund everything from schools and hospitals to roads and utilities — projects that are vital to the well-being of communities across the country. However, with Congress expected to focus on sunsetting tax provisions next year, the National League of Cities anticipates that tax-exempt municipal bonds may be at risk.”
The City Commission’s resolution brings it in line with a campaign co-run by the National League of Cities and the Government Finance Officers Association. The campaign, #BuiltByBonds, aims to protect the status of tax-exempt municipal bonds.
Mayor Laura Kropp and Commissioner Erik Rick both claimed to have brought the campaign to the attention of the city. Kropp said the resolution was an extension of advocacy she performed during an early February trip to Washington D.C. she took with the Southeast Michigan Council of Governments, of which she is a vice chair.
“This was definitely something we addressed with all of the congressional delegation when we were in their offices,” Kropp said. “(We) talked about the importance of this tool for municipalities when you have to do large-scale projects that cost significantly more than what your annual budgets are and how this is something that enables us to do those projects. We really tried to drive that point across, so hopefully all of the communities will participate in this and drive that point further.”
Legal services agreement
Commissioners also approved a legal services agreement with law firm Kirk, Huth, Lange & Badalamenti.
The new agreement, which lasts for one year with the option of a one-year renewal, replaces the agreement that expired on Dec. 31, 2024, and subsequent month-to-month arrangements between the city and firm.
