Village finances eyed

By Elizabeth Lowe
Staff writer
Goodrich – Village finance discussion was recently prompted by dissolution questions during an Atlas Township Board meeting.
‘We still need to hear from our township on what would happen if we dissolve the village,? said Dan Frownfelter, a Goodrich-Atlas Township resident at the March 21 meeting.
‘We can’t make any proposals,? said Atlas Township Supervisor Paul Amman. ‘We have no idea what the (village) debt is. You need to be a Philadelphia lawyer to figure that out.?
A finance committee was set up by the former village council in January so residents could oversee village revenue and expenses.
Goodrich resident Norman Bass, an accountant who has been appointed to the committee, says regardless of whether village government is dissolved, village finances should be scrutinized to ensure tax dollars aren’t being wasted.
The most recent village audit, based on the fiscal year ending June 30, 2004, was presented to the village council at its Dec. 13, 2004 meeting, when residents refrained from questioning village finances in auditors? presence.
Some village residents now question where the money goes.
The Citizen reviewed the 2003-2004 audit, along with the corresponding village budget and wage resolutions approved by the former council.
According to the audit, the Village of Goodrich took in $773,523 total in revenues, including $403,078 in taxes, and $244,760 in state and federal sources, including revenue-sharing and competitive funding sources.
At the end of fiscal year 2004, the village had $2,521,115 invested in the sewer system, land, furniture, equipment, leasehold improvements, and vehicles; and $587,010 in construction in progress. Of this amount, $803,707 in depreciation has been taken over the years.
According to the audit, the village had total long-term debt of $1,421,186 outstanding, of which $831,000 was government-backed debt, $435,000 in revenue bonds, and $155,186 in contracts payable.
Long-term debt in the village takes the form of four bonds and two contract payments.
Of the $1,155,000 issued until 2007 for the sewer refunding bond, $435,000 is outstanding.
Of the $285,000 issued until 2012 for the Ridge Road-Janaroy Court special assessment bond’which is being repaid by affected residents?$180,000 is outstanding.
Of the $155,000 Michigan Transportation Fund Bonds issued until 2012’the village portion of the Ridge Road-Janaroy Court project?$13,735 is outstanding.
Of the $1,060,000 available from the capital improvement bonds issued until 2044 for the new municipal complex, $546,000 has been withdrawn, with an available balance of $514,000.
The village is also indebted to Davison State Bank for two loans, one in the amount of $145,000 maturing in 2012 for the three-acre M-15 parcel of land which now houses the municial complex. The second loan is in the amount of $48,596 maturing in 2007 for a snow-maintenance truck purchased in 2002.
Compensation for village employees and officials totaled approximately $198,955 including approximately $13,548 in benefits, not including building inspector wages and benefits, which were not available by press time.
Formerly, only full-time employees received retirement, medical, life, and disability insurance benefits. Part-time employees now get partial retirement benefits paid by the village, totaling 1 percent of their wages.
Last fiscal year, the village had three full-time employees, although village administrator Sidge declined medical benefits. She received no compensation in lieu of medical insurance.
Since last fiscal year, the village has increased hours for two employees: the secretary and seasonal department of public works employee.
Most employees driving their own vehicles on village business receive mileage reimbursement. As of July 2004, Sidge opted out of the per-mile reimbursement, taking instead a monthly mileage reimbursement fee of $175.
According to the audit, annual expenditures totaled $1,223,467, including wages and benefits, office supplies, publishing, utilities, legal fees, election costs, parks and recreation, garbage collection’offset by a special annual assessment of $108 per household’highways, streets, and bridges, and other expenses.
Some expenses, such as maintenance of the library and community room, are shared with Atlas Township. Monthly maintenance costs include both upstairs and downstairs cleaning, including kitchen and bathroom facilities, as well as exterior maintenance, such as snow removal.
Seeing both the village and township be ‘more forthcoming? with information would help residents trying to make an intelligent decision, said Frownfelter after the March township meeting.
Information on the village budget, which was formatted prior to Sidge’s appointment as village administrator in 1995, is available through the Village of Goodrich office, located at 7338 S. State Road in Goodrich.
Although municipal budgets are complicated, Sidge said village staff are willing to answer questions and distribute information, even without Freedom of Information Act requests.
Dissolving the village as a legal entity doesn’t relieve village residents of village debt, said Professor Joseph Ohren, an expert on municipal matters, in a February forum on village dissolution. If the boundary disappears, residents still have to assume its responsibilites.
‘There’s no free lunch,? Ohren said. ‘Paying taxes to pay for a village level of services is why villages were created in the first place.?
‘I will go on the record and say, if (village residents) have a debt, the current village will become a special assessment district,? said Amman, following the March township meeting.