Grand Traverse County commissioners will consider two proposals Wednesday that will change how a trio of recent voter-approved millages are applied – a move County Administrator Tom Menzel says will boost “fairness and transparency” to voters.

Citing an excessive fund balance at the Commission on Aging (COA), Menzel is recommending rolling back a millage for COA services in 2017. The .5 mill, six-year levy – approved by over 83 percent of voters in August – supports in-home COA services for residents 60 years and older in Grand Traverse County.

As part of an ongoing audit of the department, Menzel and Deputy Administrator Jennifer DeHaan found COA has a “fund balance that far exceeds the needs of the department,” the result of what they described in a memo to commissioners Tuesday as “a lack of monitoring.” COA’s departmental policy calls for maintaining a fund balance of 18-20 percent of revenues; its projected $1.6 million balance at the end of 2016, however, equals 64 percent of revenues.

“(This) takes away dollars from taxpayers that could be used…for other needs,” Menzel and DeHaan wrote. The duo recommend rolling back COA’s millage by nearly a third in 2017, to .33735 mills – saving taxpayers an estimated $750,000 next year and spending down the fund balance. “This reduction is likely a one-time spend down,” Menzel and DeHaan wrote, meaning the millage could still be levied at its full rate in subsequent years.

COA Board Member Carl Kucera is concerned the rollback could potentially impact services and programs provided by COA, which is self-funded through its millage, client fees and donations. Pointing to waiting lists for COA services, he says COA board members have advocated for spending down the fund balance to boost services, but that final budget decisions lie with the county board of commissioners. “We’ve been asking for more help getting more money to the wait list…and we’ve hit a wall,” he says.

Menzel and DeHaan say the rollback will “not cut any staff, programs or anything in the department” and will still allow for hiring a new COA executive director in early 2017 and attempting to better address wait list needs. Continually expanding programs or services beyond that point in an effort to use up the fund balance would result in “kingdom-building,” says DeHaan. Menzel adds: “This will show the taxpayers we appreciate their trust in giving us the millage, and when we have more than the program needs, we return the excess funds in appreciation of their trusting us.”

County Prosecuting Attorney Bob Cooney says his office reviewed the rollback proposal and deemed it "lawful.” Municipalities cannot exceed voter-approved millage rates, Cooney says, but they can reduce or eliminate them – and are able to do so for either one year or the entire millage period.

Menzel calls a second millage proposal he’ll ask commissioners to approve Wednesday a “reform” effort that also “demonstrates (the county’s) commitment to respecting voters’ desires.” Menzel wants to ask Traverse City officials to exempt three county millages – including COA, a .1 mill senior centers millage and a .15 mill veterans affairs millage – from the Downtown Development Authority’s (DDA’s) new TIF 2 plan.

If approved by the city, the new plan – set to begin in 2017 – will capture a portion of property taxes within TIF 2’s boundaries for use on public improvement projects, including from various area millages and taxing jurisdictions. Menzel says he wants to request that as part of the new TIF 2 plan, taxes captured from the three “voter-approved, dedicated (county) millages” be returned to the “three entities the voters voted to support.”

“I don’t believe the wide support that the three initiatives received from the voters…was intended to go to the DDA,” Menzel says. “They wanted all the proceeds to go to the above issues they just passed.”

Michigan law permits – but does not obligate – the DDA to “enter into agreements” with local jurisdictions “to share a portion of the capture assessed value of the district” if they so choose. Menzel says he’s shared the proposal with DDA Executive Director Rob Bacigalupi, and says both county and city attorneys are reviewing the language. Bacigalupi could not be reached for comment.

County commissioners will consider both millage proposals at their 6pm meeting Wednesday (December 7) at the Governmental Center.