Sociology teachers often put students in a hypothetical group scenario on a tropical island. The activity forces the students to chose how to invest limited resources while deciding what is important for survival.
The Springfield Township Board, like many other municipalities, find themselves in their own financial island scenario as the state’s economy continues to struggle.
The board held a special meeting on Jan. 24 to discuss potential 2006 budget amendments addressing revenue shortages and to look ahead at how to handle tough economic times, which could eventually mean higher taxes for residents.
Township Supervisor Collin Walls stressed the meeting was meant only for discussion and board action would not take place until later meetings.
‘We can deal with 2006, but need to put things in place that will have a greater impact on 2007,? said Walls.
According to Walls, other cost-saving measures were utilized prior to the special meeting. These actions include: eliminating two total full-time positions in planning and assessing and freezing 2006 salaries for township employees, including elected officials, with one exception so far.
During the nearly three hour meeting, the board discussed a wide range of issues.
General Fund Millage
While no decision was made the board acknowledged the need to explore putting a general millage increase on the ballot for 2006.
‘It’s my opinion that whether we do (a general millage) in 2006 or later that all local units of government will be looking at funding services with user pay or more local taxes,? said Walls, who noted the board has until May to decide to put the millage to the electorate.
Walls said increasing the general fund millage to 1.41 mills from the current rate, which is under 1 mil due to the Headlee Rollback, warranted discussion. He estimated the difference to be around $330,000 if the general fund millage was increased.
‘I’m not sure it’s a good idea, but I’m sure it needs to be discussed,? said Walls.
‘There comes a point when we give the voters a chance and put it out there. If we’re at the point where we’re looking at graveling and services,? said Township Clerk Nancy Strole.
‘If revenues will at best be static and we know operating costs will go up and our services down, we can let the voters decide,? she added.
Trustee Dennis Vallad expressed concern about waiting to ask for a millage increase for the general fund due to the chance of running short of money by the end of 2007.
Vallad also posed the question of whether or not there would need to be a separate parks and rec millage as well.
‘If you don’t think the state will come through on state shared revenue, which may be the case, then we have to look (at the millage),? said Vallad. ‘Whether it’s a general millage or a parks millage, one is going to happen.?
Strole agreed with Vallad that one millage or the other would probably be necessary.
‘I do think the public is more aware of how local governments have been hurt by state shared revenue. Three years ago, people might have thought money only came from property taxes, but there’s been story after story of budgets being gutted,? said Strole.
The board looked at the question of asking the voters to decide on any potential millage issues all at the same time.
‘In fairness to taxpayers, whatever we decide to do in 2006, should be in the same election,’said Walls, who explained the electorate should know the total request from the township as they look to the future.
Police and Fire Millage
The board also discussed the renewal and possible increase of millages for police and fire.
The board looked at whether or not they should ask for millage renewal and increase for both fire and police. They also discussed if the decisions for each should be posed as one or two ballot questions.
According to Walls, the police millage does not technically have to be on the 2006 ballot for renewal and could wait until 2008. He warned however, that a failure of that millage could lead to a money shortage and a drop from 11 officers to three. He noted the increase is needed to maintain service.
Trustee Vallad noted how the board budgeted extra funds to the police for 2006 to pay for an extra employee contract to help the substation sergeant’s needs.
Walls said going to 1 mil for fire would not be a signficant amount once spread across property owners, but was not yet proven to be necessary. He said there were unknown items with the fire department, like expansion of fire station number 2, that may make a fire millage increase a financially prudent idea.
Other financial issues
‘The board looked at the struggling budget of the building department with Director of Building/Planning Leon Genre and the $85,000 dollar loan granted the department from the general fund. Genre said he expects revenue for the department to pick up in spring, but warned of major cuts if that did not happen. The board and Genre talked about adjustments to employee hours and full-time positions.
? The board also proposed making bid arrangements to fix only the parking lot while abandoning the proposed pathway towards Davisburg Elementary if revenue is tight.
? Discussion looked at whether or not to use Tri-Party funding for gravel to maintain township roads.
? The idea of sharing employees between departments at busy times like during an election to cut overtime payroll costs was proposed. Flexible employee comp hours to help off set election overtime was discussed.
? Lowering the township’s contribution to employee 401K from about 7.5 percent to 5 percent was suggested.
? The board talked about changing employee health insurance coverage was mentioned.
? Contracting out assessing services discussed.