Clawson to Ask Voters for Millage Increase in February

The city of Clawson will ask voters for a 2.3 mill tax increase in a Feb. 28 election to offset a budget deficit that resulted from declining property values.

The city levies about 12.7 mills for general operating services and the tax increase would provide the additional $700,000 it needs to maintain services such as the and Public Works.

The taxable value for Clawson has plummeted by about $100 million since 2008 to about $308 million, City Manager Mark Pollock said. This loss in value equates to about $1.2 million in general fund tax revenues.  

Pollock said if the millage doesn't pass, the city will likely have to lay off 18-20 full-time workers. This could result in outsourcing police, Public Works, and services.

"We are trying to maintain services without decimating what we deliver," Pollock said. "Any police layoffs would threaten the safety of residents."

Pollock said city services are already at a "bare minimum" in every department.

The city has reduced its full-time workforce from 62 to 47 since 2000, and earlier this year decided to to cut costs.

The tax levy will cost the average homeowner $724 in 2012, based on a taxable property value of $48,300. Pollock said with home values decreasing, taxpayers are actually paying $140 less than they were in 2008 when the millage rate was 12.7 and the average taxable value for property was $68,200. However, the impact on most property owners from 2011 to 2012 taxes should be less than a $90 increase, Pollock said.

Council members decided a millage was the best route to take at a budget workshop in November. 

"It was unanimous and everyone understood the need to ask for a millage," Mayor Penny Luebs said. "Each (voter) has to decide whether they consider the services a good value to their money."

The millage vote will be held in conjunction with the Republican presidential candidate primary election Feb. 28. This will save the city money, Pollock said, because the city would have to otherwise pay about $8,000 for its own election.

Clawson's annual expenditures total about $6.6 million. If the proposal passes, the 15 mills will generate about $4.6 million in tax revenue. The additional $2 million comes from state shared revenue and revenue from city departments, Pollock said. 

"Our hope is that things will turn around," Pollock said. Clawson has "to try and weather this storm."

To calculate your estimated adjusted property tax increase visit mytaxcalc.com/clawson.