History on repeat
You may remember hearing at a council meeting in August that the city manager projected a $300,000 surplus in 2010, a deficit of $1.6 million in 2011, and a deficit of $1.9 million in 2012. At the time, Cooper said this projection was based on a $500,000 reduction in income tax payments by American Axle, a $300,000 increase in payments to retirees, and a reduction $1 million dollar reduction in payments from Wayne County on the jail. (The city had received two back payments of $1 million from Wayne County due to the settlement of a lawsuit, and instead of setting the additional payments aside or using the windfall to replace vintage fire equipment, the city administration spent the money irresponsibly on daily operating costs.)
Then about a month ago, Karen Majewski put the city manager's contract on the agenda for the council meeting - a 3-year contract with a 18-month golden parachute, which was suddenly approved by the city council after a public discussion that was limited to 5 minutes.
In the days leading up to the election, city employees were telling everyone who would listen that Algazali would ruin Hamtramck by laying off police officers, firemen, and city employees.
Not 24 hours after Majewski won the election, notice of a budget work session was posted at City Hall. The clerk didn't send notice of the meeting to electronic subscribers of the council agenda until 9:48 a.m. on Thursday, after the Detroit Free Press went to print, and of course, The Review only prints on Friday. I am the only other subscriber, and it was my birthday.
As I posted in a comment last Friday, I couldn't go to the meeting, but I heard that Cooper told the council that the city is over budget $800,000 in 2009 and has a projected deficit of $1.2 to $2 million for 2010 and 2011. He said that these additional cuts are due to an estimated 11% drop in state revenue sharing, and a decline in income and personal property tax collections from American Axle.
In response, Cooper threatened to cut police officers and firemen to fill the budget gap. If the unions refuse to accept his proposed salary freezes, pay cuts, pension and benefits reductions, and the elimination of minimum manning requirements, Cooper says he will cut 17 police officers, 16 firefighters, plus 3 full time and 3 part time employees at City Hall. Even if they agree to the concessions, he still intends to cut 12 police officers and 11 firefighters, keeping everyone at City Hall. These cuts are supposedly going to take place between now and January 4th, and he claims he doesn't need council approval to accomplish his plan.
Cathie Gordon suggested passing a cost recovery ordinance like every other city has to increase revenue, and getting rid of contract employees, such as the events coordinator, the DDA manager, the redundant city assessor, the second supervisor at the DPW, the DDA TIF, the EDC, and the BRA. The rest of the council just sat there and didn't say a word.
To close more of the gap, reducing the layoffs to 8 police officers and 9 firemen, the Cooper wants the council to pass a Headlee Override. He and the city attorney are claiming that the council can increase the city tax rate from 18.04 to 20 mills without permission from the voters.
In addition to the aforementioned budget shortfalls, the tax-increment finance agreement on Poletown expired in 2005, and GM has been paying $4.3 million per year, or almost twice what they were paying under the TIFA. They have requested a hearing at the state tax tribunal, and a 60% reduction would mean a decline of $1.9 million to around $2.4 million per year. This potential loss is not included in the currently proposed cuts and would result in a total projection of $4.9 million less revenue in 2010 and $4.2 million in 2011.
At least that's what I heard. None of this was distributed in writing.
47 comments
Sounds like they want to really run the city into the ground, financially.
They've been running it into the ground since Zych was in office. The only people standing in the way of Majewski and friends spending were Schimmel and Crawford. They were running around 2 years ago telling everyone that Crawford was just stingy and that the city had plenty of money for all their pet projects.
Donna: I didn't even think of that, but you're right. Cooper just signed new contracts with both police unions and the fire department too.
I was talking to Cathie about this, and she suggested that shutting City Hall for 2 or 3 days a week, effectively cutting all the staff to part time, might be an alternative to layoffs in police and fire. I think she might be on to something.
Before shutting down city hall for a couple of day a week, how about getting rid of unnecessary overhead; i.e. events coordinator (unless she has held events that has generated her salary). Also we have hired extra people in the past couple of years (since "Bud" had cut it to a bare necessity). We now have Mr. Cooper's secretary (didn't have that before). A DDA executive? I understand that we have to work within a budget, but I would think that the comptroller would have some ideas where the budget could be cut. He needs to step up and make suggestions at a time like this. Also we just put sprinklers in front of city hall ( an un-needed expense). These un-necessary expenses should be evaluated and cut first before we allow the city to cut police and fire. They are necessary for the citizens of Hamtramck.
