Sumpter Township Finance Director presents ’19-’20 budget

Sumpter Township Financial Director Scott Holtz told the township that the landfill royalties that are $2.6 million in the budget, currently are down 12%.
“That is a concern,” Holtz told the board and residents at the March 12 public hearing on the 2019-20 budget. “Once that slide starts, it continues.”
He said salaries are actually going down, since several large wage earners separated from the township and there is “fresh blood.”
But, he said, benefits are going up and the unfunded pension liabilities are a concern. He said Sumpter currently is funded at 76%, which is better than most communities.
He said you don’t have to have all the money now, but you have to have it when people need their pensions. He said the township currently owes about $2.8 million to $3 million.
Holtz said is $4.5 million is in the royalty fund at the end of February, but he doesn’t want to use that all up because he wants to be sure the township can operate.
He said the 21.6% in pension budget allocation is being bumped up to 25% in the next budget.
He distributed a packet of information on the proposed 2019-20 budgets, about $9 million per year, and projected it on the screens in the front and rear of the meeting room as he explained.
Resident Mary Ban asked about the bond payments for the former Wayne County Jail construction and if county residents are still being billed for that “white elephant” that was sold by the county and the beginning construction being torn down.
“I’m not as familiar with Wayne County,” Holtz said.
Township attorney Rob Young said the county bonded for $200 million to build a jail and that won’t change and taxpayers will continue to pay until the bonds are paid off. He said there is a new plan for a recorder’s court, juvenile court, court and jails and the purchaser will contribute to this eight-year program.
Township Treasurer Ken Bednark asked about the several hundreds of thousands of dollars of uncollected water billings.
Bednark said he thinks the financial situation shows a “pretty bleak picture.”
Bednark said there are declining revenue funds. He said the royalty funds should be the cherry on top and the township should function outside of the royalties.
He said at the last board meeting they talked about spending $70,000 to fix the fire hall and $100,000 on the sewer.
“It’s not a pretty picture,” Bednark said, referring to declining revenues and increasing costs.
“It could fall in the lap of the next administration,” Bednark said of a financial disaster. “It’s that close.”
Holtz said $2.8 million in royalties is coming in and he budgeted just $2.2 million to be conservative. He said there are millages for police and fire, but, “We have to get $2 a year in royalties to keep the lights on.”
Bednark said $120,000 in declining salary costs is not that much.
Holtz said he has heard of several retirements coming up. He said 55-60 is the median age here and so there will be retirements in the next five years.
“We’ll have to replace them,” Holtz said. “We’re pretty sparsely populated. We’re not overstaffed. A lot of people are doing dual duty.”
Bednark asked about contracts for contracted services and Holtz said they got a new contract with the Great Lakes Water Authority last year and they got the new contract with Republic Waste this year.
Trustee Matthew Oddy asked about remodeling of the counters at the treasurer’s and clerk’s offices.
Holtz said that will be lowering the counters for ADA compliance at a cost of $4,000 which is under the capital improvements limit.
“If we’re doing them, why not do all of them?” Trustee Oddy said of the counters in other departments.
Holtz said Bednark wanted to lower the counter for the treasurer’s office and went across to the clerk and said, “You’d look silly if you didn’t have an ADA-compliant counter, too.”
“ADA compatibility. We’re lagging,” Bednark said. “We will offer more utility for the public.” He said he understands the women’s bathroom needs ADA changes, as well.
“Also the front door,” Oddy said, referring to an ADA push-button door to open, like the new one put into the back entrance.