Thursday, November 17, 2005
News
Drain commission levies almost $748,000 in outdated accounts
By JACOB McCARTHY Argus-Press Staff Writer
CORUNNA - Following a meeting of the Shiawassee County Board of Commissioners last week, some county residents have a lot of unanswered questions about a special drain assessment that is levying taxes to pay for work completed up to 14 years ago.
After commissioners asked why work costing $747,822.20 that should have been charged to more than 100 drain accounts was neglected for up to 14 years, Shiawassee County Coordinator Margaret McAvoy has been in contact with the Spicer Group, getting answers and preparing to report back when the board meets again next week.
And while some people, including commissioner Jerry Walden, anticipate hearing about statutes of limitation and rebates, McAvoy said the results of her inquries won't change the fact that drain assessment bills will need to be paid - no matter how old the work is.
“I don't think (the commissioners) anticipated there would be drains that had not been billed for so long,” McAvoy said Wednesday. “While I understand people may be surprised by the length of time, the fact is that the county has paid the bills to the contractors and now we need to get the money back that we paid out.”
Walt Barta, who lives near the northern edge of New Haven Township and farms land in Shiawassee and Saginaw counties, is getting hit especially hard. This year, he is being asked to pay $2,240 for six parcels of land in the Youngs Intercounty Drain district.
Even worse, the assessment stems from work performed on the drain in 1991, before he owned much of the land.
“I don't think you should go back 14 years just because someone at the county drain office didn't do their paperwork properly,” said Barta, who served as Supervisor of Chesaning Township from 1976 to 1990. “I've sat on numerous governmental boards in my life and I can't believe anybody would make you go back 14 years to pay taxes because of shoddy work in the drain office.”
The outstanding drains accounts were recognized earlier this year but the extent of the problem became more evident after the county hired a private firm to help clean up the drain office.
The Saginaw-based Spicer Group worked in the drain office from August through October.
That work, which drain commissioner Gary Holzhausen told The Argus-Press Tuesday was necessary because his office was short-staffed following the departures of drains coordinator Mary Buginsky and deputy Todd Holzhausen, revealed at least 118 drain accounts with outstanding balances, some stretching back 14 years and at least one amounting to more than $20,000.
In addition to reviewing all outstanding drain accounts, facilitating apportionment hearings and preparing the assessment rolls, Spicer Group attended drain hearings, prepared bills and drain orders for payment, advised Holzhausen and his staff on Michigan drain code procedures and coordinated drain account code numbers with the county treasurer, clerk and equalization office.
Despite those efforts, there is still work to be done.
The board of commissioners authorized Spicer Group in July to spend time equivalent to approximately $50,980 in the drain office and now, with that allowance expended, they are bowing out with approximately 28 accounts with outstanding balances between $1,000 and $13,500 remaining. Those accounts total $80,000 that should have been levied in previous years.
Holzhausen said Spicer Group has helped streamline the drain office, especially regarding computer systems, and that his staff is ready to tackle the remaining drain assessments in the coming calendar year.
He also said the decision to collect on outdated accounts was necessary to keep the drain office books up to date.
“If you've got old things and don't take care of them enough time goes by and people ask why,” said Holzhausen. “So we figured we have to handle it now.”
The outdated drain accounts stem from the tenure of former drain commissioner Bernie Butcher, whom Holzhausen defeated in the 2004 general election, but when asked where responsibility for the back log of drain assessments lies, Holzhausen was careful not blame his predecessors.
“I don't want to speculate, but maybe they just got caught behind,” he said. “Maybe that's why we needed to get more efficient.”
Attempts by The Argus-Press to reach Butcher by telephone Wednesday were unsuccessful.
Perry Township Supervisor Sid Grinnell said paying the surprise $17,562.47 bill the township received is not as easy as just writing a check.
“It's the single biggest bill we've ever had,” he said. “We didn't budget that much and now we are going to have to move some money from somewhere else to pay it.”
Grinnell said people in the township, whose bills as a group add up to $46,397.58, have had questions about the unexpected levy, but that he is not ready to say the assessments are too high or low until he has more information from the county drain office.
“This is just a difference of opinion and we've got to figure out why we're being assessed things so far back,” he said.
Faced with his own bill for work completed on land he didn't own at the time, Barta said he is not raising a stink about the issue just because he does not want to pay his taxes, but because the system is unfair to hundreds of county residents.
