Even while the economy swirls down the drain, Orion Township will continue to soak up higher water rates rather than pass them along to customers.
But approval by the township board at their regular meeting on July 6 was a close 4-3 vote, a sign the beleaguered economy has even places with large fund balances, like Orion, rethinking positions of the past.
A similar motion concerning sewer rates was approved by the board by a 6-1 vote June 1.
The Detroit Water and Sewerage Department increased the township’s water rates from $17.13 to $18.55 per 1,000 cubic feet starting July 1, 2009. After the 1,000 feet, the price is $1.85 per 100 cubic feet.
In the past, the township used interest earnings to make up for rate increases.
It was an easier decision to make before a sour economy negatively affected interest rates.
‘Two years ago, you had enough interest income to do it,? said JoAnn Van Tassel, who, along with fellow trustees Mark Crane and Neal Porter, voted against approving to continue using interest earnings to balance the budget. ‘In 2008, you did not. You fell short by over $450,000. So, you had to tap into the reserve funds which are there in case a major water main breaks.?
Van Tassel said the water and sewer system in Orion is 40 years old, and the money set aside in case of an emergency should not be used to offset the costs.
‘I think it’s time we start acting in a fiscally responsible manner and realize that we have a fiduciary responsibility as members of this township board,? she said.
According to Bill Ireland, director of public works, there is nothing to worry about.
‘We are far better funded than any community around us,? he said. ‘We’re adequately funded to take care of any emergency that arises.?
Porter agreed, but ultimately voted with Van Tassel. He also pointed out the township’s financial status.
‘No matter what formula you want to use, our funds are fat,? he said.
The township’s fund balance, or ‘rainy day? funds, are currently at $6,073,784.
Supervisor Matt Gibb said he’d like to look at it next year.
‘I think one more year we can absorb it. We have a substantial, substantial fund balance,? Gibb said. ‘I’m an optimistic, betting man, and by this time next year, our economy is going to start turning here in Orion. Then, we can look at it and do an honest assessment rate.?
Gibb, along with Clerk Penny Shults, Treasurer Alice Young and Trustee John Steimel, provided the votes to approve the motion.