The Milan News-Leader
A Heritage Newspaper
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Road millage request on ballot
Request of 2 mills over 15 years to generate $6.2M
By Sue G. Collins, Staff Writer
PUBLISHED: September 4, 2008
Milan residents will have the opportunity in November to decide for themselves whether to allow the city to borrow funds to fix the municipality's crumbling roads and underlying water and sewer infrastructure.
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At the City Council meeting Aug. 25, council members voted 6-1 to put a street and utility bond proposal on the Nov. 4 ballot, for a 2-mill tax hike that would generate up to $6.2 million over the 15-year life of the bond. A 2-mill levy would cost the owner of a home with a taxable value of $100,000 about $200 a year.
Council member Martha Churchill cast the sole dissenting vote.
"I went door to door and people told me they wanted taxes to go down. There are a lot of hard-luck stories out there," Churchill said. "We are wasting our time with this tax."
However, Churchill said later that she agreed the roads need repairing.
The deadline to place the question on the ballot was Tuesday. Adding the proposal to the November ballot will not cost taxpayers any extra money since the general election is scheduled.
Council members met last week for an hour-long special work session to discuss the issue and talked for another 30 minutes during the regular meeting to decide whether to offer Milan residents the chance to vote, exactly how much to borrow, how to best inform residents about a proposed bond and repair plan, and if the city should explore a charter amendment for a permanent change.
Milan resident Peter Blaine was the only resident who spoke when the floor was opened to the public. He is against a possible tax hike.
"Most people on council have good jobs," he said. "There are people around here who are in a lot of trouble. We are in desperate trouble and need to make tremendous cuts."
Mayor Kym Muckler said, "We are not raising taxes tonight. We are giving residents the opportunity to make their own choice in November if we decide to put the bond proposal on the ballot.
"And we have been at a critical point for years with our roads. Some are flooded on and off from February to June."
Council member Joe Chapin spearheaded the initial discussion on the bond to pay for the road problems. City attorney William Beach worked with Paul Stauder of the public financial advisory firm Stauder, Barch and Associates to put together four different financing scenarios. They looked at options for city to borrow between $2.5 million and $6.2 million over 10 to 15 years. The estimated interest rates of 4.5 percent to 4.75 percent would cost the city between $650,000 and $2.5 million for the new bond. Council members chose the longer loan period to offer voters.
If residents chose to support the millage, council will have to decide by early spring whether to go with the bond and what the financial plan should look like.
Council members were confident.
"This council has made hundreds of thousands of dollars of cuts and has saved the residents hundreds of thousands already. We're ready to make the best decisions for you," council member Doug Gilson said to the dozen residents gathered in council chambers and to those watching future broadcasts on the community cable network.
"Even in good times, we don't want to raise taxes. It will be important to get all the information to the people before asking them to vote."
Muckler suggested council host town-hall meetings to disseminate the background information.
Chapin said he will urge voters to support the bond.
"One street may not need work, but either the whole town is thriving or not. This gives everyone ownership in the process," he said.
The deadline to register to vote for the Nov. 4 election is Oct. 6. The Milan clerk's office is open 8 a.m. to 4 p.m. Monday through Thursday, and 8 a.m. to 5 p.m. Friday. Call 439-1501 for information.
Staff Writer Sue G. Collins can be reached at 429-7380 or scollins@heritage.com.
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