Audit Positive; Sewer Growth To Be Studied
Clark Township
By Amy Polk

Clark Township is financially healthy and has its biggest fund balance in four years, reported its auditor, Ken Talsma of Anderson, Tackman and Company of Kinross. Better yet, the township spent $40,000 less than planned and collected nearly $19,000 more revenue than expected, he added.

"We like to see about 10% of the general fund as fund balance, so you're in a good place," Mr. Talsma said, noting that with reductions in state assistance, Clark Township will want to build its reserves.

Mr. Talsma delivered his report Thursday, November 15. He complimented the board for its fiscal responsibility and for cutting costs that contributed to the 2006-2007 fiscal year's fund balance of $184,411. In contrast, the 2006 fund balance was $122,862. The 2005 fund balance was $27,030. The 2004 fund balance was $45,823. To increase the fund balance in the face of shrinking state shared revenue contributions and fewer state grants is a good indication the township may be better prepared to weather hard financial times, Mr. Talsma said.

For the 2006-2007 fiscal year ending June 30, 2007, revenues exceeded expectations by $18,980 last year. This does not include $167,400 generated by a one-time emergency services millage for a new ambulance and fire department vehicle, and revenue from new sewer users, particularly the group of approximately 25 added at the Les Cheneaux Club. The new sewer revenue will add to this year's revenue. Sewer fees in 2007 also increased by $6 per quarter for every REU (residential equivalency unit). Grinder pump installation rates were increased from $3,800 last year to $4,000, and again for the 2007 year to $4,250. Installation rates for users closest to the older gravity feed system were increased from $500 to $1,000 in October. Property owners are required to connect to either the gravity feed or newer grinder pump system, depending on which system runs within 200 feet of their property. Property owners further than 200 feet must pay an additional $1 for every foot.

The audit also revealed that Clark Township did not previously record the sewer system as an asset. Adding it to the township's total assets this year increased assets from $932,761 to $2,953,109. That value will depreciate every year as the system ages.

Anderson, Tackman noted in the audit that activity in Clark Township's sewer department has increased this year, mostly because Clark Township board is trying to make the sewer department solvent by creating enough revenue to cover expenses. The board revived its Sewer Advisory Board, which has now been meeting regularly and researching the sewer department's fee structure, recommending rate increases, and researching potential new users. New revenue is sought to keep up with the rising costs of having and maintaining the system, trustees said, and will help pay for unexpected major expenses like replacing lift station pumps at the station on Shaffmaster, and approximately $30,000 in additional operations and maintenance costs. Another unexpected $40,000 in legal and appeal expenses was spent last year on the trial phase of a sewer back-up lawsuit against the township. The township is now appealing the case.

The township increased revenue through $66,250 in grants, fundraising, and donations. A fundraising drive last fall, for example, brought in $11,000 for Clark Township Fire Department gear and equipment. A $26,000 federal grant covered the cost of executing the final phase of the Great Waters nature-based tourism and marketing activities in Clark Township. Clark Township received $18,000 in grants and donations for pre-engineering, outreach, and activities to develop the Clark Township section of the North Huron Scenic Pathway nonmotorized trail. Another $6,250 in grants was received by the township for its master plan and zoning ordinance updates, and the Recreation Park Project attracted a $5,000 contribution from the Sault Ste. Marie Tribe of Chippewa Indians, among other private donations.

Clark Township saw its marina revenue increase by $5,000 by collecting more launch ramp fees than expected, and ambulance service revenue increased by $23,000, owing to more runs and better bill collection, according to the report.

Clark Township also saved money this year by spending $4,000 less on postage and $2,000 less on health insurance premium because insurance rates were reduced. The township also saved $10,000 by changing its solid waste disposal service from Waste Management to another solid waste service provider, introducing more efficient procedures, and raising collection rates by an average of $1 a bag at its waste transfer site in State Avenue.

Mr. Talsma recommended trustees keep a close eye on the budget, which so far has enjoyed strong growth because of the township's steadily growing tax base. He pointed out a few upcoming expenses, including more fire department gear purchases, ongoing recreation park improvements, physical improvements around the township, and the cost of moving the Department of Public Works office from Cedarville to the Hessel Ambulance Hall. The hall was previously closed, and was little expense to the township, which even considered selling the building.

Clark Township received a $15,000 grant this year to improve disabled access for elections at the Community Center, and recently repaired the front sidewalk, disabled access approach, and front doors, but trustees also plan to spend at least $3,000 to make duct improvements there. Trustees also plan to spend at least $10,000 to repair docks at the Hessel Municipal Marina, and another $3,500 to repair a roof overhang on the marina building. These expenses have been budgeted for.

To keep sewer fees current, trustees hired ACI Finance for $8,000 to study the township's sewer funds. The company will also study the rates to determine whether they are sufficient.

In a related matter, the board elected to hire consultant Larry Fox for no more than $2,000 during the November 15 meeting to research capturing more fees by expanding the sewer system to new users. A handful of Clark Township property owners are close enough to a sewer line to connect, but have not, yet. A group of Hessel residents asked when the sewer system will be expanded to their neighborhoods, Supervisor Linda Hudson said, and expansion to Lakeside Road east of Cedarville has also been proposed.

Mr. Fox works for the engineering and design firm C2AE out of its Gaylord office. He worked for Capital Consultants, the former engineering firm for Clark Township's sewer system expansion in the 1990s. Capital Consultant merged with another company to form C2AE. Mr. Fox has worked on several other Clark Township engineering projects, and is familiar with the township's sewer system. Trustee Dana Leach questioned whether the township can afford to hire a consultant, but the board agreed it would be worth it if the township gains more sewer system users.