Repeal of Law Allowing City Employees to Live Outside City Sought

Confusion on Exemptions, Low Collection of Personal Property Taxes Cited

December 31, 2010
By: Dave Rogers

(IN OUR OPINION: Gutsy stand by the manager on a longstanding contentious issue that will no doubt raise hackles among employees but likely will find widespread support from resident taxpayers.)

City Manager Robert V. Belleman wants city commissioners to lobby for a change in the law allowing police and firefighters to live outside the city.

"Detroit Mayor Dave Bing along with other government officials throughout the State believe law enforcement and city workers should reside within the City that they are employed," the manager wrote in his biweekly informational memo, commenting:

"There are many benefits to having employees live within the same community they work. The City Commission should give consideration to joining Mayor Bing and other public officials in lobbying State Legislators to reverse the law prohibiting municipalities from even negotiating residency requirements let alone requiring it."

The manager enclosed an article which appeared in the November 7, 2010 Detroit Free Press entitled "Help Cops Move Back to the City They Serve." The article is about Mayor Bing's desire to undo State law that prohibits municipalities from negotiating residency requirements of public safety officials.

The manager also referred commissioners to an article discussing the frustration and confusion over the Michigan Business Tax and which businesses are eligible for exemption on personal property. He also called attention to the low collection rate on personal property taxes.

"Currently, the City of Bay City collects approximately $11.5 million in property taxes. Of that amount, the City collects $1.43 million or 13.29 percent of total taxes levied for personal property including IFTs," said the manager.

The city is seeking applications from non-profit service providers for the annual Community Development Block Grant Funds for the fiscal year 2011-2012.

Funds are allocated annually to a variety of housing, public service and community development-related activities that benefit low and moderate income city residents and neighborhoods.

This year, because of current economic conditions and limited federal resources, the city will be focusing these grant funds on basic community needs such as the provision of food, shelter and health to extremely low, low and moderate income city residents.

Information about applying for these grant funds is available from the city's redevelopment department, 989-894-8156 or 989-894-8158 during regular business hours. Deadline for applications is Jan. 14 at the temporary city hall, 700 Fourth St.

During the recent Legislative Eye Opener, Fire Chief Greg Michalek discussed House Bill 6566 Cost Recovery Limitation. Chief Michalek indicated that insurance companies were lobbying for the passage of House Bill 6566 to prevent municipalities from collecting the $500 available on insured policies and in place for police and fire cost recovery.

Mr. Belleman pointed out that the City of Bay City adopted an ordinance permitting the Fire Department to bill insurance companies when they respond to fires. ###