Officials to reconsider proposal in February

A motion to allocate nearly $500,000 for the construction of a safety path along the south side of Seymour Lake Rd., from Dunlap Rd. to Sanders Rd., was shot down last week by the Oxford Township Board.

It failed in a 4-2 vote not because officials are opposed to the idea, but because they want to make sure the money is available to do it before making such a big commitment.

“We just don’t want to end up having a problem,” said Trustee Margaret Payne, who voted against the motion along with Clerk Curtis Wright and trustees Patti Durr and Elgin Nichols.

Voting in favor of it were Treasurer Joe Ferrari, who chairs the safety path committee, and Trustee Jack Curtis.

Supervisor Bill Dunn was absent.

Ferrari brought the proposal to the board. He included a $497,600 project estimate from township engineer Jim Sharpe.

Based on Sharpe’s estimate, construction would cost $370,400. Add to that, $77,150 for professional services, including design and construction engineering, plus $12,964 for state and county permits and $37,040 for a contingency fund.

To pay for the project, Ferrari proposed using $300,000 of the $415,164 in unallocated (or contingency) funds in the 2019 general fund budget, plus $197,600 of the $340,765 in unallocated funds in the 2020 budget, which was approved during that meeting.

“Right now, there’s absolutely nothing assigned to (these monies),” the treasurer said.

But, given 2019 isn’t over yet and these unallocated funds represent budgeted, not actual amounts, there were those on the board who felt it prudent to delay taking action at this point.

“I would like to wait until 2019 is over with and make sure that we have that $415,000 in unallocated (funds),” Payne said.

Ferrari indicated if there’s an issue where expenditures exceed revenues this year, the township could always dip into the general fund’s fund balance (or reserves), which currently stands at $811,187. That fund balance amount doesn’t include the potential addition of $415,164 in unallocated monies to it at the end of this year.

Ferrari pointed out the township’s auditor recommends maintaining a fund balance that equals 25 percent of the expenditures for the year. Township officials approved a $2.56 million general fund budget for 2020, so the recommended fund balance would be approximately $640,000.

“I guess the question is, how comfortable are you with whatever the fund balance is, as a board?” said Wright, who noted he would like to consult with the auditor before making any decisions.

Payne noted she “wouldn’t feel comfortable going below 20” percent.

Wright expressed his belief that “we (as a township) need to take care of what we already have” in terms of existing safety paths. He believes more maintenance should be done, including cutting brush, patching potholes and trimming overgrown trees.

“I think that’s important,” Wright said.

“I don’t disagree. That is important,” Ferrari responded.

Ultimately, the board voted 5-1 to set the issue aside until the Feb. 12, 2020 regular meeting and reconsider it then. Ferrari cast the lone dissenting vote.

“Let’s wait until after 2019 is over with and see where we stand financially before we proceed with the safety path project,” Payne said.