Oxford Village taxpayers will see some relief on their property taxes bills this summer as council last night voted to lower the total levy by 1.5 mills.
‘I know I haven’t been on this council long, but I’m really proud to be part of a council that’s reducing the mills,? said Councilwoman Teri Stiles.
Village taxpayers will now pay 11.12 mills ? as opposed to the previous 12.62 mills ? to support the municipality for the 2006-07 fiscal year beginning July 1.
In these ‘financially insecure? times, Stiles said such a millage reduction is ‘offering security to the residents.?
This is the first time village residents have had their property taxes lowered since 2002 when council voted to decrease the total levy from 13.1869 mills to 12.62 mills.
A mill is worth $1 for every $1,000 of a property’s taxable value.
The village levied 12.62 mills from 2002 through 2005 with council voting each year to override the Headlee rollback and keep the rate the same.
Council was able to lower the rate primarily as a result of two things.
First, the village no longer has to levy any mills for fire/EMS services since voters approved two township-wide tax levys, a total of 2.5 mills, to support the fire department in May 2005.
The township began collecting those millages with the December 2005 tax bills. Council told the audience this eliminated the need for the village to levy 1.28 mills for fire services.
The remaining 0.22 mill of the village tax reduction was mainly the result of council trimming excess amounts in various contingency or reserve funds.
‘Our auditing firm recommends a contingency or rainy day fund, whatever you want to call it, between 10 and 15 percent (with) 12 percent being kind of the industry standard and the target you’re shooting for,? said village Clerk/Treasurer Christine Burns.
But some village contingency funds were well above 15 percent. As Councilman Chris Bishop pointed out after the meeting, the police budget’s contingency fund was $90,000 above 15 percent..
‘Why have that money just sitting when the taxpayers could use it?? said Councilman Tom Benner.
Council’s reduction of excess contingency monies didn’t put any budgets in jeopardy.
‘None of our funds have less than 12 percent reserve,? Burns said. ‘Some have considerably greater, but none have less than 12 percent.?
Resident Merle Smith let council know he wanted ‘to be clear there are no cuts in (village) services? as a result of the millage reduction.
‘Correct,? said village President George Del Vigna. ‘Services to the community will not be hampered.?
‘We’re going to keep plowing those roads,? added Councilman Dave Bailey.
Resident Mark Selley told council the tax cut is going to allow people, like his family, to spend more money supporting downtown businesses.
‘I think this millage rollback is going to allow us to eat at Red Knapp’s one more time a month,? he said.