Comments on: Ann Arbor City Income Tax Study http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/?utm_source=rss&utm_medium=rss&utm_campaign=ann-arbor-city-income-tax-study it's like being there Tue, 16 Sep 2014 04:56:38 +0000 hourly 1 http://wordpress.org/?v=3.5.2 By: Karen Sidney http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28937 Karen Sidney Tue, 28 Jul 2009 20:38:04 +0000 http://annarborchronicle.com/?p=24730#comment-28937 Why does the city need additional revenue? Good question. According to information in the latest audit reports published on the state website, combined per capita property taxes and income taxes (for cities with an income tax) are $703 for Ann Arbor, $359 for Kalamazoo, $633 for Lansing, $502 for Grand Rapids and $447 for Sterling Heights.

City finances are controlled by the 5 member Council Budget and Labor Committee (Hieftje, Greden, Higgins, Teall, Rapundalo). They have failed to effectively address the most significant financial issue facing the city, which is retiree health care. The eligibility age to receive retiree health care (currently age 50) should have been raised years ago for the 20% of the work force that is non union. Instead, these 5 members of council allowed continuation of the practice of giving management the same benefits as management negotiated with the unions.

The Budget and Labor committee also failed to follow through on the 2005 recommendations of the Mayor’s Blue Ribbon Committee. This committee recommended placing a charter amendment before voters that would change the membership of the retirement plan boards so that they would no longer be controlled by employees. Several months ago, this employee/retiree controlled board voted to give a benefit increase, despite the fact that the city pension plan had lost $100 million in the market. Now city taxpayers have to pay for the $100 million loss plus the benefit increase. And let’s not forget the cost of the early retirement program for police which will show up in the next actuarial calculation.

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By: RTB http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28912 RTB Tue, 28 Jul 2009 00:05:10 +0000 http://annarborchronicle.com/?p=24730#comment-28912 If non-residents should pay a city income tax, why must city residents who work outside Ann Arbor pay 1%? The services delivered by the city cost far more than surrounding communities. We will move outside the city to avoid paying the income tax. Why does the City need additional revenue? Our police no longer patrol U-M property. Think of all the speed traps and no left turn signs with police just waiting to write tickets for revenue. Is this how the police serve and protect us? The city still has many pet programs (non-profit contracts)of Council members that far exceed what other communities spend. I think you should read the City’s labor agreements and find out more about excessive employee salaries, benefits, and retirement packages. Why raise more money for an overpaid organization that is not performing?

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By: RJM http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28866 RJM Sun, 26 Jul 2009 22:04:35 +0000 http://annarborchronicle.com/?p=24730#comment-28866 Given that the university is the city’s largest employer, a city income tax would be a lovely way to “make up for” the property taxes not collected on the enormous amount of land owned by umich. Sort of a backhanded PILOT (payment in lieu of taxes) program in which the university feels no real pain – unless a city income tax would translate into an offsetting wage increase for umich employees (I don’t think so!).

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By: Al Feldt http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28863 Al Feldt Sun, 26 Jul 2009 19:23:35 +0000 http://annarborchronicle.com/?p=24730#comment-28863 It is worth repeating the data suplied by homeowner. Eighteen Michigan cities charge an income tax of 1% on residents and 0.5% on non residents. Four more charge even higher rates. Why shouldn’t Ann Arbor use the same system to help lower its property taxes and shift a small part of our operational burden to those who use our services but don’t live here? Is Ann Arbor so special that it can’t behave with a little economic rationality like most other Michigan cities?

An lets not forget all those industries have stayed in Ann Arbor because we did not charge an Income Tax: King Seeley, Argus Camera, Pfeizer, and how many other former Ann Arbor employers?

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By: Rod Johnson http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28854 Rod Johnson Sun, 26 Jul 2009 15:32:17 +0000 http://annarborchronicle.com/?p=24730#comment-28854 (By the way, John (and please call me Rod) I live in Scio because the type of housing (a cohousing community) I live in would simply have been impossible to build in the city. It was hard enough in Scio to build anything but a McMansion. I would very much like to have been able to do it downtown or at least in town, but the complexities of that process, not to mention the cost of real estate, made it unthinkable. So maybe my willingness to be taxed goes hand in hand with my atypical-for-Scio desire to live in the city.)

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By: Julie http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28853 Julie Sun, 26 Jul 2009 15:30:48 +0000 http://annarborchronicle.com/?p=24730#comment-28853 John,
What services are you thinking that the city needs to reconsider?

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By: Rod Johnson http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28852 Rod Johnson Sun, 26 Jul 2009 15:26:37 +0000 http://annarborchronicle.com/?p=24730#comment-28852 I’m curious about how/if renters will be protected here. When the landlord’s property taxes go away, I don’t anticipate landlords will lower rents, so the consequences for renters seem uniformly negative. Anyone have a rough idea of what an average student ghetto house costs in property taxes?

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By: John Floyd http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28839 John Floyd Sun, 26 Jul 2009 04:27:02 +0000 http://annarborchronicle.com/?p=24730#comment-28839 JCP2,

I understand that the housing you desire is not now in Ann Arbor city limits. My point is that people in the townships, especially those inside the AA school district, do not want their current homes to be annexed by the city, because they do not view the city’s mix of services to be worth the taxes they would pay if they were taken into the city. This, I suggest, is the warning the city needs to take seriously. Instead of taking this warning seriously, and reconsidering both the services that are delivered, and the taxes residents have to pay for them, the city proposes to tax people outside its borders without granting them representation on council. I believe this to be a problem on practical, as well as philosophical grounds.

Mr. Johnson,

Thank you.

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By: Lorie http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28835 Lorie Sun, 26 Jul 2009 01:53:05 +0000 http://annarborchronicle.com/?p=24730#comment-28835 I think Plante & Moran gets paid a bunch of money to come up with these studies and I would like to see actual data on how this stuff works out in the long run for the residents in the cities who have gone this way.

I do give them credit, they have come up with a political argument (blame it on those who party/work here but don’t live here) but I don’t think I will end up saving a dime in the long run. I certainly don’t think this city /government/administration has the fiscal discipline to truly reduce costs and effectively provide services.

I look at the new facilities being built and money spent on making them pretty and I am unimpressed with the results.

I look at the emails about our dim lights and I think we have personally ambitious people running scripted games for public view and something else going on behind the scenes. All this while I drag my city assigned trash can down the block over the snow the city plowed onto my side walk and then put the darn thing back in its spot that is patrolled by the city and I think wow – maybe this city “governs” too much and provides too little in actual results.

I thought of it recently when my sidewalk was torn up for the repair the city demanded but inspection didn’t happen on time because of “art fair?”.

So, I don’t think a new rubric for taxing me should start with a program that costs nearly 1/2 as much money as it raises and taxes my time and effort on top of some percentage of my income.

No, this is a bad idea that has found a good political argument and in the long term it is just an additional tendril in my pocketbook from the city. Another way to tax and raise taxes.

No thank you.

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By: Rod Johnson http://annarborchronicle.com/2009/07/20/ann-arbor-city-income-tax-study/comment-page-1/#comment-28795 Rod Johnson Fri, 24 Jul 2009 13:36:29 +0000 http://annarborchronicle.com/?p=24730#comment-28795 Fair enough, John.

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