When trustees, planners, and department heads meet for a budget workshop Jan. 9, they will have plenty to talk about.
The budget, as approved Dec. 5 by the Independence Township Board, is in deficit. The general fund is short $27,355, and the other funds, except police and safety path, also post deficits.
‘There will be a lot of things to consider,? said Treasurer James Wenger. ‘I look forward to having the ability to talk about these issues and work things out ? it won’t be an easy session.?
Factors entering into budget decisions include increasing health-care and retiree costs, parks and recreation, and possible reductions in tax money coming back from the state. A four-percent pay increase in the proposed contract for the township’s union employees was a deal breaker for trustees earlier this month, so funding for a new contract will also be on their minds.
‘This is a very tough time for the township as an entity ? more so for the people of the township,? Wenger said.
Revenue for the $22.9 million budget mostly comes from property taxes, at 59 percent. Sixteen percent comes from charges for services, 12 percent from state-shared revenue, 7 percent transfered from the fund balance, the township’s rainy-day fund, and 3 percent each from interest on investments and other sources, such as grants and gifts.
One decision for the township board, in the new year and long-term, is whether the township remains rural and residential, or becomes more commercial.
Several large commercial developments have been proposed, including McLaren Health Care Village, Orco, and Beaumont. The township has also been working on a Corridor Improvement Authority plan for the Sashabaw Road corridor to fund infrastructure improvements. These could help attract more commercial development.
In general, commercial uses can be taxed at a higher rate than residential areas, which would provide more tax revenue, Wenger said.
However, many residents value the rural, residential flavor of the township, and oppose more commercial development.
‘It would change the complexion of the community,? he said. ‘It’s a two-edged sword ? there are pluses and minuses.?
With seasonal employees such as lifeguards and park workers making decisions now about where they will work this summer, Parks and Recreation is also an important issue, he said.
The Township Board transferred $400,000 from the fund balance to Parks and Rec last year in a ‘one-time deal.? A bond and millage request for a new senior center would have provided a funding source for the parks department, of which it is a part. That proposal, however, was rejected by voters this past November.
‘The part-time kids need to know if they have a job or not,? said Roger Belcher, park superintendent. ‘Our lifeguards are second to none. They’re in limbo.?
The poor state of Michigan’s economy likely played a key role in the millage vote, Wegner said.
‘People say, maybe in better times, we might,? he said. ‘Some look at Parks and Recreation and see it as not as vital as police and fire.?
The challenge for township officials is to explain the importance of Parks and Recreation, he said.
In a series of letters to the editor to The Clarkston News, Mike Turk, Parks and Recreation director, has been making the case for outdoor programs and events.
Among his points, a high-quality program attacts new residents and businesses to the area, and it also provides healthy activities, both physical and mental, for area youth.
State issues affecting the township budget include loss of Single Business Tax revenue, possibly leading to reductions in state-share revenues.
The budget workshops, set for Jan.9 and Feb. 6, will be open to the public. Look in next week’s issue for where and when. The Township Board will place any budget amendments resulting from them on the agenda for discussion and vote at a future regular meeting.