Groveland Twp.- On Monday night, Ken Palka, from the accounting firm of Pfeffer, Hanniford and Palka, reported on the township finances following the completion of the yearly audit.
‘The state of the township is fine,? said Township Supervisor Bob DePalma.
‘However, over the next few years we are expecting about a 19 percent drop in taxable revenues, which equates to a decline of (approximately) $50,000 less for the township. We’ve been reducing staff at the office and fire department. Right now it’s rolled back to 1990 employment levels.?
Palka, who reported the clean audit, said only a few corrections were needed.
‘I was pleased with the results,? said Palka.
DePalma added that currently the township is in solid financial shape with about $1.9 million in the infrastructure fund. The account includes funds earmarked for projects including road paving and emergency reserves.
‘With the shape the State of Michigan is in right now, a $1.9 million balance gives the wrong impression, so we can’t leave the money in a general fund account. Many projects we need to save up, thus we have a balance. It’s just fiscally responsible.?
A transfer from the infrastructure account requires board approval.
Catherine Mullhaupt, director of member information services for the Michigan Township Association, representing 1,240 townships statewide, said the fund balance issue has been ongoing for several years.
‘The state may not be just looking at a specific township or municipality with regard to fund balances,? said Mullhaupt.
‘Over the years government agencies have been looking at townships, villages, or cities and see hefty fund balances when they file their report once a year. It’s an argument there’s lots of money, when there’s not’it’s only a snapshot. A big influx of cash from taxes may have just come into the municipality. It’s government’s argument to reduce revenue.?