Shelby Police Department working on financial reforms
Published July 31, 2013
SHELBY TOWNSHIP — On its current financial course, the Shelby Township Police Department is facing insolvency in 2017.
Following a work session held in June by the Shelby Township Board of Trustees to review Police Department finances, Chief Roland Woelkers and consultant John Kaczor are due to make a presentation to the board Aug. 6 regarding possible solutions.
Supervisor Rick Stathakis cited a $1.67 million operating deficit, a $13.2 million pension liability and $29.2 million in unfunded legacy costs as the Police Department’s financial shortcomings.
He said even if the Police Department incurred no expenses, it would take two and a half years to pay off the current legacy debt.
“We are going to take whatever steps we have to take to make sure [insolvency] doesn’t happen,” Stathakis said, adding that under the leadership of Woelkers, the Police Department has seen $1.2 million in savings.
Woelkers said that the department is not in dire straits and is faring better than some neighboring communities.
“Shelby fortunately is a growing community, adding buildings and homes to tax rolls and increasing revenue,” Woelkers said. “The economy is rebounding.”
Woeklers said he just wanted to plan ahead and that the Police Department has a current fund balance of $8 million.
Stathakis said he tried to push a 401(k)-type pension plan when working on the last contract with the police and fire command, called a direct contribution, which is what the general township employees receive.
The pension costs are capped with general employees, so when they retire, the township pays nothing, he said.
“(The command) said no, took us to arbitration and the arbitrator ruled in their favor,” Stathakis said, which means police and fire personnel will stay on the defined benefits program and will receive an average pension amount of $75,000 per year for life, regardless of what they put in.
The Board of Trustees will listen to Woelkers and Kaczor’s presentation at the next meeting at 7:30 p.m. Aug. 6 at Shelby Township Hall and discuss a course of action.
- 30 DAYS
- Three Northwood Elementary School teachers to retire in June - Royal Oak
- Traveling Vietnam Wall coming to township for Memorial Day weekend - Clinton Township
- Shelby, Utica police offer parking lots, lobbies for transactions - Shelby Township
- Madison district, Habitat Oakland make case for Halfman project - Madison Heights
- Lakefront residents continue to deal with stinky muck - Harrison Township
- Schools, library to once again host summer nutrition program - Harper Woods
- South student’s artwork to be displayed in the U.S. Capitol - Grosse Pointe Farms
- Military museum announces upcoming event plans - