News Photo by Steve Schulwitz A group of seniors play a game of pinochle while visiting the Alpena Senior Citizens Center on Friday. The senior center, and other organizations that provide services for seniors are struggling with the inflation, which has impacted their bottom line.

ALPENA — A tax increase may be needed in Alpena County to help offset the rising costs of senior services, such as Meals on Wheels and other in-house programs at the Alpena Senior Citizens Center.

According to Alpena County Older Persons Committee Chairman Craig Zelazny, the committee considered asking for more money before the current 0.55-mill tax was renewed in August, but decided to stay with the status quo to give it a better chance to pass.

The current tax costs the owner of a $100,000 house about $27.50 a year and helps fund programs that help seniors with everything from health to social well-being to transportation of Alpena County residents 60 or older.

The millage expires at the end of 2025.

Now, Zelazny said, the amount of money collected from the millage is short of what is needed to disperse to groups and organizations that assist the county’s older population.

He said tax revenue from the senior millage in 2022 came in just shy of $600,000 — a portion of that was from allocations from past years that were unused and rolled over — and all of it was allocated for projects in 2023.

Zelazny said the county received $690,000 in funding requests, which left the committee with difficult decisions, and forced local organizations to scramble to make up the difference between revenues and expenses.

Zelazny said it is possible the committee could allow some time for the new, incoming Alpena County commissioners to get settled after the first of the year, and then, maybe, broach the topic of a county-wide tax increase to supplement the current millage.

“I think we’ll have to sit down and have some serious discussion after the first of the year,” he said. “We considered an increase before, but it was decided to keep what we have now and make the best out of what we have, but we might need some more help because these are all programs that are vital and if we don’t support them, there are literally seniors who could go hungry.”

The senior center is one of the largest beneficiaries of the millage, but it also depends on state and federal funding to keep the doors open and provide its programs and services. It also fundraises and applies for grants to help bridge the gap between what it spends and receives in revenue, but still, the budget is tight and prices continue to climb.

Director Annie Hepburn said the cost of food, gasoline, utilities, labor, and other needs has caused a budget headache. She said the food programs — including Meals on Wheels and the meals served at the center — have seen large spikes in costs and if more revenue isn’t found, it could get to the point to where the center must charge seniors for activities that provide exercise, health education, and other events that allow the seniors to socialize.

“We’re not there yet, and we are doing everything we can to avoid it, but there could come a day when we have no choice, if we can’t narrow the gap between revenues and expenses,” Hepburn said. “That is not something we want to do because many seniors won’t be able to afford it.”

The senior center’s savings has dipped over the last several years, but Hepburn said there is still about $500,000 in savings right now. Tax forms show that was enough to cover five months of expenses in 2019, but prices have risen since then.

If a supplemental tax is in the cards, Zelazny didn’t want to speculate how large or small it would be. He said when an increase was considered before the August election, the committee had several millage options, with the revenue projects to consider.

In the end, he said, it was decided to stick to the past tax rate, even though prices were already climbing.

Zelazny said the people in the county have always been very supportive of seniors, but he acknowledged most people are facing higher costs themselves. He said that could make getting a new millage approved more difficult.

“I think it could be a tough sell, but the people have always been very supportive,” he said. “But, if we continue to receive the same amount of revenue, and grant requests, we are going to be well short.”