Clinton Township Closes Out 2012 with $15.3 Million in Rainy Day Fund

Clinton Township’s finances proved to be solid over the past year, but the community will need to be smart about its expenses if it hopes to stay in the black, auditors told the board of trustees Tuesday.

During a presentation from Plante Moran on the 2011-2012 township audit, Dave Harrington, a partner in Plante Moran, told the board that while the condition of the general fund has vastly improved in recent years, the township must continue to be progressive and strategic in its budgeting as the economy is still recovering.

Harrington presented financial highlights from the roughly 79-page report, specifically addressing the township’s four main funds: general fund, police, fire, and water and sewer.

In the general fund, or the rainy day fund, the township saw its fund balance increase from just over $13 million in 2011 to approximately $15.3 million for the year ending March 31, 2012.

While there was a slight increase in state funding, auditors noted that revenue from property taxes, which represent the majority of revenue in the general, fire and police funds, was down about 7 percent. Harrington said this decline has been attributed to a decrease in property tax values, which are projected to drop even further in the current fiscal year.

The current fund balance is also the result of focused efforts to reign in spending by modifying benefits such as healthcare for retired, current and new employees of the township. Clinton Township has also eliminated 92 positions since 2002, generally not replacing employees who have retired or left.

Here are some highlights from the 2012 audit:

Police Fund

• Fund Balance: $21.6 million

Fire Fund

• Fund Balance: $14.7 million
• Acceptance of the Staffing for Adequate Fire and Emergency Response (SAFER) grant from the federal government this year will allow the township to hire 12 firefighters who had been previously laid off. This grant will increase revenue in 2013, but as the grant runs out, the township will need to find an additional $1.2 million a year or reduce staffing once again.

Water and Sewer Fund

• Fund Balance: $107.2 million  
• $98 million of this balance is held in infrastructure that cannot be sold. The remainder is held in unrestricted funds that can be readily used. 

The complete 2011-2012 audit will be posted on the township website.