City officials approve special assessment district

Published 9:46 am Wednesday, August 30, 2017

Members of the Niles City Council voted unanimously Monday night to adopt a “resolution of determination” that will lay the groundwork for the proposed $20 per years special assessment district by officially establishing the district.

If the SAD is approved, the five-year tax will help to defray the cost of ambulance services. The most recent special assessment ended in December of last year.

Through this approval, the district will be defined as all residential units and commercial, industrial and agricultural parcels. All owners of this property will pay a $20 fee per year for five years, if the SAD is officially approved.

Members of the six municipalities who own Southwestern Michigan Ambulance Services have discussed the renewal of a $20 special assessment. On Monday night, city residents had the chance to voice their concerns.

Deb Crane, of Niles asked the council what the difference was between the proposed SAD and the $20 per year millage residents have been paying for more than eight years.

“What was the point in sending us a letter?” she asked. “What exactly is that telling me? Your telling me it is a renewal of $20 on our taxes, correct? So, what does a SAD mean? What exactly is that telling me?”

Brian Scribner, the SMCAS executive director who was present for part of Monday night’s meeting, has assured residents that the tax is a renewal of the $20 they already pay toward the service. The difference in the proposed SAD is the incorporation of more parcels into the district, which will therefore garner about $135,000 more a year, officials have determined.

The former assessment did not incorporate unimproved parcels, such as farmland. The SAD is expected to cover about 17 percent of the ambulance service’s cost.

The assessment is necessary to the ambulance service’s operations because about 56 percent of operations are written off, mostly due to Medicaid and Medicare, Scribner said.

“SMCAS is a community owned not-for-profit,” Scribner said. “All money that comes into the organization is used to provide, improve or strengthen emergency medical services to our communities.”

Council member John DiCostanzo, who represents the fourth ward, said when considering this SAD, residents should think about the quality of the service provided.

“After evaluating all the information that was provided to us, my decision is made on how well I have experienced personally SMCAS performance and response to emergencies,” DiCostanzo said.

Steve Gargis, of Niles, echoed this sentiment, and said that earlier this month his family had witnessed a motorcycle accident that could have ended in tragedy if not for the fast response of SMCAS.

“They were there in six, maybe seven, minutes, and the next day, my family and I saw the motorcycle rider alive and well,” Gargis said.

He also challenged his fellow city residents to be more civically engaged and come to more meetings to learn about current issues.

“Take pride in where you live and what you do,” Gargis said. “I have not seen a turn out like this since there has been a discussion on medical marijuana.”

While SMCAS has faced financial troubles in the past and is still dealing with some of the issues surrounding the former executive director Tim Gray’s conviction of embezzlement from the company, Scribner has reported that the company finished 2016 at $130,074 in the black.

DiCostanzo added that City Administrator Ric Huff sits on the SMCAS board, where he has been evaluating SMCAS’ financial health. 

“We have reports from Administrator Huff that their finances are improving and that they have money in the bank now,” DiCostanzo said. “I am comfortable that we are doing the right thing here. “

Some council members still questioned if there may be other alternatives SMCAS.

Though he voted in favor of the district’s approval Monday night, Second Ward Council Member Daniel VandenHeede asked whether the council had explored enough of these alternatives.

“Personally, I like millages where people can vote on these issues,” VandenHeede said. “In light of all of the problems that SCMAS has had, we have had people come to us and say, ‘we could do that job’ and we never did get like a spread-sheet of the comparison of costs and services.”

VandenHeede continued and said he approved of SMCAS services and the work they do, but that looking into other options would not hurt.

Niles Mayor Nick Shelton invited residents with questions and concerns to talk with their representatives. 

“I would thank everyone for coming tonight,” Shelton said. “I appreciate you sharing your comments, concerns and suggestions. That’s what this is all about. I encourage you all to come back.”

Six municipalities own SMCAS, including the cities of Niles and Buchanan, and Niles, Buchanan, Howard and Bertrand townships. Pokagon and Milton Township are contracted with SMCAS at this time.

The next Niles public hearing on the SMCAS special assessment district will be at 5:55 p.m. Sept. 25 at the Niles Fire Station Complex.

Niles Township will host their next public hearing at 7 p.m. Sept. 18 at the Niles Township Hall, 320 Bell Road.