The Ile Camera
A Heritage Newspaper
Weekly Publication
Guest column: Kurt Kobiljak
General fund is our saving's account
PUBLISHED: August 4, 2006
Last week, a full page ad was placed in this paper on behalf of a Web site supported by one of the residents which you see at our township podium on a regular basis.
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The ad suggested that residents are being overtaxed and was coupled with an article regarding the township's general fund.
The article was filled with emotional sound bites regarding money held in the general fund and questioned whether this fund represents township financial mismanagement.
The simple answer is no. The intent of the ad and article to scare island residents, however, was readily apparent.
The township's general fund can be found in our printed financial statements going back to 1924. Supervisor O'Donnell to Supervisor Solomon to Supervisor Jones all had an undesignated general fund balance.
All 12 downriver communities that surround Grosse Ile, in turn, have undesignated fund balances. The average amount held in these undesignated fund balance accounts is $1,556,285.00 million dollars.
During my township address at the March annual meeting I specifically referenced that many municipalities had to use their general fund money to balance their budgets. I additionally indicated that unlike many communities our general fund had grown and our financial picture was best characterized as extremely conservative.
The general fund is the township's savings account. When was the last time the township imposed a tax increase on its residents? In 1994, during Supervisor George Honer's tenure.
Over the last 10 years the township has operated within its financial capabilities even with the decline of state revenue sharing. Not only does the township not pursue tax anticipation notes to pay its bills like many other Downriver communities, but over the last several years the board has actually determined not to levy millages related to our roads and library.
If financial issues occur the general fund provides financial support for the township's departments. One example would be the township's Police Department. With the increase of gas costs there is the potential that the Police Departments' "budgeted amount" for gas will be exceeded this fiscal year. It is through the use of general fund money that the Police Department will pay these increased gas costs without the township having to going back to our taxpayers.
More significantly, consider you own finances. Do you save money to handle those items, which just couldn't contemplate budgeting such as a broken air conditioner, the ice damage to your roof or your daughter's unexpected college tuition hike. The township, just like individuals, must plan for the unexpected.
The township's undesignated (hence, not budgeted) fund balance is approximately 20 percent of the annual general fund budget. This is not that great an amount. Consider that if state revenue sharing would disappear tomorrow and the township would use its general fund to maintain our Police Department, the general fund would only keep the department running for one additional year.
During the fall the township will conduct several public forums related to our commissions, the public safety issues surrounding the scheduled Wayne County Bridge closure and the state of financial affairs of the township. In relation to the township's financial affairs, the township's finance director, auditor, bond counsel and assessor will provide a detailed review of our financial status.
I would suggest all to attend or watch these forums. These forums not only will provide island residents the ability to raise their respective questions and concerns but will provide residents the true and accurate facts which surround township programs, projects, and finances.
In the meantime, if you have any questions regarding the township, take the time to meet with our township staff, for they are always willing to answer your questions and will do so with the intent of informing you and not, attempting to scare you.
Kurt Kobiljak is the supervisor of Grosse Ile Township.
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