Sumpter Township works on paying down unfunded liabilities

After an hour-long March 24 public hearing the Sumpter Township Board of Trustees approved the amended 2014-15 budget and the proposed 2015-16 budget of $4,497,350.
He said $400,000 more in revenue is expected and $300,000 more in expenses.
Sumpter’s fiscal year ends March 31.
Finance Director Jim Glahn expects the landfill royalty funds to go up to a conservative estimate of $1.2 million from last year’s $1.15 million. Non-business licenses and permits are expected to go up, along with charges for services and fines and forfeitures. Intergovernmental revenue is expected to go down along with interest and rents.
The royalty fund’s fund balance at the end of March was $4,121,086 and at the end of March 2016 is expected to be $4,533,586.
The big item discussed at the public hearing was Glahn’s explanation of how Sumpter was trying to do something about the unfunded portion of the township’s pension liability. The retirement benefits promised are only 65-75% funded in Sumpter, much like most of the other municipalities in the state.
Glahn said he just got back from a MERS (Michigan Employees’ Retirement System) conference and he wants to work to get Sumpter 100%-plus funded. He said he is channeling increased funds toward the unfunded liabilities.
Glahn explained that years ago, before he came to work for Sumpter, the board gave full retirement benefits to two police employees – Chief Clinton Brown and Lt. Wanda Elden – although they had never paid anything into their retirements.
He said it is costing Sumpter $350,000 a year to MERS to get their retirements straightened out.
“Everything else is good,” Glahn said, pointing out when he came Sumpter had 13 payable bonds and now there are just two. One of the bonds recently was refinanced from 5.5% interest to 2%, saving the township $220,000 over the next 10 years.
He recalls when the township was getting $4.7 million a year in landfill royalties and when the Canadian trash stopped coming the township lost $3.5 million in a year.
He said this is the third straight year Sumpter was able to get increased landfill royalties which now could be from $1.5 to $1.6 million.
In other business at the March 24 meeting the township board:
• Approved fiscal year insurance with Burnham & Flowers for $130,471, up from $129,113 last year because new options for coverage have been checked off;
• Approved the second and final reading of the Provisionary Center Zoning Ordinance. The township adds this to its ordinance licensing marijuana growing operations;
• Approved directing Carlisle-Wortman Associates to update the master plan at a cost of $9,500;
• Considered the planning commission’s recommendation to rescind the special exception permit for Bewey Horn and the Sumpter Roller Rink, 19750 Sumpter Road, and to refund his fees of $1,252. The board decided to send the issue back to the planning commission to be worked out. When the details are worked out, it can come back to the board for a final decision;
• Approved use of the Community Center gymnasium without charge for an Eagle Scout fund-raising spaghetti dinner from 4 to 8 p.m. on May 16 to raise money to erect a weather shelter at the Recycling Center. Supervisor John Morgan explained because the township is the beneficiary of this project the fund raising use of the gym would be free;
• Approved the fireworks display for Sumpter Township Country Festival on May 24, with a rain date of May 25;
• Approved the charter Comcast franchise agreement at the same fees, as recommended by township attorney Rob Young, contingent on getting the contract finalized for signatures. This was not on the agenda, but was submitted as part of the attorney’s report;
• Heard Trustee Don Swinson report that the walls are done at the Parks and Recreation building at Graham Park. The floors will be done after the March 28 Easter Egg Hunt at Graham Park. He also reported the upcoming Sumpter Fest over the Memorial Day week end is a work in progress;
• Heard Trustee Peggy Morgan report that Jim Stump and Collin Lynch came in to teach all township employees CPR and defibrillation. Supervisor John Morgan pointed out the training was worth a lot of money and the township got it free from its own fire fighters; and
• Heard Mary Ban say that the roads are becoming a major problem and the growing holes need some stones from the county. Also, she reported a street light was out at the Van Buren Township side of the Bemis/Sumpter roads intersection. “They ignore this end of their township,” Ban said referring to the southern, rural part of VBT.