Appeals Could Cost Fenton DDA $420,000

Some property owners in Fenton's Downtown Development Authority (DDA) District are upset with their tax assessments and have appealed them to the state tax tribunal. It could mean as much as $420,000 in lost revenues to the DDA, if the property owners win all of their appeals, said DDA Director and Assistant City Manager Michael Burns.

In addition, the DDA is asking Fenton City Council for permission to amend its budget by up to $40,000, for appraisal services. These services will help the city defend its property tax assessments in the tax tribunal cases.

The DDA Board will consider this, and a number of budget amendments, at its Sept. 27 meeting, Burns said.

The city is getting an appraisal for at least one property, said City Manager Lynn Markland. He doesn't believe it will be necessary to get independent appraisals for every property.

Mayor Sue Osborn said it also costs Fenton money to have a lawyer present at the tax tribunal, on the city's behalf.

The Foster Swift firm handles most of Fenton's tax tribunal appeals, but city attorney Stephen Schultz also handles some of them, Burns said.

In response to a question from Councilman Tim Faricy, Markland said the $40,000 for appraisal services will be an amendment to the DDA budget.

The issue goes to the DDA first, and then the DDA makes a recommendation to city council, Osborn added. The city assessor approached the DDA because properties in the DDA district filed appeals with the tax tribunal.

City Assessor Tonya Molloseau said Fenton has four 2009 appeals, fourteen 2010 appeals, and seventeen 2011 appeals to date.

The full tribunals are a year to two years behind, so the 2009 appeals will be heard most likely before the end of the year, Molloseau said. But the 2010 and 2011 appeals will be heard 12 to 36 months from now.