Do the Math!
November/17/2009 20:05
In the last blog, Shores taxpayers were challenged to use the tax search resource available on the assessor’s page of the Grosse Pointe Shores web site to “do the math” and see how city property taxes on their own home has faired over the past few years under the administration of Mayor Cooper and his incumbent slate.
This link will open a chart showing how the various components of Shores property taxes have risen for my own residence over the past five years, based on the information in this public tax database.
During this time, there has been a 25% increase in my property taxes that go to directly to Grosse Pointe Shores. During this period, the city taxes that go to pay off the Shores debt burden have increased 257%. Taxes going to fund Shores pensions have climbed 164%. Taxes for city operations climbed 126%. Yet the incumbents proclaim, as proud as peacocks, that they have held tax rates steady. The trend evident in the graph makes the fallacy of their argument very clear.
At the same time taxes are escalating, Shores property values have plummeted precipitously. Despite the substantial rise in our municipal property taxes, does any Shores taxpayer think that they are getting more bang for their taxpayer dollar than they were 5 years ago?
Rather doubtful, when you consider where your Shores taxpayer dollars are going. Look at the most recent 2009 Shores financial report. Last year, property tax revenues to the Shores were down to $4,954,000, a number that is sure to decline again this year, as property values plummet. Shores bond debt payments due in 2010 are nearly $600,000. The required pension fund contribution due is almost another $600,000. Add to this the $771,000 annual contribution that the health care fund consultant says we need to plan on based on a realistic 5% rate of investment return.
This adds up to nearly $2,000,000 of your tax dollars needed just to pay off debt and employee retiree benefits! Then consider Shores payroll costs are in the range of reportedly in the range of $2,500,000 dollars. When you add up these figures and subtract them from the city’s property tax revenues, it is clear why so few of your tax dollars are left for road repair and other direct services for Shores residents. Those Shores residents who claim they don’t mind paying high taxes because they are happy with the current level of municipal services need to understand that little of our progressively escalating city tax bills are actually left to provide these services.
Mayor Cooper asked in his recent letter for Shores residents not to sign the recall petitions and to give him and his slate of incumbents another two years.
After you do the math for yourself, do you really think the Shores can afford two more years of deficit spending, unsustainable employee benefits and steeply rising retiree legacy costs? If we don’t demand immediate change, it is possible that rather than being on the State of Michigan fiscal watch list, that the Shores will be in receivership.
To effect change, use the Contact Form on the last page of the website, and a volunteer will contact you shortly to get your signature on the recall petitions.