In my third annual report to the board and the community, it is more difficult to remain positive than in the past due to the economic cloud hanging over us. Foreclosures are at a record high and many of our citizens are either unemployed, under-employed or have found jobs in other states. I continue to watch the economic trends and manage the township’s money in a fiscally conservative manner. Despite these difficult times, we do not anticipate any significant shortfalls in funding.
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By the numbers
Basically, township monies are invested into one of five types of vehicles: Savings and money market instruments, certificates of deposit (CDs), mutual funds, and an Oakland County Investment Pool. During 2007 the weighted average of interest earned on CDs was 5.11%. The mutual funds continued to earn at the rate anticipated when the investments were considered. The overall rate of return for 2007 was 4.9%. The funds invested in the Oakland County Investment Pool were earning at the rate of 4.09% at the year-end. The rate of return on all these various investments is a function of the prevailing interest rates. (Please see table).
Please note that the Water & Sewer Fund is an Enterprise Fund for the exclusive use of our Water & Sewer Department. Also, the almost 8% of assets that are in the tax fund will be disbursed to the various entities for which we collect taxes.
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Compliance Issues
The treasurer is bound by the parameters of the investment policy that was adopted by the board of trustees. This takes constant monitoring. The limit for a single investment type is 80%, and the limit of investments with a single financial institution is 30%.
The township must also comply with all requirements of the various accounting and audit pronouncements. Our auditors, Plante and Moran, include audit procedures to ensure that we remain in compliance.
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Conclusion
I continue to be an active member of several township-related and community boards. I also will continue to serve the citizens of Orion Township and to always perform in their collective best interest.
The complete text of the financial report can be obtained at the treasurer’s office.
As always, I am available to answer any individual questions. Please do not hesitate to contact our office.
Contact Orion Township Treasurer Alice Young at (248)391-0304, ext. 123.