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#1  
Old 06-11-05, 6:26 pm
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News Herald article claims new Budget cut Taxes


http://thenewsherald.com/stories/06...050612007.shtml

Budget adopted; taxes lowered

By Jason Alley, The News-Herald

PUBLISHED: June 12, 2005
LINCOLN PARK — While other communities are cutting services and laying off employees to balance budgets, officials here have kept finances in check and lowered taxes for the first time in many years.

It's also the first time in several years that they didn't have to dip into the city's rainy day fund to balance the budget.


Officials are crediting the financial solvency to an early retirement program offered last year to many top-level administrators.

More than 60 city employees took the buyout. Some positions were replaced, while others were left vacant after many jobs were realigned.

"The (early retirement incentive) program was absolutely what made the reversal of that trend happen," Mayor Steven Brown said. "We would still be dipping into the fund balance as we've done since 1991 had it not occurred."

The 2005-06 general fund budget, which goes into effect July 1, totals $21.8 million. That is down 10 percent from last year's $24.3 million budget.

Residents should see a slight decrease in property taxes as the new budget levies 22.8 mills, compared to 23.76 mills last year.

"We are offering the same services at the same level for less cost to the taxpayers," Brown said.

The city's fund balance, or rainy day fund, sits at about $1.7 million, which is a little more than 8 percent of the total budget. Most accountants recommend that communities keep a fund balance of at least 10 percent.

"I'm comfortable with that because of the total financial planning we're doing now," City Manager Steve Duchane said. "As long as we know what next year will bring, we can work with that. The fund balance we have now is healthy."

As with most communities, most of the city's money is wrapped up in public safety.

Nearly $7.5 million is allocated for the Police Department and almost $4.2 million is going to the Fire Department, which accounts for more than half of the entire budget.

Broken down, 55 percent of the city's $21.8 million budget goes to personnel costs, 32 percent is for materials and related charges, 12 percent covers retiree costs and the remaining 1 percent is for capital improvements.

A five-year capital-improvement plan is new this year.

Over the coming years, officials plan to invest $1.25 million on water and sewer updates, $520,000 in highways and streets, $275,000 in machinery and equipment and $110,000 in parks.

"This money will buy police cars and (Department of Public Services) equipment," Duchane said. "What hasn't been done in years past is now coming to light. We've cut taxes and are reinvesting money into the city services that residents rely on. That's pretty good."

The budget was approved by a vote of 6 to 1 at Monday's City Council meeting. Councilman Thomas Murphy was the sole dissenter.

As in years past, he disagreed with the city charging taxpayers a 1 percent tax collection fee, as most other communities do as well.

He said it's a tax on a tax and residents shouldn't be forced to pay the city to collect their taxes.

"It's our job to provide these services," Murphy said. "Now we're tacking on another fee. It doesn't seem right."

Murphy tried unsuccessfully to get the administrative fee removed. When his colleagues didn't go along with it, he voted against the budget.

The city nets about $325,000 a year from the fee. In order to eliminate it, Brown said, Murphy should have came up with a plan to make up that revenue.

Murphy gave no suggestions other than just taking it out of the city's rainy day fund. Had that happened, the fund balance would have dipped from 8.15 percent to about 6.6 percent.

"It's a philosophical thing that Tom brings up year in and year out," Brown said. "I would expect that you would bring it up earlier than on the night you are voting on the budget. Bring forth an idea so we can seriously consider it. These are difficult financial times. It's not like we're sitting on a hefty fund balance as is."

A new 1 percent administrative fee was established in this year's budget for residents who participate in the city's sidewalk-replacement program. All municipal fees were raised by 3 percent to bring the costs up to par with what the services cost the city.

A 204-page report outlining this year's budget can be looked at in the city clerk's office at City Hall during business hours.

Contact Staff Writer Jason Alley at or at 1-734-246-0867.

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#2  
Old 06-11-05, 6:59 pm
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Yep and just wait a few more weeks and we will begin to hear more and more about the new road tax millage that the City Leaders are going to want us to pay for.

Please take note: Before you vote YES for another road millage you should ask yourself, "what did they do with all the tax money from the last road millage".

The current road millage expires this year.

