Kalamazoo City Commission meeting

Kalamazoo City Mayor Bobby Hopewell listens during a Kalamazoo City Commissioner meeting at Kalamazoo Metro Transit in Kalamazoo, Mich. on Thursday, July 28, 2016. The meeting was held to talk about revenue options for the city of Kalamazoo. (Bryan Bennett / MLive.com)

KALAMAZOO, MI -- City commissioners could vote on a three-page document that will guide a philanthropic approach to solving Kalamazoo's budget issues.

A memorandum of understanding released last week formally outlines the commitments, intentions, and expectations shared by local philanthropists William Parfet and William Johnston and the city of Kalamazoo. Commissioners will discuss the document in a special work session scheduled for 6 p.m. Monday night.

The public is invited to the session, which will be held in Kalamazoo Valley Community College's Anna Whitten Hall, Room 128 on 202 N. Rose St. It will be streamed live on the city's Facebook page for those who are unable to attend in person.

The memorandum is not a binding legal document. Commissioners could vote to adopt it that evening or amend it, at which point the memorandum would return to the donors and the process would start again.

READ MORE: Click here for the full document

Under the agreement Parfet and Johnston would provide a $70.3 million donation over the next three years to be used to stabilize the city's finances. They are also expected to begin a capital campaign and seek support from additional donors to raise $20.1 million for the city's 2017 budget.

Meanwhile, the city will create a separate city-controlled fund for the initial $70.3 million donation and create a non-profit foundation by Aug. 31, 2017, into which the donation and future contributions will be deposited.

The city would also to develop a budget for fiscal years 2017, 2018, and 2019 that incorporates a 12-mill property tax rate and allocate $10 million each year to aspirational projects funded by donations.

These projects will be based on the results of the Imagine Kalamazoo 2025 process, the recommendations of the city manager and approval of the Kalamazoo City Commission.

Kalamazoo would also be expected to continue exploring budgetary savings through shared services and develop best practices and measures to demonstrate the impact of the donation, efforts, and initiatives.