Sumpter Twp. in best fiscal condition it has been in last 10 years

By Rosemary K. Otzman
Independent Editor
After a public hearing on March 25, the Sumpter Township Board of Trustees unanimously adopted the amended 2013-14 and the proposed 2014-15 budget.
The township’s fiscal year is April 1 through March 31.
The 2013-14 general fund budget was $4,237,740 and the 2014-15 budget is $4,149,625.
The budgets were presented by Jim Glahn, CPA, the township’s accountant and Human Resources officer, who noted the amended and proposed budgets are balanced.
He thanked the township board for their continued insistence that Sumpter Township be fiscally prudent, adding it is very important to Supervisor Johnny Vawters.
He said when this board was first elected the township finances were not in the best shape and they had 11 bonds.
He said after this year, there will be two remaining bonds and the township balance sheet will be in the best condition it has been in the last ten years.
Glahn said the revenue increased slightly for the year due to the sale of a couple of township properties (Medical Center and PNA Hall) and there was $200,000 less from the landfill royalties.
He said there were expenditure savings due to the assessing firm the township hired. Also the township is saving $175,000 per year by using Huron Township to dispatch Sumpter’s police and fire.
In the past the fund balance was down to $354,000, but it is expected to be up to $925,000 at the end of 2014-15 fiscal year, he said.
Glahn said the utility costs of the township exploded due to the weather and they are expending $113,000 for sirens that they will get back in a grant.
The landfill royalties went up by $185,000 this year to $1,613,151.
This coming year is the first time ever the township will not have to supplement the water fund with landfill royalties, he said.
“That is quite an accomplishment,” he said, adding that Sybil Buchanan and Deputy Treasurer Karen Armatis are working on collections and making sure people get help to set up payments before it gets to a crisis point.
He said the new supervisor in the water department has done a super job and the new engineer is great. He said they allowed Sumpter Township to pay off bonds that were payable.
He said the Fire Fund received $106,312 from the state for dispatch consolidation and the township has to report to the state how that’s proceeding.
Also in 2014, the fire department ordered a pumper tanker and had a down payment of $250,000. They have three payments of $52,000 before it’s paid off.
Glahn said things in the fire department are being updated and improved. He said they have to keep a close eye on “our fiscal house” because going forward they’ll have to be setting money aside to buy the next piece of equipment that will be needed.
Glahn said in 2008 and 2009 the township had to make substantial cuts. The royalty payments were coming down and for two years after the cuts, the royalties continued to go down.
He said there have been some increases in royalties over the past two years.
“We’ve shown we can continue our township,” Glahn said, adding that he thanked everyone for their cooperation during the hard times.
Township attorney Rob Young said over the last year there has been a lot of change in the fire department, with modernization of equipment and training.
“Now that’s behind us. Are we going to settle in?” he asked.
Glahn said in 2015 the fire millage expires and it passed without a problem before, but by a lower number.
He said the fire department operates on $350,000 in tax revenue and some other revenue.
“Now that we have a union, wages have increased,” Glahn said. “In five to six years from now, when it’s time to get another piece of equipment, we should have $250,000 to put down and payments of not so much money.”
Attorney Young said the increased compliance with requirements is important.
“We had to pay $8,000 dues to HazMat because we don’t have a fire department employee who can represent Sumpter on the team, Glahn said.
(Later, Fire Chief Joseph Januszyk explained that a newly hired fire fighter has the certifications for the Urban Search & Rescue team. The dues for the HazMat group regularly are $5,000, but the Sumpter Fire Department was assessed $3,000 more because it didn’t have the US&R employee required. The $8,000 figure is misleading, he said.)
“We’ve buried our head in the sand for a while and then we comply,” Young said, adding things should settle down now.
Trustee Peggy Morgan, the board liaison to the fire department, said the department is getting someone to serve on the team. She said the police millage also is coming up. She said if these millage questions are held when nothing else is on the ballot it could be problem because voters may not come out.
Young said they should avoid spending money for a special election. He said he believes the millage runs through 2015, so there wouldn’t have to be an election until 2016.
Young said the township’s policy is to have outstanding water bills collected.
“If anybody is taking water they shouldn’t be, they are charged,” Young said.
Glahn said the township was paying more for water to the Detroit Water Board than it was billing out. He said they found a leak or persons taking water.
Mary Ban asked from the audience about how much the sale of the PNA Hall brought and Glahn said the agreement was for $175,000. There was a $48,900 down payment and then payments of $500 a month.