Another good question is: Why not spend the pay raise given to Duchane; the $75k plus for the new electronic sign; the $5000 for AM Legal to host our City Charters; the $15,000 T1 Internet Access, etc. etc. and put that towards the road and infastructure before coming to the tax payers once again to bail the city leaders butts outta hot water.

Also, ask yourself: what were and are our city leaders thinking when they approved budgets that did NOT take into account the state revenue cuts and other cuts and continued to SPEND SPEND SPEND?

One final question to ask yourself: Why should we approve more money for our City Leaders to mismanage? Don't we have enough of our own bills, etc. to pay then to continually approve money for our city leaders to sqaunder?

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#3  
Old 06-11-05, 9:15 pm
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I think the term used for the road millage would be a RENEWAL not NEW tax . a NEW tax would indicate a tax increase. A renewal would only extend an existing tax that has expired and NOT INCREASE YOUR TAXES.

Robin ,that is a very good question . They collected additional taxes for ten years to repair roads. So why are there still so many roads to fix There is still a long list and the money is gone .

A real important fact needs to mentioned .We were spending 71% of the budget on personnel ..Plante -Moran pointed out that this was not the way to keep the city solvent . The people working on this budget heeded last falls warning and we are now at 55% . A 16 % reduction ,when was the last time we have seen that. Magoo was probably in elementary school. There is money allocated for Capital improvements . We won't need to renew those capitol improvement bonds for the DPS from the 80's

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#4  
Old 06-11-05, 10:34 pm
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Just remember that a few mileage have expired that where the tax cut are, not that the current counsel has a part in this ,they had nothing thing to do with this tax reduction. this is duchane propaganda as a tax cut period!more smoke and mirrors by the current M/C.

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#5  
Old 06-12-05, 12:47 am
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User note(s): 3

A. This new budget did not reduce taxes due to anything they did, as this article indicates was done via the ERI. The taxes are lower because of Headley and Proposal A.

B. There is a millage renewal coming up, but it is also in the proposed budget to Go to the Voters for a NEW Milliage.


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#6  
Old 06-12-05, 12:18 pm
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Duchane Propoganda. Over a year ago Duchane mentioned the bonds being paid off and the road millage expiring,during one of his reports. He also mentioned using the money to pay off the Retention Basin Millage early ,which expires in 2008 or 2009. It was at the same time the moving of CH was proposed.

The ERI made it possible for a 16% reduction in expenditures and almost $2.000.000 savings to the taxpayers, protecting the fund balance . Is that Duchane Propoganda too? I'm still waiting for the dismantling of the DPS and outsourcing to begin. Maybe they figured out they don't have to because time and days actually worked for benefit purposes are being reported accurately for a change.

I'm still not sold totally sold on Duchane , but, Lincoln Park has dodged the bullet temporarily . Many Cities are as nervous as a Parent with a 12 year old boy . Watching Michael Jackson looking at the house for sale next door to theirs.


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#7  
Old 06-13-05, 11:31 am
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So what does this mean to the average taxpayer? The NH seemed pretty non-specific.

Will this be a real tax break, or is this one of those "It will save each resident $1.23 per year"?


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#8  
Old 06-13-05, 12:32 pm
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Jeyhey....It wasn't a reduction in taxes due to anything they did. The reason the mills are reduced is because of a law passed in the 70's called the Headley amendment which says that mills cannot exceed the rate of inflation and compound that with Proposal A which does the same thing for homeowners Until the ownership of the home is transferred, in which case the tax can more appropriately match the assessed value.

THe people responsible for this "reduction in Mills" is WE The VOTERS. Not the ERI, not our city leaders. But the way this article is written, someone who doesn't understand Headley or Prop A would be lead to believe the ERI or our Leaders smart decision making is what lowered the taxes.

Don't get me wrong, the new policies and things we are doing is a step in the right direction to managing our finances better (Altho as I've said before I HATE the way it was implemented with no ethics and against laws IMO) That does not mean it is they who are responsible for lowering the Mills.


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#9  
Old 06-13-05, 12:37 pm
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I just find it funny that there are all these exact facts and figures thrown out there, but yet Jason never mentions how much this will save the taxpayers.

Isn't the point of the whole article "Budget Adopted, Taxes Lowered"? Well there are all the specifics on the budget, but none on how much are taxes are lowered.


