Rising property tax revenues are expected to boost the Independence Township Fire Department budget by about $90,000 (1.6 percent of the total budget).
Supervisor Pat Kittle said the fire department will add to its budget reserves, which is estimated to be $1.612 million in 2017, $1.623 million in 2018 and $1.631 million in 2019.
“We’re trying to keep that around 20 percent and then anything extra is just going to start flipping into the Capital Improvement Plan,” he added.
Labor costs are projected to increase $114,670, or 2.6 percent; operating/capital cost are projected to decrease $32,822, 3.7 percent; and operating transfers, $55,000 increase, 13.8 percent when compared to 2016.
“Our budgeted contribution to fund balance is expected to be $5,683 which is $46,866 or 89.2 percent less than the amended 2016 budget,” said Budget Analyst Rick Yeager.
Increases include: property taxes projected to increase approximately $74,000 or 1.5 percent due to an increase in tax value, charges for services ALS is projected to increase $10,000, 1.7 percent, due to an increase in call volume. Interest and rents are projected to increase $5,300, 14.2 percent, due to slightly higher rates of return on a larger cash balance when compared to a year ago. Full-time wages are projected to increase about $75,000, or 3.1 percent.
“That’s primarily due to the contract that was recently negotiated, so there are annual increases in there along with various people that are on the salary steps schedule,” Yeager explained. “That’s why you’re seeing a three percent as apposed to a two percent increase there, because there are people moving up in that step increases.”
Also, payroll taxes are projected to increase around $6,200, three percent, primarily due to the FT wage increase. Health insurance is projected to increase $5,100 due to increases to the CAP and Dental and Vision, and retirement (MERS) is projected to increase $36,200, 13.2 percent, due to the 2015-2017 union contribution rate increase and salary schedule step increases.
Legal fees are projected to increase $10,000 due to union negotiations in 2017, and transfer to Capital Projects is projected to increase $55,000 to meet future capital needs.
Workers comp is projected to decrease approximately about $10,000, based on Fiscal Year 2014 and 2015 results. Long-term disability is also expected to decrease approximately $6,700 or 31.5 percent.
Contracted computer services are projected to decrease $5,100 , 24.3 percent, due to a one-time purchase of new inspection software.
Vehicle maintenance is projected to decrease $10,000, 14.3 percent, due to replacement of equipment. Electricity is projected to decrease by $5,000, 11.1 percent.
Assumptions used to prepare this budget include full millage approved by the voters on Aug. 2, 2016, 3.5653 mills; 2 percent wage increase 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; 10 percent annual increase for Dental and Vision; life insurance, short and long term disability increase 5 percent each year; and continue funding the Capital Improvement Plan.
Trustee Ron Ritchie said he was concerned with the amount of emergency calls made to for-profit businesses.
“We need to come up with some methodology for these for-profit companies operating in our township and more of them
scheduled to come, to charge these people burdening our ALS services and charging their residents for that service,” Ritchie said
Treasurer Paul Brown told Ritchie the facilities, “pay an enormous amount of taxes.”
“Proportionally they certainly get a lot of runs, but proportionally they are some of the largest taxpayers in the township,” Brown explained. “In addition to that and I’ve talked to the chief about it, when those people are picked up from those facilities and taken somewhere we’re collecting from the insurance companies for those runs almost 100 percent of the time because they are in those facilities and they have insurance that pays.”