Independence Township budget numbers show it’s not hurting for money. In fact, some argue it has too much.
‘The revenues are out pacing the expenditures so we keep adding to the fund balance. We’re already over 40 percent,? said Trustee Dan Kelly. ‘At some point, it’s a consideration for this board to talk about if we should continue to collect the amount of taxes we are collecting.”
According to Plante Moran audit reports,the township collected $6,399,016 in revenue for its general fund and spent about that much, and was still left with $4,983,242 in the fund balance, which comes out to more than 40 percent.
Trustee Charles Dunn said the fund balance reflects the financial health of the township, and demonstrates fiscal responsibility.
Much of the money is spent ‘off budget,? he said.
The township budgets capital improvement projects separately from the general fund. When capital improvement projects, such as the new senior center last year in Clintonwood Park, come to the board, they look at the fund balance, he said.
Plante Moran recommends a 20-40 percent fund balance, he said.
‘I don’t want the public to have this impression that we are collecting these funds and somehow have this large bank account,? Dunn said. ‘We are fiscally responsible but at the same time there are significant infrastructure improvements that are going to be needed.?
Kelly disagreed with letting the fund balance grow “unrestricted and undesignated.” Taxes are collected for operating the township and township offices.
He suggested creating a capital expenditure plan by setting 10 percent of the fund balance aside on a regular basis.
‘I don’t think we should be collecting from our citizens today for something that might get spent five years from now based upon some board’s wishes to spend it, just because we got that much money,? he said.
Kelly recommended either reducing taxes or allocating the money.
‘We come to a decision as a board that we’re going to allocate it in advance to a capital improvement, so that everybody in the community understands where we are spending it,? said Kelly.
Dunn said the board made a ‘conscious effort? to take capital improvement plans out of the budget.
‘If I had that plan in front of me, I could wipe the balances out easily in two years,? he said.
However, Dunn noted it’s hard to budget for capital improvement and trying to figure out which project will ‘come out in front.”
‘I’m not sure if we can sit here and make a decision on what improvements we’re going to need for the next 10 years and start budgeting them year by year,? said Dunn. ‘I think it would be a budgeting nightmare.?
Supervisor Dave Wagner said a capital improvement plan is in place, which will be reviewed over the next 5-10 years.
‘This is why we’re keeping it (the general fund) at 40 percent, because until we decide to adjust that down to 30 percent or 25 percent or whatever,we want to make sure we’re putting it in the right capital improvement projects,? he said. ‘That money is earmarked. It’s not just sitting there and that’s just good business.?
Categories in the plan include a new township hall, improvements to parks, public utilities, fire equipment, computer technology, library, and Sashabaw Corridor Improvement Plan.
About half of the 40 projects in the plan are listed as top priority.
Treasurer Jim Wenger thinks the board needs to look at the capital improvement plan a little closer.
‘We have the plans, but we need to have the discussion of just where we are at with our priorities. Let’s prioritize those within the capital improvements, take a look at fund balances and make decisions whether we need to pursue any of them (or) whether we need to save,? he said.