In the minds of city managers and their ilk, it always seems to be a claim for lack of sufficient revenues coming in, and never seems to be anything done about reigning in expenditures.  This has been the case in Ludington visible at several council meetings when the city manager and councilors have acknowledged a projected shortcoming in the 2018 budget, and have only considered what new ways they could raise revenue, with never a cost-cutting idea amongst them.  

This was completely in evidence at the last city council meeting when they once again voted unanimously to sidestep the State's attempt to reform local government benefits so they would not get out of hand.  For the sixth year in a row they decided that their employee's health insurance, pensions, retirement plans. etc. should grow without bound so that employees get their bountiful salaries supplemented by fringe benefit levels nearly 80% of their wages, while unfunded pension programs lurk in the swamps of the audits.  

Ludington isn't alone in their self-inflicted ills, a city less than twice the population of Ludington in Macomb County named Fraser is also claiming a disaster is looming without an insurgence of more revenue in city coffers.  The City of Fraser has taken to its website to illustrate why it needs citizens to vote themselves a tax hike of 5 mills tomorrow.  It could be said they are violating state law in advocating for the hike on their supposedly information-providing posts, but it really sounds as if this is a dire situation:

The following would be eliminated without the citizens voting 'yes':  6 public safety officers, school liaison officer at Fraser High School, Special Investigations Unit, SWAT position in the Macomb County SWAT team, Honor Guard, and the Juvenile officer, the Recreation and Senior departments, including all Youth, Adult and Senior Programs, Recreation Special Events, Senior Transportation and daily Senior Activities, as well as all pavilion, building, and field rentals.  Also eliminated would be all capital improvements to city buildings, including updates to the Fraser Library, and elimination of a clerical employee from both the Finance and Building departments.

The city had asked for a smaller tax hike in 2016, but lost by a 60-40 margin.  Undeterred by that outcome, Fraser officials increased spending substantially in their new budget and is asking voters again for a hike.  The city’s plan, according to the Macomb Daily, is “to use a combination of higher property taxes, dipping into the fund balance and delaying capital improvements to plug a $1.9 million budget deficit for the upcoming fiscal year.”

The Macomb Daily also notes:  "City Manager D. Wayne O’Neal said Fraser is encountering similar circumstances many Michigan communities face as they continue to claw their way out of a deep hole created by huge revenue losses during the Great Recession. He anticipates further tax increases in the years to come to address legacy costs as well to keep City Hall operating.  “We don’t have a spending problem, we have a revenue problem,” he said.

Doesn't that sound like something that would come from Ludington City Manager John Shay's mouth? In O'Neal's excuse, the numbers do not make the case.   According to Fraser’s financial statements, it spent $15.9 million in 2006, which increased to $21.4 million in 2016. If the city budget increased at the normal rate of inflation during that time, they would currently be spending $2 million less than that (19.4 million), yet there has been flat or negative changes in the population and their wealth over that same period.  This is significant when they say they have a $2 million shortfall in their budget.

Where’s the city’s money going? Much of the increase is going toward retiree debt. Fraser has an open pension system that costs more than ever and carries more than $26 million in debt — and is assuming a high rate of return on its pension investment fund. Retiree health care costs have also skyrocketed. The city has set aside less than 1 percent of what it owes to former workers and paying for those benefits would cost more than $4,600 per resident.  

Whatever the residents of Fraser determine tomorrow, Ludingtopians should look at their example to remind them of what may happen here.  Whether it be a grab at 2 mills by invoking Public Act 33 of 1951 and getting a simple council supermajority, or by effectively extorting more mills by using scare tactics like the potential loss of important public services.

No citizen should vote for any tax increase if public officials can't admit to an obvious spending problem and abide by a reduction of fringe benefits for city employees to normal levels.  

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Unfortunately Ludingtatos don't seem to be informed as to what is going on right under their noses nor do they seem to care. I may be wrong but the only common sense voting they have been involved with was voting no on extending the Office of Mayor term limits. Also, not voting for Tom Rotta to be seated on the Council was a huge error.
The City should reduce costs by cutting unnecessary or duplicate services. Cutting department operating costs across the board would also help. Say 5%. Not wasting money on museums, beach front improvements, water parks etc. would go a long way in eliminating debt.

Tale of Two Cities

A quick comparison.

                                           Fraser Mi                                   Ludington

Population                                 14,480                                    8,076

Unfunded pension liability  $24,000,000                          $11,000,000

Median household income         $50,339                                 $28,089

Poverty population %                         4.2%                                      16.3%

The Ludingtatos are definitely behind the 8 ball.

They brought this upon themselves. By tolerating an inept city council. And its incompetent hireling John Shay.

When will they wake up and see that we have been shayed upon long enough.

Piss on you John Shay.

Thanks for the additional stats, shinblind.  They help illustrate the real crises in the area that our city management and council have neglected in their zeal to create improvements we can't afford and even that a majority of us don't want (West End, Legacy Park, city-subsidized downtown rentals, $2 million + fire station in a school zone in a corner of town, etc.).  

Today's announcement in the COLDNews by Baghdad Brasiczewski of the Thursday special meeting to discuss the listening session only seemed to mention what can only be called city-manager-endorsed projects.  You read such presentations and can't help but think the city is trying to do everything other than listening to sane citizens who care about their city.  I've interviewed several who went to the original meeting and their concerns seem to be left out of the notes, and the agenda.

These special meetings are only being held just to say that they listened to what you had to say.  But sadly, unless you are saying 'Amen' to their expensive pet project priorities, they really don't hear you.

Willy, most Ludingtatots as you say only ,read whats in the local paper or what they hear on the radio about what is going on within out city.  They don't know any different as those reporters don't say what is actually going on. Everyone is going along fat dumb and happy thinking every is running smoothly within our city government. You do know we hire or vote these people into office to take care of the city for us . It is to bad this web site isn't read by more Ludington  citizens. If there was more ,there  probably would be a change in the cities government.

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