Council Says No to Tax Hike; City Faces Deficit
By Eric Fish

The Mackinac Island City Council, meeting Monday, July 2, unanimously voted to keep the 2007 millage at 8.95 and not raise taxes. The action will leave the city with a budget deficit of $58,637.

The Finance Committee had proposed a 0.7-mil increase several weeks ago that would have eliminated any sizable deficit. Council debated the recommendation Wednesday, June 27, and again at a special meeting with city auditor Michael Konicki Friday, June 29.

Alderman Jason St. Onge proposed cutting about three percent from all city department budgets, instead of a millage increase.

"I'm not in favor of voting on any increase," he said. "Everybody's seen the economic downturn we have right now and I can't consciously raise peoples' taxes."

Council also discussed covering any deficits with current savings.

"I don't think we should be going into these rainy day funds that we've got and taking the money out to cover this," warned Alderman Dan Wightman. "You can't budget for things that you don't know are going to happen. If you want to reduce services by three percent, then we do without them. And if somebody calls for something and there's nobody there, then there's nobody there."

Alderman Armin Porter encouraged Council to look at this millage situation as a wake-up call for future years.

"Fifty-eight thousand dollars is not the end of the world," he said. "We can cut this without raising taxes."

Several audience members also voiced their concern over the declining Michigan economy and opposed the possible raise of taxes.

"This is my last year in business on Mackinac Island," said Pam Amitai, owner of The Gift Horse. "I am closing my store because tourism is down significantly. Every year, my personal taxes go up on my home and my income is going down. I'm tossing in the towel and it's a pity, but please don't raise our taxes, if humanly possible."

At Monday's City Council meeting, Council unanimously voted to accept the 8.95 millage rate discussed at Friday's meeting. Several upcoming City projects, such as the repaving of Market Street and renovation to the old medical center building, may have to be put on hold.

To avoid the deficit, Council agreed to cut three percent from each department and dip into designated funds to cover any shortcomings. Although approved, the final millage rate was met with considerable skepticism.

"I have stated that holding the millage as it is now is an imprudent measure," said Alderman Mike Hart. "It illserves, I believe, our long-term interest. I still believe it is inadequate to our long-term interest and I wish we could have gotten something else."

Council was also presented with a letter from Carrie Wellington, who complained of being stopped by police when using the handicap cart that she has been using for the past six years, whose letter appears in the Letters to the Editor section this week.

Chief Lenaghan attended the meeting and offered a public apology to Miss Wellington, explaining that the traffic control officer believed the handicapped vehicle was a Segway. Segways are illegal on Mackinac Island by state law, a motion that was upheld by Council in a Wednesday, June 27 meeting.

"I would like to apologize for any embarrassment that you may have suffered," Chief Lenaghan offered. "I wanted to reflect also that my door is always open. I didn't refuse to see you. I didn't know somebody had told you that I wouldn't see you. I would have been more than happy to have seen you."

Council also gave a temporary motor vehicle permit to Mission Point Resort to transport portable toilets for the Front Lawn Festival. Dean Gillespie was also given a temporary trailer permit for the transport of equipment.

A new business license was given to Betty's Gifts, which is under new ownership, and renewals were given to Roses 'n Sadie, Three Bros. Sarducci, Chateau Lorraine, Pine Cottage, Margaret's Marketplace, Landing Gull Gifts, and Weathervane Gifts.

Council's next meeting will be Wednesday, July 18, at 6 p.m. on the second floor of Community Hall.