Mayor: Royal Oak In 'State of Transition,' Tax Increase Could be Inevitable

When Royal Oak Mayor Jim Ellison took the podium Tuesday afternoon for his State of the City address, he made one thing clear from the beginning: Royal Oak is in a “state of transition.”

While Ellison said the city remains strong, stable and is the “place to be in southeastern Michigan,” revenue is down and services aren’t at the level they used to be.

With this in mind, Ellison – speaking at the Emagine Royal Oak for the event hosted by the Royal Oak Rotary Club – addressed a variety of positives and negatives that the city is working with and discussed how the city can move forward.

Ellison told the crowd of city leaders, officials and residents that Royal Oak “cannot revert to the bedroom community we grew up in.”

He said the city will need to be leaner and more efficient and everyone will feel some of the pain as the city works to function with less revenue.

Royal Oak remains "economically strong and culturally vibrant" and will continue to be a destination city for dining, shopping and entertainment, Ellison told the crowd. He said he talks to business people frequently who still look at Royal Oak as a “sound investment.”

“To our credit, many diverse businesses continue to seek Royal Oak,” the mayor said.

Though the city has managed to create its current budget without raising taxes this year, it is not without sacrifices as far as the level of services provided, Ellison said.

It may be “unavoidable” to ask residents for a tax increase in 2012, Ellison said. The amount of any increase would depend on a variety of factors. Ellison noted the City Commission has been clear that a two-fold solution is needed: increase tax revenues and decrease expenditures.

In the police department, the crime prevention officer and other departments have been rolled into the patrol division and “every officer’s responsibilities have been increased."

However, Ellison praised the police department for its work handling the Arts, Beats & Eats festival and many other special events throughout the year. Many people assume these events are relatively problem-free, but the reason there are rarely problems is the “professionalism and competence of the police department,” he said.

“There is a reason that these events choose to go to Royal Oak,” the mayor said.

The fire department is also doing well thanks to a , which allowed the City Commission to approve the to replace four who retired.

More information will be available on improving the efficiency of the police and fire departments after a new analysis – – is completed by an outside firm this year.

Ellison also praised the city attorney’s office for its hard work with one-third of its previous staff along with the engineering department for dealing with significant amounts of snow and water main breaks this past winter.

New home building permits have tripled over the past year, according to Ellison, signaling a resurgence of new single-family homes in the city.

With participation levels up for youth soccer, baseball and hockey programs in the city, Ellison pointed out Royal Oak is still a great place for families.

“These are an indicator of opportunity for all age levels,” he said, adding that Royal Oak is “one of best cities to raise a family.”

Ellison predicted in his last State of the City speech in 2009 that the quality of city services would decline in the near future, “and that has come to pass,” he said.

“The worst, it must be said, may still be in our way,” the mayor noted, but the city’s direction “is in our hands.”

"I look forward to seeing just what we will become."

The crowd applauded warmly in response to Ellison's speech.

Royal Oak resident Pete Mancour attended the mayor’s address. “I think he pretty well summed it up; they can't keep going the way they are,” Mancour said.

William Sullivan, a past president of the Rotary Club and longtime resident of Royal Oak, said he has seen many changes in the city in his years living here and believes the city will pull through its challenges. 

“We just all have to work together to get through some rough patches here, but I think we will,” he said.

Sullivan said he thought the mayor’s speech was “very good.”

“Jim Ellison really has a good steady hand on things,” he said.

Cheryl Murray, president of the Royal Oak Rotary Club, said the club is honored to host the State of the City address.

“It’s important for us to support the community and those who serve the community,” she said. “We definitely enjoy being a part of the State of the City address so that we can show our support.”

Murray said Emagine theater proved to be an excellent choice for the event. “They’ve been extremely accommodating to us,” she said.