June 16, 2014 at 10:47 am

Report: Mount Clemens could cut work days, pay if tax fails

Mount Clemens — The Detroit suburb of Mount Clemens should move to a four-day workweek and seek 15 percent pay cuts for employees if a tax proposal on the Aug. 5 ballot fails, according to a new report.

The review from a consultant for the Southeast Michigan Council of Governments also spells out recommendations if voters approve the measure, which would raise property taxes from 15 mills to 20 mills, The Macomb Daily reported.

Consultant David Boerger said in the report that the tax increase “is an appropriate next step to offset deficits created by major property tax and state revenue drops created by the Great Recession.” The Mount Clemens City Commission is expected to review the report.

A mill is $1 per $1,000 of a property’s assessed value, and Michigan assesses property at half its estimated market value.

Mount Clemens invited a team of SEMCOG representatives to analyze the city’s finances and prepare recommendations to restructure budgets, assist in collaboration opportunities with neighboring communities or Macomb County, and assess ways to structure legacy costs.

The city says it can’t continue to pay for unfunded liabilities such as retiree health care and still provide essential services with existing revenues. And Interim City Manager Robert Bruner has said the city could a financial emergency and state oversight if the proposal fails.

The current budget carries $1.1 million more in expenses than revenues.