Council approves Headlee rollback for 2020-2021

BURTON — The Burton City Council approved a correction to the tax rolls for the new fiscal year during a special meeting June 25.

The council approved the budget, which into effect July 1, earlier in June but had to hold a special meeting to make a Headlee rollback adjustment and to modify the tax rolls to take into account four parcels in the city which fall inside a Renaissance Zone, said City Assessor Ann Abbey.

“By statute you have to do a millage rollback and we have a Renaissance Zone, which we have four parcels in the renaissance zone – two real (properties) and two personal (properties),” Abbey told the council at the special meeting. “And we have to use a millage rollback fraction which is 0.996, and that is all properties without Renaissance Zone. The one you approved on (June) 15 was all property, without taking into consideration the Renaissance Zone. So now we’re just making it right and taking care of what the statute states. And we’re voting on the correct Headlee rollback.”

Abbey said the move lowers the tax rate by a little less than $6,000. The reduction is necessary because property in the Renaissance Zone doesn’t pay debt.

The Renaissance Zone, located at Shumacher Avenue and Saginaw Street, contains four parcels. The zone includes the business Schmald Tool and Die, G4206 S. Saginaw St.

Abbey told the council the zone is starting the phase out period now. Taxes will increase by 25 percent there in 2021, by 50 percent for 2022, 75 percent for 2023 and in 2024 it will be completely back on the tax rolls.

The council voted 6-1 to adopt the resolution to approve and authorize the following tax millages and fees to be levied for the 2020-2021 fiscal year: General Operating 4.0000 mills; Voted Police 0.9834, Voted Police 0.9958, Voted Police 6.4727 (8.4519 total); Voted Fire 0.9958 a Property Tax Administration Fee of 1 percent on all tax statements and additional 4 percent late penalty charge when delinquent.

Councilman Dennis O’Keefe was the only dissenting vote. He has argued the rate for the police millage should be set at the higher rate allowed by the charter because of financial uncertainty in the coming year.