- 1/4 mile bike trail from vet's park to city border
- Vet's park/rec commission maintenance debacle
- "countdown to paczki day" event
- funding for the blowout from general fund
- unnecessary sprinklers in front of city hall
- Section JC housing project / Aldi giveaway
- Relocation of welfare office to JC
what did I forget?
I don't even know how to explain how many times the city attorney billed us for telephone conversations with Scott Klein.
The basic solution obviously is to cut expenses while keeping the city safe and operational. Right now police and firefighters are busy pretty much all the time, so cutting them will definitely result in more crimes going unpunished, and slower response to fires and situations. Safety comes first. One idea i had was to look for statistically slow times for the police and firefighters, i.e. 10am-2pm on a thursday for example, and cut 4 hours from each person, thinning costs by 10% but in small areas where the difference is least likely to cause a problem. This can apply to each employee effectively creating rotating half-days for staff so that although their workload over time would increase by 11% they would be grateful (as I would in their shoes) to keep my job and just make due.
Oddly enough, cutting $2 million from our budget would effectively mean $1 million or more per year not being spent in the city thus lowering everyone's income and thus taxable income furthering the problem, but what choice do we have? unless someone discovers oil or natural gas under city hall we need to make concessions, this means holding off till next year to buy those flatscreen tv's and 2010 model cars. Priorities people!
And if you dont like those ideas maybe if more people would go to the budget meetings to give their ideas......
What's you position about our city manager intention of turning the old missant site into a garbage dump??
That said, I've passed by the Detroit incinerator on St. Aubin a few times and thought I would pass out from the noxious fumes. I've been told that the smell is not from incinerating garbage; it is methane blowing of the piles of trash being moved with forklifts.
If you want to find out more about the development and voice your concerns about the smell, you need to find out when the plans will be discussed at the Plan Commission meeting. (Could be going on right now.) At the Plan Commission, site plans are submitted by the company, and then the commission determines whether or not the plans meet the city requirements. After Plan commission approval, the plans will be submitted to the city council for their approval. If the plans meet the zoning requirements, the city council pretty much has to approve it, or we'll be sued. The council has been forced to approve several pawnbroker licenses for the same reason.
Here is the zoning ordinance if you would like to suggest reasons to deny the site plan approval.
The city should do whatever it takes to stop this thing from materializing.
The Countdown to Packzi Day event was completely paid for with sponsorhsip dollars the committee raised.
The "funds" that went towards the Blowout were actually MDOT *credits* that were not being used and were going to expire. Said credits were used to pay for the shuttle buses that took festivalgoers from one venue to the next. It seems better to use previously unused credits on an event that makes money for local businesses than to let them expire.
No worries....just wanted to set the record straight. :~)
"You know that money we get every year from SMART that could be used for posted bus schedules, the Hamtramck Shuttle that used to take people without cars around the city, and Saturday trips Eastern Market? We were going to waste all of it, but we gave $5000 of it to a private company to subside their bar crawl!"
Disgusting.
http://hamtramckstar.com/index.php/city-council-1-13-2009-part-two
The fact that the council sold the police station for $1 to HATCH, a non-profit that will presumably not pay taxes, without requesting proposals or advertising the opportunity to any other group in the city.
We've also been paying for city employees to work at Catrina Stackpoole's International Bazaar and Recycling.
It's our opinion that police, fire, roads, sewers and trash service should be the priority. Citizen-based committees should organize events like the Bazaar and only seek permission from the city.
We're all entitled to our opinions right?
yes.
The city's decision to take over citizen run events was a mistake.
We all knew the budget was going to be a problem this year and council spent recklessly, like they didn't know it was coming.
Police and fire account for the vast majority of the city budget (more than 70%?) and just last night the city manager had justify basic maintenance (he was criticized for fixing a SINK HOLE) by a non-Slate member. Our problem is that you never report any of the good the city does. You criticized the mayor's efforts to offer solutions in recessionary times. I mean, c'mon. You've also suggested that the mayor supported the new welfare offices on J.C. because the development co. donated to her campaign. What was it? 50 bucks they gave? Get real. I mean you endorsed Cathy Kristy for Council. Isn't she the same person who insisted the city purchase $100,000 + accounting software that has NEVER worked and must be replaced now? It's not such much what you report, it's what you don't report.
