What harm could it do?
All tax cuts are good, right?
City council passed this Feb. 28, 2011.
Resolution in Opposition to Senate Bill 34
WHEREAS, Senate Bill 34 proposes to eliminate all personal property taxes (“these taxes”) in the State of Michigan; and
WHEREAS, Senate Bill 34 establishes no revenue offset; and
WHEREAS, Revenue generated from these taxes in the City of Troy (“Troy”) accounts for $3.8 million in Fiscal Year 2010-11; and
WHEREAS, Troy relies on these taxes to provide essential and other services; and
WHEREAS, Troy, as a Michigan Home Rule City is mandated to provide essential services such as Police and Fire services; and
WHEREAS, The state-wide downturn has resulted in a loss $719 million in Troy’s taxable value in just the last two fiscal years; and
WHEREAS, It is estimated that taxable value will further decline by 10.5% in FY 2011-12; and WHEREAS, Troy’s State Shared Revenue has declined $2.7 million since State of Michigan FY 2001, creating a cumulative loss in State Shared Revenue of $15.9 million; and
WHEREAS, Troy has reduced its full-time staff by 20% (from 488 to 388) since FY 2004-05 which includes 10% in Police Department personnel and 15% in Fire Staff Officers; and
WHEREAS, Budget planning for FY 2011-12 is well underway and is based on estimated revenues that include these taxes.
NOW, THEREFORE, BE IT RESOLVED That the Troy City Council urges the State Legislature to oppose Senate Bill 34 and any other potential reduction in municipal revenue from the State which does not immediately provide for a revenue offset.
BE IT FURTHER RESOLVED, That this Resolution be transmitted to the State Senator John Pappageorge, Senate Finance Committee Chair, Senator Jack Brandenburg, State Representative Marty Knollenberg, the Oakland County Board of Commissioners and the Michigan Municipal League.