Milan City Council is moving toward asking voters to create a public safety special assessment district to help fund fire services after York Township leaves the Milan Area Fire Department in 2027.
“This isn’t a fun discussion,” said Mayor Ed Kolar, as the council weighed the options July 21. “It’s a really serious discussion.”
The council must approve ballot language at their next meeting Aug. 3 unless they schedule a special meeting.
The challenge
The funding discussion stems from two issues. Earlier this year, Fire Chief DJ Carpus proposed 24-hour staffing to improve emergency response times. York Township later announced it would leave the department to create a Saline Fire Authority effective July 1, 2027, taking 27% of the department’s funding with it. The department includes Milan City, York Township, London Township and Milan Township. The other townships are also looking at putting millages on the ballot.
The options
City Manager Jim Lancaster said the city has two options: ask voters to restore some of city’s operating millage under Headlee Amendment or create a public safety special assessment district. The city could create a special assessment district by a council vote or by putting it on the ballot.
“We’re asking that we put this on the ballot for citizens decide,” Kolar said. Other council members repeated their support for putting the question up to the vote.
Tax rate
Lancaster said a one mill levy would bring in $253,928, which is enough to cover the amount the city will lose when York leaves the fire district.
On a home assessed at $300,000, a 1-mill levy would cost about $300 annually. A 1.5-mill levy would cost $450, while a 2-mill levy would cost $600 annually.
Milan City is exploring creating a special assessment district to increase revenue for public safety.
Headlee Restoration vs. Special Assessment District
Kolar suggested asking voters to restore a 1.5-mills under the Headlee Amendment. Milan’s charter allows Milan to levy up to 20 mills, but it currently collects just under 16 mills.
Kolar said the additional revenue could replace lost funding when York Township leaves the fire department, with the remaining half mill helping move the department toward 24-hour staffing.
If the council wanted a larger investment in staffing, he said it could instead seek a 2-mill levy instead.
Kolar said he favored the Headlee restoration because it would establish a predictable tax rate.
City Attorney Steve Mann, however, said the revenue would go into the city’s general fund. Future councils could choose to spend it elsewhere, and the millage would again be subject to future Headlee rollbacks.
Most council members instead favored creating a public safety special assessment district because revenue could only be used for public safety. Unlike a Headlee restoration, however, the assessment rate could change from year to year based on funding needs and would require an annual public hearing.
Impact of York’s Departure
Carpus said York’s departure would likely reduce call volume by 20 to 25%, but staffing costs would remain largely unchanged. There might be reduced paid-on-call costs and fuel costs.
“The reality is I don’t think York Township leaving is saving us much money,” Carpus said.
Carpus said they have discussed a contract or pay by the run with York to cover the homes closest to Milan until a fire station is built in York, which could help offset a portion of lost revenue.
“It wouldn’t be fair to the residents to tell them, ‘No, we can’t go. You’re right there. I’m sorry,’ but at the same time the reality is the costs of running those runs shouldn’t be borne by our department or mutual aid agreement,” Carpus said. “York Township is aware of that.”
Kolar asked if Augusta Township might want to combine with the Milan Fire District. Carpus said that is not something that has been discussed.
Public Comment
During the public comment period, two Milan residents thanked the council for tackling a difficult issue and said they supported public safety. They also questioned whether a special assessment district’s variable tax rate would make it more difficult for homeowners to plan their finances.
“Every meeting you are talking about how our mills go down each year, but as a citizen my taxes go up, but as a citizen my taxes are astronomical,” Piach said. “It balances out at the end. The city and town are still getting that same amount of money. We’re still paying more individually … we are still bleeding.”
Realtor Angela Thomas said a fixed millage would be easier to explain to clients than a special assessment district with a rate that could change from year to year.
Lancaster said he would work with the city attorney to prepare ballot language for approval at the council’s Aug. 3 meeting and encouraged council members to contact him with any additional concerns.
When the amount residents pay for taxes increases along with property values, the tax rate goes down due to the Headlee Rollback.
Cover Photo by Sue Kelch
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