When it comes to the discussion about whether the Village of Oxford should incorporate as a city, opinions are abundant, but hard numbers are few.
In an effort to provide village voters with some numbers before they head to the polls Aug. 5 to decide whether or not the cityhood process should continue, the Leader made some calls and did a little research.
One of the main problems is there are no exact numbers.
There is no hard and fast ‘if the village becomes a city, this will cost X, that will cost Y and residents will save Z.?
So, the Leader did it’s best to find comparisons by gathering data from the township and other communities.
Currently, village residents pay the township a 0.95-mill operating tax, which amounted to a total of $142,084 for the 2008 budget.
However, $16,521 of this was captured by the Oxford Downtown Development Authority for its budget, so $125,563 actually went into the township’s general fund.
City residents would no longer pay this tax, meaning both the township and DDA would lose this revenue.
But the elimination of the township tax does not necessarily mean residents of the new city would realize a full 0.95-mill savings.
The new city government would be obligated to take over certain services from the township, which could increase expenditures and possibly the current village tax rate of 11.12 mills.
If the village became a city it would be required by law to assess real and personal property for tax purposes, conduct elections (national, state, county and schools) and collect taxes for the county and schools.
Right now, the only things the village does is collect its own property taxes and conduct its own elections.
With the township no longer doing these things, the question becomes how much would it cost the new city and taxpayers to perform these state-imposed duties.
Assessing
If the new city were to contract with the county for assessing, as currently done by the township, it would probably cost between $22,000 and $28,000, according to Dave Hieber, manager of the Oakland County Equalization Division.
That’s a ballpark estimate based on similar-sized communities and the village’s current total of 1436 parcels of real property and 334 parcels of personal property.
But the new city doesn’t necessarily have to contract with the county. It could always hire its own assessor.
Addison Township does its own assessing for which it pays a contracted individual $2,220 a month ($24,400 annually) plus $20 per parcel for reappraisals.
The township typically conducts 500-600 appraisals per year, according to Treasurer Dan Alberty, which translates into another $10,000 to $12,000 for the assessor.
Whether it contracts with the county or does its own assessing, the new city would still have to form and pay for its own Board of Review to hear tax appeals.
Currently, village tax appeals are handled by the township’s three-member Board of Review, for which $4,300 was budgeted this year for wages and education. This figure doesn’t include clerical work.
Elections
Oxford Village has $2,010 budgeted for elections in the 2008-09 fiscal year.
The number is low because the only elections the village is responsible for are council elections, which happen every other year, and any special elections that might be needed.
Cities, like townships, are required to conduct their own elections, plus national, state, county and school elections.
The cost for conducting additional elections is not clear so the Leader contacted the only two cities in Oakland County with population sizes similar to the village to see how much they budget for elections.
According to the Southeast Michigan Council of Governments, as of June 1, Oxford Village has an estimated 3,672 residents. Of that, approximately 2,300 are registered voters.
The City of Bloomfield Hills has 3,692 residents (3,300 registered voters) and budgets $15,500 for elections. The City of Lathrup Village has 4,040 residents (3,455 registered voters) and budgets $8,000 for elections.
Tax Bills
Right now, the village only sends out one tax bill a year in July. The cost for doing this is approximately $2,019.
As a city, the municipality would could be required to collect county and school taxes, which means sending out tax bills, a summer and winter, just like the township does.
It’s fair to say another tax bill could mean an additional $2,019 a year for the new city.
To offset this, the new city could charge property owners an administration fee, if it so desired.
The General Property Tax Law provides that a local unit may add a property tax administration fee of not more than 1 percent of the total tax bill per parcel.
The new city could also choose to charge the school district for assessing and collection services. Oxford Twp. charges the schools $1.50 per parcel for these services.
Don’t forget the old cemetery
One cost that doesn’t get mentioned too often is that to maintain the old township cemetery on the north side of W. Burdick St.
Although the township pays for the maintenance and upkeep, the municipal cemetery is located within village limits.
If the village were to become a city, it would be required by state law to take ownership and continue to operate/maintain it.
This year the township budgeted $56,110 to take care of its three cemeteries, which doesn’t include the Mt. Pleasant Cemetery.
Oxford Twp. Deputy Supervisor Deanna Burns said at least one-third (about $18,700), most likely more, of that budget is spent on the old cemetery.
Burns said the old cemetery costs more than the other two because its advanced age requires additional maintenance, i.e. repairing deteriorating headstones, managing the large trees, etc.
And the new city should not count on the old cemetery generating any revenue.
‘To the best of my knowledge, there are no lots for sale on the north side,? said township Clerk Clara Sanderson. ‘They’ve all been sold. They haven’t all had a burial in them, but they are sold.?
One-time costs
In her 2006 research paper regarding cityhood, former Oxford Village Clerk Christine Burns estimated there would be $63,500 in one-time costs associated with incorporation.
These costs included attorney fees, changing municipal signage and stationary, and printing a new charter and updated ordinance book.
Post-incorporation attorney costs would be incurred from the state-mandated division of assets and liabilities between the township and new city, according to Burns? paper.
Assets would include not only real property located in the new city such as the Oxford Veterans Memorial Civic Center but also personal property, according to Sue A. Jeffers, associate general counsel for the Michigan Municipal League.
Can’t escape other township millages
Even if the village incorporated as a city, residents could still be obligated to continue paying certain township millages, previously approved by voters, until they expire.
Those township taxes includes 2.5 mills for fire/ALS services, 0.83 mill to retire the fire bond debt and 0.8538 mill to support the parks and recreation department.
Once these expire, some type of agreements would have to be worked out between the city and township to allow continued access to these services and payment for them.
Because the library’s two operating millages (which total 1.3982 mills) were previously approved by township and village voters without expiration dates ? meaning they can be levied in perpetuity as long as there’s a library ? it appears city residents would continue paying those as well.
City residents would also continue to pay the 0.41-mill tax to retire the bond debt on the Pontiac St. library built in the 1990s.