Pontiac To Pay Off Multi-Million Dollar Debt By Imposing Tax Levy
PONTIAC (WWJ) - Pontiac residents will see an increase in taxes following a meeting Tuesday morning at Pontiac City Hall.
A three to four million dollar judgment tax levy will be assessed to the city for what it owes to the Voluntary Employment Benefits Association.
Pontiac Mayor Leon Jukowski said the city simply doesn't have the money to pay their debt.
"The VEBA board sued the city, we've confessed judgement and therefore that judgement amount of $3 to $4 million will be put on the tax rolls," said Jukowski .
"I hope that people understand that this is not something that anybody wants to do, but we're really at a point where we don't have any other financial option. So, when this levy is put on the tax payers, most people are going to find that their taxes essentially stay level instead of dropping further," he continued.
The one time tax hit will cost an average Pontiac homeowner between $200 and $215.
A meeting is set to take place at 10 a.m. Tuesday at Pontiac City Hall.
In August, the city's Emergency Financial Manager Michael Stampfler said Pontiac could run out of money as early as April. Read more, here.
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