Madison Heights urges Oakland County to reject proposed equalization fee increase

Madison Heights City Council voted to send a resolution to the Oakland County Board of Commissioners urging the county to reject a proposed increase in equalization service fees that, the city says, would raise Madison Heights’ cost from roughly $230,600 to about $410,060 — a 77.8% jump in the first year.

City Manager Melissa Marsh told the council the March memo from county assessing did not warn of a “significant increase.” “Nowhere in there did it allude to a 77% increase,” Marsh said, adding the city’s budget is already set and lacks flexible funds to absorb that rise.

The resolution matters because Madison Heights and roughly half of Oakland County’s municipalities rely on the county to provide parcel assessment, tax bill production and related services. County officials at the meeting said the proposed change reflects a decision to capture the full cost of providing that service, including direct labor, benefits and a portion of indirect overhead.

Dave Woodward, chairman of the Oakland County Board of Commissioners, told the council the county’s assessing operation serves roughly half of the county’s communities and that the cost to provide the service is about $6.5 million. He said revenues from existing contracts have been “less than $4,000,000,” creating a persistent shortfall the county argues must be addressed. Woodward described indirect costs calculated by an outside firm, Maximus, and said the county is trying to move to a uniform, fully‑costed rate across communities.

Oakland County Chief Financial Officer Brian Loeffler explained components that go into the new per‑parcel rate: wage increases negotiated in a county union contract, payroll taxes and benefits, equipment and field supplies, and an indirect cost allocation. Loeffler said the county’s indirect allocation percentage is calculated by Maximus and that the published percentage in the exhibits is 18% of certain base amounts — a portion that Loeffler said represents less than 10% of the total assessing cost.

Council members and city staff pressed county officials on timing and notice. Marsh and members called the March communication insufficient for cities that finalize budgets in April and May. Council member Sherman said the proposed increase “is not just significant, it’s outrageous” given the short notice and the city’s constrained budget. Mayor Pro Tem Bliss and others urged county officials to return with a smaller first‑year increase or a clearer ramping plan.

The county presented two pricing options in the proposed three‑year contract: one that would increase the real‑property per‑parcel rate to about $30.86 in year one and a “smoothing” option that reduces the immediate jump to $23.77 per parcel in year one (with higher amounts deferred into later years). Council members and the city manager repeatedly cited the per‑parcel math and the city’s limited ability to shift existing budget items to cover an added roughly $180,000 cost in the fiscal year.

Council discussion also noted local context: Madison Heights currently collects a 1% administrative fee on its tax rolls (about $600,000 annually), but Marsh told the council that sum does not fully cover the city’s own tax‑collection costs (printing, postage, software, counter staffing). Several council members said the county’s fund balance is large and asked whether the county could offer transitional grants or other relief to smaller or disadvantaged communities.

After roughly an hour of discussion and questions to county staff, the council voted by voice to approve a resolution urging the Oakland County Board of Commissioners to reject the proposed equalization service fee increase. The motion was moved and seconded; the council passed the resolution by voice vote and directed the city to forward it to the county. No roll‑call tally was recorded in the minutes; the clerk reported the motion carried.

City Manager Marsh said she is pursuing alternative private vendors and has scheduled meetings with private assessment firms to evaluate options should the county contract remain unaffordable for Madison Heights. County officials said communities may opt out and procure assessment services privately; they also said the uniform county rate would apply to municipalities that choose to continue contracting with Oakland County.

The Oakland County Finance Committee recommendation will be considered by the full Oakland County Board of Commissioners at an upcoming meeting (county officials identified May 1 as the board date). Madison Heights’ resolution will be part of the record sent to county commissioners.

What happens next: the county board will vote on the recommended rate; Madison Heights staff said they will present alternative vendor information to council if private proposals are feasible within the city’s budget.