Letter to the Editor: Ferndale Resident Says Vote for Headlee Override
Ferndale resident Tom Gagne says dissatisfaction in Ferndale City Council's previous spending not reason to vote 'no' in May.
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Ferndale voters should pass the Headlee Override ballot proposal.
Households must manage their budgets, as should governments. When a household's income is reduced, its expenses must be reduced, depending on how much cash has been saved. When a household can't meet its legal obligations (mortgage, utility bills) or its needs (food, clothing), the household is bankrupt and its assets liquidated to pay off its obligations.
The popular theory is that governments should do likewise. When their revenue shrinks, so should their expenses. Just as employees don't have the privilege of demanding increased wages from their employers, governments shouldn't demand increased taxes from their citizens.
The difference is that we created our government and charged it with the responsibilities of both custodian and guardian. Its custodial responsibilities include the stewardship of public assets, such as buildings, property, parks and infrastructure including streets, drains and lighting.
Government is also a guardian of the public, and the public's assets, through public safety and in keeping the peace between neighbors in the area of establishing and enforcing zoning ordinances.
But because we created it, we are also responsible for it. We are responsible for electing its trustees and for providing them the resources needed to discharge their responsibilities.
Many pass-the-override advocates point out that it may take years to return to 2009's mark of nearly $20 million in revenue. They’re correct in that it will take years to return to that level of revenue, but they are wrong in using 2009 as the benchmark.
They are wrong because 2009's $19.5 million budget was based on property taxes collected on 2007's inflated property values. It's important to remember that "inflated" means the property values were irrational. They're irrational because Ferndale's property values were not grounded on any objective measure, such as scarcity of land, Ferndale's location, the performance of its school system or job growth.
So to find a rational budget starting point, it is necessary to look at tax revenues before the housing bubble started (2002/2003). Since taxes are collected approximately two years after assessments, a better budget year to begin with is fiscal year ending (FYE) 2005's more modest $17 million.
To come up with a grounded estimation of what our budget should be, we could index 2005's budget to the rate of inflation and come up with more rational numbers (dollars in millions):
|
FYE |
Inflation |
Actual Revenue |
"Rational" |
|
2005 |
2.68% |
$16.9552 |
$16.9552 |
|
2006 |
3.39% |
$17.3681 |
$17.5299 |
|
2007 |
3.24% |
$18.7683 |
$18.0979 |
|
2008 |
2.85% |
$19.0812 |
$18.6137 |
|
2009 |
3.85% |
$19.5104 |
$19.3303 |
|
2010 |
-0.34% |
$18.4913 |
$19.2646 |
|
2011 |
1.64% |
$16.8639 |
$19.5805 |
State revenue sharing also has a major impact on the city's revenue. In 2005, Ferndale received $3.2 million, or 18.9 percent of its budget, from the state. In 2011, that amount is budgeted to be $2.2 million—40 percent less than 2005's contribution, adjusted for inflation, and only 13 percent of the budget.
Citizens created the government and have elected its trustees. Dissatisfaction with the council's earlier spending is, at least in the case of local elections, not a legitimate reason to vote no on the millage increase.
In May, voters should pass the millage.
Links provided by Tom Gagne:
- Inflation calculator: http://146.142.4.24/cgi-bin/cpicalc.pl
- Inflation chart
- Ferndale budgets
- Financial Planning Committee's presentation to City Council on Jan. 10
Tom Gagne is a Ferndale resident.
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How will you vote in May?
Tell us in the comments.
A Scott Dietlin
2:11 pm on Friday, March 25, 2011
When our city government stops wasting the good citizens of Ferndale tax dollars like it had access to Fort Knox is when I would approve a millage but not until then. Wasteful spending is a major problem in the city. Prime example is the recent City of Ferndale calendar that I received in the mail. With the banks and other businesses giving away free calendars, Ferndale decided that they needed to spend unnecessary funds to print there own (at what cost did the city pay the printer) and then to have them mailed to every resident. Come on people. No matter how many was Councilman Galloway tries to put it out in "his" language that we need this millage to pass I will not vote for any millage unless it was going directly to the Fire and Police Departments and only then. I to have had to scale back on certain things in the past 2 years and so should the City of Ferndale. The Mayor and City Council needs to start thinking about what is best for the citizens. We need our Police and Fire Departments staffed to the fullest. Put that on the ballot and I'll vote for it but I refuse to just sign away good money for a City Government who has there own agenda on spending and fail to represent the citizens who elected them into office.
