By the beginning of November, Orion Township will have a financial forecast plan for the next five years.
The board voted 5-2 to have Plante & Moran, at a price not to exceed $15,000, assist the township in formulating a five-year financial forecast to help the township in long-range financial planning.
In order to enable Plante & Moran to establish the forecast, some internal work done by township staff will be turned over to the firm, which will use it to complete the forecast no later than early November.
According to Beth Bialy of Plante & Moran, this forecast would be a basic plan, which could be updated as special projects, like new complexes, get decided upon.
‘You need to get all the basics operations in there and make some assumptions about where you are heading just with your normal everyday operating-type costs,? Bialy said, noting they will provide the township with a hard copy and an electronic version which can be easily updated.
Some concerns were brought up with the cost and whether bids should be sought for comparison.
Supervisor Jerry Dywasuk said he believes the township is at an advantage having Plante & Moran prepare the forecast, as they are already knowledgeable about the township and can work efficiently.
‘I think this is an investment,? he said. ‘Down the line, it’s going to make things more effective, more efficient. It gives a road map, its better planning for everybody.?
‘Just like we’ve gone with our water and sewer capital improvement plan,? Dywasuk added. ‘We know where we’re going, what we’ve spent, and we know when we are on target and off target.?
Trustee John Steimel, one of the dissenting votes (Clerk Jill Bastian was the other), said he agreed with the practice of creating a financial forecast, but felt a case of ‘sticker shock? and was interested in not necessarily a bid process, but seeing some comparison prices.
‘It’s more than I thought it would be,? he added. ‘I don’t want to just carte blanche, boom, here goes another $15,000.?
A suggestion by Bastian to table the decision until the next meeting, giving her time to seek comparative prices, did not receive support. Trustee John Garlicki expressed frustration with the board for its delay in making decisions, noting that creating a financial forecast was something the board put on their goal-setting sheet four years ago when they became a board.
Garlicki, who did not run for reelection, said he wanted to see some decisions made before his term is up, and this sort of plan is necessary if they ‘are ever going to get to the point of taking the politics out of the budgeting process.?
‘This is the way to do it because you are actually going to plan for something,? he added, ‘and not just plan something year to year and, you know, the ‘idea du jour? that particular year.?
According to Bialy, Plante & Moran will take three years of township history and the 2008 budget and forecast for 2009-2013, creating a formula in an Excel spreadsheet the township can update and tweak as desired.
Bialy said in recent years more governments are using financial forecasts to help with the difficulties of today’s economy.