the municipal secretary desktop reference manual - Southwestern ...

REVENUE
The primary revenue source for our local government is the one/half percent earned
income tax levied on residents (the other half of the income tax dollar goes to the school district).
Growing over the past several years due to a steady influx of new families, the annual revenue
from this source is now approximately $105,000 annually, up from $98,000 in 1991. The next
largest source of revenue is the real estate tax. As new growth occurs, our total taxable real
estate value increases. Township revenues have expanded as a result of growth in the value of a
mill of real estate tax. In 1991 a mill generated $18,000 in revenue and currently yields about
$23,000. Historically, the Board has worked within a limited budget, striving to maintain as low
a millage rate as possible, while still providing sufficient services to maintain the safety and
well-being of our residents. One of the 4 mills of the property tax is used to fund the Emergency
Services Board. This intergovernmental organization manages the combined contributions for
expenses of the Fire Department, which, in turn, provides fire protection to all member
municipalities. The remaining 3 mills is deposited into the General Fund, and is just a modest
increase from the 1991 rate of 2 mills. In five years, as the municipality has grown and
expanded services, the tax rate has been increased by merely a single mill.
A major resource which enables the administration to accomplish so much with so little
has been the acquisition of grant monies to subsidize the general fund. Two parks and recreation
grants were awarded during the past five years for a total of $27,000.00. Legislative Initiative
Grants totaling $12,000.00 in recent years have been obtained to purchase a copier, seed the
newest ballfield, and assist with the municipal office completion. Improved techniques in the
submission of various State subsidy forms has increased revenues, while a heightened awareness
of financial investments available to municipal government has doubled the Township's interest
income.
At the close of fiscal year 1994, a $12,000.00 equipment usage reimbursement was
realized from the project. This funding was used to establish a contingency fund, which was
created to protect the general fund budget from unexpected wage emergencies, such as extreme
weather conditions requiring excess overtime pay, and to cover accrued employee sick leave
benefits.
Now that we know where we've been financially, we can look at where we are going in
1996. In projecting expenditures, our priority, as always, is road maintenance. A total of
$207,000 has been allocated for the Road Department in 1996, with $85,000 line-itemed for
wages and benefits. Total Road Department wages allows for an average 5% wage increase for
employees, bringing our wages in line with those of neighboring municipalities. The second
largest road-related line item is equipment purchasing, with $10,000 earmarked for loan
repayment and $23,150 budgeted for miscellaneous equipment. The remainder of funding
allocated for road maintenance purposes will be sufficient for the Road Department to continue
the rotation of tarring and chipping our collector roads. Upgrading a portion of road to
comfortably accommodate two lanes of traffic is a project scheduled for 1996, pending receipt of
special funding we anticipate.
Administrative expenditures reflect a salary increase for the Secretary/Treasurer whose
work load and work hours have increased. The hourly wage of the Clerk's position has been
increased, bringing it in line with the average of clerks in similar sized local governments. A
sum of $2,000 has been budgeted to purchase additional computer equipment for the office.
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