1915 Fordney, #440
Saginaw, MI 48601
October 29, 2002

Letters to the Editor
The Saginaw News
South Washington Ave.
Saginaw, Michigan
Editor, the News:

Some neglected aspects of the City's upcoming tax-cap election:

• 1. The tax-cap will not be eliminated, but be re-set at 10 mills as it was originally, and well below the State limit of 20 mills for municipalities.
• 2. Bay City (36,000 residents, no income tax) levies 21.4 mills for city operations and debt, with police and fire getting 52 percent of a $23 million general fund budget. Saginaw (61,000 residents) collects 8.5 mills for city operations and trash pickup, with 61 percent of a $38 million general fund budget going for police and fire services.
• In other cities with an income tax, Lansing levies 15.9 mills and Flint 16.1 mills for city operations. Thus the data do not support a claim that Saginaw is over-taxed.
• 3. The tax-cap cause a shift in who pays for city government. Property taxes from businesses and factories are frozen at 1979 levels. Individuals now pay much more of the cost to city services, because we also pay income taxes and fees, which have not been frozen. In effect, Saginaw voters forfeited our industrial tax base-and pushed the burden onto city residents.
• 4. City population has declined since 1979, but police and fire employees have gone down by a greater percentage. Yet Saginaw has the same area to be protected, the same miles of streets to be patrolled, and about the same number of buildings to be guarded. Population decline is mostly due to smaller families today, living in about as many housing units as in 1979.
• 5. There is no cheap way out. We will pay, either way. When services are eliminated, quality of life declines. When two of the four remaining fire stations close, insurance premiums will soar. Ending housing inspections and code enforcement will hasten neighborhood decay in all areas of the city, affecting home resale values. We don't have to like it, but facts must be faced.
• 5. Saginaw is at a crossroads. We can give in to the negativists and anti-government fanatics whose prescription for the City is disaster. Or we can move forward to build a better community, with current levels of services, and maintain new positive trends for a better future together.

Yours truly,
Robert J. Thaler
989-964-4372