Revenue for the Oakland County Sheriff’s Independence Township substation is expected to increase by about $64,000, or 1.3 percent, in 2017. Labor costs are projected to increase by $1,400, or 2.1 percent, and operating costs/capital outlay approximately $78,000 or 1.6 percent compared to 2016.
The expenses would be about $15,000 more than 2016, said Budget Analyst Rick Yeager.
“If the numbers come in as we anticipate them to come in, the fund balance is going to be about $1.1 million, which is going to be about $143,000 over the 20 percent reserve we established,” he said.
The reserve is projected to fall to 20 percent in 2018 and dip below in 2019. Trustee David Lohmeier cautioned the board to keep a close eye so they don’t dip too far.
“It might be that 15 percent is a better number, I don’t know,” Lohmeier said. “We could put some study into that. But regardless, you can’t stay in deficit forever, so there has to be some well planning.”
If reserves fall too far they would have to lower the number of deputies assigned to the township, or ask for a higher millage rate, he said.
The current millage expires in 2018.
Yeager said tax revenue is projected to increase almost $58,000, 1.4 percent, due to higher tax values in the township. Charges for services to DTE Energy Music Theater is projected to increase $25,000, 10 percent, due to an expected increase of events.
“After talking to Lt. Dirk Feneley, it almost sounds like we have Kid Rock not this year, but next year, and that’s going to generate the additional events for that particular year,” Yeager said.
Other increases include $10,000, three percent, in interest and rents, due to more dollars to invest. The market value adjustment is projected to decrease $2,300 or 39.7 percent.
“This is actually an increase to revenues and is the result of investments getting closer to maturity so there is less chance of large losses,” Yeager explained.
Fees to Oakland County are also projected to increase about $55,000, 1.2 percent. Other increases to the budget when compared to 2016 include Liquor License App Fee, charges to City of the Village of Clarkston, FICA, life Insurance, retirement, workers comp, LT Disability, Charges for Services – Deer Lake, Insurance & Bonds, electric, water, sewer and building maintenance.
Yeager said fines for overweight semi-trucks are expected to decrease about $25,000, 17.9 percent, due to budgeting too optimistically in 2016.
The transfer to general fund for the neighborhood road improvement project isn’t changing from 2016 and is expected to be $50,000.
The program was set up as an incentive for neighborhoods to repave or repair residential roads with reimbursement from the township of 10 percent of the total cost, with a maximum amount not to exceed. $20,000. The money is generated by weigh master fees.
Assumptions used to prepare this budget included:
• 2 percent wage increases in 2017, 2018 and 2019 for all employees
• Hospitalization is based on the new CAP levels (up 2.5 percent from the old levels) plus Dental and Vision. A 10 percent annual increase has been projected for Dental and Vision.
• Life insurance Short and Long Term Disability are expected to increase 5 percent for each year budgeted.
• The contract with Oakland County is projected to increase 1.5 percent in 2017 and increase 2 percent in both 2018 and 2019.
“It’s not going to amount to a lot of money,” Kittle said. “When we start to see tax revenue relatively flat because of Headlee, even in 1.5 percent increase in total contract expenses, it’s not a good long-term strategy.”
Clerk Barb Pallotta asked if they are expecting more money from Clarkston Schools for the school liaison deputy.
“That’s going to be another strategy we’ll be taking. “That’s $30,000 this year I want to take it to $60,000 next year and $90,000 the year after that,” Kittle said. “Our next expense is about $200,000 and I think at a minimum the school should be paying 50 percent of it. That’s consistent with other communities and I don’t think that’s too much to ask.”