By Jim Newell
Review Writer
The Orion Township Board of Trustees wrapped up the year in the black, passing a balanced budget for the upcoming 2017 fiscal year, including $8,000 to spare.
“We are presenting a balanced operational budget for a third year in a row,” said Supervisor Chris Barnett. “I think our numbers and projections are all very conservative and hopefully we’ll be able to have more money at the end of the year.”
The board passed the budget at its Dec. 5 meeting, after a series of budget workshops and scores of hours hammering out the details between administrators, the board and department heads. The township’s fiscal year begins in January.
The township’s total expected general fund revenue for 2017 is $6.8 million, just surpassing its projected 2017 expenditures of $6.8 million.
Trustee John Steimel said he was pleased that the township did not have to dip into its fund balance to balance this year’s general budget, but were spending less than they are taking in and could keep expenses in line across the board.
“We always, by law, have to have a balanced budget. To me, that’s a true balanced budget,” he said.
The board started holding budget workshops Oct. 10, beginning with a budget plan “$500,000 in the red,” Barnett said.
The township’s total projected tax revenue from all homes and businesses in the 2017 fiscal year is only $1.3 million. Orion Twp. has ranked third, second and third in new housing permits in Oakland County over the past three years, Barnett said.
The township has had a balanced budget for the past two years. Three years ago, the township began the fiscal year with a deficit but finished with a balanced budget. Prior to that, the township had gone five years without a balanced budget, Barnett said.
The township also currently has a fund balance of about $6.5 million, Barnett said.
The 2016 amended fund balance – the amount the township has available in reserve – as of Dec. 31 is $6.56 million.
“It has been this board’s desire over the last four years to do everything in our power not to dip into our savings account,” Barnett said.
The budgets for the police and fire departments are supported by millages, have their own budgets and are not reflected in the township’s general fund budget. The 2017 Oakland County Sheriff’s Dept. budget for Orion Twp. is $4.3 million, while the Orion Fire Dept. is $2.8 million.
The fire department fund is expected to have $2.94 million in revenues, including interest and fines. Total proposed expenses for 2017 are $2.87 million, with an available proposed fund balance of $851,444 for 2017.
“Thank you everyone for your patience and hard work,” Barnett said to the board and department leaders who worked on the budget. “That is one of the most difficult and important functions we have.”
Building permits are expected to bring in $900,000, and state revenue sharing is expected at $2.58 million. Along with taxes from homes and businesses, these single largest sources of income for the township. Money from grants, fees, special assessments and other miscellaneous sources will fill out the $6.8 million in expected revenue.
The budget also includes $50,000 capital outlay for roads, something the township had not significantly budgeted for in the past.
“I think it’s nice to have money in a budget that we haven’t had in a long time,” Barnett said.
Orion Township doesn’t collect money for road taxes, and the board members agreed that they would like to see the money in its proposed roads budget used on projects that would benefit all residents, such as turn lanes or sidewalks, and not special assessment districts.
“We don’t collect a penny for roads,” Barnett said.
On healthcare, the township expects a 9.71 percent increase in insurance costs, but has budgeted conservatively for employee health insurance.
“Historically, over the last four years we’ve performed very well,” Barnett said. “There is no change in the proposed budget for healthcare.”