I am sorry that you were misinformed about the computer system that was implemented 10 years ago, while I was the computer consultant for the city. The software did in fact work.
We're all on the edge of our seats waiting for something substantial besides random attacks on Steve and Hillary. Seems at least one of your 'facts' was basically a rumor. Did you go to the mayor's event on opportunities in recessionary times? Was the event itself interesting?
All news is conspicuous in its bias by its content. The mayor and council have the entire city government, and the citizen/review to spread the news about what good they do. Steve and Hillary seem to do a pretty good job telling us what the people in city hall won't tell us, which seems to balance the news environment in Hamtramck somewhat. If you have more news, I'm a voracious reader, and I'll probably read it.
I think you're confused about what constitutes a personal attack.
I will like the Bazaar and recycling when it is properly organized as a committee of volunteers at no cost to the city. When Angel was organizing the recycling for a class, she went to the city and asked for a dumpster. The city could have required her to create an open committee of volunteers, people who care about recycling, to advertise the events and man the dumpster. The committee could have held fundraisers for their efforts, the same as H-CAT and the Polish Day Parade committee.
Instead, the mayor and council took control of the effort by making it a city council appointed commission. They limited the number of members, didn't advertise the seats to the public, and then appointed politicians, including a council person and a dumpster salesman. Gosh, who would have guessed that they would get mired in contract law and political infighting?
This isn't the first time there has been recycling. The city used to have recycling bins that were available for dropping things off every day at the DPW yard on Buffalo. The recycling ended when the emergency financial manager, Schimmel, sold the DPW yard to a charter school.
As to the International Bazaar, it was conceived of by a secret committee that the mayor formed under the "Cities of Promise" umbrella. I call it secret because the membership is not published, their meetings are not posted, and when I filed a FOIA to see their minutes, the city's response was that minutes are not kept. As far as I can tell, the mayor has appointed Scott Klein and Catrina Stackpoole to head all the Cities of Promise committees.
This is another case where paid city employees, some driving city vehicles and using city equipment, have worked overtime, when it should have been organized by volunteers.
Cite examples, or you simply can't be taken seriously. I have a feeling that there is evidence to support just about every single fact cited here. If it's incomplete, add to it, although 'my neighbor told me' isn't usually a reliable source.
Secret meetings. That's hilarious. Though...I did see Catrina Stackpoole walking into City Hall the other day in a trenchcoat, wig and sunglasses. (Peter Gunn Theme plays in the background). This business of getting residents to sell their junk from a folding table is TOP SECRET. Totally appropriate of Hillary to suspect malfeasance.
I mean, we've all read Richard Florida. It's not the bible. Somehow I am going to let the people with graduate degrees in Urban Planning and 30+ years experience have a shot at it. The budget issues were created because the WORLD is experiencing financial woes and American Axle shafted us. We just happen to be more poor than most. I'm proud that the city manager made sure to secure that 2-million rainy day fund.
If you have better ideas about how to improve the City, then, offer some help! Run for office! Write a proposal, don't alienate good people.
And with that, I'm done with this site. I wish you peace.
Obviously they won't listen to us, but maybe they'll listen to these people.
I'm unsure how these events were saved. I don't believe any money has been made by the city - if there was money made it surely was not enough to justify keeping that as a paid position.
In this day - we need public safety not a Paczki Day celebration or a Festival run by a Events Coordinator. A position that didn't exist 2 years ago. She may have done an adequate job - but, it's not worth the safety we get by a cop or a firefighter.
Just curious, is there a chance her job was more a political appointment?
It's not as expensive as a single police officer but that's not the point. $20k projects add up and we knew this budget shortage was coming.
At council meetings one often hears the phrase "advisable, necessary, and in the public interest" in regard to motions. Necessary.
No we can't afford another cop, in fact we can't afford the ones we have.
ah so it is your site "researcher", i thought so. lol.
