Why Do We Need More Millage?

Transcription

1 Why Do We Need More Millage?

2 The rubbish tax levy generates 97% of the total revenue for the fund. Rubbish tax revenue in 2008 was $863,040 with the Headlee reduced millage rate of mills levied. Tax Revenue in 2013 dropped to $694,484 with the exact same maximum allowed millage rate of mills levied. That equals a drop in revenue of $168,556 which is a 19.5% decrease in revenue over five years. Tax Revenues decline along with Property Taxable Values. Taxable Values in Clawson have dropped from a peak of $408,484,640 in 2008, to $309,685,640 last year.

3 Rubbish Fund expenses in 2008 were $830,743, which included a total of $151,000 for dead tree removal and partial funding of the curbside leaf collection costs. Expenses in 2013 were $738,122, which did not include ANY costs for tree removal and curbside leaf pick-up. Those added costs were all paid by the General Fund Balance Reserve. The City also transferred $55,000 in 2013 from the General Fund Reserve just to pay SOCRRA for weekly curbside rubbish pickup services.

4 The City had a reserve of $232,000 in the Rubbish Fund as of The reserve was utilized to pay the cost of the current services provided by our waste hauler and has now been completely depleted. The General Fund is supplementing the Rubbish Fund just to provide basic curb-side disposal services. We anticipate a transfer of $72,000 from the General Fund in 2014, just to cover the weekly cost of rubbish pick-up, curbside recycling, and 8 months of weekly curbside yard-waste services. Along with this $72,000 transfer from General Fund Reserves, the entire cost of equipment and labor for curbside leaf pick-up is being paid completely by the General Fund.

5 We have reached the same point with Rubbish Millage that we reached with General Operating Millage. With a loss of nearly $100 Million in property taxable value, levying the same Headlee reduced millage rate of , does not generate enough revenue to cover our basic rubbish service costs. This is not a shell game. Rubbish services should be paid by the rubbish fund and not fully funded or supplemented by the General Fund. Our Auditor recommends that we utilize the Rubbish Fund for our rubbish expenses rather than utilizing General Fund Reserves.

6 IF THE MILLAGE FAILS We can continue to provide the existing services and transfer between $70,000 and $85,000 from the General Fund Reserve Balance each year. We can continue to provide curbside leaf pick-up services fully funded by the General Fund costing approximately $150,000 in labor and equipment expenses each year. We can eliminate curbside weekly yard waste pick-up from our collection contract and save $110,000 per year. We can eliminate the curbside leaf pick-up program in October-November and save $150,000 per year in labor and equipment costs.

7 IF THE MILLAGE PASSES We can continue to provide curbside yard waste and curbside leaf pick-up services with no transfer or supplement necessary from the General Fund Reserve. Rubbish Fund Expenses will be paid by the Rubbish Fund Revenues. Based on current cost and revenue projections, the first year s levy next Summer would likely be an additional.6500 mil. That would cover the cost of our weekly curbside yard waste pick-up contract and the City s curbside leaf pick-up program in the Fall, as well as the weekly contract cost of rubbish removal and recycling services.

8 Although this millage request is for.8482 mil to uncap us back to the Headlee allowed State Maximum of 3.0 mills, we will only levy what is needed to cover our costs for the services we provide. Based on next year s cost estimates, an estimated additional levy needed would be.6500 mil. For a home with a Taxable Value of $50,000, that would add $32.50 to the Summer taxes. Since property taxes are deductible for Federal Income Taxes and some may qualify for the Homestead Property Tax Credit, the actual net cost will likely be lower. Please visit the Clawson tax calculation website to plug in your numbers to see your estimated tax increase amount.

9 Recycling provides credits back to the City, thus reducing our costs. In we received $38,288 in recycling credits. The SOCRRA Consortium is moving toward having a singlestream recycling facility built at the old Madison Heights Incinerator location on John R. This would allow for large recycling containers to be filled with all types of recycling materials and dumped onto recycling trucks and then sorted at this facility. Those containers could be purchased and provided using revenue generated by the uncapped millage. Added recycling means less material in the landfill and added credits and reduced costs for everyone.

10 The uncapped millage proposal will allow the City to continue to provide the current services that we already provide, which includes curbside yard waste service and pick up leaves in the Fall. Should the milage approval pass, the anticipated rate for next Summer s tax bill is.6500 mil which would add about $32.50 in taxes per year to a home with a taxable value of $50,000. (Use the tax calc program to estimate your tax impact) The ballot language in November is as follows

11 GARBAGE MILLAGE PROPOSAL Shall the limitation on the amount of taxes which may be imposed on taxable property in the City of Clawson be increased by mills ($0.85 per thousand dollars of taxable value) in perpetuity beginning in 2014, as new additional millage in excess of the limitation imposed by Michigan Compiled Laws section d, to restore previously authorized millage as reduced by operation of the Headlee amendment, to provide funds for garbage collection and disposal services? It is estimated that mills would raise approximately $265,000 when first levied in 2014.