Livingston County board raises veteran services millage after lengthy debate

LIVINGSTON COUNTY — Livingston County commissioners passed a resolution Monday to raise a millage levy for veteran services, but the vote was preceded by a lengthy debate and a failed amendment.

According to a letter to the board from Director of Veteran Services Ramon Baca, Livingston County voters approved a millage renewal of up to 0.1127 mills for a period of six years in November 2022.

“I know the residents of the county cherish their veterans,” Baca told the board during its meeting on Monday, Aug. 26.

Baca said that from 2018 to 2021, the maximum rate was levied. But in 2022 and 2023, the rate was lowered because the department had built up a cash reserve “mostly due to understaffing.”

Currently, the rate is .0770 mills on an average residence valued at $137,505. The requested and approved increase brings the millage up to .0918 — still below the maximum rate approved by voters in 2022. Taxpayers will see an increase of about $2.03, according to Baca’s letter.

The department’s budget forecast for 2025 is $1,223,498.

The department, like everyone else, is dealing with inflation. It has to pay for gas and car maintenance in order to provide free transportation to medical appointments for veterans. It also has to pay for facility maintenance, rent, employee salaries, flag boxes for widows, stamps for mailers, paper for educational material and “swag” for outreach events, all of which has gone up in price, Baca said.

“Our department provides a tremendous service for our veterans and every line on our budget goes towards veterans and their families. For transparency, we must pay for the utilities at our office, which keeps the lights on and phones ringing, the internet that allows us to submit (Veteran Affairs) claims so that our veterans are connected to VA healthcare and disability compensation, in some cases survivors benefits,” Baca said.

“That money allows them to put food on their table, pay for a roof over their head and in some instances, enjoy dinner at one of our local restaurants.”

In his letter and during the meeting, Baca said the plan had been to spend the reserve fund down to one year’s operating balance, about $1 million, while increasing the millage slightly every year.

That reserve fund will be there in case of emergencies like the COVID-19 pandemic, where it would go towards supporting operations and providing relief for veterans and their families. Increasing the millage would allow the department to provide the same services and maintain operations without dipping into the reserve fund.

The fund balance of $1 million was recommended by the treasurer and an external firm, PFM Financial Advisors LLC, and approved by the veteran services committee.

“I assure you, we are good stewards of these funds and ensure protocols are in place so that abuse of this program does not happen,” Baca assured the board.

Commissioner Wes Nakagiri was the first to bring up his concerns with the increase. Throughout the meeting, he emphasized that the county has a reserve of 50-60% which, he said, gives the county a “superior” bond rating. He said the reserve the department asked for is about 80-85%.

“I just think that in these times of inflation, with government spending out of control that we here at Livingston County ought to set an example and not be asking taxpayers, even though it's a small amount, for any more money than what is needed to fund our operation,” Nakagiri said.

“So when I hear that we are able to fund everything that we want, we are essentially using the money to pad our reserves, I would rather keep the money in the taxpayers pocket.”

Commissioner Martin Smith pointed out that the $1 million reserve fund was recommended by the treasurer and PFM Financial.

“It's very easy to get caught up in our feelings,” Smith said. “We might feel this is too much or that's too much, but we should not ignore the expertise that we are presented with.”

Nakagiri responded later in the meeting, “These aren’t feelings, these are facts.”

“If we maintain the millage that we have, we're north of 60%. That's not a feeling, that's a fact. It is also a fact that we are not cutting programs. We're doing everything that the Veterans Department has requested for 2025 and we'll be able to do that by keeping the millage the same,” Nakagiri said.

“I ask the question rhetorically, why don't we have 80% for the general fund? I don't want it. We don't need it. So saying that a department of the county needs to have 80-85% when we get superior financial ratings with 50-60%, I just think it's ridiculous that we're even having this discussion.”

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Nakagiri put forth an amendment to the resolution to keep the millage rate the same at .0770 mills, instead of increasing it.

Board Chair Jay Drick voiced support for the amendment, saying keeping the millage the same makes the veterans receiving the services happy and the taxpayers happy.

Commissioner Doug Helzerman argued that whether it is done this year or next year, the department will need to raise the millage eventually and it can always be decreased if it is too much.

The amendment failed with Nakagiri, Drick and Commissioner Nick Fiani in support.

The commission then passed the original resolution 6-3, with Nakagiri, Drick and Fiani opposing.

— Contact reporter Tess Ware at tware@livingstondaily.com .

This article originally appeared on Livingston Daily: Livingston County board raises veteran services millage after lengthy debate