Township officials hope budget planning three years in advance will help them make the most of falling tax revenues.
‘We’re doing our best, but I’m sure as you get out to those further years, we’re going to learn things that we’re going to need to know for next year’s three year budget,? said Susan Hendricks, finance director for Independence Township.
To prepare a one-year budget, planning started in June. Now, they’re starting in January. Department heads will also have to leave out capital-improvement items, such as buildings.
‘The department heads are putting together a budget with their operating cost, of which the majority is payroll, with any other contracts they need to operate on a daily basis,? she said.
All capital improvement items will be considered together instead of one at a time, Hendricks said.
“When you’re focused on one department, it’s very easy to say ‘yes, we need that capital item for that department.? But then we would get down to the last department and say ‘there are not funds available for it,?? she said.
‘So, what they’re going to do is look at all of the capital needs in total and then allocate our capital dollars based on the overall need rather than looking at each department.?
The major hurdle this year was decreasing taxable value in the township, she said.
‘That would have been a hurdle whether we were doing three year budgeting or one year budgeting,? Hendricks said.
Treasurer Curt Carson said three-year budgeting has been a top priority since taking office.
‘Basically we have to project where we think our revenues are going to be and then look at the services we offer the community and determine how we’re going spend those resources to best serve the community,? he said. ‘Once we come to grips where we believe the revenues are, that may shed a lot of light as to where we are now and where we’re going to be in the future.?
Supervisor Dave Wagner said it was also something he has been considering. It’s something Oakland County has done for many years.
‘I think it’s a good way to go. The county has a little bit bigger staff than we have, so they’re able to get into these things and handle them much easier than we can,? he said. ‘I think we’re doing our best to accomplish these things and hopefully it’s going to give us a better picture and something we can really work with as it goes along.?