Talks of Headlee Override in Woods Continue

The committee of the whole decided to put off making recommendations Monday concerning and a road construction millage they intend to ask of voters in November.

The at least among finance committee members and about the same length of time for the council's work session committee, called the committee of the whole.

Woods Comptroller/Treasurer Dee Ann Irby recommended the millage rate the city should ask of voters is 1.86 mills, which will help the city close the more than $600,000 budgeting gap between revenue and expenses for the 2012/13 fiscal year.

The shortfall is not as large as officials originally thought as the taxable values only fell 2 percent--a figure that was finalized after the completin of the Board of Review hearings in March. Original projections estimated the drop to be higher, Irby said. Additionally, the city received . Irby said it was not clear when the payment would be made, so she was able to add that money into the budget.

One mill in the 2012/13 fiscal year budget is equal to $604,872.

Irby said she considered a lower millage rate but it wasn't enough to prevent city officials from having to dip into savings that are recommended for financial stability and relate to the city's bond rating.

She also recommended that the council consider asking for a separate millage dedicated to road construction, providing the council members with various estimates about how much to ask for and for what length of time.

Among her recommendations were several options, including two that became the focus of council members discussion Monday: $10 million over 10 years or $10 over 15 years. In the second option, the interest the city would end up paying on the amont borrowed would be higher, which was of concern to some council members.

The benefit of the longer repayment period is a less aggressive payment, which was highlighted by councilman Art Bryant.

Irby also reminded council to remember that while they can ask taxpayers permission to use such money, if officials borrow the money in smaller increments during that same time frame and it becomes too much to handle, the city does not have to borrow the remainder of the amount.

Mayor Robert Novitke was urging the council members to vote so the committee of the whole could make a recommendation to the council but they ultimatley decided not to make decisions on either Monday night. Instead they will continue their discussion on both items during the next committtee of the whole meeting next Monday.

During that meeting, they are expected to make decisions and forward their recommendations on for a formal council vote on May 21.

Attached to this story are the projections Irby provided to council both for the next several years as well as for the road construction millage options. Both can be found with the photos.