GR income tax revenues up 9.6%

[GRDadof3]

Full article

...estimated enforcement and compliance efforts brought in an extra $1.6 million during the fiscal year ended June 30.

..Buhrer said the city also collected an additional $2.9 million in taxes due to increased economic activity.

Other than the slew of new developments downtown, that's probably some of the best news in a long time for the city.

[zenstyle]

I couldn't agree more.

Repeat after me, kiddies:

with taxes you get services. Services are what make a community liveable and desirable.

[GR_Urbanist]

I think it's more of all of the tax breaks that have been given to business to keep them here and to get more to move here. They come to GR, start up companies, hire people, make money and thus more tax revenue from the companies and their employees.

They should make the whole city a low tax zone!

[mjak68]

[quote name='GR_Urbanist' date='Sep 23 2006, 11:36 AM' post='564991

They should make the whole city a low tax zone!

[CK1]

The tax base and related collections should really jump when all the Ren Zones phase into taxability in 5-7 years.

In the mean time, yes, its a very, very good sign that the city of GR is bring in more money, but lets not get ahead of ourselves. It wasn't too many years ago the US Gov't was predicting many, many billions in surpluses, and look at where it is now.

Is Grand Rapids in the red or black? If in the black, hopefully the elected officials are fiscally responsible with any excesses collected.

[GRDadof3]

The tax base and related collections should really jump when all the Ren Zones phase into taxability in 5-7 years.

In the mean time, yes, its a very, very good sign that the city of GR is bring in more money, but lets not get ahead of ourselves. It wasn't too many years ago the US Gov't was predicting many, many billions in surpluses, and look at where it is now.

Is Grand Rapids in the red or black? If in the black, hopefully the elected officials are fiscally responsible with any excesses collected.

I'm pretty sure it is in the black, but it's been at the expense of reduced services like firefighters, police, pools, parks, etc.. There's more info HERE.

Certainly it's not time to pop the champagne yet, but it's better than the alternative. And I'm sure the city will have to continue making cuts for the next 2 - 3 years, but if the trend of increased revenues continues, it may lessen the blow. Another thing I wonder, does Spectrum Health pay taxes to the city? Or VAI? Or the new Med School? If not, hopefully they will create enough spinoff commerce to increase revenues.

[tamias6]

Its good to see GR turning a profit again. I think DT's revival can take credit for that or atleast much of it. But I'll feel alot better if and when the statewide econamy finally sees some positive changes as it's the only thing holding GR back right now.

[201test]

The tax base and related collections should really jump when all the Ren Zones phase into taxability in 5-7 years.

The state passed the following last week:

HB 5942: Sponsored by Rep. Palsrok (co-sponsored by a diverse, non-partisan group)

Amends the Michigan Renaissance Zone Act

Beginning Dec. 1, 2006 through Dec. 31, 2011, a qualified local government in which a renaissance zone had been designated

[MJLO]

My question is this, If there is an increase in Income tax revenue, could this also point to perhaps a population increase within the city as well? I know there is all this talk of downtown development, but I know that the residential increase downtown would have a minimal impact on the city financially, but a more powerful impact on the cities image. Do we know if there has been any forward mobility in the neighborhoods?

[tamias6]

The state passed the following last week:

HB 5942: Sponsored by Rep. Palsrok (co-sponsored by a diverse, non-partisan group)

Amends the Michigan Renaissance Zone Act

Beginning Dec. 1, 2006 through Dec. 31, 2011, a qualified local government in which a renaissance zone had been designated

[CK1]

I'm pretty sure it is in the black, but it's been at the expense of reduced services like firefighters, police, pools, parks, etc.. There's more info HERE.

Certainly it's not time to pop the champagne yet, but it's better than the alternative. And I'm sure the city will have to continue making cuts for the next 2 - 3 years, but if the trend of increased revenues continues, it may lessen the blow. Another thing I wonder, does Spectrum Health pay taxes to the city? Or VAI? Or the new Med School? If not, hopefully they will create enough spinoff commerce to increase revenues.

Not sure...med school most likely not as colleges and universities don't pay property taxes. Some schools, however (such as UofM), voluntarily give $$ to the city its located in for deemed value of services provided (fire, police, etc.)

[CK1]

The state passed the following last week:

HB 5942: Sponsored by Rep. Palsrok (co-sponsored by a diverse, non-partisan group)

Amends the Michigan Renaissance Zone Act

Beginning Dec. 1, 2006 through Dec. 31, 2011, a qualified local government in which a renaissance zone had been designated

[CK1]

My question is this, If there is an increase in Income tax revenue, could this also point to perhaps a population increase within the city as well? I know there is all this talk of downtown development, but I know that the residential increase downtown would have a minimal impact on the city financially, but a more powerful impact on the cities image. Do we know if there has been any forward mobility in the neighborhoods?

While many of the new residents of downtown that live in ren-zone areas and therefore wouldn't directly pay taxes, what they would be doing is paying more for parking (DDA income), and would most likely spend more at downtown bars, restaurants, and retail, which in turn would have higher taxable income (and would pay more taxes). Having more residents downtown also brings more non-downtown people's money there, which in turn spurs non-ren-zone development, directly lining the city's coffers. A nice domino effect that we are not apparently seeing...

[201test]

So does this mean already established developments can petition to extend tax free status? As much as these developments have helped re-envigorate the city core, I don't think the free ride should last indefinitely...

No -- highly successful RZ are unlikely to get approved, but there are some like North Monroe that have started to fade (anyone know anything new on the Autodie deal???), while others were established and saw absolutely no interest or traction. These are the areas likely to be considered for extensions. Hopefully the City will not wait around forever.

[201test]

I'm pretty sure it is in the black, but it's been at the expense of reduced services like firefighters, police, pools, parks, etc..

Revenues are up, but the current budget is red, per this in the GRBJ in June:

GRAND RAPIDS - It was budget sweeps week at City Hall last week, as five plans worth more than $132 million were adopted for the upcoming fiscal year that begins in less than two weeks.

Of course, the largest spending plan approved last week was the FY07 city budget. The general operating fund plan calls for expenses to total $118.9 million and revenues to reach $114.7 million, with the deficit to be filled by a $4.2 million transfer from the fund balance.

[gvsusean]

Other than Icon on Bond, North Munroe seems to have stalled a bit. I bet it would be a different situation if I-196 would have been routed north of Leonard St. or ran undergound when first built. Elevated Highways really do a number at shredding a city to ribbons as well as curtailing the spread of DT areas.

what about the new founders brewery, boardwalk, and the old water treatment plant