For officials considering a five-deputy cut to the township police force, a $680,781 fund balance offers a tempting solution.
“We want to demonstrate to the voters that we are using the resources they provide to the maximum potential,” said Trustee Neil Wallace in a Nov. 24 memo to the Independence Township Board.
The board already discussed a $100,000 dip into the Police Fund’s balance to avoid losing another deputy. The township should use the fund to save more, Wallace said.
“We could avoid the cuts all together by cutting down into the fund balance, taking it under $100,000,” he said. “I am not necessarily recommending that, but presenting it as a context for the board to make a decision.”
Supervisor Dave Wagner disagreed with using more of the fund balance.
“It’s absurd,” said Supervisor Dave Wagner. “You can’t do that because then, what are you going to do in 2011? We can go for a larger millage in August and see if residents are willing to do anything, but when times are so bad, you’re rolling the dice. Why do you want to spend your savings on something that’s not a sure thing?”
Public support for a millage increase is too uncertain, said Trustee Mark Petterson.
“I would love to do anything I could to put cops back on the road, but if you’re going to dip into fund balance, then you are delaying the inevitable,” Petterson said. “I don’t see it getting any better. If I knew it was going to get better or if I knew the residents of the township would allow a millage renewal, then I would be fine with that, but don’t count on the residents to approve another millage.”
Trustee Larry Rosso said information needs to be more solid.
“If we have some fund balance money we can utilize for police and fire and still maintain a proper reserve to meet standards recommended by our auditors, then I suppose I would be in favor of that,” Rosso said.
“I have some serious questions and concerns about that because this is going to be worse next year than it is this year,” said Treasurer Curt Carson. “I’m definitely concerned, making sure we have the funds available to put the officers on the street that we need a year from now. I’m not fully sold on that idea as of yet.”
Projected Police Fund expenditures equals $3.9 million ? its projected fund balance of $680,781 is 18 percent. The Michigan Township Association recommends fund balances of 10-15 percent for emergencies and cash flow, Wallace pointed out.
The township could reduce the cut to three deputies by spending the fund balance down to $444,781, 11.7 percent of projected expenditures. A two-deputy cut would reduce the fund balance to $326,781, 8.64 percent; one deputy, fund balance of $208,781, 5.52 percent.
“At a minimum, I believe the board can and should for the time being add back in the two patrol investigators,” Wallace said. “This would give us additional general coverage at a key time and a very specific service the lieutenant described as ‘neighborhood patrols focusing on neighborhood safety, juvenile, quality of life’ issues.”
Trustee David Lohmeier favors the idea.
“I would support reducing the cuts to three or less in 2010 based on the millage timing and our lack of the need to accumulate large fund balances,” Lohmeier said. “If we could get some cost reduction from Oakland County it would be even better.”
The township’s 2.0547 police millage is up for a vote next year.
“I’ve spoke with the lieutenant (Dale LeBair), and he’s confident he can give us decent coverage still,” Wagner said. “I’m sure there will be areas that will be a little slower, but he is confident through other resources that are available to him that he can cover any contingency that comes up.”
The five deputies cut would include two in traffic enforcement, two patrol investigators assigned to neighborhood patrol, and one patrol deputy. The cuts would reduce the Independence Township substation to 26.
Budget discussion was expected at the Township Board’s Dec. 1 meeting. The township’s budget is due at the end of the year.