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Leland Township stays firm on tax collection fee

The Leland Township Board reaffirmed its decision from last month to charge Leland Public School $3.50 per parcel during property tax collections this summer.

On a motion by trustee Nicholas Lederle, the board voted 3-2 to approve the $3.50 rate, with supervisor Harry Larkin and clerk Jane Keen casting “no” votes. It was the same rate the board approved last month, but the Leland school board subsequently offered a one-year contract at $2.50 per parcel for 2007 and $1 per parcel for 2008.

Larkin brought the issue back before the township board Monday after discussing the matter with Leland school superintendent Michael Hartigan. Larkin said with the school being forced to spend $20,000 to have its taxes collected, it would be less expensive to take a short-term loan to cover the district’s expenses until the December tax collection.

“Centerville and Cleveland townships are both charging $2.50 a parcel. We have most of the district’s parcels in our township,” he said.

One idea the Leland school board suggested was having the township negotiate directly with the Traverse Bay Area Intermediate School District (TBAISD) to cover the cost of its tax collection. By charging $1 per parcel to the TBAISD, the township would get its $3.50 per parcel this year.

Township treasurer Michael Kirt said that based on talks he has had with Leland school board treasurer Rink Wheeler, the school is supposed to receive $1 per parcel to cover the TBAISD’s cost for collecting its property tax. Kirt said Wheeler told him the district actually receives 80 cents per parcel, not $1, though he didn’t have any verification in writing.

Both Larkin and Keen said that since the township is already collecting taxes this summer for the state and county, charging the local school districts to do the same is unnecessary.

In other business, the board:

• Unanimously approved a resolution authorizing the township to borrow up to $150,000 from Huntington Bank, at an interest rate of 4.87 percent, to cover the annual bond payment for the township sewer system. The township must make its annual bond payment each May and takes out a short-term loan to cover the amount, plus a cushion of $20,000, before the quarterly-billed sewer fees are collected. Generally, the township is able to repay the loan within two months.

The board also tabled a request from OMI Engineering, the firm that operates and maintains the township sewer system, to approve a one-year contract extension with a cost of living adjustment of 4.9 percent for 2007-08. Township sewer administrator Steve Patmore said the sewer commission wants to negotiate with OMI for a smaller increase. The commission is also asking the township to seek bids this fall from firms interested in providing the same service. Patmore said the commission is seeking bids due to the amount of money involved, not based on its satisfaction with OMI’s service.

“I personally would like to see OMI continue as the operator of the system as they have done a great job,” he said. OMI was seeking $70,800 for the 2007-08 agreement, which runs from the same as the township’s fiscal year.

• Unanimously approved the hiring of township resident Tim Cypher to be the township zoning administrator to replace Robert Hagstrom, who stepped down on March 31. Cypher and township resident Thomas Aemmer were both interviewed for the position, which had five applicants. Cypher, a building consultant who currently has ongoing work in the township, would begin work May 1. Afterward, he would no longer accept jobs in Leland Township to avoid any conflict of interest. The part-time position has an annual salary of $15,500, plus expenses. He was interviewed by Larkin, Lederle and Hagstrom. Hagstrom has agreed to help the new zoning administrator by providing background information on projects in the township.

• Agreed with Larkin to honor a request from the township fire administration board to form a fire department facilities committee to study needs for the township fire and rescue department. Keen will place advertisements in the Leelanau Enterprise seeking township residents interested in serving on the committee. The township board will formally approve forming the committee at its May 14 meeting.

• Learned from Keen that polling place No. 1 for the May 8 election will continue to be at the Leland Fire Hall, not at Leland Public School. Last month, the board approved moving the polling place to the Leland Performing Arts Center at the school, but state law requires a change in a polling location to take place no sooner then 60 days in advance of an election. The board’s action occurred 58 days prior to the May 8, 2007 election. Keen said all future elections after the May 8 vote will take place at the school.

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