Traverse City Record-Eagle

Archive: Friday

August 17, 2012

Septic tank owners may see taxes rise

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com

TRAVERSE CITY — A divided Grand Traverse County board will support a $31 a year special property tax assessment on septic tank owners to prop up operations at the county's septage treatment plant.

County Commissioner Dick Thomas, who serves on the county Board of Public Works, raised the issue this week in advance of a looming decision by the BPW on the proposed special assessment. The BPW would levy the assessment on properties with septic tanks in Grand Traverse County and Leelanau County's Elmwood Township starting with the winter tax bills.

The tax would help fund operations at the plant that's on pace to lose $400,000 this year. The BPW would then cut the per gallon treatment charge from 12 cents a gallon to 6 cents to cover bond payments. The assessment would likely drop if the county and townships that guaranteed the bonds can reach an agreement to self-fund the debt.

Thomas said personally he would vote against the septic tank assessment, but he represents the board and will vote how it directs him on the controversial issue.

"The constituents I represent are opposed," responded Commissioner Larry Fleis. "South county does not want any part of a special assessment even if it's just $20. "They are talking recall, they are mad," he said.

Commissioner Herb Lemcool of Garfield Township supports the assessment, arguing that neither the county's general fund nor taxpayers in the five townships that guaranteed the bonds should cover plant losses. Bonds at the $7.8 million plant are guaranteed by Acme, East Bay, Peninsula, Garfield and Elmwood townships.

"I don't think the people on sewer should have to pay," Lemcool said.

Commissioner Ross Richardson of Traverse City said a special assessment was recommended more than three-and-a-half years ago to shore up the plant's finances. He questioned why the BPW waited so long to accept it after trying to find other solutions.

"This is the best resolution to come down the pike and we'd be fools not to take it," Richardson said.

Commissioners Christine Maxbauer, Jason Gillman and Addison Wheelock Jr. also favor the tank assessment. Maxbauer and Gillman represent districts with large numbers of residents with municipal sewer service and townships that guaranteed losses at the plant. Wheelock, of Long Lake Township, was the only commissioner representing non-guaranteeing townships that supported a special assessment.

"Treating septage is the right thing to do, it's the best for our environment and it's the best for our community," he said. "I believe I'm sitting here to represent what's best for our community as a whole."

Board Chairman Larry Inman said personally he favors the special assessment, but three of the four townships he represents oppose it so he voted no.

Commissioner Rob Hentschel said he disagrees with raising taxes and opposed the special assessment.

Hentschel hails from East Bay Township, which could get hit with a septage plant bill ranging from $62,500 to $125,000 this year depending on whether the county board agrees to cover half the facility's losses. That amount could grow to $180,000 in future years without a special assessment, township Supervisor Glen Lile said.

"Anything that would help us get through this matter I would the think the county, including our representative, would be there to help us out," Lile said.

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