December 11, 2008 at 7:51 a.m.
Council member Elmore sworn-in

Sticker shock and more rankle residents who attended taxation hearing

Sticker shock and more rankle residents who attended taxation hearing
Sticker shock and more rankle residents who attended taxation hearing

If you'd planned to attend Wyoming's taxation hearing Monday this week but the weather deterred you, don't worry the city council did hear from many who voiced 2009 proposed budget concerns.

The Wyoming City budget and levy for 2009 was set in September as a preliminary number that must be finalized by December 17. The city council set the preliminary at the maximum it could under the guidelines established by the state legislature. There are exceptions to this "cap" such as debt service, etc. and as citizens repeatedly pointed out at the hearing the increase is well beyond any 3.9 percent increase "cap" imposed.

"I don't see any reasoning for this," stated resident Steven Sicheneder, who joined others in expressing his lack of support for proposed 2009 taxation levels.

Setting Wyoming's levy for next year is complicated due to consolidation with the township.

Under the orderly annexation agreement that was negotiated by elected officials, the city is responsible for township employees for at least the first year. Massive increases in personnel line items are due to the annexation agreement, according to the city administrator. Six employees were absorbed into the city.

A resident declared he understood the orderly annexation was pursued for promoting efficiencies in operations and cost savings for the new community. "What happened?" he wondered.

Wyoming Mayor Sheldon Anderson responded that the annexation deal was no "get rich quick" plan. "Over time, as the area matures, it will be better...it is going to take time," Anderson promised.

Compounding this leap in many budgeted costs is the fact the township levy was delayed by legal issues. The township dissolved before its 2009 levy could be enacted. The solution was to assess all the old township parcels at the same levy of 2008, or about $1.1 million.

Wyoming City general tax levy collections were budgeted to be $1,478,000 in 2008 (don't have year end actual yet) and are proposed to be $2,760,948 from the consolidated city area in 2009.

One example of employee costs that didn't sit well with the audience is "building inspection administration" going to $160,000 in 2009. In 2007 this was $67,000. There's $71,000 in addition for general employer paid insurance just for the building inspection department. One citizen commented that if the annexation agreement mandates township building officials be retained, then maybe city staff should be laid-off.

Also the line for another department-- highways, streets and roads employer paid insurance goes to $70,000 from $11,300 actual in 2007.

According to Wyoming City Administrator Craig Mattson the township's "average cost per employee" was much more than the city's. Mattson said benefits and insurance are being negotiated and he hopes for some relief on insurance premiums in the near future, but as of the hearing this week he didn't have actual costs, so he estimated high.

Jim Mericle of the Wyoming coffee cafe, The Nesting Grounds, told the city council Monday night his taxes have doubled in about two years-- from $7,700 to the proposed $15,000 for 2009-- and this is unacceptable.

Another commercial property owner, Rodney Hestekin, said, "Gentlemen we can not continue to do this." He suggested council needs to go "line item by line item" and reduce expenses.

Darrell Vincent, resident, added that purchases such as city vehicles, must be delayed and current vehicles kept on the road longer. Don Waller, resident, said Nextel (mobile phone line item) costs for personnel are another reduction that could easily be made.

Skewing realistic comparison of the 2008 city levy and budget to 2009's is the inclusion of the township hall and township parks and equipment into the city budget. It was not possible to compare what the township funded versus what was in the city budget because the township budget wasn't available. Several residents stated that minus actual township contributions and expenses; the budget being presented wasn't very valuable.

According to the annexation plan approved by the administrative law judge; in order to minimize impact from the consolidation, former township taxpayers will be taxed at 50 percent of (historic) city tax capacity for three years following the orderly annexation. This goes to 60 percent in the fourth year and 70 percent in year five. At the Monday hearing there was no information supplied as to what rates are being applied for either the city or township.

Wyoming budget balances dipped to only 26 percent of annual expenses in 2007, and City Administrator Mattson stressed that the 2009 budget also must help boost balances. The city relies on balances during intervals when it doesn't get cash infusion from the county through property tax dispersements. Mattson added that cities are also leery of actions the legislature may take to balance a shortfall. The state could yank homestead credit buydown monies, or Local Aids, he said.

One citizen said balances should be dipped into. He said the one-year annexation agreement commitments alone justify dipping into the city savings, to smooth out the fiscal impact of this consolidation.

Mattson did not support that. The budget presented builds the balances to only 44 percent at the end of 2009.

After two-plus hours of airing concerns about the tax situation, newly-seated Council member Roger Elmore motioned to continue the hearing to Dec. 16 at 7 p.m. The motion was adopted 4-0.

Elmore was sworn-in at the start of the hearing in special session, to fill Gary Menne's seat.

Elmore would have begun serving in 2009 with Russ Goudge and Linda Nanko-Yeager as council-elect persons. After much debate about Elmore as the appointment, that also involved input from the audience, Mayor Sheldon Anderson, Joe Zerwas and Blake Tiedeman approved Elmore unanimously based on his "experience." (Tom LaBarre was absent. He and Tiedeman didn't seek re-election.)


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