By: Dean Vaglia | Mount Clemens-Clinton-Harrison Journal | Published July 25, 2023
HARRISON TOWNSHIP — The Harrison Township Board of Trustees turned its eye to trimming its special assessment district deficits, among other business, at its July 10 meeting.
The SADs are special taxable districts created for the purpose of funding hyperlocal improvement projects such as fixing residential streets or spraying for algae in a channel. The township’s special assessments revolving fund ended the year in a deficit, requiring a plan to eliminate the deficit.
“This (deficit) is the result of funds being advanced to the special assessment districts,” Clerk Adam Wit said. “In the past that would be paid back at a later point; this is something that we don’t ever run into anymore because we’ve been bonding for the last couple of assessments, so it isn’t really an issue moving forward, but these past few assessments still exist.”
A deficit elimination plan is required by the state in order to prove the township is aware of the deficit and is planning to eliminate it. The township’s plan calls for the elimination of the deficit by Dec. 31, 2031, with the collection of special assessment taxes every year from now until 2031.
“(The plan is) probably conservative as far as the timeline because we usually speed up the collection of that anytime there’s a property transfer,” Wit said. “Those usually get paid off in full, so they usually don’t last an entire term, but this is the plan we projected.”
OPEB contributions
Following the 2022 audit, the township was made aware that its other post-employment benefits fund was about 20% funded. A policy was enacted in 2019 to get the OPEB fund to 100% by 2041, and the board voted to move $200,000 from the general fund and $50,000 from the fire fund to the OPEB trust.
“Going back to 2018, we had $3.8 million,” Township Supervisor Ken Verkest said. “In 2021, we were up to $5.971 (million) in that OPEB trust. … We ended 2022 at $5.515 million.”
The OPEB liability was $31 million in 2021 and has since dropped to $27.6 million.
The OPEB fund handles pensions, retiree health care and other post-employment benefits for former township workers.
Sidewalk contract
Following up on the approval of a sidewalk repair ordinance in 2022, the board looked into paying for the repairs to then-existing damaged sidewalks.
The township received a bid for the work from Luigi Ferdinandi and Son for about $82,970. After factoring in the variable cost of tree removal and the number of slabs needing to be replaced, the board approved awarding a contract not to exceed $95,000, with any increases requiring the approval of the supervisor, clerk and treasurer.
Second reading of ordinance omnibus
The board also had the second reading and approval of a slate of ordinance amendments concerning Chapters 2, 72, 94 and 62. Changes included: the reinstatement of a municipal ordinance violations bureau; penalties for committing acts requiring a police response; creation of a list of definitions for an anti-disorderly person ordinance; changes to lake-based construction project approval; and rules about how often signs can change copy, and new processes for sign variances.