City Manager Set to Raise Taxes Again and Another Anchor Store Leaves

Two local stories emerged recently that I would dare say may be intrinsically related.  John Shay, Ludington City Manager, announced for the third straight year that the City would conduct Truth-in-Taxation hearings to increase the millage rates that automatically get reduced in bad times due to the Headlee Amendment.  For the first time, instead of trying to increase the same four millage rates (police pension, general, refuse removal and DDA) they had the previous two years, they dropped the DDA increase this year (in response to the controversy of various problems we noted in over five threads here, perhaps?). 

 

Still it shows that even though rich and poor citizens alike are losing real value in their property, John Shay still thinks he is entitled to keep that same revenue and more for running the City of Ludington government.  If these millage rates are passed, $78,000 more in taxes will be taken from the businessmen and individuals that make this City great, and deposited in the coffers of the people whose main goal seems to be figuring out new ways to take money from hard-working folks, and gave us over $1.2 million in debt to pay for a non-competitively bidded contract for the painting and minor routine maintenance  of water towers, $828,000 worth of transient dockage that will be used by few in this city, an upcoming $2.5 million renovation of a (S Washington) bridge-to-nowhere etc. 

Shay Wants More- LDN

 

Then we learn that Raven's, a downtown business that has been in the downtown for twenty years is closing.  Could it be the high cost of living in that Downtown district and in Ludington proper?  The three high profile downtown closings this last half year (Raven's, The Plaza, and PM Sports) do not seem to have profited from the Downtown Development Authority's spending of $100,000+ of local tax money in that arena or the high tax base in Ludington that even Barry Neal publicly complains about.  Nor did any of them have any members on the Ludington DDA or Downtown Ludington Board. 

Is this a coincidence perhaps, or is it a coincidence that the Ravens close shop just after City Hall indicates its going to loot some more money from the downtrodden and uptrodden?   Or do the Ravens see that the future direction of Ludington is being steered by cosmopolitan politicians rather than by market forces or local folks? 

Ravens Closing- LDN

 

On a positive note, Floracraft is planning on expanding, and the City Council wisely gave them the ability to expand by vacating a little used road, and generally getting out of their way.

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The reality is that even though the economy is in the tank and tax revenue's are down - the cost of running a city increases yearly. The city has to contribute to the police pension fund, garbage needs to be picked etc. I am glad they are not requesting it for the DDA.

When the DDA is spending $30,000 (around 30%) of its expenditures on unexplained, undetailed 'Administrative Costs' after years of spending less than 10% on same, one can only wonder where that money actually goes.

The reality is that even though the economy is in the tank and tax revenue's are down - the cost of living increases yearly for everyone.  We have to contribute to the house payment (or rent), utilities, clothing and food. 

You and I will cut back, and not spend as much, but still manage to get the basic necessities of life for ourselves and our families.  When we earn less money, we don't resort to taking money from others less fortunate than us by passing laws that force them to. 

The City of Ludington has plenty of money in the bank, has made considerable profits the last few years, even with the poor economy and the wasteful spending I and others have noted here and elsewhere, and City Hall is involved in many things that it does not need to be involved in (much like the federal government is). 

And yet, unlike any other Michigan municipality I have found through much research, our City has decided to bypass the people's vote the last three years by holding these Truth in Taxation hearings, which usually are just a formality before they raise the tax rates. 

