LCRP BlogSpot
Here is a list of millages and local taxes you are paying every year: School, County, Road, Parenting Communities paid for by the Early Childhood millage, Township, Senior Services, Library, Recycling and possibly Village with sewage/water. Are we missing any? Oh yes, sales tax and gas tax are local as well. These taxes would have to be approved by a vote of the people, but how likely is a millage to be defeated in May of an off cycle election? Given the number of taxes being levied on Leelanau County residents, how likely is it for young families to purchase a home and move into Leelanau County? If you are a renter, you don’t escape paying for millages and property taxes as they are included in your rent. The Democrat County Board is currently studying the possibilities of additional taxes for: child day care, solar and wind power, a juvenile delinquency home with Traverse City, electric vehicles, and affordable housing, all of which will be funded by Leelanau County taxpayers if approved. How do you think the Dems plan to fund these projects? Right now, they’re seeking grant funding. What do you think will happen when the grants dry up or they do not receive the grant and believe you “need’’ these government programs? Last year, when the Democrats took control of the County Board, they immediately raised the county millage back to the maximum amount after it had been lowered the year before. In 2022, the new Board of Commissioners (BOC) subcontracted with an affordable housing guru for $60,000 to “talk” to every township about how they can accomplish work force housing. This action was taken after our county had a committee studying affordable housing for the last 20 years. Then, the BOC voted to add a costly ordinance for septic inspections on home transfers. These inspections will cost the home owners between $400 to $12,000 depending on inspection results. What is the impact of these septic inspections on young families who want to buy property here? On April 10th, 2023, our county Treasurer reported that the county has $6,896,736.72 in investments raising over $400,000 in interest so far in 2023. The county also has currently available cash assets of $5,524,703.00 totaling over $12.4 million in county cash assets.These cash assets do not include special funds such as the Building and Safety Reserve Fund, which currently has over $1 million in emergency funds, and Parenting Community Funds. The $12.4 million is available to spend before the county even collects 2023 summer taxes. Both the County Clerk and County Treasurer have stated publicly that county taxes could be lowered, but the new Chairman has indicated by his vote that allowing you to keep a few dollars of your own money is not as wise as the county collecting it and spending it. He and the rest of the Democrats believe it is much better to add your dollars to the already burgeoning county coffers so that they can spend your money for you. Recently Leland, Suttons Bay and Bingham voted in a new millage to support their local libraries. Previously, the townships had already been collecting millages that they used to support the libraries. When the library millage vote passed, Bingham Township reduced their millage by the amount that was designated for the library. Both Suttons Bay and Leland Townships kept the additional taxes as a windfall and are now spending these dollars on wage increases and park facilities such as pickle ball courts and dog runs. How do these additional taxes help the elderly on fixed incomes? Do you want to keep a representative in place who believes he or she can spend your money more wisely than you can?
Alarming numbers that citizens of Leelanau County need to know* • 10% — Rate of growth for county payroll in 2022. • 24.4% — Overall growth in county government spending in 2022. • 425% — Change in county government net pension liability. * Source: Leelanau County audit for 2022. Taxpayers fund runaway: Spending in Leelanau County If you’re concerned with out-of-control growth in Washington where the federal government has racked up $32 trillion in debt — more than $97,000 for every person living in the United States — then you may want to look further into what’s been happening at the Leelanau County seat. Bolstered by higher property tax revenue, relatively new millages, grants attached to state and federal mandates, and a sizable fund balance under fire, Leelanau County government has been busy expanding its core mission. The taxpayers of Leelanau are expected to fund that growth even though the typical homeowner in the county will receive no or very little benefit. The 2022 audit of county finances provides compelling arguments for a change in direction. Numbers are numbers, and the bottom lines as determined by the independent auditing firm Rehmann Robson, LLC, show that county government has been on an unchecked spending spree. Please consider: • The audit compared categories within the county budget as initially approved with how spending finished at the end of the calendar year on Dec. 31, 2022. In the category of Board of Commissioners, the original budget as approved called for $750,601 in spending. Actual expenses came to $914,531. Salaries and expenses paid to commissioners represent a small part of the category. Still, the 21.8 percent increase is troublesome to those who believe in limited growth in government. (Leelanau County audit, pgs. 28-29) The County Board of Commissioners switched from Republican to Democratic majority in May 2022. It remains ruled by Democrats. • Total expenses for government activities grew a whopping 24.4 percent over the one-year period, from $16.7 million to $20.7 million. Somehow Leelanau County managed to spend money even faster than the federal debt grew. (Leelanau County audit, pg. 28-29) • It wasn’t easy, but spending surged at a faster pace than the sizable increase in total revenues. County income grew 10 percent from $16.8 million to $18.5 million in one year. (Leelanau County audit, pg. 9) • How can government spending grow so fast? One way is by increasing payroll. Recall that the County Board of Commissioners in September 2022 gave each county employee a $750 bonus check and a 3 percent raise. While the lump sum stipend cost a one-time charge of $107,000, the pay increase was estimated to add about $125,000 to the 2023 payroll with future costs compounded by sure-to-come annual salary increases. Only Republicans cast “no” votes to the unprecedented decision to give across-the-board pay raises and bonuses in the midst of a fiscal year, and not through the budget process. (Coverage, Leelanau Enterprise.) County employees work hard and deserve a fair wage, but handing out checks in the middle of a budget year represented a poor policy decision with compounding interest. • The number of county employees has been increasing, too. According to a report provided by the county clerk’s office to commissioners, four more W-2’s were issued than the previous year. More alarming, wages paid by the county to its employees increased 10 percent, from $6.7 million to $7.4 million. (Memo, column under “Wages Reported”) • Keep in mind that growth in the number of employees and payroll does not take into account social workers hired through a Childhood Development property tax first levied in 2020. Those new employees are paid through a contract with the Benzie/Leelanau District Health Department, but their positions are funded by taxes levied on all Leelanau County property. Your county government is paying the salaries of workers it has no workplace control over. • And the payroll spending is not stopping. Earlier this summer the County Board reclassified positions in technology and senior services to higher pay levels within the Teamster’s pay scale. Also, a part-time position was moved to full time at the request of Probate Judge Marian Kromkowski. (Various minutes of county meetings) It never ends. • A bigger payroll also means more money will be needed to fund the county retirement package. According to the audit, the county’s net pension liability increased from $1.6 million to $8.4 million during the calendar year (Leelanau County audit, pg. 80-81). Changes in the actuarial formula and poor stock market returns played a part. Increasing the county payroll has a multiplying effect on future liabilities that will become a burden to our children. The bottom line, and there always is one for money matters, is that Leelanau County government has grown by leaps and bounds while the take-home pay of residents has not. If you share that concern, please consider expressing your thoughts by attending County Board meetings, writing or emailing your county commissioner, and speaking out through social media. The Leelanau County Republican Party opposes unchecked expansion of government at local, state and federal levels. Together, we must regain control of our spendthrift county government.
