Ludington City Council December 7, 2015: Fund and Games

[XLFD]

The first city council meeting of the Christmas season was reported on Tuesday by the City of Ludington Daily News (COLDNews), without a mention of the most cogent moment of the congregation, which happened during the public comment period. 

It wasn't anything I said.  I commented on the odd variability of property taxes inside the city and wanted an explanation about how a vacant lot increases 28-fold in four years while the Tykoski's fix up their home and pay less in four years that I did not receive for the fourth time.  I also brought up the new point that all city hall personnel had incredibly high fringe benefit levels (cresting the 70% of wages mark).  These were both points that were cogent, but it just set the table for the next speaker.

The COLDNews reported that Robert McGrath made a point about city employees using city vehicles during work hours for their own personal business.  I met Bob recently at a local retailer and he had quite a few points of contention and interaction with the current city regime, and I was frankly surprised that he had the discipline to keep it focused on just that topic at the meeting in an impromptu speech, but he went first and before me. 

The third and final speaker, Annette Quillan, brought to the table and the councilor's attention that water and sewer rates were going up (dramatically) but that social security benefits have not increased in two years, nor will it increase the next.  She respectfully hoped that the city could offer some of the numerous older people in Ludington on fixed incomes some kind of discount program to help them weather the storm. 

This comment I thought was important, but it looked as if it would be ignored by the councilors, who often ignore questions during the public comment period, an art they showed often during the rental inspection debate.  At about 45:25 Councilor Winczewski, after thanking John Shay for fending off the DEQ for years (while your local watershed was having unsafe levels of mercury and ammonia dumped in it) told us that they didn't have a choice but to raise water and sewer rates, and then City Attorney Wilson told us that the language of bonds did not allow the permitting of a favorable rate for a set of the population.

I almost busted my gut laughing internally at that comment.  Attorney Wilson's law firm with 56 other attorneys wrangled a deal with PM Township and Michigan Power whose contents allowed the Township of PM to buy water from the City for under $1.00 per unit, while the rest of us, including those sitting right across the water plant have to spend over $1.60.  And many of the upgrades  are being done with our water supply system to PM Township to accommodate Michigan Power.  With Wilson's observation, we should all be paying the same amount for a bond to issue.

The City Council held a deaf ear to the pleas of the poor tenants who came before them all year telling how negatively rental inspections would affect them, they effectively snubbed the concerns of the poor who will not be able to afford the near doubling of their sewer rates.  They exhibit zero compassion to the poor members of the community, many who will become at least temporarily homeless in the city as most affordable housing is leaving due to the RIO, and now they dramatically raise the sewer and water rates without any care that every dollar in many a fixed income already has a purpose.

So even though I showed that there was unfair property taxation in favor of city hallers and an ungodly amount of fringe benefits being given out to city hallers, Ms. Quillan observation and city response showed that they had no care about effecting legislation that was raising the poor's cost of living in Ludington.  One can see them in true Scrooge fashion talking about getting rid of surplus population in Ludington that doesn't generate enough income for them.  Remember A Christmas COL by Charter's Dissins back from the 2012 Christmas season.

They passed the 2016 budget without any discussion or comment (see the budget and councilor packet here).  What was surprising at this meeting was that two routine things turned out to be more interesting than normal.   Kathy MacLean, serial defrauder of state funds, gave the impression that this year's 25th Gus Macker Tournament may be the city's last, due to a variety of issues, paramount amongst them a high amount of ennui amongst the committee running the event in the local chamber of commerce (20:25 into the video).  This comes before meeting with the Gus Macker folks in preparation for another three year contract, so I am on the belief that her speech was geared more for trying to get a more favorable deal and/or more public or private funds to sponsor/retain the event here.

After this, another long running event barely received permission to be held.  The twelfth annual 3-D Ludington Triathlon survived by a 4-3 vote after Councilor Rathsack read a report that they had been errant in paying their help in a timely manner (30:00 in). 

Then for the fourth year, the city opted to exempt itself from 2011 state reform for health insurance premiums.  Does one wonder why the fringe benefits of our city employees are at the 70% of wages mark?  Spending lots of cash on Cadillac health care plans is part of the problem, you can read the arrogant elitism in the city manager's recommendation.

With little fanfare or discussion, they then passed the raising of the water and sewer rates over the next five years.  At the beginning of 2018, your water rate will be $1.99 rather than $$1.65 per 100 cubic feet.  Each year thereafter it will increase by 3%.  The fixed readiness to serve charges will go from $6.39 to $7.72 in that same period for water, and go from $8.00 to $13.48 for sewer with smaller meters.  Sewage rates will climb from $1.77 per 100 cubic feet to $2.99 in 2018. 

