Township Boasts $1.6 Million Surplus for 2010-11 Year

Although a shortfall was thought inevitable, a recent audit has revealed Macomb Township actually finished the 2010-11 fiscal year with a $1.6 million budget surplus in its general fund.

This audit, which received Plante & Moran's highest seal of approval, is available for public viewing on the township's website.

“Quite frankly, I can’t name another community that is in the fine financial shape Macomb Township is in,” said Mark Hurst,

Hurst spent more than 1,000 hours reviewing the township’s records for the year ending June 30, 2011 to prepare the external and independent audit of Macomb Township's finances.

“What I really think the residents at home need to know is what really excellent financial shape Macomb Township is in,” Hurst said during a presentation to trustees Dec. 28.

However, despite Hurst's praise and the audit's results, Clerk Michael Koehs said the township is not planning to let either alter its conservative spending practices.

“While it does seem like there is a lot of surplus, there are a lot of things that will need our attention in the future,” Koehs said. “It’s good we save our pennies. We don’t think we’re through the end of this recession. It took us four to five years get where we are now and it will take a couple more to get back to where we were five years ago. Having a surplus won’t change the way we do business here.”

But with no costly projects on the horizon, finance director Stacy VanReyendam said this surplus should put the township’s general fund at a comfortable $27 million, with only $2.4 million of this earmarked to be spent in the 2011-12 budget.

(Refer to pages 13 and 14 in the audit for a line-by-line breakdown of the revenues and expenses of the general fund, law enforcement fund, fire operating fund and parks and recreation fund.)

Revenue from property taxes did drop from $11.6 million in 2010 to $10.4 million in 2011, but state-shared revenue increased $2.2 million and township business increased by another $1.2 million as a result of water and sewer lines contributed by developers.

Growth and development in the township also rose 48 percent last year and is expected to remain stable for the next few years, according to the audit.

Provided the township continues to operate with relatively low personnel costs and a near fully funded pension system (86.1 percent funded as of 2010-11), the township’s expenses are expected to remain low as well.

“I know a lot of communities have been having trouble with retiree healthcare funding and liability,” VanReyendam said, referring to the township’s pension system. “We’ve been very proactive and have been putting away the last few years so that our liability is not so large.”

Although increased medical costs are expected, the audit shows the township is prepared to adjust these expenses as needed to ensure its budget surplus continues.

What Macomb's really worth

The township’s combined net assets increased from $232.8 million to $234 million in the period 2009-10 to 2010-11 – a $1.2 million increase Plante & Moran attributes primarily to the excess of revenue over controlled expenditures.

Of that total, the township has some $40.1 million in unrestricted net assets it can use to finance day-to-day operations and future growth.

In terms of investment in capital assets, meaning land, buildings, fire equipment and water and sewer lines, the township had $205.8 million invested as of June 30, 2011.