Macomb Expects 500K Shortfall in 2012-13; Keeps $28.5 Million for Rainy Day

At a glance, Macomb Township's 2012-13 budget shows an almost $6 million shortfall, but take a line-by-line look at the various accounts and the township's projected shortfall drops to just over half a million dollars.

The Macomb Township board of trustees approved the budget for the 2012-13 fiscal year at its meeting June 27. A summary of the budget shows Macomb Township expects to spend around $51.6 million next year, but take in only $45.6 million in revenue. 

However, as township Finance Director Stacy VanReyendam explains, the projected $5.9 million shorfall is the result of losses in several different funds, each with their own fund balance to make up the difference.

For instance, the Water & Sewer Fund expects a $3.8 million shortfall in 2012-13, but that fund alone has around a $4.2 million noncash depreciation. In another example, the fire operations fund projects a $1.1 million shortfall next year, but has $9.6 million in its own fund to cover this loss.

Overall, the township expects to have roughly $28.5 million in its general fund at the close of June 2013. If the township does fall short $547,000, as it has budgeted it will in its 2012-13 general fund, this loss will be covered by the $28.5 million saved in the township's total general fund balance.

Although the township does expect a shortfall in 2012-13, this shortfall does not mean bankruptcy for Macomb.

The approved version of the 2012-13 budget does account for the roughly sections of Fairchild and 22 Mile Road, Fairchild north of 21 Mile and 24 Mile east of North Avenue.

Millage Rates for 2012

In addition to approving the 2012-13 budget, the township board also voted to maintain the 2011 millage rates for 2012.

Because the general operating millage and parks and recreation millage are set by statute, only the fire operating, fire pension and police millages can be adjusted on a yearly basis.

The 2012 rates are as follows:

• General Operating Mil 0.6757
• Fire Operating SAD 1.0588
• Fire Pension Mil 0.0747
• Police Mil 1.0601
• Parks/Rec Mil 0.8232
• Total: 3.6925

This should result in more than $10 million in tax revenue for the township.