Local household incomes were among the worst hit economically in Oakland and Genesee counties over the past five years.
The data was released earlier this month by the U.S. Census Bureau for communties under 65,000 residents as part the American Community Survey. The report compared average household incomes between 2009 to 2014 in communities nationwide.
The 25.1 percent slide in the Village of Goodrich Village household incomes was topped by only three other Genesee County communities, Clayton Township, -27.1 percent, Fenton -27.3 and Grand Blanc at -25.1. There are 35 communities in Genesee County, of which 34 showed a decline in household income according to the data.
Similarly, Ortonville’s decline, -35.9 percent, was the greatest among Oakland County communities followed by Sylvan Lake, -29.73 percent; Walled Lake (city), -25.7 percent; and Pontiac (city) -22.2 percent. Of the 60 Oakland County communities, 55 reported a declined in household incomes.
Xuan Liu, manager of research and data analysis for the Southeast Michigan Council of Governments, says the five year accumulation of data from 2009-14 reflects historical information.
‘Where communities like Ortonville or Goodrich stand now may not be reflected in the data,? he said. ‘The trend is improving, but not fast enough to fix every part of the local economy that suffered in the Great Recession a few years ago. But it’s looking much better. ?
Liu said the data indicates that in many cases a two income family went down to one source of revenue.
‘Still, despite the bad economy many residents stayed in the community opting not sell their home’just made do with less money,? he added. ‘Obviously, some people left the area, but others stayed around long enough to provide the data to the census. People may be receiving unemployment pay or taking a lower paying job or were just hanging on until the ecomomy recovered.?
The drop in household income would ultimately mean fewer local governmental services since the funding for operations is based on a millage, added Liu.
‘Most small governments operate on about 60 percent local funds collected on the value of homes in the community,? he added. ‘Fewer dollars to purchase homes the value of property declines. So as the housing market declined during the recession and home values fell? so would service to the public. But, the lower home values and the recession just did not last long enough for a deep impact on the communities.?
From a peak of $2,589,905 in 2011 the general fund balance in Atlas Township declined 64 percent, or $927,445, to $1,662,460 according to the 2014-15 audit released in July.
Shirley Kautman-Jones, Atlas Township supervisor since 2008, said a combination of budget cuts and a healthy fund balance to start with made the difference when times were tough.
‘In 2009 we eliminated an office manager position and changed the township operation hours to four days per week. Today we operate with few people, it’s very bare bones. We shopped for better prices on phone and internet’that saved us a lot of money’we did what was needed,? she said. ‘I know we also lost a lot of population. We had enough in fund reserves as new home construction was very flat or non-existent during those years.?
The downturn just did not last long enough to really impact the community, added Jones.
‘It’s looking much better now,? she added. ‘New homes are starting to be built and home values have increased. For most Americans, homes are their biggest investment and they are worth more now than say four years ago. While home values also mean higher taxes for that property, it also means more worth for owners.?
Township officials continued to invest in area roads’about $500,000 each year, despite the downturn in the economy, she said.
‘Roads are vital to the community as are home values,? she said.
‘As bad as the economy was a few years ago, there were some bright spots,? she said. ‘While it’s very unfortunate people lost their homes to foreclosures’it did allow younger families to afford a home since the price dropped so much. That brings school-aged children into the community.?
Jeff Dawley of Atlas Real Estate has worked in the Atlas, Brandon and Groveland townships market for more than 20 years and agrees the housing market has rebounded over the past two years.
‘The trend in house prices is back up from 2009-2012’income and home values are tied together,? said Dawley. ‘We are on a rebound after a real lack of inventory about five years ago. The distressed property was a big part of the market, people’s homes were underwater or were bank owned. Today we are less than 10 percent bank owned property and the market is more balanced than ever.?
Many communities like Atlas Township keep built fund balances or raniy day funds to hold them over through tough times. The funds are needed to avoid any drastic cuts in public services during a downturn in the economy.
Tom Ivacko, administrator of the Ford School’s Center for Local, State and Urban Policy at the University of Michigan, found in a recent survey that Michigan’s local government leaders and residents are often united on how to handle a surplus fund. Both groups say their highest priority is spending more on public services and infrastructure.
‘Both local officials and residents feel it’s important to make up for funding cuts in public services and infrastructure that occurred during a recession,? he said.
The findings are based on statewide surveys of local government leaders in the Michigan Public Policy Survey along with data from Cobalt Community Research’s 2015 National Citizen Engagement and Priority Assessment.
The MPPS also found that to allocate a budget surplus, 49 percent of local officials would spend the extra money on public services or infrastructure. Another third would save for future uses, 12 percent would pay down government debt, and 3 percent would return the money to taxpayers through tax breaks.