Presentation on theme: "Millage bid puts worn roads on list Clawson voters asked to approve $25M in bonds to repave streets and replace sewer mains. Maureen Feighan / The Detroit."— Presentation transcript:
Millage bid puts worn roads on list Clawson voters asked to approve $25M in bonds to repave streets and replace sewer mains. Maureen Feighan / The Detroit News http://www.detnews.com/apps/pbcs.dll/article?AID=/20060327/METRO02/603270325/1009
Clawson CLAWSON -- Rose Marie Wegner of Clawson is so sick of the cracks, potholes and crevices plaguing her city's streets that the senior avoids certain roads altogether. Her biggest headache: 14 Mile. That's why Wegner plans to support a proposed roads millage this spring that will cover the cost of issuing $25 million in bonds to repair and repave residential streets and replace water and sewer mains. "I'm 83 and I have a hard time paying, but it's got to be done," Wegner said.
Must be approved by voters? Clawson officials are keeping their fingers crossed that more residents who feel like Wegner will head to the polls May 2 to support the proposed millage that will start at 3.5 mills but average about 3.1 mills. The measure would cost the owner of a $150,000 home roughly $262.50 a year. City Manager Richard Haberman said it's never a good time to ask voters for a tax increase, but the city's streets have "significant needs." He said only 14 Mile and Main Street qualify for federal aid. "It's easy to highlight the condition of 14 Mile and Main Street but the fact is we've got a problem throughout all of the city of Clawson," Haberman said.
Other Items Of the 21.4 percent of voters who said they were "not likely" to support a roads millage, nearly a third said the reason was because they didn't want to pay more. Mayor Lisa Dwyer said many of the city's 40 miles of residential streets haven't seen significant improvements in 60 years. A recent assessment found 85 percent of Clawson's streets were unacceptable. And the water and sewer system dates back at least 80 years, she said. And while the city does get about $700,000 a year from the state in gas tax proceeds, it's not enough to cover what the city needs, she said. The city was awarded $2.5 million in federal funds recently to rehabilitate a portion of 14 Mile between Crooks and Washington, but that's only a one-mile section. "The cost of road construction is significant and we don't have it in the budget," Dwyer said. "We need this to pass in May." If it does, the bonds will be issued over a four-year period and paid off over 24 years. City officials say they haven't decided which streets, water and sewer lines will be worked on first.
The Economics Why Bonds? You are building something that will last for a long time. You’ll be using it for a long time, so you should be willing to pay for it for a long time. The people who build it must be paid when they do the work. Issue bonds!
Some features 1 mill is 0.1 cents. In Michigan property taxation is done on 50% of the value. So roughly speaking, 3.1 mills = 0.0031% of the assessed value, or 0.0.00155% of total value. Buyers of municipal bonds, typically do not have to declare the income for income taxes. Why?