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untanglingwebs
El Supremo
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Genesee County Commissioners must cut $1.6 million to offset losses in property tax revenue
Ron Fonger | rfonger1@mlive.com By Ron Fonger | rfonger1@mlive.com
on August 15, 2013 at 8:30 AM, updated August 15, 2013 at 8:31 AM
GENESEE COUNTY, MI -- Controller Keith Francis is projecting a 3 percent reduction in property tax revenue in the fiscal year that starts Oct. 1 and advising the Board of Commissioners to cut $1.6 million rather than spending county reserves.
"We really can't dip into that rainy day fund in my opinion," Francis told commissioners Wednesday, Aug. 14. "Unlike the federal government, we don't print money ... We have to live within out means."
That's a familiar message to board members, who have seen property tax revenues drop steadily since 2008, and who agreed to leave spending at $78.2 million in the coming budget.
To stay in line with revenues, commissioners will need to cut $1.6 million in spending to make up for the reduction in property tax revenues.
That could translate into about 16 employees layoffs, but commissioners said such a move would be a last resort.
"I really don't think we can cut personnel any more," said Commissioner Ted Henry, D-Clayton Twp.
The county is already facing the prospect of a lawsuit over its funding of the county clerk and register of deeds offices.
In a memorandum to commissioners, Francis forecast property tax revenues to decline for the next two fiscal years before rising slightly -- to $42.8 million -- three years from now.
As recently as 2008, property taxes generated $65 million for the county and the revenues make up the bulk of available cash for county offices and services.
"Absent a significant economic upturn in Genesee County in 2014 through 2016, total general fun revenues will hover around the $78 million level ... beyond 2016 it is likely that total general fund revenues will struggle to exceed the $80 million mark," Francis' memo says.
The county maintains a reserve fund of about $8 million, about half of what is generally recommended, according to the controller.
Francis said he arrived at his projections after consulting Peggy Nolde, the county's director of equalization.
Nolde's department issued an annual report in April showing Flint property values were continuing to freefall, dropping 17.9 percent from 2012 to 2013, the primary drag on the county's tax revenues.
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Fri Aug 16, 2013 8:29 am |
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untanglingwebs
El Supremo
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When will the county recognize their role in declining home values in Flint. You only have to go to a few meetings before you see the hostility with which some commissioners view Flint and it's residents.
They say the Land Bank is independent of them. However when Kildee was instrumental in writing the new law, he made sure that the county commissioners played major roles. They select all of the Board of Directors of the Land Bank and there are usually four commissioners on the board. They deliberately wrote Flint's right to select their own representative out of the law.
Then you have situations like the one where County selected Land Bank board member Carolyn Sims sold her home in Beecher to her daughter and the county helped her daughter with a first time home owner assistance. Under HUD rules, I believe a waiver or at the least a HUD review of the transaction should have taken place. A FOIA with the county stated they never asked for any reviews during that time period.
Then there are many more situations that smell ripe to me with the Land bank.
The Land Bank financed Salem's rehabilitation of a home on Pontiac off Welch years ago and cannot sell it. Then in their infinite wisdom they spend $170,000 for a house on Welch to sell for under $30,000. This is the sale price of the smaller home on Pontiac they can't sell. However one resident claims she was told by the authorities the house on Welch was promised to a friend of City hall.
Salem has other homes they can't sell and they were the subject of a HUD finding that their rent to own home program was unsuccessful and the homes had to be turned into rentals.
Has anyone noticed the homes for sale after stories in the Flint Journal. There is a large home in Metawanenee near Ramona Park for $13,900. This home has 4 bedrooms, 1&1/2 baths, 1962 square feet.
Other Flint homes are selling for $2,000 up and the photos look better than some county homes at far greater prices. |
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Fri Aug 16, 2013 7:15 pm |
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untanglingwebs
El Supremo
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| With projected deficits in Flint to continue and grow as well as more property values declining, what will the impact on the county be. |
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Thu Oct 17, 2013 6:50 am |
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