They then adopted resolutions to bond the water system improvements up to $14.5 million and the wastewater improvements up to $23.5 million, which will be paid off by extra revenue from the increases of fees.

The last orders of business was to approve the paving of Cartier Park roads and redoing some electrical work in the City (Rotary) Park, which were briefly discussed and passed.  Other than what was already noted about the official's comments thereafter, John Shay noted that all city hall employees received the same percentage of their salary in fringe benefits, but didn't note that set percentage or why it was so high.  In the transcript of my speech which follows the video, you will see that the fringe benefits are exactly the percentages I gave, and shows that he is in error.

December 8, 2015 Ludington City Council meeting from Mason County District Library on Vimeo.

"At the last meeting, John Shay insinuated that I had known an amazing amount of facts about the taxation on his house which made my observations on his property taxes in error.  While I admit my stats are in error, I wasn't aware of that fact as he claims.  He was on the job as city manager in February 2003 and I had wrongly presumed he had purchased the house around the same time, making the assessor reevaluate the property and adjust it upward just in time for the summer's taxes as often happens when properties sell.  But I found out the property was sold in November, and the previous owner did not claim it as a homestead in 2003, as they had previously.

I then found there was a similar case at the Tykoski's property.  So here are the revised stats:  since 2004 John Shay's property has increased by roughly 16%, since 2010 Councilor Tykoski's property has decreased by 7% despite home improvement projects. 

During the time between 2003 and now, the property which recently received an OPRA certificate had its taxes increase over 400%.  In just four years between 2003 and 2006, the vacant lot behind this had it's taxes increase over 2880%.  Their property on the other side has had their taxes only double during that time, which is fairly common throughout the city for houses that have retained the same owners since 2003. 

In Michigan, most properties have actually decreased in value since 2003.  So for the fourth time, can you please let me in on the secret formula the city assessor uses to decide favorable property taxes for city officials and unfavorable results for others?  

In looking through the budget, I observed some other numbers.  In 2016, the assessing department will have wages of $66,300 and have fringe benefits of $44,500.  Fringe benefits that add up to 67% of the wages, an incredible number and unheard of in the private sector.  Some people who work in the federal government do not have half that number. 

The city's economic development director has wages of $47,200 and has fringe benefits of $31,700.  Fringe benefits that also add up to 67% of the wages. 

The city management department with two full time officers will have wages of $143,600 and have fringe benefits of $98,700.  Fringe benefits that add up to 69% of the wages, even more than the assessor's and CDD's amount. 

The clerk department with four full time employees have wages of $131,500 and fringe benefit of $93,000.  Fringe benefits that add up to 71% of their wages, even more than the city manager's amount.  The treasurers department has similarly high numbers for their fringes, but I cannot provide an accurate percentage just now due to the part-time help in that department. 

These fringe benefits are actually slated to go up nearly twice as quick as their wages over the next few years for all of these city hall workers.  Conceivably, they will close in on 100% sometime in the 2020s if they continue as they have over the last few years.

In various discussions over the last few years, various officials have whined about how difficult it is for the city to get and retain good worker stock by offering competitive wages and benefits.  Our wages are competitive for cities of similar size, and our sizable packages of fringe benefits win hands down over anybody else. 

So who pays for these increases in your benefits and wages?  The very same people who have had their rights and properties victimized by your recent legislation, the very people you are supposed to be serving are working extra hard to keep up with their hyper-inflated property taxes and your hyper-inflated salaries and benefits packages, while their wages are flat-line and their benefits, if any, are ridiculously low in comparison. 

And, of course, the people will now have to find more resources to keep up with their water and sewer bills, primarily because our city manager has foolishly and incompetently ignored our infrastructure over the last dozen years chasing whimsical fancies at the west end of Ludington and unnecessarily painting water towers at top price without any competitive bidding.    People expect their tax dollars [Here's where I was interrupted due to my five minutes being up, I continue...] to be used wisely and go for the basics; they expect their water and sewer bills to rise modestly with inflation.  But this is not happening in Ludington.  Their money is going to city hall benefits packages, overdue maintenance projects, and costly new programs that the people do not want, and do not want to subsidize."

[Willy]

Great information regarding expenditures. The last two paragraphs sum up the great divide between City Hall and the citizens who pay the bills. A benefit package for City employees of 70% is an amazing amount and is in stark contrast to the private sectors benefits if any that they might receive.