Royal Oak's 2005 Election The Headlee Override

Also see 1949 Budget

Now that the School District has decided to ask for a bond . . .
. . . and the City is seeking a Headlee Override . . .
it's a good time to republish introductory paragraphs from VersagiVoice's comments of 26 May 2005:

Schools matter more than city government?
Until the city commission's May 16th dual meetings, to judge by written and oral reactions to the news and opinions I publish, parents of school-age children were more concerned about the possible rejection of a yet-to-be-developed bond proposal than residents overall were worried about the City of Royal Oak's financial problems. The cynics among my readers suggest that "the school community" -- parents, teachers and their unions, administrators and  their unions, the school board -- is planting scripted talking-points through letters-to-the-editor, anonymous phone calls to the press, and reactions to VersagiVoice. 

Talk of possible millages, dedicated or not, of income taxes, of sales of city parks,  and sales of golf courses, has redirected attention, however, and now there are rumblings about "How did we get into this mess?" and "Isn't there some legal recourse against that so-called Finance Committee which messed up the water fund/general fund balance?"  In between are questions like, "If they are talking about dedicated millage for 'essential services,' doesn't that mean that we are currently paying for 'unessential' services?" Irritation or resentment is intense enough that presumed members of that now-dissolved Finance Committee are being openly named and discussed: Cowan, Eva, Kondek, Doyle, respectively Royal Oak's former Mayor, Finance Director, Treasurer, and City Manager.

Obviously, we can expect vigorous debate about both the City and School proposals.

More Budget Dialogue

The correspondence immediately below continues a to-and-fro exchange between VersagiVoice readers and City Assessor James Geiermann. [See]

Hello, Mr. Versagi,
With great interest I appreciated the crafted answer from the City Assessor in determining the City's coffers will increase by only $600,000 with the new condo construction currently in progress. With Skylofts I and II, Metro Lofts, and Troy Lofts complete, the dollars should start trickling in soon. In fact I'm confident that almost everyone received a property tax bill on July 1, 2005.

Did the City Assessor conveniently omit the part where in addition to paying the Operating Millage, there is also a Library Millage, and a Fire Millage, and a Refuse Millage? Perhaps the City Assessor could address the financial impact of an influx of new construction with an SEV of $80 Million currently in progress all contributing to the Library, Fire and Refuse Funds.

Combining the Operating Millage with the Library Millage and the Refuse Millage and the Fire Millage, the City of Royal will annually collect an additional ....

(7.5+1+3+.4) mills x $80,000,000 SEV = $952,000 in new taxes!

Throw in a parking ticket, a little DDA tax, while not even mentioning the Personal and Real Property Tax on the commercial entities, and we are well on our way to a million dollar windfall in new tax revenue to city hall!

I agree with Mr. Shaw's observation that "If you ask too many questions, you are replaced."  [Shaw]  In my case, however . . . [The writer has had several less-than-cordial encounters with City Hall.]

Sincerely,
Name Withheld

01 Sep 05: Chris Lee writes: 
Raise the millage rate and see property values decline.

Let's face it, the budget is what we are talking about. When buyers purchase their home in Royal Oak and other cities, their decision is based upon a monthly budget, just like the city's. Figure out this calculation. A purchaser who buys a 1200 sq. ft bungalow for $160,000.00 with no money down at 6.5% interest rate, $2800/yr in taxes (current 2005) $800.00 in Insurance and $150.00/ month PMI = $1,461.00/month.

Now take the scenario of a 26 yr old first time home buyer. Income $65,000.00/year = $5,416.00/month

Home prices will come down with the additional taxes.

02 Sep 05: Laura Harrison writes:
Frank:  I don't think the city assessor is entirely forthcoming with exactly just how much the city collects in taxes.  Some of the budget puzzle pieces are missing.  According to the Prop A act all new builds and new home additions are to be taxed at full value.  Something is wrong with the math.  If this is true, the DDA is about to get a super windfall!  

Laura Harrison says high taxes threaten quality of life
Regarding the two millages on the 11/8 ballot, it is all about MONEY! I have figured out how much my taxes will increase if the over 4 mills requested passes and I just cannot afford it. And many, many of my friends and neighbors are in the same boat. We are watching our daily costs increasing and our incomes not keeping pace with these costs. Many of us have little or no pensions. One city commissioner keeps beating the drum regarding the "quality of life." Well, what will happen to our quality of life if these increases pass? For me and a lot of others it's not about new buildings, air-conditioning, golf courses, etc. We don't want to be taxed out of our homes. When Bill Clinton ran for president one of his campaign operatives kept saying, "Its the economy, stupid!"  Well, in 2005 it's the Michigan economy!!!!!.