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HAMTRAMCK–On March 31 The Detroit News reported that Hamtramck Mayor Gary Zych, who has promised to begin privatizing city services, is under fire from businesses who are no longer having rubbish removed by the city, yet are still required to pay property taxes (2.91 mills) for the service. One mill represents $1.00 for $1,000 in assessed valuation. One business owner, Brenda Boden of Burk’s Igloo, has filed a lawsuit in Wayne County Circuit Court to prevent the new policy, saying, "We pay our taxes. We want what we pay for."
Michael LaFaive, managing editor of Michigan Privatization Report, agrees that the mayor’s new mandate is unfair. "Stripping a business of a vital service for which it is specifically taxed, without removing the burden, is just a disguised tax hike," LaFaive said.
Zych defends his decision to commercialize as "a safety and liability issue," noting that the Hamtramck Department of Public Works had been cited by Michigan Occupational Safety and Health Administration inspectors because the city’s garbage trucks lack safety guards.
LaFaive suggests that safety and liability issues are best handled by private, for-profit haulers. "If the mayor is concerned about safety and liability issues he should shift those worries to the private sector, and cut city taxes accordingly." Traverse City shed its commercial and residential garbage operations in 1986 and 1990 and now businesses and people contract with private firms individually.
