Fiscal Management

Key Issues:

The fiscal management of our community remains stuck in time with outdated thinking, processes and tools.  The current fiscal situation is unsustainable and we simply can’t tax our way out of the problems.  The problems have been brewing for many years (and even decades) under failed leadership. Kicking the can down the road is no longer an option.  Key issues include:

  • Pension Debt

  • Health Care Costs

  • Unsustainable Union Contracts

  • Road Department Deficit

  • Water & Sewer Rates

Recommendations to improvement Fiscal Management:

  • Expand audit to include all funds (Water & Sewer, Safety Path, etc)

  • Require an annual report for the Senior Center and every department.

  • Develop detailed Capital Spending plan.

  • Develop 3 Year Budget Plan

  • Review budget, spending and balance in the Capital Improvement Fund.

  • Require an Annual Report for the Senior Center and every department.

  • Eliminate “petty cash” payments and complete a full review of all corporate credit card spending.

  • Track spending in more detail. Develop more detailed account structure under the General Ledger and require that all spending (including every line item from “payroll and vouchers”) be attributed to specific accounts at the lowest level of detail. Make all detail downloadable.

  • Eliminate or reduce spending for travel, food, meals and entertainment.

Pay hikes and 6 year contracts voted on in March 2021 will have negative long-term impact on residents

Elected officials did not do proper due diligence in planning long term budgets to evaluate the impact of 6 year contracts.  It is wrong to vote for expenses when there is not an analysis of the revenue stream (without tax hikes) to support the overly generous benefits that employees and retirees receive.  We need a 3 year (minimum) Budget Plan to better understand the impacts of the financial obligations dictated by the new 6 year union contracts.

Mackinac Center showcases the problem with municipal government handing out pay raises while crying for more money

https://www.michigancapitolconfidential.com/pandemic-put-communities-through-hell-not-as-measured-by-government-pay-hikes

Employees and retirees must pay more for their very generous benefits. 

The residents are shoulder too much of the cost. The Board negotiated six year employment contracts with little regard to the cost of us, the taxpayers. 

Road Department is too costly for the results we get.

Annual costs often exceed revenue, so general funds cover the shortfall.  Outsourcing the Road Department to Oakland County needs to be studied to identify potential cost savings and improved services.  Not withstanding, we need improved management on the frequency of plowing and salting.  There is considerable damage to asphalt roads with unnecessary scraping and salting.

Water & sewer rates continue to be high due to the 80% fee for RTS

The water lawsuit was brought on because of a failure to provide adequate accounting for water & sewer expenses. 

The budget ending 3/31/21 has a $2M surplus, yet elected officials just voted to continue to bill residents for high water rates.  These are  generating millions in “reserve revenue”   Where is the surplus going?  Where is communications to residents?   

Mackinac Center showcases the need to reform and fund Pension Plans

https://www.mackinac.org/podcasts/the-overton-window/that-is-not-scary-in-fact-that-is-empowering