A proposed tax process to fund the fire and rescue department hailed by budget makers failed to capture support from Elmwood residents, and was voted down Monday by the Township Board.

In a 6-1 decision at a special meeting, the board decided not to proceed with the formation of a township-wide special assessment district with authority to spread a millage.

Some 30 residents attended a public hearing held just minutes prior to the decision. They were decidedly against the change, complaining that it would constitute a property tax increase without a public vote.

They were also solidly in support of the Elmwood fire and rescue department. Those who spoke generally began with a compliment.

“I also believe the fire department does a fine job,” said resident Eric Currin. “They manage their money very well. But put (department funding) out for a vote.”

Creating the district would have represented a radical departure from traditional funding methods in Elmwood, where voters have yet to turn down a property tax request to support the fire department. Presently, a .3765 mill property tax is dedicated to fire operational expenditures — which comes far short of meeting expenses. In 2008, a 1.19-mill property tax would be needed to fund the entire fire budget.

Elmwood officials are concerned because the township General Fund has been contributing an increasing amount toward fire department operations. In 2006, some $71,666 was drawn from the General Fund to help fund the department’s $155,903 budget. In 2007, some $174,000 is scheduled to be transferred from the General Fund into the department’s $262,000 budget.

One reason for the increased expenditures: the fire department hired its first two full-time employees in the summer of 2006.

The assessment district plan would allow the department to present a budget annually to the township board, which would have authority to levy a millage rate high enough to meet expenses.

No monies from the General Fund would be used to fund the department.

But residents were wary of several aspects of the change, including a 10-mill cap on the tax they would have to pay.

“I think you’re going to hurt home sales in Elmwood Township,” said resident Michelle Murdick.

“If (a 10-mill tax) is out there and allowed, it’s a possibility.”

Resident Anthony Ansorge provided the most detailed explanation of the assessment district, drawing praise by others at the hearing for his research. He offered several reasons to oppose the assessment plan, including that assessments are not deductible from federal income taxes, it would represent an 80 percent increase in local taxes paid to the township in its first year alone, and a “lack of disclosure” of negatives to the switch.

“There is often a difference between what is legally required to be disclosed, and what should be disclosed. The township has failed in its duty of full disclosure on this assessment,” said Ansorge, who discovered several negative aspects that had not been disclosed by the Township Board.

His comments were followed by near-unanimous applause.

Trustee Paul Walter cast the lone vote to continue toward forming a fire assessment district. “It wasn’t conspiratorial,” said Walter, who is a nurse with Munson Health Care Center and sought the change to provide a direct way to fund fire and rescue operations. “My particular passion is the medical side of the fire department.”

Supervisor Derith Smith and fire chief Ray Haring also offered words of encouragement for the plan.

“There is a possibility that it could cost less money … in the long run,” said Smith. “But if people are uncomfortable with that, we should run it the way people are comfortable with, which is a millage.”

The issue likely won’t go away, as township reserves are being depleted to meet increased fire and rescue expenses.