SUTTONS BAY —
Controversy over inflated mileage reimbursements at the Leelanau County Commission on Aging produced a bit of good news this week for county taxpayers:
Taxes are going down.
The Leelanau County Board of Commissioners this week dropped the county's COA millage by 31 percent, from 0.275 to 0.19, after an investigation into inflated mileage reimbursement payments to housekeepers at the COA revealed an excess COA fund balance of nearly $500,000.
County commissioners said Wednesday they were surprised to learn the COA was bringing in much more money than it was spending, and many are troubled that it took a scandal to reveal not only excess funds, but also a COA bookkeeping system that operates separate from the county's system.
"There were parts of the shop that weren't being watched," said Board of Commissioners Vice Chair David Marshall.
Excess money was discovered during an investigation by County Administrator Chet Janik into inflated mileage checks paid to COA housekeepers. The housekeepers, Janik said, were encouraged to over-report the mileage they drove to take care of seniors in the county.
The inflated mileage reports resulted in mileage reimbursements of approximately $84,000 more than the amount due to housekeepers. In addition, auditors determined the county is liable for an additional $15,400 in back taxes that wasn't withheld from overpayments.
No criminal charges will be filed. Janik said COA administrators did not benefit financially from the overpayments. Instead, they tried to help housekeepers cope with the rising cost of gasoline, but the payment plan was not known of or approved by the county board.
COA Director Rosie Steffens and Administrative Assistant Madonna Jackson retired as a result of the row.
Janik said county officials who inspected COA books also found a bookkeeping system that was separate from the county's.
The drop in millage means property owners with an state equalized value of $100,000 previously paid $27.50 annually. Starting in 2013, they will pay $19. The 0.275 millage generated $653,368 annually.
The 0.19 rate will generate $451,418.
Janik said the tax cut won't reduce services to seniors. The county is hiring a new COA director and carrying out a complete revamp of the office.
"We have lowered the tax rate," Janik said. "We are very confident it will not reduce the services to our seniors."
Region
COA millage to go down
Inflated mileage rates causes lower taxes for Leelanau
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