VBT public hearing on 2017 budget included ideas on landfill funds

On Nov. 29, the newly elected Van Buren Township Board of Trustees held its first official meeting after being sworn in on Nov. 18.
It held a public hearing on the proposed 2017 general fund budget, the 2016 amended general fund budget and budgets for special revenue funds.
No member of the public commented on the budgets, which were then approved, slightly revised, at the Dec. 6 regular meeting.
The budgets had been prepared by former Supervisor Linda Combs’ office and she decided to have the new board vote on the budget, rather than the outgoing board.
That meant the new trustees – Sherry Frazier, Kevin Martin, and Paul White –spent part of Thanksgiving Day and that week end studying the budget that was new to them and they will have to vote on. Supervisor Kevin McNamara and his executive assistant Dan Selman had gathered the information to study and to share, and made department directors available to answer questions.
At the beginning of the Nov. 29 meeting, Trustee White congratulated Supervisor McNamara for gathering the budget information for himself and the new trustees so they could make informed decisions when they vote.
Among the issues discussed in the three-hour work/study session on Nov. 28 and the public hearing on Nov. 29 were the Waste Management landfill tipping fees that are being used to balance the general fund budget.
Trustee White pointed out the township has $10.6 million in total revenue noted on the budget and $15.5 million of total expenditures.
Supervisor McNamara said the expenditures include three years of retroactive pay for the recently approved contracts. He said the township is not growing to bring in more taxes and they have only added three new employees in the whole township.
“It’s been a challenging project,” said Trustee Frazier. “The budget was dropped on us over the last week. I appreciate the directors getting information to us and Supervisor McNamara.
“We had a lively discussion yesterday over three hours,” she said. “I did glean information and whether I agree with that or not I don’t know.”
Frazier said the trustees are stewards of the tax money.
Trustee White said the budget shows $10.6 million in revenue and the revenue basically has been stagnant over the past several years and the expenditures have grown.
He said the plan is to take $4 million from the landfill fund, making the fund the lowest ever.
“I totally disagree with the deficit,” said Clerk Leon Wright. “We don’t report the landfill fund as revenue. We show significant deficit, but use what we have to balance it … There was a shortfall in public safety and voters passed the extra millage … in 2018 when we start receiving those funds, we’ll have a balanced budget.”
Clerk Wright said VBT has always balanced the budget with landfill funds since 2008. This year there are $3.5 million in tipping fees.
“I agree we’re in the red in 2017, even though we’re not in the red,” Clerk Wright said.
“We’re in the red in 2017,” said Supervisor McNamara. “We need $1.99 million in 2017.”
“The landfill is a revenue stream for the township and I asked why it wasn’t labeled as such,” Trustee Frazier said. “We do get revenue from the landfill.”
“We’re going to put it in the books the way it should be,” Supervisor McNamara said. “This really has nothing to do with the budget today. We got a millage increase. We are deficit spending: $4 million comes in for police and we spend $8.5 million for police.”
“We’re still $1.3 million short and are dipping into the general fund fund balance,” White said, adding this budget is $4.87 million short.
Supervisor McNamara said by June he will get advice from financial experts on how to treat the landfill funds. He said this can be considered a “budget request.”
“False information is being given to my constituents,” Clerk Wright said. “If I think it’s wrong, I’ll say so.”
Treasurer Sharry Budd said the landfill fund was not to be used to support the budget and was to do projects for the township. She said in around 2008 the board started the special revenue fund because that it allowed the landfill funds to be kept as a special fund.
She said the audit shows it combined with the general fund. She cautioned that almost $500,000 of the landfill fund has to pay for the fire station on Hull Road and other land.
“EQ tipping fees are included in the general fund,” White pointed out.
“We’ll get a professional opinion on this and I’ll present it to the board,” McNamara said.
“I can show since 2002 the landfill fund has balanced the budget,” Wright said.
Frazier said the township has a lot of important things facing it like the pension shortfall and the Visteon bond.
McNamara said the health care shortfall is estimated between $9 million and $15 million.
“Visteon’s the one to be afraid of,” McNamara said.
“It’s crazy for the new board to vote on this budget,” said Wright, who was also a member of the old board that prepared the budget. “It should have been put in place in September or October… We’ve got four years to think about it.”
White said historically the budget was left for the new officials to approve. He said it is good for the new officials to understand the budget. He again voiced his concern about spending landfill dollars.
“We are responsible for getting the best bang for the buck for our taxpayers,” White said.
Frazier said the holiday season is not the best time to have public hearings on the budget because people are busy. She said it should be moved up a month and McNamara said he had no problem with that plan.
At the end of the meeting, Clerk Wright gave a thank you to Bob and Marie Krouse for maintaining flags at all the township cemeteries for the past two decades. The Krouses were not present for the honor and did not know about it until the Independent told them five days later.