Police and fire services face the biggest budget challenges in the $28 million 2016 Independence Township budget, but residents will pay less in taxes next year, according to township Supervisor Pat Kittle.
‘The township is on solid financial ground,” said Kittle
Approved unanimously by the Township Board on Oct. 20, the general fund budget includes $355,000 for a security system and new sidewalks for Independence Township Hall, and improvements to parks and recreation.
In the next 10 years, the township has about $10 million in improvements scheduled, including $1.2 million to $1.5 million for parks and recreation improvements.
The general fund includes $1.8 million in restricted funding, above the state required 20 percent fund balance.
‘We have $1 million in the savings account, which is restricted funding. The balance in that fund is $3.6 million,? said budget analyst Rick Yaeger, who oversees all township budgets and provides analysis to township officials and the board of trustees.
The fire department is supported by two voter approved millage’s in the township, one approved by voters in 2012.
‘For 2016, the Fire Department will spend $55,434 less than generated by the two approved millage’s to maintain and equip the best fire and emergency response team in North Oakland County,? Kittle said.
‘It’s the township’s plan to reduce the amount levied with the fire two to zero by the year 2021 as the economy continues to improve.?
Spending for police is up, too.
‘Spending for the Oakland County Sheriff’s Department is actually $33,090 higher than what we will collect in taxes this year,? Kittle said.
The increase is because a new deputy will be added to the midnight shift.
While expenditures are rising, some revenues, including millage rates, are declining.
Independence Township Board voted on Sept. 8 to decrease the millage rates, and increase the operating millage rate levied by the township by .2707 in the 2015-2016 budget to offset the lower tax revenues.
‘Rollback is good news for residents,? Kittle said.
In 2016, the police fund faces funding issues with a $25,000 revenue reduction under the Headlee Adjustment.
Kittle said the rollback may cause the police reserve fund to fall below 20 percent.
Revenues from various sources are declining, but services like including police protection, fire protection and needed improvements keep rising in cost.
‘That is expected to continue,? Kittle said adding police and fire are the two biggest millages in the township, and they get hit hard by Headlee. “The roll backs are definitely a challenge.?
A public hearing, followed by approval of a final budget, will take place in November or December.