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#10  
Old 06-13-05, 1:49 pm
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Anyone on a fixed income like retirees can't be expected to vote Yes for a Millage "renewal"

When the city puts it on the ballot, VOTE NO

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#11  
Old 06-13-05, 2:20 pm
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Quote:
Originally Posted by Mr Magoo
Anyone on a fixed income like retirees can't be expected to vote Yes for a Millage "renewal"

When the city puts it on the ballot, VOTE NO


But they have the money to go play bingo. ha ha

that's not the point.

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#12  
Old 06-13-05, 2:55 pm
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It's not just the people on fixed incomes MAGOO . There has been a lot of information put out in the last 2 years on the people we elected , how irresponsible they have been . There are many lower middle-income taxpayers upset over the benefits they have to pay for. They do not have anything close to it for their families. They recieved lousy service for their money. Tall grass and parks not kept up, streets not cleaned . Infrastructure falling apart. they have put up with it for years. When they call for something they're put on a list . They paid for new roads for 10 years and got car repairs and potholes.

To top it all off some of our elected officials complain about how many residents have complaints. Or, how we will have to pay even more if we want anything done right. How we owe it to city employees. We never hear about what they owe the taxpayers. If their jobs are so bad why don't they quit and work somewhere else.


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#13  
Old 06-13-05, 3:11 pm
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Someone actually voted yes.


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Old 06-14-05, 1:15 am
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IHEART IS EXACTLT RIGHT! "It wasn't a reduction in taxes due to anything they did. The reason the mills are reduced is because of a law passed in the 70's called the Headley amendment which says that mills cannot exceed the rate of inflation and compound that with Proposal A which does the same thing for homeowners" What the administration did was to raise as many fees as they possibly could, plus increase water & sewer rates, and take every nickle that they could under the law from the tax payers. If they could have taken anything more from us and it was legal, they would have!
Each year when tax time comes up , everty tax payer should get down on their knees and thank God for Dick Headley. If it were not for him there is no telling how high our taxes would go each year!


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Old 06-15-05, 12:07 am
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Poor Dick Headlee died last year.

If I am not mistaken, Blanchard whipped him pretty good, only to be whipped by Engler a few years later.


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#16  
Old 06-15-05, 12:12 am
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If you ask me whoever is wriiting the headlines is not reading the articles.

Mr Alley has been often unfairly criticized for "tabloid" headlines. Remember, the editor writes the headlines not the reporter.

I thank you


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#17  
Old 06-15-05, 7:18 am
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Mr Magoo is right, the Headlines are the Editors.

We can all thank Mr. Karl Ziomek for "helping" us see the vitues of our elected officials and their benevolent tax cuts for us...

crap-ola from the NH...priceless stuff.

It doesn't have to be the TRUTH in the News Herald. It only has to support the position they are taking...Mr. Ziomek wants everyone who reads his paper to think what his paper writes "as it is written". He knows what is best for us...just trust him and the wonderful News Herald.


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#18  
Old 06-15-05, 8:02 am
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Hey, the street sweeper came by last week. Things are really looking up here in LP. Why all the whining?

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#19  
Old 06-15-05, 11:01 am
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yea, I saw a street sweeper today, a lime green one, going down fort street real slow. On fort, where the street was just repaved. So glad they are keeping that street clean.

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Old 08-21-05, 4:08 pm
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Re: News Herald article claims new Budget cut Taxes


Question for everyone.....My taxes were raised to the maximum allowable, were yours?

Exactly how does this new budget lower our taxes?

Your thoughts.


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12-16-05 11:45 am
42 Replies, 624 Views
"A Chrstmas Story" trivia notes
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12-16-05 11:43 am
14 Replies, 98 Views
12 year old girl charged with Terrorism
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12-16-05 11:35 am
1 Replies, 15 Views
Questions about Council Meeting Agenda December...
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12-16-05 10:38 am
4 Replies, 67 Views
Did Mayor & City Mgr Lock Lincoln Park...
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12-16-05 1:52 am
11 Replies, 209 Views
GM Plant Closings
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12-16-05 12:41 am
60 Replies, 576 Views
With the heavy snow it's a good time to break out...
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12-15-05 11:41 pm
15 Replies, 90 Views

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