By By JOHN EBY / Dowagiac Daily News
Summer tax collection will help improve Dowagiac Union Schools District cash flow.
Borrowing $3 million this year cost $60,000. Paying townships $2.50 per each of 11,956 parcels to collect that revenue costs $30,000, saving the district $30,000, Assistant Superintendent for Business and Operations Hal Davis advised the school board at Dowagiac Middle School Monday night.
Following a public hearing at which no one spoke, the board voted 4-0 to impose a 100-percent summer tax levy, including debt service, beginning July 1, 2007, and continuing from year to year until specifically revoked by the board.
Vice President Sherry File conducted the meeting in the absence of President Randy Cuthbert. Joining her in the vote for summer tax collection were Bill Lawrence, Faye Edwards and Michelle Charles. Also absent were Larry Seurynck and Jane Laing.
Currently, Michigan reimburses each municipality $2.50 for collecting state education taxes. "If they collect for somebody else other than state education taxes, they can no longer collect that $2.50, so most of the townships and the city I spoke to said they would like that replaced," Davis said.
"My conversations with each elected official centered around the fact that this is not a tax increase – it's a shift.
"We're moving the collection date up from bills going out in December to bills going out in July and probably having a September collection date. The only reason we're doing this is cash-flow purposes. We don't receive state aid funds in August or September in Michigan, so there's a period of time our expenses continue, yet there's no income from the state."
Township officials asked Davis to provide an explanatory letter on district letterhead to limit an anticipated avalanche of questions triggered by such a change.
"Any time there's change, there needs to be communication to explain it. No one said they wouldn't do this for us," Davis said.
Lawrence, strongly suggesting legislative action to Sen. Ron Jelinek, R-Three Oaks, Appropriations Committee chairman, introduced a resolution for the board to pass.
"If school districts that are really suffering throughout the state could split that tax collection cost, that saves another $15,000 for our district and the state. It seems like a win-win situation."
"It's an idea," Jelinek grinned from the audience.
"Township treasurers are going to receive a large number of phone calls about this situation," LaGrange Township Supervisor Naida Wallace said. "We thought an insert with the tax bills would be sufficient to explain that."
Dowagiac's school district encompasses three counties, Cass, Van Buren and Berrien, although Berrien Township has but one non-homestead parcel and Bainbridge and Pipestone townships have none.
Van Buren County's 1,974 parcels include 814 homesteads and 1,160 non-homesteads.
In Cass County, tax-parcel numbers include:
City of Dowagiac, 3,056 parcels; 1,776 homesteads; and 1,280 non-homesteads.
Wayne Township, 1,925 parcels; 1,246 homesteads; and 679 non-homesteads.
Volinia Township, 12 parcels; 10 homesteads; and two non-homesteads.
Silver Creek Township, 3,467 parcels; 1,941 homesteads; and 1,526 non-homesteads.
Pokagon Township, 955 parcels; 714 homesteads; and 241 non-homesteads.
LaGrange Township, 566 parcels; 418 homesteads; and 148 non-homesteads.