Gaines Charter Township officials are looking at the potential of using more than $500,000 out of township reserves to balance the 2021 budget – and that has one board member suggesting a dedicated public safety millage to support police and fire operations.
The township board Monday got its first look at next year's projected budget, which calls for spending nearly $5.45 million and the use of $507,884 out of the township's reserves. The current budget proposes the use of more than $107,000 in savings.
It's a trend that worries township Trustee Tim Haagsma.
“When we budget for a half-million-dollar shortfall, that concerns me,” Haagsma said during Monday's three-hour-long budget discussion.
Nearly half of the 2021 budget proposal – about $2.69 million – is for fire protection and law enforcement, leading Haagsma to suggest the township consider asking voters for a dedicated millage to pay for those services.
“We should strongly consider some way of paying for public safety. We've said that for a long time – more than 10 years, probably 12,” he said in the remote meeting. “I think it's time that we really consider how we're going to [pay for it].”
Gaines Township is the second-largest township in Kent County, with an estimated population in 2019 of 27,345 residents. Only Plainfield Township has a larger population among the county's 21 townships. Gaines has added more than 7,000 residents since 2000, according to U.S. Census Bureau estimates.
The township currently does not have any voted millage, and has a general operating levy of 0.8364 mills, Supervisor Rob DeWard said.
The budget proposal calls for nearly $1.2 million in expenditures for the Cutlerville Fire Department, a 7-percent increase from this year. Another $918,000 would go to the Kent County Sheriff's Department to provide law enforcement services, a 3-percent drop from this year's amount of $950,000. Close to $573,000 more would go to the Dutton Fire Department, an increase of 8 percent from this year, according to the draft budget document.
Several neighboring Kent County townships have dedicated tax levies to support either fire, police or both, including Caledonia, Cascade and Ada. In August 2018, Caledonia Township voters approved renewing and increasing the township's public safety millage from 1.5 to 1.993 mills for six years. The measure passed with 2,305 yes votes to 973 no votes.
Despite the projected budget shortfall, Township Treasurer Laurie Lemke said the township is in good fiscal shape. The township ended 2019 with a fund balance of more than $3.31 million, after taking in $299,693 more in revenues than expected and spending $110,026 less than budgeted, Lemke wrote in an email to the Sun and News.
“We've been very cautious with our spending over the years, and we've been able to hang in [without adding new taxes],” Lemke said during Monday's discussion. “I think we're a conservative board that doesn't like to raise taxes until the freight train is going to hit the wall.”
The township is projected to take in $4.94 million in revenues for the year, with nearly $2.3 million of that funding coming in the form of state revenue sharing. Another $825,000 is expected from property taxes and another $340,000 from cable television franchise fees, according to the budget document.
Another part of the budget proposal for next year calls for DeWard to take a 53-percent cut in his supervisor's salary, from $74,000 to $35,000. The supervisor expects to cut back his workload now that Gaines has hired a full-time manager. Former state legislator Mark Jansen will begin his new duties as township manager Monday. Jansen is set to be paid $105,000 in his new role, according to the budget document.
The budget also calls for spending increases for the assessor's department (up 6 percent to nearly $259,300), the treasurer's office (up 1 percent to a little more than $187,000) and parks and recreation (up 12 percent at $33,295).
Spending reductions are proposed for roads (down 20 percent to $205,000 next year), planning and zoning (down 8 percent to a little more than $217,000), and township hall and grounds (a 3 percent cut to nearly $206,000).
More discussions on the budget are later this month, with a public hearing expected sometime in November before the budget is adopted, DeWard said.