Sumpter Township bookkeeper Jim Glahn, CPA, presented a balanced $3,576,160 budget for the upcoming 2012-13 fiscal year to the township board at a hearing before the regular township meeting March 27.
During the regular meeting that followed, the board approved the proposed budget, along with the amended 2011-12 budget of $3,702,210 and gave Glahn and employees their thanks for working to balance the budgets.
Glahn said last year the township had to make several changes and cuts because of declining revenue from the landfill. There were more than $500,000 in decreases and they ended up with a balanced budget.
He said he does not foresee further cuts necessary for the upcoming year.
The amended 2011-12 landfill revenue was $1.2 million and $1.1 million is expected for 2012-13.
Glahn said dispatch did not move to Huron Township as soon as expected, so Sumpter did not save as much money as expected. However, Sumpter will save almost half of what it paid when it ran its own dispatch.
The latest date for dispatch’s switch to Huron Township was April 1. Glahn said there have been plans made to pay the dispatchers that are leaving extended benefits past the time of their job loss to soften the blow.
Glahn said the water fund is a problem. Detroit Water Department is tacking on a mysterious $200,000 service charge, so water is costing more, beyond any rate hikes, he said.
He said the township is seeing the effects of inflation in many ways. Landfill royalties hit bottom, going down 70% of what it was eight years ago when he joined the township, which was “a huge drop.”
He said population in the township has decreased by 15% and there is $126,000 less state shared revenue.
Wolverine Power Supply Cooperative is the township’s largest taxpayer. In spring 2010 Wolverine bought the FirstEnergy Generation 340 megawatt peaking power plant on Rawsonville Road. In 2010, Wolverine appealed its property assessment and won.
Almost all of the $3.5 million tax it paid went to the Lincoln School District, along with portions of that total to the zoo, Wayne County Community College, the jail and other entities, along with a small amount to Sumpter, he said.
The state dropped the Wolverine assessment from $71 million to $68 million and all the extra tax it paid had to be paid back.
Sumpter had to refund close to $90,000, he said. Also, Wolverine’s taxes for 2010 and 2011 were lowered, as well, and Sumpter will see a portion of that decrease.
When Wolverine appealed its assessment to the state , the state treasurer sent letters to the township and school district to set money side in case Wolverine won its appeal.
He said for just one year the school operation fund had to refund $157,000 and the debt fund $64,000. There was a total of over $500,000 from the school district.
All the entities together paid back $1.906 million to Wolverine.
Glahn said Sumpter sent its check to hit the March 28 deadline to pay without interest.
Since the township revenue was lower, “We are fortunate the unions all agreed to keep the status quo with no pay increases,” Glahn said.
He said it was fortunate the township got ahead of its problems.
“I was there and I told them they couldn’t continue this way and they listened,” Glahn said, praising the officials who took him serious in the past, so the budgets could be balanced.