Milan City Council is leaning toward asking voters to establish a public safety assessment district to sustain fire services funding after York Township departs in 2027.
Following a lengthy July 21 discussion, council members must finalize ballot language by their Aug. 3 meeting to address the impending revenue shortfall. Mayor Ed Kolar acknowledged the gravity of the situation, stating, “This isn’t a fun discussion. It’s a really serious discussion.”
Milan Area Fire Department Faces Revenue Loss
The funding challenge stems from two compounding issues. Earlier this year, Fire Chief DJ Carpus proposed 24-hour staffing to improve emergency response times. Months later, York Township announced it would leave the Milan Area Fire Department to form a Saline Fire Authority effective July 1, 2027. The departure strips 27% of the department’s operating budget.
Carpus noted that while call volume might drop by 20 to 25% following York’s exit, staffing costs will remain largely unchanged. He suggested negotiating a contract or pay-by-the-run agreement with York Township to cover homes closest to Milan until York builds its own fire station. “It wouldn’t be fair to the residents to tell them, ‘No, we can’t go. You’re right there. I’m sorry,’ but at the same time the reality is the costs of running those runs shouldn’t be borne by our department or mutual aid agreement,” Carpus said.
Headlee Amendment Versus Public Safety Assessment District
City Manager Jim Lancaster outlined two primary funding mechanisms: restoring the city’s operating millage under the Headlee Amendment or creating a dedicated assessment district. A 1-mill levy would generate $253,928, fully covering the revenue lost when York Township exits. For a home assessed at $300,000, a 1-mill levy costs roughly $300 annually. A 1.5-mill levy would cost $450, while a 2-mill levy reaches $600.
Mayor Kolar initially favored restoring 1.5 mills under the Headlee Amendment to provide a predictable tax rate. Milan’s charter allows levying up to 20 mills, but it currently collects just under 16 mills. Kolar suggested the additional revenue could replace lost funding, with the remaining half mill supporting 24-hour staffing.
However, City Attorney Steve Mann cautioned that Headlee restoration revenue flows directly into the city’s general fund. Future councils could legally choose to spend that money elsewhere, and the millage would remain subject to future Headlee rollbacks.
Council Prioritizes Restricted Public Safety Money
Most council members ultimately backed the public safety assessment district approach because it restricts revenue strictly to public safety needs. Unlike a Headlee restoration, the assessment rate could fluctuate annually based on funding requirements and would mandate a public hearing each year.
During public comment, residents raised concerns about the variable tax rate. Milan resident Piach noted that while city millage rates drop annually, individual tax burdens continue rising. “Every meeting you are talking about how our mills go down each year, but as a citizen my taxes go up,” Piach said. “We are still bleeding.”
Realtor Angela Thomas added that a fixed millage is easier to explain to prospective homebuyers than a special assessment district with a shifting rate. Lancaster said he will work with the city attorney to prepare the ballot language and encouraged council members to share any lingering concerns.
What Happens Next
The Milan City Council will vote on ballot language at its Aug. 3 meeting unless a special session is scheduled. If approved, voters will decide whether to adopt a dedicated funding mechanism for fire services. The outcome will dictate whether Milan pursues 24-hour staffing or simply maintains current operations amid shifting regional fire protection alliances.
— Noah Williams, local desk, AXO News