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Alpena County likely to try again for tax hike

News Photo by Steve Schulwitz Members of the Alpena County Advisory Tax Limitation Committee consider the new ballot language for a proposed property tax increase in Alpena County. The same proposal was defeated by voters last week, but the county has changed the ballot language and put a four-year cap on the tax.

ALPENA — It appears likely Alpena County will take a second shot at getting a property tax increase approved by voters.

During a special meeting on Monday, county commissioners voted 6-0 to approve new ballot language for a tax proposal that would allow the county to increase its tax rate to make up for what it loses each year because of a part of state law that limits local governments’ tax rates if property tax revenue exceeds the rate of inflation.

The newly formed Alpena County Advisory Tax Limitation Committee, which includes County Finance Committee Chairman Burt Francisco, Treasurer Kim Ludlow, a township supervisor, a representative from the intermediate school district, and residents, met after the commissioner’s meeting and also signed off on the ballot language.

The county board still must give final approval to place the proposal on the November ballot today, which is also the deadline for ballot proposals to get onto the ballot.

The county asked voters for a 0.7-mill increase, which would have helped the county recapture about $800,000 a year and cost the owner of a $100,000 house about $35 a year.

Voters rejected that proposal by a 51% to 49% margin.

The new ballot language, the commissioners say, is easier to interpret than what was on the ballot last week.

The county also included a cap of four years for the increase.The tax proposal voted on last week would’ve raised taxes indefinitely.

County Administrator Jesse Osmer said a survey of department heads revealed that their correspondence with voters before election day included confusion about the verbiage of the property tax proposal and the fact that there was no cap for the proposal’s duration.

He said an attorney drafted the original ballot language for August, but the county found better ballot language after it was approved.

Osmer added that the county is just beginning to ramp up its budget process and it intends to do the budget as if the millage fails again. He said if it passes, the commissioners can amend the budget to include the added revenue.

The county is staring at about a $1.4 million deficit this year and cuts will be needed no matter the fate of the property tax proposal.

However, the tax revenue from the millage and the possibility the county can erase some of its deficit by the end of the fiscal year could save jobs, the commissioners say.

The county’s largest expense is payroll and it is likely, if the proposal fails, layoff notices will be sent out.

“There are no more paper clips or staples we can cut any more,” Commissioner Bill Peterson said.

Commissioner Brenda Founier said nobody wants to lay off staff, but the current budget challenges have pushed the commissioners into a corner. She said the county is not asking property owners for help because it wants to, but because it needs to.

“We are not sugarcoating anything,” she said. “Our biggest budgeted expenses are the salaries. We’re not trying to sell you a song and a dance just to get money. That’s not how it is. We’re very serious, if this millage doesn’t pass and we don’t get this money, we’re going to have to make some deep, hard cuts. That means layoffs.”

Steve Schulwitz can be reached at 989-358-5689 or sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.

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