Proposal: Increase BWL User Fees to Fill Budget Gap

By: Fay Li Email
By: Fay Li Email

"If people choose not to do this, we got to find an additional $5 million in cuts."
-- David Hollister, Lansing Financial Health Team

Maintaining street lights and fire hydrants is an expensive job. Now, the Lansing Board of Water and Light is paid $5.5 million a year to get it done. The City of Lansing pays for the service out of its general fund, which is millions of dollars in the hole for the upcoming fiscal year. The financial health team suggested a solution to save the general fund and put the cost directly on customers' bills.

"Most people's property tax have actually gone down so they're not going to see an increase in cost, it's simply a shift in how it's paid for and frees that money then to do police protection, fire protection," said leader of the Financial Health Team and former Lansing Mayor David Hollister.

If this recommendation is adopted, the average rate hike per family is about $46 per year, less than $4 a month. However, the increase on businesses, depending on the size, can be around $1300. Any rate change must be approved by the BWL Board of Commissioners. Chair Sandy Zerkle says they haven't taken a stance on whether to support or object this suggestion.

"We can't really act on anything until we actually get a proposal from the city if that's what they want to do," Zerkle said.

However, Hollister says the city must find different ways to do business and to replace the revenue lost from property taxes.

"If people choose not to do this, we got to find an additional $5 million in cuts."

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  • by Lee Location: Location on Mar 18, 2013 at 05:04 AM
    If I have to pay for streetlights I want them turned off at 9pm. I turn the lights off in my house to save money so... and in my opinion you can cut police. They don't do much anyway. Used to be they could show up and take a report now they just show up (sometimes) and tell you there is nothing they can do! Lansing is a place most just want to get out of!
  • by LansingarmyDad Location: Lansing on Mar 17, 2013 at 09:03 AM
    I am wondering why time after time when the budget deficit problem comes up and its blamed on lost property tax revenues, there is never ant mention of the hundreds of thousands of dollars in business tax abatements to businesses like "Troppo". Mr. Mayor, if you raise my taxes for streetlights that my property taxes should already be paying for I am going to expect an explanation as to why you didn't address recinding all of the current tax abatements first!
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