The good, the bad and the ugly; it was all on the table in one version or another as officials from across the Orion area came together Thursday to discuss the potential for collaboration between entities.
Deputy Oakland County Executive Bob Daddow gave officials from the Village of Lake Orion, Orion Township, Lake Orion Community Schools and the Orion Township Library a snapshot of the current economic situation and what it means for local municipalities.
‘Take what you see in the newspaper, close your eyes, think about your worst nightmare and double it,? Daddow said. ‘Because the media doesn’t get it right. Not even close. They don’t understand the depth of the problem.?
The depth of Michigan’s financial problems, he explained, are ‘considerably more severe? than most people believe.
And if municipalities can expect a rough road in the years ahead’Daddow reiterated assertions that tax revenues will not return to 2007 levels until about 2025’schools will find themselves in even worse shape.
‘The school aid fund has over-expended other funds? cash to the tune of a billion five,? he said. ‘You like your roads? The school aid fund borrowed 400 million from the road system. Enjoy.?
Current projections, he explained, put the Sept. 30, 2011 school aid fund at about $100,000 in equity.
‘Folks, that’s four minutes of equity,? Daddow said, noting the solution in Lansing generally involves pushing the problem down the road, as well as down to local units.
Orion Township Supervisor Matthew Gibb told those gathered at the catered event it was time for each of the entities to step outside the proverbial box in order to survive as a community.
‘Do we have the courage to become creative?? he asked. ‘Do we have the courage to put down our ideology that we are each an entity onto ourselves??
Despite the dismal outlook, Gibb also shared positive news.
For example, he said, Orion’s GM plant is scheduled to reopen next year, Pipe Systems is moving to town from Troy with 68 employees, and the Lear Corporation is looking at moving into the neighborhood, as well.
‘If they do what they’re supposed to do in the IFT application, by 2013 we’ll have up to 400 brand new employees who work for the Lear Corporation,? he said
‘We’ve got restaurants looking and coming in with site plans, we’ve had preapplication meetings for new developments.?
In 2009, Gibb noted, the township had one site plan application, and five new residential construction permits. This year, so far, four new residential construction permits have been issued.
Gibb also told his audience about ‘Big things? in his ideology.
‘We all duplicate services,? he said. ‘We have a police department and the village has a police department. The township does asphalt and the schools do. We all buy things. We all buy the same stuff. We don’t do anything together.?
Water and sewer was is a big issue, he said.
‘We both have water and sewer departments,? Gibb said. ‘Why does the village buy water from the township when we have all the equipment and can do it for a fraction of the cost? It makes no sense. Zero sense.?
And while Gibb said he wasn’t looking to ‘dismantle the village,? he did allude to a unified identity.
‘I call Orion a region,? he said. ‘When we launched Advantage Orion we didn’t say anything about the township in any of that stuff. We don’t say ‘Lake Orion.? We’re Orion Public Schools, Orion Library, we’re just Orion at this point.?
The schools have a role in his plan, as well, he said.
‘How the schools fit into this is very simple,? Gibb explained. ‘Your life depends on how many students the rest of us can get to move here.?
Lake Orion Community Schools? Trustee Bob Gritzinger was also on hand, and said in light of massive impending budget reductions, the district needs to concentrate on its students.
‘In tough financial times we need to focus on our core, what we do,? he said. ‘We teach kids. Things that aren’t core to us, we need to find a way to partner on those things, identify those things.?
Lake Orion Village Manager Paul Zelenak was a strong voice in the meeting, suggesting each entity assemble an ‘honest? list of it’s own strengths and weaknesses before coming back together for further study.
Members of the groups agreed to Zelenak’s idea, and will come together in the weeks ahead to discuss findings and continue down the road.
Sharing services?
Library, fire and possibly police services will be shared between the City of the Village of Clarkston and Independence Township.
Township Board of Trustees approved the three contracts 6-1 and asked Township Attorney Steve Joppich to look at the contracts and make necessary changes. Clarkston City Council had approved the contracts on April 12. The police contract between the township and the city is contingent upon whether city voters approve a millage to keep the city police in an August election.
In all three agreements 10 percent administrative fee has been previously charged under these agreements is not included in the agreements,? Joppich said. ‘There are other miscellaneous changes in the fire and Library services agreement that are more of a I would call non-substantial changes, but they are essentially the same agreement as the township previously have had, except the issue of administrative fees.?
Joppich also noted he had a ‘number of concerns? with the police contract in how it works with the contract between the township and Oakland County Sheriff’s Department.
Trustee Neil Wallace said he’d like to see in the contracts a specific date payments should be made by, but he had no problem with canceling the administrative fee.
‘The village is paying us money to provide the service. There is no significant additional incremental cost to the township to provide that service,? Wallace said. ‘We already have the library facilities and the fire facilities, we already have the contract with the sheriffs. It would not be necessary for us to expand that contract, our costs don’t go up significantly and yet we have additional funds.?
Trustee Mark Petterson agreed with Wallace concerning the administrative fee and expressed concerns about being paid at the end of the year.
Our departments have already provided that service and taken that out of their budget,? he said. ‘Given the village city’s financial future and our townships financial future I think it would be best if we could find some way for them to pay us quarterly instead of one lump sum at the end of the year.?
Treasurer Curt Carson asked Joppich if it was typical for one municipality to provide service to another without an administrative fee. Joppich said he’s seen it both ways.
‘We currently charge even our own departments for an administrative fee and to not charge another community when we’re providing services I think is an issue,? he said. ‘Without this fee we wouldn’t be able to operate administratively in this township.?
Carson said he also wanted to see clause for interest or a late fee if the township is not paid by a certain due date.
Trustee David Lohmeier was also a proponent of a quarterly payment.
‘It would be better from a cash flow standpoint, (but) I have sneaky suspicion the answer’s going to be ‘we can’t do it not that we don’t want to do it,? Lohmeier said. ‘I’d caution us not to make that an ultimatum as to maybe entering into a conversation.?