Oxford Township officials are no strangers to glowing audit reports and the one delivered at last week’s board meeting was no exception.

“The township did receive the highest level audit opinion possible, which is an unmodified opinion,” said Rana Emmons, a partner in the Plymouth-based PSLZ LLP Certified Public Accountants.

“You have no disclaimers, exceptions, anything like that. In layman’s terms, (it’s) a clean audit opinion.”

Emmons presented the audit report for the 2018 fiscal year, which ended on Dec. 31.

She noted that thanks to the “great job” township employees and officials do “every day,” there are “no surprises” whenever she comes to do the annual audit.

“You all know by the end of the year how (things are) ending,” Emmons said.

Fund balance

The township saw a decrease in the fund balance (or reserves) for its general fund, which serves as the municipality’s chief operating fund.

It began the 2018 fiscal year with a fund balance of $1.498 million and ended with $1.31 million.

“We used up a little of the general fund fund balance this year,” Emmons said.

Last year, the township used $587,100 of its reserves. Of that, $300,000 went toward construction of the new senior center in Seymour Lake Park, $212,100 was dedicated to reducing pension liability for fire department employees in the Municipal Employees’ Retirement System (MERS) and $75,000 was spent on a generator for the township hall.

Despite this spending, the township was able to add $400,438 to its fund balance last year, so the net decrease in reserves ended up being $186,662.

Property taxes

The townships’ various millages collected a combined $8 million, which is nearly $231,000 more than last year.

Emmons noted this was due to increases in the taxable value of properties, not the millage rates themselves.

Tax revenue that helps support the general fund increased by $23,745, from $723,319 in 2017 to $747,064 last year.

Investment earnings

Emmons complimented Treasurer Joe Ferrari for continuing to find investment opportunities that generate additional revenue for the township.

A total of $255,265 in investment earnings were yielded last year, which is up from $188,136 in 2017.

“(Ferrari is) doing his part, certainly, on that,” Emmons said.

Parks bond

At the end of last year, there was $704,000 in proceeds left from the $2 million bond issued in 2016 to fund capital improvements in all four township parks.

“(Parks and Rec. Director Ron) Davis has been very judicious with (spending),” Emmons said. “He’s using a lot of in-house labor and things like that. That’s really keeping your cost down.”

Ferrari noted “a good chunk’s already been used” this year as the department attempts to wrap up bond-funded projects.

Pension liability

Emmons praised the township board for its continuing efforts to keep up with its pension liability. She said it dropped $387,000 over the year before, which is a “positive thing.”

Emmons called the township’s decision to dedicate $212,100 to MERS last year a “great move.”

“That isn’t the first year you’ve done that. You’ve done that for a couple years now,” she said. “Hopefully, that will be in your plans going forward for as long as you can do it. You are gaining on things.”

“The township has always contributed 100 percent of what the actuaries and MERS tells you (that) you have to contribute . . . You’re (giving) more than 100 percent right now (and have for) the last couple years, and that’s really helping the bottom-line there,” Emmons noted. “That’s really the only way to get ahead of it. It’s moving the needle; it’s definitely moving the needle.”

She encouraged township officials to contribute more than 100 percent for “another year or two.”

Water and Sewer

Revenue generated by fees charged for connecting to the township’s water and sewer systems equalled a combined $714,000, which Emmons indicated is about $429,000 less than the previous year.

Despite the decrease, the auditor noted the amount received is “still substantial” and shows there’s “still some strong development here.”

“It’s just something you don’t want to count on as far as funding the water and sewer (systems) going forward,” she told the board.

The “extra contributions” generated by development are “certainly” to be appreciated, said Emmons, “but it’s not going to (last) forever.”