Tax Holiday Expanded but Still Not Enough

The good news first: we have expanded the tax holiday that I lobbied for last year. We chose not to collect approximately $700,000 in property taxes for the police department this year, 2008. As we begin the budgeting process for 2009, we voted not to collect $1,050,000 in property taxes for the police department, expanding the tax holiday to township residents.

Despite reducing revenue by over $1 million, initial projections indicate that the 2004 police levy will last another 3 years. If we had not declared a tax holiday, the police levies would last an additional 10-15 years, making taxpayers today pay for services that will not be rendered for almost 15 years. That is not logical and is why I supported the decision to roll back taxes on our residents.

While this increased tax holiday is great, I don't believe it is enough. For the last three years I have been asking that we develop and implement an investment policy, a cash reserves policy, long-term plans for the general fund, and capital improvement plans for all departments. While we have not focued on these long-term financial issues, our cash balance continues to increase - we are spending less money then we collect. While at first glance this is great, the reality is that we are taking money from the pockets of our residents and businesses and we don't know if we need it or how it will be spent.

I asked that my fellow trustees consider choosing not to collect the 0.5 mill inside levy which collects about $700,000, funds a small portion of our general fund and is assessed against all township and city property owners. I made this request because I object to the township continuing to collect money with no real plans on how to spend it. I firmly believe that if government has money, they will figure out a way to spend it; that doesn't mean we need it.

There was not support for the general fund tax holiday from my fellow trustees. Part of the reason for that is the timing - we have to certify amounts to the auditor's office before we really start the budgeting process, so I'll admit that it's hard to know at this point whether or not we really need that $700,000. But I still hate the thought that we continue to collect all monies available to us while our cash balance improves.

I did secure from my fellow trustees commitments - on the record - to make sure we work to get the policies in place, the plans developed, the processes in order so that next year when we can give serious consideration to the general fund tax holiday. I will hold them to that commitment.