Hillary, "This is another case where paid city employees, some driving city vehicles and using city equipment, have worked overtime, when it should have been organized by volunteers. "
I was to believe that council members dont get paid by the hour, they get a base pay based on a percentage of the governor, so any extra hours they put in is "free time" for the city, like a salary.
also, as a general comment (cue music), yes we cant afford to pay the cops we have but, in all fairness, we cant afford to lose them either. People, we are barely keeping ahead of the wreckage around us called detroit, residents of hamtramck that are here for the long run do so only because they feel safer here than in detroit. between volunteers on the streets, speed patrols, very fast response times and neighborhood watches, we have managed to keep crime at an estimated 50% of detroits levels if you check the various reports.
sure city, police and fire make up a huge portion of the budget, but thats not because its an inflated expense, its because thats what is necessary to keep our children and neighborhoods safe. Sure we have some blight, some abandoned homes, but mainly thats from families that simply cannot afford to keep a home being forced to choose anything that is better than the streets, even if it is temporary.
and when it comes to pointing fingers and laying blame, please, feel free to do so, because somewhere in that chaos is the truth, and if we have to debate and do fact finding to see what the truth is then its worth it. We are a great country because people like researcher, the cherrys, rh, and others have the right to debate in the streets and be heard.
remember if every hamtramck citizen donated just $3 a year, barely a penny a day, it would support the pay of an officer.
brother can you spare a dime?
(applause)
How about instead of a Public Safety millage we vote on a "extra stuff" millage for our events coordinator and DDA manager?
What's next a city poet laureate and a millage for the roads and sewers?
Last I heard, our per capita B&E rate was slightly higher than Detroit, as were robbery and car theft rates. (Some of the difference may be due to increased reporting of these crimes in Hamtramck.) An unofficial report I saw at a meeting in October indicated that car theft is down considerably compared to 4 years ago. B&E and robbery rates are still high from what I understand, though changes in reporting make it hard to compare the numbers.
The Labor Day Festival was originally organized by Mayor Kozaren and hundreds of volunteers. Every community group in town had a table at the festival, everyone was there, and they invited everyone they knew to come down and see them at the festival. Unfortunately, Mayor Kozaren's committee wasn't formalized enough for the IRS, and he was convicted on tax evasion charges for failing to report Labor Day Festival revenues. That was when the Chamber of Commerce took control of the festival, because the Chamber is a non-profit that is exempt from taxes.
The trouble is that the Chamber has slowly disintegrated and is no longer a properly organized committee. The president is risking the same sort of thing that happened to Mayor Kozaren and has outstanding bills. He allowed the city to take over the festival rather than form a new committee. Some city officials tried to take it over two years ago, but they decided it was too hard, and left George to plan it again. That's why they hired an events coordinator this time around.
The Chamber of Commerce is an important organization in small towns across the US, and our businesses desperately need a unified organization to promote all the businesses of the city. The right thing to do is to revitalize the Chamber of Commerce, the same way that the NAACP branch was reinvigorated, with an inclusive membership drive. The festival, sidewalk sales, advertising, and other activities could then continue as community organized events.
As to the organization of Paczki Day, Mayor Kozaren called on his friend Bob Bennett at Channel 4 and a committee of residents to promote it. Volunteers picked up paczki from bakeries and distributed them to radio, television, and newspapers. The Chamber of Commerce also promoted the event, though I'm not sure if they were ever technically responsible. There was never any money involved.
When the DDA was formed and a TIF established, a director was hired, and then she and the DDA somehow became responsible for some of the planning, and also decided to have a tent event on Saturday involving money raised from donations by city contractors. After the director left, the board hired a business associate of the chair, who then recommended his friend to the newly created city events position. No one at City Hall seems to think there is anything wrong with this candidate selection process.
just brainstorming but maybe if the cops held a vigilante film festival every year, say a week of nothing but vigilante films for a $20 cover, not only would it raise revenue to help pay patrolmen, but it would incite residents to prepare themselves better for home invasions, crimes on the street and resisting temptations.
.....or would that be bad?
I know it's not sexy or fun to use tax revenue to pay for basic city services but it is actually how things are supposed to work.
According to people who have been here a lot longer than I have, he was investigated for unreported festival income, and the IRS even raided City Hall to collect financial information on the festival, but his conviction was actually for his birthday parties/campaign fund-raisers.

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