Livonia Chamber of Commerce

The primary election will be taking place tomorrow. The Livonia Chamber of Commerce wants to keep you informed. Please see our independent synopsis of the millage propositions below. Also, videos of the 13 city council candidates can be found on our website at http://livonia.org/candidates.asp

Happy Voting!

An independent synopsis of proposed Public Safety and Senior Center/Greenmead millage propositions set for citywide election on Tuesday, August 2, 2011

The city is asking Livonia residents to approve two separate millage increases for a term of five years toward the following dedicated city services:

1.7 mill tax increase for public safety
·This would generate an additional $7 million in revenue for police and fire services
·This tax would cost the average homeowner an additional $116 per year

0.25 mill tax increase for the Livonia Senior Center and Greenmead Historic Village
·This would generate an additional $1.035 million in revenue for support of the Livonia Senior Center and Greenmead Historic Village
·This tax would cost the average homeowner an additional $17 per year


Rationale for seeking these millages

The city's general fund revenue was about $54 million in 2006. It is around $48 million this year. City officials anticipate an additional shortfall of $6.2 million for the 2012 fiscal year, owing to decreased tax captures, increased health care costs, and the sunset of an administrative fee collected last year. The city is anticipating a continued decrease in tax collections for 2013 fiscal year. City officials report there have been some 130 positions eliminated over the past eight years, furlough days imposed, cuts to overtime and capital improvements and other measures to respond to recent revenue declines, but city finances are reaching a point where significant cuts to vital city services would be necessary without additional revenue sources.

More than 60 percent of the general fund goes to the police and fire department. Without additional revenue, city officials anticipate the elimination of 27-40 positions from the Livonia Police Department (currently a 160-person operation). There is limited flexibility to eliminate fire positions since a voter-approved charter amendment requires the city to have a certain number of firefighters based on population.

The Senior Center-Greenmead millage would be used to supplement general fund revenues used to support both city properties. Without the revenue sought in this millage proposal, city officials said both city properties will remain operating but they will be vulnerable to cuts in hours and programs.

Critics of these proposed millages are calling on the city to press city unions to take more employee benefit concessions before seeking any kind of tax increase. Some city council members have called for the elimination of take-home cars for certain city department heads and police personnel, and a privatization of the city engineering and law departments. Mayor Jack Kirksey said each suggestion would provide limited cost savings and a one-time revenue injection that would be a minor fraction of the anticipated shortfall. He added that other cuts will still be needed, even if both millages are approved.

Some business owners spoke at recent Livonia City Council meetings to voice support for the public safety millage, arguing cuts in public safety would be harmful to Livonia's future economic development opportunities.

Prepared June 3, 2011