Thomas Gagne
10:15 am on Sunday, March 27, 2011
Mr Dietlin, my bias is to vote against the millage--not because I thought the city doesn't need the money but because of some of our council's previous spending and inattention to the obvious in favor of pet projects. The longer version of this letter, I think, conveys those feelings <http://tggagne.blogspot.com/2011/02/yes-in-may-no-in-november.html>;.
But essentially, voting-down the millage doesn't punish council--it punishes your neighbors. If you really want to send a message to council--replace them.
T. Scott Galloway
4:59 pm on Friday, March 25, 2011
"I to have had to scale back on certain things in the past 2 years and so should the City of Ferndale. "
The City reduced its staff by 40 people last year and reduced city hall hours by 20%.
If the millage doesn't pass 20+ employees will be laid off this year.
Phoenix
9:50 pm on Sunday, March 27, 2011
Well Scott. Looks like you'll have to put the rest of the cards on the table. Tom has dropped the challenge plainly at your doorstop.
Approve the millage based on faith with no game plan to as to how to correct things going forward.
or
Vote down the millage and turn the neighbors that have been displaced against you.
You're kinda cornered since when others speculate, they don't actually have to have to come up with successful results.
A Scott Dietlin
10:38 am on Monday, March 28, 2011
Phoenix you have hit it on the head. "THEY DON'T HAVE TO COME UP WITH SUCCESSFUL RESULTS" which is why I am voting a big NO on this issue on May 3. The City Council, one who is very vocal on this being Councilman Galloway, has us believing that by passing this issue that the city will continue to operate in somewhat the same manner as it is now. Councilwomen Baker, at the end of the most recent Council meeting, stated publicly that the City has not agreed to accept the Grant money that they Government has given to rehire back much needed Police and Fire Department personnel because if they did they couldn't do any more lay offs if they did. Well lets see how she would feel about this if she were to need either Department in an emergency and they couldn't respond because they was dispatched to either Hazel Park, Royal Oak Twp, or Pleasent Ridge or that her house was being broken into but there is no Police to respond because they are dealing with issues coming from south of 8 Mile. All I am hearing from these meetings about certain issues is excuses after excuse why they can't do this but yet can spend tax dollars on reviewing our Noise Ordinance, at what costs, because of a few citizens complaints. They keep this matter of thinking up and we will end up loosing a lot more then our much needed Police and Fire departments. The council needs to start thinking about the CITIZENS and not what they think is best which I don't believe is happening in our City Government.
T. Scott Galloway
1:55 pm on Monday, March 28, 2011
We have a plan that has been recited publicly for months on cable, on the internet and in print. Anyone who hasn't heard of the plan hasn't worked very hard to get the information.
1. Headlee override
2. Use some of our rainy day fund to get through the next year or two of budgets
3. Renegotiate contracts with police and fire to implement "best practices" and save money going forward to minimize layoffs.
4. Recover some of the State Shared revenue that Snyder took from us to fund his corporate tax cuts.
5. Study, negotiate and implement a fire district to get the FD out of the general fund.
6. Study, negotiate and implement other shared service districts with our neighboring cities.
If everything goes according to plan and we get all of that accomplished within the next couple years we will be OK - services will be reduced but we will be able to continue to function as a city - if the Headlee override fails - all bets are off.
Phoenix
2:10 pm on Monday, March 28, 2011
Nice. So Scott D what would you also suggest past what has been listed here. I also Challenge Tom to come up with additions to this list that swerve away from the usual destructive and personal attacks on city services and servants.
Ok folks. Game on!
T. Scott Galloway
2:24 pm on Monday, March 28, 2011
How can anyone suggest that it has been business as usual with the City for the last two years when we have reduced staff by 20%, reduced city hall hours by 20%, negotiated concessions with almost all of our unions and increased the pace of negotiations with neighboring cities to come up with additional service sharing agreements?
