Shelby Township audit outlines fruits of conservative fiscal responsibility, reform

Despite a drop of nearly $1.5 million in overall revenue from 2011, Shelby Township’s 2012 audit revealed a fifth-straight general fund surplus and exhibited the fruits of the government’s fiscally responsible management.

There was a $5 million rise in expenditures from 2011 to 2012, $2.6 million of which went to capital outlay projects to improve roads and township infrastructure and an increase of $1.7 million in costs associated with public safety.

“It is not getting cheaper to provide vital services to our residents,” Shelby Township Supervisor Rick Stathakis said. “But Shelby Township has proven again and again that a municipality can provide those services and improve quality of life for residents without raising taxes now or mortgaging the financial future.”

The Township’s general fund, which officials from the Township’s auditor, Plante Moran, called “the most significant operating budget,” saw a $185,159 surplus and increased its fund balance from $10.1 million to $10.3 million.

“Despite all the challenges the Township has faced in declining revenues, the Township general fund has been able to maintain a fund balance, which many communities have had trouble doing or been unable to do,” Lisa Manetta of Plante Moran said.  

Stathakis said he feels the Township is in position to address these economic challenges because of the conservative reforms instituted by the Board of Trustees from 2009 to 2012 and the hard work of Township department heads and employees to enact those reforms.

“Business as usual leads communities down a road of financial ruin, and we will not tolerate business as usual in Shelby Township,” Stathakis said.

 “The good people working for the residents of Shelby Township , whether it is the Board of Trustees or our general employees, have shown that they understand this and were more than willing to reinvent the way business was conducted in Shelby Township.”

The audit showed revenue from the Township’s Department of Public Works water and sewer operations for 2012 was flat and the fund balances for the Fire and Police departments dipped by $925,498 and $1,671,073, respectively.

“The gains we’ve seen from our DPW’s efficiency are consistent with other departments that realized the fruits of working with an independent consultant to reform operations,” Stathakis said. “Our Fire Department continues to reduce costs and has realized more than $2 million in savings since 2009.

"The rapid decline of our Police Department’s savings is worrisome, so the Board has scheduled a full review of that department’s finances and operations,” Stathakis added, noting that a June 27 Board work session is slated to discuss a review of the Police Department by independent consultant John Kaczor. “Rest assured, we will address the issues facing this very important part of our Township family.”