City income tax funds $6.3 million in parks and public works projects

February 09, 2025 | East Lansing, Ingham County, Michigan


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City income tax funds $6.3 million in parks and public works projects
East Lansing's Charter Review Committee meeting on February 6, 2025, highlighted significant developments in public works and pension funding, directly impacting the community's infrastructure and financial health.

The Department of Public Works reported that income tax revenues have been instrumental in funding various street projects, including repaving and remilling efforts. A detailed map presented during the meeting illustrated the streets affected by these improvements since the income tax was implemented. The funds have not only supported routine maintenance but have also facilitated additional projects that enhance the city's infrastructure.

Parks and Recreation also benefited from the income tax, with approximately $6.3 million allocated to various projects, of which $3.1 million came from these tax revenues. Notable upgrades included enhancements to the Hannah Center's theater, improvements at the aquatic center, and the addition of outdoor fitness equipment at Bailey Park. The community has actively participated in funding initiatives, with local associations contributing to specific projects, such as the popular pickleball courts.

The meeting also addressed the city's pension funding status. Currently, the pension fund is 64.5% funded, a notable increase from 49.5% before the income tax was enacted. This improvement is attributed to the income tax and a state pension grant. The committee discussed future projections, aiming for an 85% funding level by 2030, which would stabilize the city's financial obligations.

Concerns were raised regarding the legacy costs associated with public safety pensions, which remain a significant financial burden. The city has transitioned new employees to hybrid pension plans to mitigate these costs, while existing employees continue to receive defined benefits.

As the meeting concluded, the committee emphasized the importance of ongoing public engagement and transparency regarding funding allocations and project prioritization. The next steps include continued monitoring of the pension funding status and exploring further community involvement in local projects.

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