Charter Amendment Vote November 7

The voters of Iron Mountain will have the opportunity to vote on an amendment to the City Charter on November 7 Election that will assure that some of their taxes will go off the books permanently.  This is an amendment that could have been avoided if the City Council had done their job.  Instead, they sat for months on a pass-through agreement TIFA had passed that they could have voted on and signed at any time.

As a result of their inaction, group of citizens formed a committee. They started Initiatory Petition, got far more than the necessary signatures in record time and dropped them on the City Clerk.

Under state law, when the necessary signatures are verified, the petition language is forwarded to the Office of the Attorney-General for verification and clarity of the language.

Formal Language of the Amendment

The total dollar amount of ad valorem or personal property taxes levied for the City of Iron Mountain Police and Firemen Retirement System shall not exceed the amount of the contribution actually required as determined by the actuarian of the retirement system.

What it would do

Prohibit the city from levying any taxes for the Iron Mountain Police and Firemen Retirement System in excess of the required total dollar amount as determined by the actuarian of the retirement system.

What's all about - Brief History of the Issue

At a TIFA meeting around December 2005, a retired Iron Mountain Police Officer was in attendance.  He asked a very simple question.  Does the existence of the Iron Mountain Tax Increment Authority (TIFA) affect the Police and Firemen Retirement System in any way? 

The Chief Financial Officer of the city attends all TIFA meetings as part of her duties.  She explained that the P & F Pension Plan receives all the money that the actuarial firm hired for the plan determines each year.  To avoid shorting the pension plan, an additional levy was assessed city wide because of the existence of TIFA.  If the additional levy did not exist, the pension plan indeed would have been shorted.

This explanation was the first time this, or any other TIFA Board, had heard that such an arrangement existed.  The TIFA Board quickly understood that such a city-wide levy was never intended, and certainly unfair.  The Board then consulted and received legal advice on how to remedy the situation.  It was informed that an agreement could be entered into with the City Council that would end the additional levy. This would save the taxpayers of Iron Mountain over $140,000 in the 2006-07 tax year and close to $1,000,000 total for the duration of TIFA's existence.

The TIFA Board prepared the agreement and voted for it unanimously.  It then presented the agreement, known as a pass-through agreement, to the City Council.  The Council did not act.  Under the pretense of having to study the issue, it sat on it for months. 

Tired of the stalling tactics, and knowing from all indications that the council had no intention of relieving the taxpayers of the tax, a group of citizens formed the committee that produced the amendment and circulated petitions.  The petitions were then presented to the City Clerk in late June.

The City Council Caves

By the July 3 meeting, the City Council realized that the Charter Amendment would pass overwhelmingly in November.  They were in a serious dilemma.  What would voters think of their inaction?  In a desperate move to salvage a bad situation, they voted to go along with the pass-through agreement.  Rest assured they would have continued the tax if they had a choice.  

The disregard for the taxpayers and abuse of power this City Council and City Manager have  displayed is unheard of.   By getting information to the public, this website is dedicated to exposing their shenanigans.  Many others examples will be posted throughout this website.  

The taxpayers of Iron Mountain are tired of being abused by the very people who sit on the council and are supposed to protect them, not shear them. 

The Formal Language of the Charter Amendment Ballot is:

"The total dollar amount of ad valorem or personal property taxes levied for the City of Iron Mountain Police and Firemen Retirement System shall not exceed the amount of the contribution actually required as determined by the actuarian of the retirement system."

What it will do:

Prohibit the city from levying any taxes for the Iron Mountain Police and Firemen Retirement System in excess of the required total dollar amount as determined by the actuarian of the retirement system.

The Ballot questions will be:  Should this amendment be adopted?

                                                            Yes  ____

                                                            No   ____    

Vote YES on November 7

Make the tax cut permanent.