Sumpter Township accepts $12.8 million budget for 2018-19

After a public hearing on March 27, the Sumpter Township Board of Trustees unanimously accepted a $12,790,996 proposed budget for fiscal year 2018-19 that was to begin April 1.
Sumpter Finance Director Scott A. Holtz, who was hired Oct. 16 to replace the retiring director, presented the proposed budget during the public hearing. While in the past Jim Glahn, CPA, presented a booklet of charts and reports on separate budgets at the budget hearing, Holtz presented one page.
The total budget revenues were: general fund, $4,974,995; fire fund, $580,050; police fund, $1,082,850; royalties, $2,604,000; rubbish fund, $331,400; water fund, $3,177,701; and other governmental funds, $40,000, totaling $12,790,996.
Expenses totaled $12,516,234, leaving a $274,762 surplus.
General Fund
Holtz presented a verbal summary of the budget, noting expense projections for the general fund were decreased by 3.3% for the upcoming budget year. He said they are directly related to Auditing Services ($25,000), salary savings of the financial director position ($13,185 salary and benefits), and one-time capital projects budgeted in the 2017-18 budget year.
General fund revenue projections were decreased by 3%, directly related to not transferring as much to the general fund from the royalties fund ($280,000).
Some of the general fund expenses planned are upgrades to the township board room and police equipment:
• Eleven new board chairs to replace worn and broken chairs currently used – $3,300;
• Two flat-panel monitors for viewing presentations during meetings – $4,000;
• Upgrade of microphone system in township board room – $11,000;
• Upgrade of cable station equipment for broadcasting – $15,000 (paid by royalties from cable access fees);
• BS&A Purchasing Module – $8,100;
• Eight in-car mobile tactical computers – $34,700 (paid through Forfeiture Fund);
• Thirteen body armor vests – $9,200 (paid through Forfeiture Funds with possible Department of Justice grant to pay for half);
• Two Ford Interceptor Utilities Police Vehicles – $64,850; and
• One hundred new folding chairs for the Senior Center – $2,900.
Fire Fund
Under the Fire Fund, Holtz said revenue projections were decreased by 6.1% and this is directly related to the one-time grant for turnout gear. Expenses are also decreased 13.4% to save for a new fire truck earmarked for 2020.
Other expenses planned for the Fire Fund are $26,000 for fixing tanker truck, $5,000 lockers for station #2, and $7,000 for rescue stabilization bars.
Holtz said currently there are drain issues at Station #1. The current bid to fix it is more than a year old and is between $7,600 and $11,100. He said he has recommended that they complete a new request for proposals, complete with a pre-bid meeting to answer questions by contractors. The amount is not included in the proposed budget. When the recommendation is presented to the board, he will include a recommended budget adjustment to fund this project.
Police Fund
Holtz said revenue projections were increased by 11% and directly related to the increase in Taxable Value (2.1%) and the payment of Delinquent Property Tax from the prior year (historically 8%).
Expenses also increased 7.7% which related to the transfer to the General Fund to cover additional expenses within the department.
Royalty Revenues
Holtz reported that royalty revenues from the landfill are flat. For the 2017-18 budget year, Sumpter received four payments that were less than the prior budget year, but still has received $83,835 increase over the prior budget year.
Expenses are decreased by 2.3% which is directly related to the decreased transfer to general fund.
Holtz reported that methane gas royalties are not at a break-even point at the landfill, so there are no royalties from the methane.
Rubbish Fund
Holtz reported revenue projections were increased by 16.3% and are directly related to the increase that was approved on Feb. 20, 2018.
Expense projections were increased by 1%, but the township is currently negotiating terms of the rubbish contract with Republic Service.
Water Fund
Holtz reported revenue projections were increased by 33.6% and this is directly related to the infusion from the Royalties Fund to cover the refinanced Debt Service ($232,000) and an increase to water/sewer rates of $13.5%.
Expense projections were increased 4.1% and this is directly related to an increase in maintenance projections of 2% and a projected water increase from Great Lakes Water Authority of 2%.
Water fund expenditures planned include $35,000 to rehabilitate the Martinsville Wet Well and $10,000 to replace the Vensorb Odor Control at the Sumpter Road Wet Well.
Sumpter Treasurer Peggy Morgan questioned the $26,000 in the fire budget to fix up a water tanker truck that is 25 years old.
Fire Chief Joe Januszyk said it would be better to go out for bids and get the new fire truck now instead of spending money on an old truck. He asked if there was a possible grant for a truck.
Holtz said just because it was in the budget didn’t mean it had to be spent on fixing Truck #31. He said there could be a possible loan from the royalty fund. They could keep interest to a minimum and pay it to the royalty fund.
Township attorney Rob Young noted that more than $100,000 was saved in “audit” payments in the new budget.
Holtz said there had been a full-time accountant for the township from Ron Traskos’ office that did the normal day-to-day accounting services, about the last two years.
Holtz said he now does those services as part of his job.
Trustee Matthew Oddy said when the township went out for a new financial director, they wanted him to bring those services in house.
Treasurer Morgan said Holtz should get a board agenda before expenditures are approved, referring to the last meeting where the board approved a salary raise for the new public safety director before telling Holtz about it.
“I will work with Dawn (Deputy Clerk Hadyniak) and Esther (Clerk Hurst) to stay up to date on what’s going on,” he said.
Fire Chief Januszyk said the 1993 Engine went out of certification five years ago and in 2020 another goes out of certification. He said if you refurbish one for $150,000 it would give it a 10-year extension, but in 2028 both engines will be out of certification.
He said two trucks would cost about $1 million.
Treasurer Morgan asked Chief Januszyk for his opinion on the budgeted repairs.
He said two years ago he paid $8,000 for a repair and, “I got my head ripped off.”
Now they want to spend $30,000 on something that they are going to get rid of, he said.
He said it’s supposed to be $26,000, but while you’re working on an old vehicle, other stuff falls apart.
Trustee Don LaPorte, board liaison to the police and fire departments, said if they aren’t going to keep it, they shouldn’t fix it. He asked if there was enough equipment at both stations and Januszyk said there was.
He said they stripped #31 and put it in #51 and they just got approval from the state.
Young said if they have enough coverage without that engine, the $26,000 doesn’t have to be spent.
Januszyk said he thinks the $26,000 should be put towards the new engine.
Mary Ban asked about the library money that has been set aside and Deputy Supervisor Karen Armatis said the township is saving the library money for the inside furniture for the media center to be created in the hexagon building across from the township hall.
Young said an April 6 meeting with representatives of the library has been set up to work on the details.
At the end of the regular meeting, resident Mary Ban asked if the library is trying to back down on plans for the Sumpter media center.
Young said after the vote failed for the original proposal the plans were scaled down and the focus was on a media center in Sumpter. He said they will not have a lot of books, but they will have a large screen and a number of computer stations and they will interface with the library downtown.
Ban recalled seeing a big bookmobile from the Ypsilanti Township library and said, “I hope we’re not getting a bookmobile.”
Young assured her they weren’t.