Moran Twp. Questions $51,000 Fire Service Bill

2009-09-10 / Front Page

Whole Formula To Be Reviewed by City and Townships, Dodson Says
By Michael Ayala

The Moran Township board will protest an $8,000 increase in the yearly fire protection bill received from the City of St. Ignace until an explanation is received. The decision was made during the Wednesday, September 2 meeting.

Last year's fee was $43,000, which increased to $51,000 for 2009, Supervisor Jim Durm said. The board unanimously agreed to pay the amount of last year's fee until the reason behind the increase is determined.

St. Ignace City Manager Eric Dodson told The St. Ignace News the reason for the jump is higher labor and equipment costs, to the tune of $8,000.

The number of responses the St. Ignace fire department has made over the past few years has increased, as well, he said. The department once averaged 80 runs in a year but has recently increased to more than 100.

Members of the board also learned that the township has not had a fire protection contract with St. Ignace since 1990, Trustee Mark Spencer said. Bills, payments, and protection have been provided since that time, but the board would like to renew the contract.

A committee consisting of two representatives of the Moran Township board, St. Ignace Township, and the City of St. Ignace will be established to discuss the renewal of the fire protection contract.

The Moran Township board appointed Treasurer Susan Dionne and Mr. Spencer to serve on the committee.

The City of St. Ignace has appointed Mayor Paul Grondin and Mayor Pro-Tem Don Gustafson to serve on the board.

St. Ignace Township will be contacted at a later date concerning the commission, Mr. Dodson said.

Mr. Dodson explained the committee will meet in several weeks to discuss the fire protection billing formula and the contract. A review is necessary, he said, as it has remained the same for nearly 50 years.

The meeting will determine if the formula is still relevant toady or if it needs revision.

"I think this goes deeper than a simple bill," Mr. Dodson said. "I think it goes into what we will be doing in the future."

Industrial Facilities Tax

Abatement Approved

An industrial facilities tax abatement affecting Griffin Beverage, on the corner of US-2 and Old Portage Trail, was reapproved at the township board meeting. The tax abatement was originally approved during a public hearing August 6, 2008, but it was not properly advertised, Mr. Durm said.

Formal letters are supposed to be sent out to all taxing agencies that would be affected by the tax abatement, he said, such as Mackinac Straits Hospital and St. Ignace Area Schools. A public notice was placed in the newspaper, but no letters were sent.

The approved tax abatement for 12 years will reduce assessed taxes on the facility by 50%. Levied taxes without the abatement would total roughly $11,956 a year.

With the abatement it will be $7,028 a year, a difference of $4,928. Griffin Beverage will save about $59,137 with the tax break.

Owner Robert Griffin, Jr. approached Moran Township in 2007 seeking to expand his facilities. Mr. Griffin wished to build a new facility at the township if an abatement would be granted. It was a year before it was granted.

Taxes collected from the facility will be only half of what could be obtained, but the commissioners agreed during the September meeting it would be better than receiving nothing.

Moran Township Hires Assessor

The township board unanimously decided to hire Richard Oliver to serve as the township's assessor. Mr. Oliver originally served as a contracted assessor for the township and was hired as a part time township employee to meet Internal Revenue Service (IRS) rules.

Assessors must prepare a record of assessed property values in a particular taxing district, known as an assessment roll, and sign it.

A public officer must be the one to sign the roll, leading to the requirement that an assessor must also be a township employee.

In a written letter to the board, Mr. Oliver pointed out much of the work of an assessor can be accomplished on a part-time basis. He proposed to be hired with a $200 monthly salary.

Assessment work typically takes place from November to March, Mr. Oliver said, but hiring on as a year-long employee will prevent any appearance of deception to the IRS as well as saving the township on costs that would be charged for unemployment.

The township's attorney also said this would satisfy the IRS requirement.

Township statutes provide that the supervisor can act as the assessor, said Jim Beelen of Michigan Townships Asso-ciation (MTA).

In the event the supervisor is unable to perform assessing duties he has the option to hire someone qualified to do so. Assessment duties have become increasingly complex, he said, and with supervisors working on a part-time basis, many townships have resorted to using private contractors.

"In order to get the expertise required, you have to contract people," Mr. Durm said.

The IRS has required assessors to be township employees since early 2000, Mr. Beelen said, but MTA was not aware of the law. It was not until recently that a member of the MTA was notified of the requirement. It was determined hired contractors can also own an assessment business.

Brevort Township was faced with the same situation. The township board also agreed to hire Mr. Oliver under the same terms.

Offer To Paint Gros Cap

Church Considered

A couple wishing to marry at Gros Cap Church next summer wants its interior repainted, according to a letter sent from the couple to the board. The couple claims the lime-green paint is unattractive and are willing to provide the materials necessary to have it redone.

The board agreed repainting the interior would be a good idea, but members were unsure if the couple would be responsible for the work or if a painter would need to be hired.

The damage that an inexperienced painter could cause to the church was a concern they raised.

A bid for the work will be placed to determine the potential cost of a paint job. No further action was taken.

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