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It's make or break time for fire, rescue department

Bingham Township trustee Mary Bush said she hasn't spoken to anyone in either Suttons Bay or Bingham township who's definitely voting "no" on a proposed property tax levy of up to 2.3 mills on May 8 to support the Suttons Bay-Bingham Fire and Rescue Department.

"I know there must be some 'no' voters out there – there certainly were the last time," Bush said. "I just don’t know how many of them really understand what the issues are."

Bush was referring to the Feb. 27 election when voters in Suttons Bay and Bingham townships in a 926-627 decision turned down an identical 2.3-mill proposal to renew an operational millage for their joint department.

A 1.5-mill levy that voters approved in 2002 to pay for department operations expired in December 2006. Also expiring in December 2006 was a one-time, 0.5-mill levy that voters approved in November 2006 to temporarily cover a gap in the department’s depleted “reserve fund.”

Township officials say they believe the failure of the millage proposal in February may have had something to do with placing two millage proposals to support the department on the Feb. 27 ballot – the 2.3-mill “operational” levy plus a half-mill “capital expenditures” levy. Officials say they think some voters believed they were being given an “either/or” choice and, naturally, approved the lower millage rate rather than the higher one.

The half-mill levy was designed to help underwrite the purchase of some new fire trucks and other major equipment items in the coming years. The 2.3-mill “operational” levy, however, was to pay to operate the fire trucks and ambulances, training costs and wages for firefighters and paramedics, and cash to pay utility bills and other expenses to keep the department’s new fire hall open.

Without the “operational” millage, in other words, the “capital expenditures” millage was worthless, officials explained.

If the proposed 2.3-mill operational levy is not approved next month, the Suttons Bay-Bingham Fire and Rescue Department will run out of money sometime around December 2007 and will cease operations, officials said. Legally, there will be no other opportunity for officials to ask taxpayers for the money again this year.

If the Suttons Bay Bingham Fire and Rescue Department goes out of business, residents may be left to fend for themselves if their homes catch fire or they need an ambulance. Under state law, townships are under no obligation to provide fire and rescue services to residents unless voters agree to pay for those services.

Realistically, however, the townships would likely try to contract for fire and rescue services from neighboring townships – none of which offer the same in-house capability that Suttons Bay-Bingham has, notably 24/7 Advanced Life Support ambulance service. In order to pay for whatever services neighboring townships can provide, however, Suttons Bay and Bingham townships would likely need to present another millage proposal to voters.

If the millage fails, Suttons Bay and Bingham townships would also lose the improved Insurance Service Organization (ISO) ratings their fire department earned last year following a series of tests administered by the national insurance underwriter. Because of the department’s quicker response times and improved pumping capacity, many residents of Suttons Bay and Bingham townships this year received reductions in fire insurance premiums from their insurance companies.

Local insurance agents say that if the millage proposal fails, fire insurance premiums will cease going down and will eventually rise to higher levels.

Taxpayers in the two townships are paying down the debt on a 2005 construction project to expand and renovate the fire hall at St. Mary’s Avenue and First Street in the Village of Suttons Bay. In 2003 and 2004, voters in both townships authorized a levy of up to 0.75 mills to pay for the project, although the actual amount levied has been around 0.6 mills.

Because the building project was completed last year, a building authority which had been paying for utilities in the fire hall will cease paying that bill this year. The $30,000 annual utility bill will become the responsibility of the department to pay from “operational” funds. The shift in utility payments will account both for a drop in the millage rate to pay off construction bonds and higher operational costs.

Also, the Suttons Bay-Bingham department lost about $100,000 in annual revenue previously received through contracts with Leland and Leelanau townships to provide 24/7 Advanced Life Support ambulance service. Those two townships recently opted to contract with Northflight Emergency Services based in Traverse City for ALS ambulance service instead.

In addition, Suttons Bay-Bingham Fire and Rescue has eliminated from consideration the likelihood that it will receive any “2-percent” casino gaming revenue from the Grand Traverse Band of Ottawa and Chippewa Indians. The tribe declined to support the department in the latest “2-percent” payout and cannot be counted on for support, officials say.

Officials said that if the millage proposal is approved on May 8, the owner of a home with a taxable value of $100,000 in Suttons Bay Township will see a tax increase of $80.79 per year. The owner of a similar home in Bingham Township will see an annual tax increase of $85.57.

Robert Roubal of Suttons Bay Township identified himself as a likely ‘no’ voter in the May 8 millage election.

“I never voted ‘yes’ on something like before this in my whole life,” Roubal said. “Why don’t they go back to standby like they did years before? It’s cheaper,” he said.

“Now, the Fire Board is in charge and the volunteers don’t have any say-so in how the department is run and it makes me mad,” Roubal said.

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