Mayor Talks Millage in State of the City Address

When Royal Oak Mayor Jim Ellison took the podium Tuesday afternoon and delivered his  State of the City address, he used one word more than any other - millage - uttering it 16 times.

In a speech filled with numbers, Ellison said there was one number he wanted people to remember - this November for a public safety millage over five years. If passed, the millage will maintain current service levels, add police officers and make other minor needed improvements, including continuing to fund senior programs, the mayor said.

The city has been serious about implementing austerity measures and trying to do more with less, but "without the monies raised through the passage of this millage, the city will not be able to function effectively," he said.

With this in mind, Ellison – speaking at the for the event hosted by the Royal Oak Rotary Club – told those assembled "I must urge you all in the strongest terms to consider passing this referendum."

Ellison told the crowd of city leaders, officials and residents that if the millage is passed, it will return city property taxes to their pre-2008 levels.  For the average household, the millage will mean an additional $270 per year, he said.

State of the City by the numbers

In Ellison's 31-minute address, he presented many percentages and dollar amounts. Here's a look at some of the numbers the mayor provided in his State of the City address:

Percentages                    

3.5 percent: In 2011, the city projected losses to taxable income at 3.5 percent for the year, but instead property values and property tax revenue declined by only 1.5 percent and are expected to hold steady next year.

5 percent: Because of limitations imposed by Headlee and Prop A, even if the real estate market recovers completely, taxable value will not, according to the mayor. Taxable value of existing property can never increase by more than the rate of inflation or 5 percent, whichever is less, he said.

10 percent: On the strength of the city's financial management practices, Royal Oak remained in the top 10 percent of all governmental entities rated by Standard & Poors, the mayor said.

25 percent:  In the past eight years, the city has lost through attrition and staff reductions over 25 percent of all full-time positions.

40 percent: Financial considerations have resulted in cutting of police department positions through attrition and elimination – the last four years has seen the Royal Oak Police Department lose nearly 40 percent of its staff.

Years

10 years: If the millage is passed in November and the police department is brought up to recommended staffing levels, it will still be a far leaner and more streamlined department than Royal Oak had 5, much less 10 years ago, the mayor said.

20 years: Given the strained financial straits that this region of the state has been in for the better part of two decades, City Manager Don Johnson and the City Commission endeavored to have the city absorb the brunt of the economic fallout from the 2008 downturn rather than impose a further financial difficulty on citizens, Ellison said.

30 years: "Thirty years ago, we wouldn’t have thought Royal Oak would be a name known in Hollywood," the mayor said, referring to the city being used as a backdrop for feauture films in recent years.

40 years: "Forty years ago, neither my parents nor I would have suggested Royal Oak to vacationers," Ellison said.

Dollars

$270: For the average household this millage will mean an additional $270 per year.

$50,000: Community boosters are working with Parks, Forestry, and Recreation Departments to keep youth and senior programs up and running, the mayor said.

"The Royal Oak Sandlot League provided the city with $50,000 of field improvements at Memorial Park and has been providing the manpower for opening and closing Memorial Park.  Royal Oak Youth Soccer Association has been working with Parks and Forestry to fertilize, seed, and paint the fields they use to play.  And our Pickleball volunteers are opening up Whittier Park to help give our kids and seniors another fun way to stay up and active," Ellison said.

$600,000: Two years ago the city transferred $600,000 from the general fund to keep the Building Department solvent.

$2.6 million: City Attorney Dave Gillam, with assistance from Human Resource Director Mary Jo DiPaulo, worked with labor attorney Howard Shifman and the leaders of the respective bargaining units in negotiating significant contract concessions that amount to over $2.6 million per year in savings.

$3.3 million: To maintain services at current bare bones levels will eat up $3.3 million of the general fund balance through 2013 – effectively emptying the fund, the mayor warned.

$9.5 million: In trying to reduce the tax burden on citizens the city has burned through nearly $9.5 million of our general fund balance. 

The number the mayor wants voters to remember

3.975: The City Commission has unanimously voted to put a referendum on the ballot in November asking the voters for a public safety millage of 3.975 mills over five years.

Mayor thanks two

In winding down his speech, the Ellison gave a shout out to two important people.

"Finally to my family, who have to put up with the ups and downs that I bring home with this job, but most importantly my wife Jodie and my son Jake who are able to take my thoughts and frustrations and put them in context and form that allows me to deliver a cohesive and understandable presentation today," Ellison said. "You both have my deepest appreciation and love. Thank you both!"