Whether a government entity may use tax dollars to support a ballot issue such as the tax levy you reference is a question of state law. It will vary from state to state. I do not practice in Michigan. Call the office of the Prosecuting Attorney in your county to see what the law is in your state.
Mr. Weaver is correct that the answer varies by state. Like him, I am not licensed in Michigan, so I cannot say, but I would add that in many states it is perfectly legal for local governments can expend tax funds in support of levies or other ballot measures.