This annual report to the board and the community reflects the continuing dismal economic trends that worsened in 2008.
Foreclosures remain 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. During these difficult times, we anticipate shortfalls in earnings on our investments, but our State Revenue Sharing remains level at this time.
By the numbers
Basically, township monies are invested into one of five types of vehicles: Savings and money market instruments, Certificates of Deposits (CDs), mutual funds and an Oakland County Investment Pool.
The depressed economy was reflected in the township’s earnings on investments. During 2008, the weighted average of interest earned on CDs was 3.30 percent and was considerably lower than the weighted average in 2007 that was 5.11 percent.
The mutual funds continued to earn at the rate anticipated when the investments were considered.
The overall rate of return for 2008 was 4.8 percent (4.9 percent in 2007). The funds invested in the Oakland County Investment Pool were earning at the rate of 3.09 percent at the year-end, and that compares to 4.09 percent for 2007.
The rate of return on all these various investments is a function of the prevailing interest rates.
See below for 2008 totals
Interest earned on investments is a function of the prevailing interest rates and with the depressed economy, earnings for 2008 were approximately $1,000,000 less than earnings in 2007.
Please note that the Water & Sewer Fund is an Enterprise Fund for the exclusive use of our Water & Sewer Department.
Also, the almost 5 percent of assets that are in the Tax Fund will be disbursed to the various entities for which we collect taxes.
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 percent, and the limit of investments with a single financial institution is 30 percent.
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.
Conclusion
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 at 248-391-0304 ext. 119.