I understand that their is a lot of anxiety amongst the people of Ferndale right now, but it shouldn't be because of the inaccurate, unchecked comments of bloggers who suggest that the City is taking a passive approach to addressing our budget concerns. The city budget will be balanced at come May 6. With a Headlee Override we have a chance to transition into a new era of municipal service delivery. Without a Headlee Override there will be several years of significantly diminished services, including police and fire, which will compound the existing problems of plunging housing values and tax revenues.
No one likes to pay more taxes, but other than the plan I've described above, no one has come up with a better solution during the 12+ months we have been studying and discussing it.
Budget talks are under way through May 6. If Mr. Dietlin or Mr. Gagne have a plan to close our approximately $2.6million deficit without laying off police or firefighters and not approving the Headlee override, please bring it to Council's attention ASAP.
Ardy
3:22 pm on Monday, March 28, 2011
Personally, I see the position of the Party of No as a way to get the City into financial trouble as a means to bring in a newly minted, and unconstitutional, Emergency Financial Manager. The Party of No, from what can tell, are all Republicans who are Hell bent on reducing local control and forcing cities to come under the control of the County and State. This way, LBP and his protege Bouchard (who LPB is grooming) can rule the galaxy as father and son.
Tiffani Gagne
9:04 pm on Wednesday, March 30, 2011
Tony Phoenix, did you catch the fact that Tom Gagne wrote the article and is supporting the millage - wow. Check out www.yesferndale.com. and see his endorsement.
Tiffani Gagne
9:08 pm on Wednesday, March 30, 2011
I see no Phoenix on that endorsement list BTW
Phoenix
9:34 pm on Wednesday, March 30, 2011
Always nice when you are on top of your facts. Looks like Tom has changed his mind. Feel free to get caught up on this thread and actually read the things in print. In case you missed his post here it is. So what ever mixed message thing you guys have going on there is none of my business. Actually I guess it is. Interesting to see how all this decides to play out. Venomous and pointless at the same time really doesn't serve you well.
You might not seem my name but my businesses are fully represented on the page. Feel free to commit them to memory.
Thomas Gagne
10:15am on Sunday, March 27, 2011
Mr Dietlin, my bias is to vote against the millage--not because I thought the city doesn't need the money but because of some of our council's previous spending and inattention to the obvious in favor of pet projects. The longer version of this letter, I think, conveys those feelings <http://tggagne.blogspot.com/2011/02/yes-in-may-no-in-november.html>;;.
But essentially, voting-down the millage doesn't punish council--it punishes your neighbors. If you really want to send a message to council--replace them.
Tiffani Gagne
9:40 pm on Wednesday, March 30, 2011
I hate getting caught up in this because it's all for naught. It's not necessary to be mean or venomous - just because we don't agree doesn't mean we're all idiots. And we don't all agree and I refuse to treat the folks that don't agree with me like morons. Be nice - it's a small city and in the end, we all have to live with each other.
Thomas Gagne
10:05 pm on Wednesday, March 30, 2011
Phoenix, I haven't changed my mind. I still favor the millage.
Perhaps I wasn't clear in my reply to Mr. Dietlin. I admitted my bias was to oppose the tax, but that I would only be doing so to spite council and that's not a sufficient reason to vote against it. Essentially, my decision to support the millage required I first put aside my differences with council and instead focus on the numbers. That was essentially what I wrote in my article--that voting against the millage to express displeasure with council is not the right thing to do. What I implied to Mr. Dietlin was that if he is unsatisfied with how council spends money that he should replace them, but not punish the city by voting against the millage.
Tiffani hasn't predilections confusing her about my stand on the issues. If I changed my mind it would be due to someone successfully arguing the numbers with me, which no one has cared to.
All the same, I'm sympathetic to folks upset about spending, like Mr. Dietlin. But my views on that should be, I expect, well known to anyone with interest and an internet browser.
Tiffani Gagne
10:19 pm on Wednesday, March 30, 2011
And I'll just point out Phoenix, you are downright rude - "So what ever mixed message thing you guys have going on there is none of my business."
Phoenix
4:38 am on Thursday, March 31, 2011
Tom,
maybe you did mistype in your response to Mr. Dietlin. We can only take you on the last thing you put in print.
Phoenix
4:39 am on Thursday, March 31, 2011
Tiff? Oh my... I have quite a ways to go to catch up to the preset levels set by someone else. We can let the viewing audience google our comments to see who is really the expert in that area.