Our Vote NO on Massive Troy Tax Hike in Oakland Press

Troy millage opponents continue to make their case
Published: Monday, February 22, 2010

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By DAVE PHILLIPS
Of The Oakland Press

A group of about 50 people gathered Sunday in Troy for a town hall meeting about the city’s proposed millage increase.

In an event organized by Glenn Clark, chairman of the 9th Congressional District for the Republican Party, former Troy City Council members David Eisenbacher and Dave Lambert spoke about the possible millage increase, which would be 1.9 mills and would expire in five years.

Troy voters will head to the polls Tuesday to decide the issue.

A 1.9 mill tax on an average house with a taxable value of $103,000 is $195, but city officials said the typical homeowner would see his or her city portion of their tax bill increase only $38 because of declining property values.

Eisenbacher disagreed. He said 43 percent of Troy residents do not have their assessed value and property value equalized, and “if you’re in that category, taxes may go up by the full amount.”

Eisenbacher said one possible downside to the millage would be an increase in rental rates for businesses.

“A tax increase will directly flow into the rental rate for buildings,” Eisenbacher said. “As the rental rate increases, it’s harder to attract businesses to the city.”

“It will impact employers’ job creation goals,” Lambert added. “Tax increases do not help create jobs except for the public sector.”

Troy officials say the millage is needed to keep city services and property values at the level they are at right now.

“It’s a threat,” Eisenbacher says of that statement.

He said rejecting the proposed increase would “put the onus on the city” to prioritize funds for essential services like police and firefighters.

Up to 150 people could be laid off if the millage does not pass, including about 50 police jobs, city officials say. City financial experts also said the city would have to close the library, community center and historical museum, in addition to privatizing, consolidating or regionalizing some city services.

Eisenbacher suggested cutting managerial jobs first.

“The guy fixing the road is more important (than someone in a management position),” he said. “If half the costs are management and half the costs are people working, I would say don’t lay off the people doing the work first.”

Lambert is concerned that the money might not be spent in the right places if the millage increase does pass.

“City Council is essentially being given an open checkbook to spend on whatever they want,” he said.

“I would prefer an approach which would have designated any kind of increase for a short period of time to be used on police and fire. Essentially on the ballot it says ‘for public safety and quality of life.’ Isn’t that everything the city does anyway? It’s not making them commit to where our limited money should be prioritized.”

Both men believe there are alternative solutions that will raise revenue for the city without increasing taxes.

“The biggest hole in the deficit moving forward isn’t in services — it’s in the pension fund,” Eisenbacher said. He said current figures are based numbers from when the stock market was at its lowest point and expects the “hole” to get smaller “when the stocks come back.”

Lambert said when he was on City Council, he proposed selling naming rights and advertising on city buildings. For instance, for a price, a company could “slap their name on the community center,” Lambert said, and defray some of the facility’s costs.

The idea was not wellreceived at the time, Lambert said, because the city was doing well and “didn’t look long term.”

“(We didn’t ask) when the economy’s not successful, how will we afford these facilities?”

He also added that the problem is not entirely the city’s fault.

“We also have to blame the state of Michigan,” Lambert said, citing statutory aid cuts.

Both men suggested possible decreases in hours for city facilities like libraries and the community center as a way to reduce costs. Using volunteers in place of paid labor was also suggested.

Contact staff writer Dave Phillips at 248-745-4631 or dave.phillips@oakpress.com.

http://www.theoaklandpress.com/articles/2010/02/22/news/local_news/doc4b82592b330ff059193634.txt