Auditors Find Macomb Twp. at Top of Financial Game with Millions in Reserve
Macomb Township closed out the fiscal year ending June 30, 2012, with approximately $29.6 million in its rainy day fund.
With upwards of $29.6 million in its general fund as of June 30, Macomb Township looks to enter 2013 far on the plus side, accorindg to a recent Plante & Moran audit of township finances.
While other communities across the state continue to struggle under declining revenues, exploding health care costs and decades of debt, township resident and Plante & Moran governmental accounting audit partner Mark Hurst said Macomb has enough money in reserve to pay off its entire debt should it wish to do so.
"Quite frankly, I don’t know of a community that is in better financial condition than Macomb Township," Hurst said, during the Dec. 26 audit presentation to the township board. "I would be shocked if you could find one."
As of June 30, 2012, Macomb had approximately $38 million in unrestricted net assets, which represents the monies available to finance day-to-day operations and future growth of the township.
As property values continue to struggle across the state, Hurst said it is good news that the township's general fund relies on less than $1.9 million in property taxes, whereas more than $6 million, or nearly 55.5 percent of the general fund, comes from state-shared revenue guaranteed by the Constitution.
Another plus is the township's pension fund, which is roughly 85 percent funded. While retirement, or legacy costs, are one of the largest causes of debt for Michigan communities, Hurst said Macomb has been able to both reduce health care costs and negotiate employee contracts that allow the township to better manage its longterm finances.
Township finances also benefited from coming in under budget, receiving 36.7 percent more in revenue and spending 14.4 percent less than expected for 2012.
The full audit, which received Plante & Moran's highest seal of approval, will be posted on the township's website.