Budget Woes May Force Cities Like Detroit, Hamtramck To Combine

[Casual]

Combinations might also be in the works in Michigan, where local officials are mulling over the possibility of a merger of cities. A cluster of municipalities in the Detroit area faces severe strains, and a combination could potentially bring much-needed relief, some politicians say.



Last year, Detroit and Hamtramck, an independent city located entirely within Detroit's borders, were locked in a dispute over tax revenue. A General Motors plant -- the one that produces the Chevrolet Volt -- straddles the cities' border, and the two governments agreed decades ago to share that property tax revenue. But then Detroit started withholding payments, critically weakening Hamtramck's budget, the tiny city claimed. Desperate, the city of 20,000 people attempted to enter bankruptcy.


As part of a deal struck last month, Detroit agreed to pay Hamtramck $3.2 million for the lost tax revenue, and Hamtramck agreed to pay Detroit for water and sewer charges it owed. But both cities still face myriad woes. Hamtramck, for its part, will remain solvent only for the next 10 months, estimates Bill Cooper, the city manager.


Detroit, too, faces trouble. The decline of automobile manufacturers has put thousands out of work, and an exodus of residents has left the government scrambling to fill its coffers. Whole neighborhoods of buildings are decaying. The most recent Census numbers showed Detroit's population had dropped by a fourth over the last decade.


Making matters worse, Detroit's population has officially dipped below a legal threshold, now preventing the city from collecting a tax on electricity, heat and phone lines, and forcing the government to reduce its income tax rate. Mayor Dave Bing has taken the matter up with the state, and significant portions of the city's tax collection now hinge on whether the state legislature passes certain bills. In the meantime, the city stands to lose more than $100 million this year.


Residents of Detroit and Hamtramck have talked about a possible merger for years. Last month, Michigan passed a law empowering state-appointed managers to take over the finances of troubled local governments, a scenario that local officials are striving to avoid. With budget strains mounting, local politicians now see a municipal merger as a potential way to resolve fiscal difficulties without state intervention.


Outside city hall, Detroit politicians have quietly considered the idea of combining their city with Hamtramck and Highland Park, another municipality surrounded by Detroit. Councilman Kenneth Cockrel informally proposed taking a potential combination even further, merging Detroit with the suburbs of Ecorse and River Rouge. "


It would automatically solve the population issue," Cockrel said. "But it's not like you can just go out and do an annexation next week. There's a process you've got to undertake, and, I'll admit, I'm not totally familiar with that process."

Even if a merger could solve some of Detroit's problems, Hamtramck might resist. Hamtramck residents see their city as a relatively safe haven within Detroit, which, according to an analysis of FBI data, is the nation's third most dangerous city. The police in Hamtramck pride themselves on fast, thorough service, and some officers and residents doubt that Detroit police would be able to provide the same level of protection. What's more, a merger would likely require a reworking of payrolls, potentially resulting in layoffs. Dan McNamara, president of the local Detroit firefighters' union, wouldn't speculate about what might happen in a merger, but expressed support for the Hamtramck firefighters. The president of the Hamtramck firefighters' local didn't respond to requests for comment. But almost certainly, some jobs would be eliminated. At the very least, Cooper, the city manager, would be out of work, he said. "If a community can't afford to provide the services that it should provide to its citizens, then you've got to look for alternatives," Cooper said. "If that means combining communities, then that may be what has to happen." http://www.huffingtonpost.com/2011/0..._n_852312.html

[Fnemecek]

A Detroit/Hamtramck merger could work - as long as it leaves Hamtramck in charge of both cities. They're light years ahead of the idiots in the CAYMC.

[Bham1982]

I don't think there's any evidence cities are considering consolidating.

Why would Hamtramck merge with Detroit? How would this benefit Hamtramck? Would the schools improve? How about real estate values, or retaining the upwardly mobile immigrant stock? Don't think so.

And Detroit is so big relative to Hamtramck; why even bother annexing this financially troubled pipsqueak?

And the Poletown plant has been the source of friction since it was built. There's no evidence it will bring the two sides to merge.

IMO, deannexing sounds like a better idea. I don't think any cities bordering Detroit will be pushing to merge with the center city. Even Highland Park, I'm not so sure.

[skyl4rk]

Consolidating makes sense for smaller cities near eachother. Detroit is so large, a better case could be made for breaking it up into more managable city-districts.

[Brian1979]

I've wanted to see Hamtramck, Highland Park, Redford, Ecorse and River Rouge annexed into Detroit for awhile. Detroit combined with the cities I mentioned would have a total land area of 160.4 square miles and a population of 821,297, the population density of the city would be a tad lower though. I'd like to go even a step further and annex the city of Dearborn Heights but not Dearborn that would still be a separate city from Detroit. With Dearborn Heights that goes up to 879,561 people and 172.1 square miles.

[Bham1982]

I've wanted to see Hamtramck, Highland Park, Redford, Ecorse and River Rouge annexed into Detroit for awhile.

Why?

How would these smaller communities benefit, and how would Detroit benefit?

As challenged as Detroit may be, I don't think these cities would help one bit. And excepting maybe Highland Park [[which is in worse shape than Detroit), I think the other cities would be pushed over the edge. Redford, in particular, would slum-ify overnight, IMO.

I like the creative thought to regional solutions, but taxpaying residents of these communities don't want to be included in the core city's problems.

[Detroit Stylin]

Why?

How would these smaller communities benefit, and how would Detroit benefit?

As challenged as Detroit may be, I don't think these cities would help one bit. And excepting maybe Highland Park [[which is in worse shape than Detroit), I think the other cities would be pushed over the edge. Redford, in particular, would slum-ify overnight, IMO.

I like the creative thought to regional solutions, but taxpaying residents of these communities don't want to be included in the core city's problems.

So how would Detroit cause those areas to slimify over night. is there some mystic phenomenon that's causing them to not do it on their own if not annexed?

[Hamtragedy]

I like the fact that police show up within two minutes, especially considering I'm literally 75 feet south of Zombieville. Hell, Hamtramck police actually respond to calls there because the DPD presence is shitty at best. It's so bad there, that many cabs no longer drop off or pick up fares.

As a matter of fact, the last time I drove to the precinct on Nevada, I passed it because there were no lights on in the parking lot. Regardless, you're going to have a hard time convincing anyone in Hamtramck that merging with Detroit would be anything but the demise of Hamtramck. Refer to the recent Poletown/Chene St. threads.

[Richard]

They probably could have taken that same amount of time and money in that thought process and added another officer in the streets.If those within the city started knocking off the little I wanna protect my budget spats and actually worked together for what is right for the city and its taxpayers it may just be able to get somewhere.

It is crazy to talk to 5 different people within city hall and receive no answers,not even a let me do some research on that and get back to you with an answer.That is 5 people that do not need a job representing the citizens let alone care about their fellow neighbors.Take their salary and add more officers.

Detroit is at that weird tipping point where the balance of those residents who really do not care verses those who do is at a point where she needs strong leadership that is willing to clean house and do what it takes to get her over that hump.

So if Detroit adds Hamtramck for instance what is she really gaining,H all ready is streamlined in the ratios of service demand for its residents,there is no gain other then adding census numbers or padding the books so to speak.Fix the problem instead of looking for ways to throw more money at it. If your boat has a hole in it do you spend more money on a bigger bilge pump or do you fix the hole?