Troy Mayor: City's Future Strong, but Comeback will Take Time

The effects of Troy’s strengthening business community and cost-saving measures being taken by the city won’t match the loss of revenue from declining home prices for at least three years, Mayor Louise Schilling forecast during her State of the City address Wednesday.

“These past few years have not been easy due to the struggling economy,” Schilling said. “However, I remain hopeful because there are a lot of positive things happening in Michigan and especially in the city of Troy.”

While Schilling said after the meeting that it's difficult to sum up the state of the city in a sentence, the message to some residents was clear.

 “I would say it’s hopeful, but at risk,” said Ellen Hodorek, a Troy resident for more than 20 years.

Schilling spoke for about 40 minutes to about 75 people at the Troy Community Center, highlighting the accomplishments of city staff and explaining a restructuring plan that aims to reduce personnel costs and consolidate operations while maintaining government services. She said the continuance of businesses relocating and expanding in Troy’s three main business districts are positive signs of the city’s economic vitality.

“Some businesses are replacing others that moved from Troy,” Schilling said. “Don’t be misled into thinking these new businesses equate to making up revenue lost with the drop in valuation properties. The upturn will not begin for three years, which means we still have declining revenues.”

The city has reduced its personnel payroll by more than $8 million, or about 26 percent, from October 2009 to June 2011, Schilling said.

Other “best practice” measures include a 10-percent concession to employee wages and health care benefits; the elimination of longevity pay for new hires; the cancellation of tuition reimbursement for nonunion employees in 2008. These and other actions are evidence the city’s leaders are fiscally responsible, the mayor said.

“Thanks to the many sacrifices we have all made, Troy is still one of the highest-rated communities for our service, public safety, and trained workforce,” she said. “Our quality of life is second to none.”

Schilling took time to address the future of the city’s , which she labeled as one of the best in Michigan. City Council voted 6-1 to place a dedicated library millage vote on the Aug. 2 ballot, which she said she endorses.

The fate of the library still weighed on many residents' minds.

“She was very succinct, but I still have questions about the library,” said Sylvia Crombe, a resident of Troy for 14 years.

Wednesday’s address was the first that included an open invitation to all residents, rather than business leaders, city spokeswoman Cindy Stewart said.

“She wanted to reach out to the residents,” Stewart said. “The mayor even bought cookies.”