Kalamazoo City Commission approves plan connected to $70M donation

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

Kalamazoo's Foundation for Excellence proposal, July 28, 2016.

KALAMAZOO, Mich. — The Kalamazoo City Commission approved plans to go through with creating a massive philanthropic infrastructure in a 6-1 vote.

The Commission gave the go ahead to establish the Foundation for Excellence, which will help bring taxes down for Kalamazoo homeowners, stabilize the city’s budget, and provide approximately $10 million a year for “aspirational” projects.

Click here for the full meeting agenda and Memorandum of Understanding.

The Foundation will be funded for its first 3 years with a donation from lead donors William Johnston and William Parfet. After which, the goal is to have the fund be self-sustaining from public donations made by anyone. It’s estimated the permanent endowment will need to stay in the range of $500 million.

The City of Kalamazoo was looking a nearly $2 million deficit heading into 2017, and more than $5 million by 2020 before the donation without raising taxes. Property taxes will drop, according to the plan, from 19.27 mills to 12.00 mills.

According to the commission’s agenda, the aspirational projects will address generational poverty and provide opportunities for the youth.

The next steps are for the legal papers to be drafted and approved by the city that will create the Foundation. A budget and work plan will follow soon after.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s