| Fayette council faces tough decision: renew or replace? 2007.10.10 |
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For Michigan readers, the issue of renewing or replacing local levies probably sounds like gibberish. It’s not something we deal with on this side of the border. There are a host of differences in the way state and local government operates in Michigan and Ohio and for us it’s often a challenge to keep the changes in mind when reporting on issues. In brief, to renew a levy holds the cost to taxpayers at the same value as when it was approved by voters. If a levy were passed in 1980, the amount of tax revenue would remain the same every time the levy came up for renewal. On the other hand, if voters approved a replacement levy, property values at the time of the renewal would kick in. Almost always this brings an increase in the revenue collected, which of course points to an increase in the taxes paid by property owners. It’s a rare situation in which property values fall over the years. Fayette council members are faced with the decision of whether to seek renewal or replacement on two levies that will expire next year. For one levy, property owners have paid the same amount since 1978. The other levy was adjusted in 1998. It’s easy to understand why council members have sought renewals over the past 30 years. Nobody wants to raise taxes for themselves and their constituents. It’s also easy to understand that the costs of every service provided by the village has increased over the past 30 years, and even since 1998 when the park levy was replaced. Council members have a couple of months to weigh the issue and make a decision. Increase taxes to support services? Maintain the existing rates and continue to make cuts? Costs will continue to rise. Considerable infrastructure work remains to be done. Village revenue suffers still following the closure of Fayette Tubular Products. We don’t envy council members the decisions they have to make, but we appreciate their willingness to service the village. No matter what they decide on this issue, they’re bound to hear plenty of criticism. |
