By CHRISTIE BLECK
cbleck@lsj.com
January 9, 2011
That's a result of both good and bad news for the city.
Average total taxes paid for an improved residential property in the city have decreased in recent years - good news for taxpayers. However, pair that fact with decreased state-revenue sharing money, and that leaves the city with fiscal challenges for the upcoming year.
According to recently released information from City Assessor Scott Cunningham, the 2007 homestead millage rate was 45.2153; in 2010, it was 44.9484. That translates to an average tax of $2,800.32 in 2007 to $2,575.54 in 2010.
This represents an 8.73 decrease, with a property's annual tax down about $224.
Colburn made note of the "change in dynamics" that's trickling down from the federal level: People want to pay fewer taxes.
That's good for residents but challenging for city officials who have to run their governments with less money.
"Government is having to be rethought at the federal, state, county and local levels," Colburn said.
Colburn said Mason has seen a decrease in state-revenue sharing - quite a bit, in fact. In 2001-02, Mason received $851,978 in revenue-sharing funds. The estimated amount for 2010-11 is $542,105.
That's a whopping decrease of 63.6 percent of what the city used to get, Colburn pointed out.
Thus, he wants the community to know that "change is in order" as budget talks commence.
"We're having to address that now," he said.
Steps already taken
The city already has been consolidating services to adjust to fiscal realities. There is one less employee in the Finance Department and two down in the Department of Public Works. Finance Director Eric Smith also noted that building inspections are being now contracted out to Meridian Township.
Colburn said more requirements continue to face the city, such as permits and the water-treatment plant it now operates to remove radium isotopes from city water. The new city hall houses city staff and police, who are learning how to use the energy-efficient - but larger - building.
Coupled with the loss of revenue, the fact the costs are not going down presents the city with a budget challenge.
"We're going to have to rethink how we do business as well," Colburn said.
No specifics have been decided yet, but discussions on the upcoming fiscal year's budget are under way, Colburn said, with officials to meet with the City Council in early April. The budget must be adopted in May.
City growing
New demographic data has been received from the U.S. Census Bureau, derived from a 2009 study from the American Community Survey, part of the Census.
Colburn said the survey showed Mason with a population of 8,112, up from the 200 Census count of 7,164.
Colburn said the U.S. Census Bureau hasn't traditionally conducted an American Community Survey for cities with populations of 20,000 or less. However, the 2010 Census will provide the officials numbers used for the next 10 years.
Why the population increase for Mason since 2000? "Candidly, because Mason is such a phenomenal place to live," Colburn said. Smith, a life-long resident, agreed.
"I totally believe that," Smith said.
Colburn said that Mason is in a centralized location close to many amenities, yet with a "stand-alone personality."
"People appreciate and enjoy that," he said. However, being located in a financially distressed state like Michigan has its down side. Poverty rates in Mason have skyrocketed from 1.3 percent in 2000 to the current 13.1 percent.
Colburn attributed that increase primarily to the Michigan economy.
Still, Colburn said that knowing current populations levels and where people are located is vital to running the city.
"We need to put resources toward where people are at," Colburn said.
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