“If you live in Shiawassee County, then it's a possibility you could get a drain assessment on work that's 14 years old or even older,” he said.
After commissioners asked why work costing $747,822.20 that should have been charged to more than 100 drain accounts was neglected for up to 14 years, Shiawassee County Coordinator Margaret McAvoy has been in contact with the Spicer Group, getting answers and preparing to report back when the board meets again next week.
And while some people, including commissioner Jerry Walden, anticipate hearing about statutes of limitation and rebates, McAvoy said the results of her inquries won't change the fact that drain assessment bills will need to be paid - no matter how old the work is.
“I don't think (the commissioners) anticipated there would be drains that had not been billed for so long,” McAvoy said Wednesday. “While I understand people may be surprised by the length of time, the fact is that the county has paid the bills to the contractors and now we need to get the money back that we paid out.”
Walt Barta, who lives near the northern edge of New Haven Township and farms land in Shiawassee and Saginaw counties, is getting hit especially hard. This year, he is being asked to pay $2,240 for six parcels of land in the Youngs Intercounty Drain district.
Even worse, the assessment stems from work performed on the drain in 1991, before he owned much of the land.
“I don't think you should go back 14 years just because someone at the county drain office didn't do their paperwork properly,” said Barta, who served as Supervisor of Chesaning Township from 1976 to 1990. “I've sat on numerous governmental boards in my life and I can't believe anybody would make you go back 14 years to pay taxes because of shoddy work in the drain office.”
The outstanding drains accounts were recognized earlier this year but the extent of the problem became more evident after the county hired a private firm to help clean up the drain office.
The Saginaw-based Spicer Group worked in the drain office from August through October.
That work, which drain commissioner Gary Holzhausen told The Argus-Press Tuesday was necessary because his office was short-staffed following the departures of drains coordinator Mary Buginsky and deputy Todd Holzhausen, revealed at least 118 drain accounts with outstanding balances, some stretching back 14 years and at least one amounting to more than $20,000.
In addition to reviewing all outstanding drain accounts, facilitating apportionment hearings and preparing the assessment rolls, Spicer Group attended drain hearings, prepared bills and drain orders for payment, advised Holzhausen and his staff on Michigan drain code procedures and coordinated drain account code numbers with the county treasurer, clerk and equalization office.
Despite those efforts, there is still work to be done.
The board of commissioners authorized Spicer Group in July to spend time equivalent to approximately $50,980 in the drain office and now, with that allowance expended, they are bowing out with approximately 28 accounts with outstanding balances between $1,000 and $13,500 remaining. Those accounts total $80,000 that should have been levied in previous years.
Holzhausen said Spicer Group has helped streamline the drain office, especially regarding computer systems, and that his staff is ready to tackle the remaining drain assessments in the coming calendar year.
He also said the decision to collect on outdated accounts was necessary to keep the drain office books up to date.
“If you've got old things and don't take care of them enough time goes by and people ask why,” said Holzhausen. “So we figured we have to handle it now.”
The outdated drain accounts stem from the tenure of former drain commissioner Bernie Butcher, whom Holzhausen defeated in the 2004 general election, but when asked where responsibility for the back log of drain assessments lies, Holzhausen was careful not blame his predecessors.
“I don't want to speculate, but maybe they just got caught behind,” he said. “Maybe that's why we needed to get more efficient.”
Attempts by The Argus-Press to reach Butcher by telephone Wednesday were unsuccessful.
Perry Township Supervisor Sid Grinnell said paying the surprise $17,562.47 bill the township received is not as easy as just writing a check.
“It's the single biggest bill we've ever had,” he said. “We didn't budget that much and now we are going to have to move some money from somewhere else to pay it.”
Grinnell said people in the township, whose bills as a group add up to $46,397.58, have had questions about the unexpected levy, but that he is not ready to say the assessments are too high or low until he has more information from the county drain office.
“This is just a difference of opinion and we've got to figure out why we're being assessed things so far back,” he said.
Faced with his own bill for work completed on land he didn't own at the time, Barta said he is not raising a stink about the issue just because he does not want to pay his taxes, but because the system is unfair to hundreds of county residents.
“If you live in Shiawassee County, then it's a possibility you could get a drain assessment on work that's 14 years old or even older,” he said.