Independence Township’s 2016 budget faces a $678,000 deficit, but is in good shape, Budget Analyst Rick Yaeger told the Township Board at its Nov. 24 meeting.
“We have maintained integrity of local government, the highest service levels possible, community culture, security while looking for the best prices to maintain a balanced budget,? Yaeger said.
Fire, police, and parks and recreation budgets were balanced.
Funds with expenditures higher than revenues include safety path and capital outlay funding for the general and fire funds. The budget also includes $339,000 in capital outlay projects for sewer projects and $380,000 in capital outlay funding projects for water.
Budgets are prepared before the start of the fiscal year, but things can change if an emergency or something else unforeseen happens during the year, Yaeger said previously.
Yeager noted several positive changes in the 2016 budget including increased property values, tax collection, and building activity.
Property tax revenue increased $45,082, state revenue sharing increased $54,830, parks and recreation increased $66,178 and cable fees increased $75,000. A revenue decrease of $203,609 was due to special assessment districts no longer active.
In total, revenues increased $37,541 in 2016.
‘We have money in the budget to fight phragmites and invasive species, we put money in the budget for spring clean-up, gravel projects and we have also put in additional money for capital projects,? Yeager said.
Expenditures for administrative departments, funded by the general fund, increased a total of $10,067 in 2016. The funding increase was allocated for every township department except the clerk, supervisor, treasurer and board of review.
Yaeger noted a $53,000 decrease in the clerk’s department. The township building department funding decreased over $90,000, because the department had more staff budgeted in 2015 budget than needed.
The elections budget will increase $91,000 in 2016 due to more elections, Yaeger said.
Expenditures in total are up over $715,000.
Township Supervisor Pat Kittle said some of those expenses are for loans for water and sewer projects.
“In 2016 we are going to be coming in with a deficit (of $678,000),? Yaeger said, due to funding budgeted for capital projects.
“I know it’s hard to come up with all the right answers here, but we have $355,000 for extra capital for the Capital Improvement Plan, $50,000 budgeted for roads, $7,500 for cemetery equipment we need to purchase,? he said.
Yaeger presented financial reports for each department.
“In 2016, we are seeing a reduction in our fund balance, but the year following, the fund balance is slated to grow,” he said.
However, that money is already earmarked, said Trustee Andrea Schroeder.
‘Our fund balance is growing because we have not plugged in the cost of planned projects,? Schroeder said.
A $600,000 project for a safety path near Independence Oaks is included in the 2016 budget, which accounts for a major part of the deficit.
‘We have to start picking off bigger projects,? trustee Ron Ritchie said.
Under state law, the budget must be adopted by the end of the year. The final 2016 budget will be adopted at a township meeting in December.