The last time Addison residents voted on the township’s operating millage rate Jimmy Carter was president of the United States.
On May 3, Addison voters will go the polls to decide whether to increase the township’s operating tax by 0.3164 mill for 10 years.
The increase would raise the property tax back to its original rate of 1.41 mills ? the rate voters approved in August 1978.
Over the last 27 years, rate reductions brought about by the Headlee Amendment caused the original 1.41 mill to roll back to its present rate of 1.0936 mill.
Under the 1978 Headlee Amendment, local governments are required to reduce their maximum voter-authorized millage rates whenever property values rise faster than the rate of inflation. The reduction is commonly referred to as a Headlee rollback.
If approved, the 0.3164-mill increase is expected to generate $91,758 for the township next year, beginning with the December 2005 tax levy. A mill is worth $1 for every $1,000 of a property’s taxable value. Addison’s proposed millage hike would amount to a 31-cent increase for every $1,000 of a property’s taxable value.
Basically, Addison needs the money because its expenditures, such as employee health insurance benefits and legal costs, have risen while its revenues have diminished, according to township officials.
Treasurer Dan Alberty said one of the biggest expenses has been attorney fees. Last year, the township spend $271,000 in legal fees to defend itself against lawsuits filed by developers and CMS Gas.
‘That’s over a quarter of our budget,? Alberty said.
Developers have filed lawsuits against the township because they were denied requests for high density developments due to Addison’s lack of infrastructure and desire to maintain a rural atmosphere by requiring larger lot sizes and low density.
CMS Gas filed suit against Addison last year because the township would not give the company an extension to continue its natural gas extraction operations on Lakeville Road due to numerous odor complaints by residents.
Alberty said the costs associated with these lawsuits are beyond the township’s control because it’s obligated to respond and defend against them.
Add to these expenditures the fact that Addison collected only $3,000 in additional property tax revenue in 2004 while it suffered more than $200,000 in state revenue sharing cuts over the last three years, according to Alberty.
Increased expenditures and lack of revenue have forced the township to cut its matching contribution to the road chloriding program from 50 percent to 25 percent. As a result, residents have to pay an extra 25 percent if they want their gravel road chlorided to control the dust.
Addison has also not been able to do any road improvements such as adding gravel to its roads for the last two years.
Alberty noted there’s about $180,000 in tri-party funding ? road funding from Oakland County and the road commission ? earmarked for Addison for improvements, however, to gain access to it, the township would have to contribute $60,000 ? money it doesn’t have.
For three years, improving the asphalt surface and drainage at the intersection of Townsend and Romeo (32 Mile Road) roads has ‘been on the books,? but Addison hasn’t had the matching funds to access the tri-party money to fix it, according to Alberty.
Funding cuts have also been made to the township parks system and repairs/improvements to the township hall, according to Clerk Pauline Bennett.
If this millage increase isn’t passed, Alberty said road improvements will continue to go undone and the township’s chloriding contribution could be cut entirely.
Another possible budget cut could be the township’s contribution to the Polly Ann Trailway Management Council, according to Alberty.