Promise 12: Be Watchful of the City Tax Rate

When I began my city council campaign, a number of people told me that they didn’t understand why our city taxes are high. They are among the highest in Kent County. This issue easily came to mind as I was creating my promises. Promise 12 started as trying to reduce the city millage while maintaining good services. I take my promises very seriously, so I reached out to City Manager Mike Burns for his thoughts. He told me that a cut in the millage would cause noticeable negative changes to Lowell.

Public finances are complicated, and Mike was happy to meet with me for an hour this week and explain some of the details. Thanks Mike! Based on our discussion, I am changing my Promise 12 to being Watchful of the city millage. I am not promising that I can or should reduce it. I will carefully consider any reduction in the rate and how it reduces services. I will certainly do my best to resist any increase that would hurt residents and businesses. I have run/managed two businesses and know how to be successful. My Promise 6 about Following City Finances Carefully will discuss this further.

No one enjoys paying taxes and it is easy to say “let’s cut taxes”. However, taxes are a way for the City of Lowell to provide a number of great services that often are taken for granted. The services are one of the main reasons that Lowell has prospered in the last few years. I believe the city manager and council do a good job of balancing revenues and expenses.

There are two large financial needs facing the city: road construction and the pension liability. There has not been money for roads due in large part to the 33% reduction in revenue sharing from the state in 2011. The pension liability developed over many years because money needed to be set aside to pay a new hire and their spouse for life. The amounts needed were hard to estimate and stock market volatility created a shortfall. The pension system is no longer in place for new hires, but there are a number of retirees in the system. The roads and the pension system are both in not great shape and must be corrected. Mike Burns and the council have been good about regularly moving “extra” revenue from the marijuana taxes and covid funds to these two big needs. Now is not the time to reduce correcting these two needs.

Some background: the city of Lowell is among the highest millage rates in the county (accessKent 2022 data). The city homestead millage rate is 44.4 and the non-homestead (business, 2nd homes) rate is 61.4. This compares to Lowell township homestead rate of 30.2 and non-homestead of 47.2. There are a few other cities higher than Lowell, but the larger cities are lower. People looking at purchasing homes or businesses wanting to relocate certainly consider these costs.

However, when I look at all of the services that the city provides I am going to stay in Lowell! We have a wonderful town, good river access, great city staff, and nice people! Below is a list of some of the city services that help our citizens:

1)Police protection: Chief Hurst and the entire police force do an excellent job of keeping Lowell safe and maintaining our laws. I have had to call 911 a couple of times since living in the city and the response was quick. The County Sheriff does an excellent job, but it takes time to get to the country. Lowell police are there day and night in case the citizens need help and they are close by. Mike Burns told me that sometimes there is only one officer on patrol and that he would like to have two officers at all times. Two officers on patrol seems smart for our growing community. Cutting the tax rate would certainly prevent a second officer on duty.

2)Fire and Emergency service: Chief Witherell and the entire team at the fire department are top notch professionals that help people in the worst of times. They are the ones that run to fires and accidents to help those in need! I was in the back seat of a serious car accident when I was 15 and had my legs crushed. The fire department had to use the jaws of life to free me from the car. Be careful new drivers! Firefighters Charles Putney and Daniel Rybiski showed me the department’s improved jaws of life at the Riverwalk festival. I am very glad that so many fine people serve us and that they have good equipment. Your city tax dollar pays for 1/3 of the fire department (Lowell and Vergennes township the other 2/3’s) and it is money well spent. No desire at all to cut funding.

3)Clean water and sewer: I worked at Amway from 1997 until 2003 and helped design the eSpring water treatment system. There I saw first hand how most of world struggles with drinkable water. I really appreciate Lowell having very good water, even winning awards. Since living in the city, I also appreciate not having to carry numerous 40 lb salt bags to my softener. I also don’t have to worry about septic field expensive problems. I know that raw chemical costs have risen dramatically but our water rates have remained reasonable. Water treatment plant operator Ralph is a wealth of knowledge in water purification. All of the staff at the two plants are excellent.

4)Parks: We have a number of really good parks and they are well maintained. The mowing and upkeep of these green spaces isn’t easy work but the city employees keep them at their best.

5)Cemetery: Having a sexton and a nice cemetery is an important part of the life process. There is a lot of effort needed here, and I appreciate this team.

6)Library: We have a wonderful library at the Englehardt and my family used it often when my children were young. You might not know this, but the library is a city building that is leased to the library system. The city is responsible for the upkeep, etc. and I am not sure the lease covers all the costs. The DDA just voted to replace the 20+ year old HVAC system at a cost of over $150K. It was certainly needed to maintain this facility, but the library is not a money maker. Any millage cuts would certainly hurt the library.

7)Street sweeping: I live and work right on Main Street and see the sweepers in action regularly. This effort keeps the city looking nice.

8)City airport: I honestly don’t know much about the airport, but I am sure those that use it appreciate having a small local airport. It is not a big part of the city budget. It sure is fun to watch the small planes and motorized paragliders.

9)Others: Planning commission guiding new construction, Historic Downtown preservation, Arbor board guidance on trees, and Downtown Development Authority (DDA) improving the downtown are other important groups that help the city.

I’m sure I left out some services, but I’ve listed enough to justify being part of the city and paying my share. I do promise to be concerned and careful with the millage rate and your hard-earned tax dollar. I ask for your support to elect me to City Council in November. Looking forward to your comments. Thanks, Eric

4 responses to “Promise 12: Be Watchful of the City Tax Rate”

  1. Hello Eric. Thank you for these statements and your ability to change directions when you better understand a need. My question regards the airport. Does the airport have a fee structure that covers it’s expenses? If not it seems that there might be an opportunity to save funds even if not lowering taxes. Thanks

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    1. Hi Gary, Thank you for taking time to read my post and the good comments. I need to dig into the airport details. I’ll reply with more info shortly. Thanks again, Eric

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    2. Hello Gary,
      Mike Burns told me that the airport is self-sufficient and that no general fund monies are used. I have the details from the budget if you would like those emailed to you. I can’t add them to this post. Hope this is helful. Thanks, Eric

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      1. Thanks Eric. That is all that I wondered about.

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