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Marquette Township approves its budget

Utility rates still in question

Girard

MARQUETTE — The Marquette Township Board on Tuesday adopted its 2017 budget, but delayed a decision to consider lowering utility rates.

The 2017 total general fund revenues were budgeted at roughly $2.031 million, with expenditures expected to total about $2.029 million.

Slightly more than $2,300 will be carried over, bringing the projected fund balance to nearly $103,000, according to township documents.

Several fees and utility rates were also proposed to be reduced under the budget, though township officials said Tuesday those may actually increase.

Township Manager Randy Girard said part of the change is related to a consultant’s recommendation of combining all of the township’s different long-term debt obligations.

Girard said the township’s water, wastewater, stormwater and solid waste rates would likely vary from the proposed fee schedule, and that a recommendation on new rates will be presented to the board at its Dec. 20 meeting.

The most recent fee schedule called for the monthly fees for: garbage collection to drop 25 cents to $14.75; wastewater usage to go from $12.79 per 1,000 gallons to $12.06; and water usage to decrease from $6.43 per 1,000 gallons to $6.08.

Officials said forecasts by an outside financial consultant indicated certain fees were not set high enough, leaving long-term repairs and replacements somewhat underfunded.

Department of Public Works Superintendent Kirk Page described it as a cash flow problem, and said some water and wastewater improvements were moved ahead of schedule to coincide the township’s recent road rehabilitation projects, which also contributed to the issue.

Girard said though the 2017 budget takes a “middle of the road” approach, it may still be impacted by Michigan Tax Tribunal rulings related to the “dark store” method of property tax valuation.

The dark store method used by big box stores throughout Michigan has allowed businesses to reduce the taxable values at their properties by comparing recently built stores to others that have closed or gone “dark.”

Girard said while legislation addressing the issue has passed the House, the state Senate likely will not consider the proposal during the lame duck session, which would effectively kill the bill and require the process to begin again in the House, or Senate.

Township officials said Rep. David Maturen, R-Vicksburg, primary sponsor of the House-approved bill, has another proposal with minor changes ready to introduce during the next session.

However, Girard said considering the makeup of the Legislature has changed, Maturen’s new proposal may not be looked upon favorably, allowing the dark store method to continue.

If that is the case, Girard said he would anticipate “additional (tax tribunal) filings, and it may expand.”

Ryan Jarvi can be reached at 906-228-2500, ext. 270. His email address is rjarvi@miningjournal.net.

AT A GLANCE:

• Several fees and utility rates that were proposed to be reduced under Marquette Township’s budget may actually increase.

• Township Manager Randy Girard said part of the change is related to a consultant’s recommendation of combining all of the township’s different long-term debt obligations.

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