Shelby Township audit shows proof of Board policy's financial stability, success

With a loss of .5 percent in revenue offset by a more than 5 percent drop in expenses, Shelby Township’s 2013 audit revealed a sixth-straight general fund surplus while exhibiting the kind of financial stability that businesses seek when choosing where to set up shop.

Plante Moran, which conducted the audit, outlined a drop of $2.4 million in total governmental expenses for 2013, which helped counterbalance a loss of $600,000 as taxable values within the Township decreased. Total revenues dropped $200,000 in 2013 where 2012 saw a drop of nearly $1.5 million.

“It’s nice to see that the declines in revenue are less steep than they have been, but this audit shows the real value of the policies enacted by the conservative majority of our Board of Trustees since 2008,” Shelby Township Supervisor Rick Stathakis said.

“Through these policies, Shelby Township has again proven that a municipality can utilize sound principles to weather financial losses and provide services to improve quality of life for residents without raising taxes now or mortgaging the financial future.”

Stathakis credits financial practices and tools such as five-year budget forecasts, cost-allocation programming, the institution of a capital improvement plan and a comprehensive budget process that engages all department heads for the improved economic climate within Township Hall.

“Our budget process allows the department heads, who know their business best, a bigger hand in crafting budgets, and tools like cost allocation give them a better sense of the true-cost of service for the taxpayer,” Stathakis said.

“These private-sector principles show that we as a Township are serious about keeping our budgets in line and making the most of every penny we have to spend.”

Along with sixth consecutive general find surpluses, the success of the Township financial practices can be seen by its AA+ credit rating from Standard & Poor’s as well as renewed development in the industrial and residential sectors.

“First and foremost, what businesses and credit services look for in a government is stability, and that is what Shelby Township has done better than anything,” Financial Consultant John Kaczor said of what the audit tells those outside of the Township. “Businesses and credit services want to see that there are real and substantial programs in place to ensure there will not be any significant volatility in the future.”

While the 2013 audit shows stability and success for the Township general fund finances, Stathakis said there are still challenges ahead, which will require even more strict adherence to the Board’s financial principles.

“We’ve got the question of what will happen with the 41-A District court and how that will impact budgets, and we have to address upside down and compounding retiree benefits and pensions,” Stathakis said. “All of these issues and more pose significant challenges and threats to the Township’s long-term finances. This is why we must and will remain vigilant.”

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