Royal Oak May Be Forced to Increase Taxes

Royal Oak City Manager Don Johnson recently issued a report on staffing levels in the city and their impact on taxes. According to his plan, an increase in taxes of five mills would be required to fully Staff the police and fire departments. For a home worth about $150,000, the tax increase would come out to about $350 per year.

According to Johnson's report, preparing the 2010 -- 2012 budget is proving to be quite difficult due to the lack of revenue which resulted from a loss in taxable property values. The city has already laid off 19 employees, including 12 police officers, two firefighters, three trade inspectors, and to code enforcement officers. Johnson also warned that more layoffs may be coming.

Plans to privatize the ambulance service, which would result in eight additional firefighters being laid off, will likely come before the city commission on November 8. Besides a proposal to increase Royal Oak taxes, Johnson also called for concessions from the city's employee groups.

Sources:

http://www.ci.royal-oak.mi.us/portal/sites/default/files/meetings/City%20Commission/2010/1004-275-10.pdf

http://www.candgnews.com/Homepage-Articles/2010/10-13-10/Royal-Oak-staffing-taxes.asp