Sumpter Township approves 2016-17 budget after public hearing

After a public hearing on March 22, the Sumpter Township Board of Trustees unanimously approved the amended 2015-16 and proposed 2016-17 budgets.
Financial Director James Glahn, CPA, told the board it is another positive year for the fiscally balanced General Fund budget.
He said the largest amount of revenue going into the budget is from the landfill tipping fees, which hit bottom in 2012 at $1.2 million and was up to $2.2 million this year. He said they put quite a bit of that into reserves, with a fund balance of more than $5 million at the end of this fiscal year.
The General Fund did well, he said, but there was an extra expenditure when two police officers retired. They had been promised full medical and retirement, but that had been unfunded, so the Michigan Employee Retirement Service (MERS) sent the township a bill for $400,000. Glahn said they covered it.
The General Fund revenues were about $4.9 million this year and proposed at $4.8 million for 2016-17.
Glahn said the Water Fund didn’t have to borrow this year. He said the township had 11 bonds when he came and now there are just two bonds. One of those bonds will be refinanced this year to save the township $200,000 in interest.
An item of concern are the bills for Detroit water. He said up to 2009, Detroit would bill for the water used. Then in 2010, it started billing a fixed charge plus the amount of water used.
In 2009 there was no fixed charge and this year it is almost $400,000.
“After the audit, we’re going to do a water rate study to make sure we have the proper numbers,” Glahn said.
As to the Fire Fund, Glahn said it continues to spend more than it takes in.
He said after the 2017 budget, they could ask for another ½ mill of taxes. He wouldn’t suggest asking for it this year since the township will be seeking renewals of the fire and police millages.
Or, ask the board to give them more money. He said the general fund has been giving the Fire Fund $68,100 a year for 12 years and the board could decide to give them more money.
Glahn said, over the years, the Fire Department bought two fire trucks at about $500,000 each and he was able to put down $200,000 each time and the fund paid $50,000 for five years.
Plans call for the next truck to be purchased in 2023 and they have to start adding to the reserves.
“No way could we finance the fire truck otherwise,” Glahn said.
“We’ve got to right the ship in that regard,” he said.
The Library Fund no longer collects a millage since the millage now goes directly to the Belleville Area District Library. There is $250,728 left in the Library Fund and it is gathering interest.
In other business at the March 22 meeting, the board:
• Held a public hearing and then approved transfer of Community Development Block Grant funds to pay for a proposed generator at the Senior Center. Funds were transferred from 2013-14 Demolition and Senior Services to Senior Center Improvements. Also, 2014-15 Senior Center Improvements were established as an activity and funds were transferred from Housing Rehab, Demolition, and Senior Services to Senior Center Improvements;
• Gave presentations to retired Police Chief James Pierce and to Chris Walter-Hamm in recognition of her late husband Trustee/Fire Fighter William Hamm. The Fire Department also presented her with her husband’s badge;
• Approved the 2015-16 Wayne County Parks Grant of $10,595, as approved by Wayne County on Feb. 29;
• Passed a resolution to establish who may use the Community Center for funeral dinners. The deceased person must have lived in the township;
• Approved the resignation of Police Officer Patrick Russell, effective immediately;
• Approved the Wayne County Annual Maintenance Permit Packages A-16044 and A-16099 and the Wayne County Annual Permit for Special Events Package A-16133;
• Approved Burnham & Flower Insurance Group Coverage for 2016-17;
• Approved fireworks by Great Lakes Fireworks for this year’s Sumpter Fest on May 29, with a rain date of May 30; and
• Approved the Fire Department’s Standard Operating Procedure: Driving Authorized Emergency Vehicles;