The Torch Lake Township Board met for its monthly meeting at the Hubbell Community Center at 6:30 p.m. on February 20. It was a short meeting, around 45 minutes. Diane Zurcher could not attend, as she had announced at last month's meeting.
Even though there were disagreements -- sometimes sharp ones -- during the meeting, the tone remained civil throughout. Brian Cadwell conducted the meeting with order and dispatch, all the while allowing discussion from the floor when questions arose.
DPM Reassessment Proposal Receives Approval, Pending State Acceptance
It will come as no surprise to anyone that the main event Tuesday night was the acceptance of the DPM proposal to reassess Torch Lake Township. The total cost to the township will be $195,000, $65 per parcel. This is in addition to $38,325 per year due DPM for regular assessor duties.
The township will make a down payment of $100,000 dollars, and will pay off the balance over 7 years, interest free, at $13,596 per year.
The $100,000 down payment will come from the sale of the Rice Lake lakefront property that the township acquired from Secluded Land Company in exchange for the township's rights to the existing right of way. The board will also look into selling some of its Point Mills properties to raise money for the reassessment.
The next step is to draw up a contract that reflects the DPM proposal. Once the board agrees to the contract, it will be sent to the State Tax Commission for approval. Brian stated that the State Tax Commission offered the contract directly to DPM in December, but DPM declined that offer because their accepting it that way would have been more costly for the township.
Given that history, it seems almost certain that the state will approve the contract to be drawn up in the next couple of weeks. The whole process should conclude by March 31 so the reassessment can begin in April.
What Will Happen?
DPM will deploy three teams of two people each to conduct field work during the year. The teams will visit every parcel and will make sure that the tax records are completed properly.
In response to a topic raised by Lawrence Jukuri, Matt Arko explained that classes will also be provided to interested taxpayers on exactly how the property tax system works.
Matt estimated that the SEVs of many parcels in the township, possibly as many as one-half, would actually go down during the reassessment. The reason is that the township has in the past increased the SEVs for all parcels by a given percentage, a practice that does not reflect actual market changes.
In reality, lakefront parcels have increased in value at a faster clip than inland parcels. Therefore current SEVs tend to undervalue lakefront parcels and overvalue inland parcels. The reassessment will correct that.
Once the reassessment finishes, the township will continue to keep all tax maps and property records current. Hence it will not be necessary to undergo another such costly reassessment in the future.
DPM the Only Reassessment Bidder
The only proposal the township received for the mandated reassessment of Torch Lake Township was from DPM, the firm currently under contract to perform regular assessing duties for the township. Brian Cadwell listed four other firms that he had contacted to solicit proposals, but none of them chose to bid.
In response to a question from Andrew Murtagh, Brian explained that the township had advertised only in the Daily Mining Gazette to avoid the expense of placing ads in the Marquette Mining Journal and the Detroit Free Press.
Reassessment Costs
Andrew also asked about the increase to $65 dollars per parcel as against the $52 per parcel estimated earlier by John Botto. Brian feels that the $65 dollar cost is more realistic, especially considering the tight time constraint -- one year -- under which the reassessment must be performed.
Denise Lepisto estimated that the $195,000 to be paid to DPM is perhaps $100,000 less than the township would have to pay if the state had taken complete control in December.
Matt Arko pointed out that the township will still have to pay the state for monitoring DPM's work on the reassessment, but the amount billed by the state should come to considerably less than $100,000.
Requests for Township Unity
At various times during the meeting, Matt, Brian, and then Lou Ambuehl appealed eloquently for the township to pull together as we move forward over the coming 13 or 14 months. Brian emphasized (as he has done in the past) his willingness and desire to hear from citizens, particularly by phone, whenever we have questions, concerns, or constructive ideas.
It appears to me that the board is truly committed to fixing the tax problems that have plagued our township and to install a tax system in which we can place our trust and our pride. All in all, I found tonight's meeting very positive.
Lynn Torkelson