As X so wisely and accurately points out, a City, Village, or Township, just as a household, need NOT necessarily have to spend more for the same services. Most every citizen nowadays is cutting back, some are cutting everything but the bare necesseities to the bone. The CoL on the other hand, has NOT made substantial cutbacks at all. A few jobs, a few less hours, but no serious reductions in labor nor cost outlays that make a material difference. WHY? Well, some may think arrogance, and unwillingness to face reality with actions that match. Others? Well, the CoL does in fact have a reserve fund at about $7Million on tap to do with as they wish,( we have a copy of that 12/31/09 ledger sheet to prove it too), in cold hard cash sitting there for the picking in such hard financial times that could keep little merchants and businessmen alike here and alive during this severe recession. Thinking, planning, acting with prudence and wisdom, doesn't reflect on the current budget planners nor the CM Shay at all. It's onward and upward thinking as usual, where raking the funds from taxpayers that can no longer afford to stay solvent here finally give up their American Dream. I guess when you rein with a whip over taxpayers monies, you don't need to think or act with prudence, and surely the word wisdom is far over their heads. As for the Floracraft note, yes, there may be a few new jobs added to the local scene, but its coming from the Philly plant being closed, notably to excesses in taxation over there too. I guess when people can't afford to have satellite service and new clothing and such, they explore other crafts like creating styrofoam artwork and such, lol.

Can you guess who originally said:  "There is only one way to kill capitalism—by taxes, taxes, and more taxes."

 

Hint: It is someone who our City leaders probably admire greatly, according to their recent policies. 

Karl Marx said that.

Well, Ludington had three tax raises this Monday.  Why does the LDN always run the same three old lines that Shay issues year after year, "The millage rates themselves will be the same as last year.  A Ludington citizen will still pay X dollars less than they did the year previously.  The City will be getting X thousand dollars less than they did last year."

All are at best half-truths.  The first one does not take into account that the Headlee law automatically reduces millage rates when the City over-assesses the property values so the citizens are not over-taxed.  The second fails to empathize with the average property holder whose property has went down in value.  The third is explained by both of the above explanations.  The LDN tacitly endorses the growth of our City Hall at the expense of every citizen.

And, Aquaman, let us not forget where a lot of that $7 million originally came from-- the same businesses and individuals that have took up their stakes and left our area, while the City funnels money to politically-favored individuals, causes, and businesses. 

Consider, if the City's accounts total $7 million, and they get a modest average annual return of just 3% from their savings institutions, they are receiving over $200,000 from interest alone each year.  But yet, do the taxes ever go down...?

Quite right X, and it get's better. Just a few scant days ago the same toads made tax increases at the Lakeview Cemetary (on the newly interned dead), and outlawed glass bottles at the beach. These are high profile subjects that needed the urgent attention of City Hall to get fixed asap? Methinks the priorities of the CoL are totally confused and absurd at best these days, but, what can you expect from that bunch? Last question is how many LPD man hours will be spent at the beach over the glass bottle situation? And how many beer suds will be confiscated for the summer parties later to come by those enforcing this new and absurd law/ordinance?
XLFD is right taxes should not be going up while home values decrease.  I enjoy reading his comments and learning from his research.  It is always good to see XLFD get his commen sense points across but too bad his common sense approach gets lost in the avalanche of ignorant disgruntled comments from the peanut  boy.  Suds need to be confiscated at the public beach we do not need hoodlums and drunks down there at any time of day or night.  One or two drunk hoodlums breaking glass always ruin it for everyone and make it dangerous for all the little kiddies to walk barefoot on the beach.  Sad situation but common sense must prevail.

Eye, I think a ban on alcohol at Stearn's is more appropo for the council to consider rather than banning the harmless peanut, baby food, pickle, mayonaise, mustard, applesauce, etc. bottles handled by responsible people in areas well away from the beach.

Also note that Aquaman, like myself and most others here (unlike yourself), will sometimes put out a raw oyster of mundanity, but he is also capable of producing some pearls of wisdom with his prose.  Don't belittle him, and he likely won't do the same with you. 

Good point XLFD about those other types of foods in jars.  Why the new rules now?  Will the new rule be enforced fairly?  Beer comes in cans too so it is not a veiled ban on beer.  Just glass.  Safety issues maybe?

 

Also good point about my own attitude toward Aquamam.  My fault for responding as I did.  Thanks for pointing it out.

This is why a revolution of thinking needs to occur in Ludington.  Raising taxes/fees and making nuisance laws has been the only way of thinking I've seen since I've been paying attention.  In observance of Independence Day, I will further address many of those topics you brought up, Aquaman, to display why our governments have went so far astray in their duty to their constituents. 

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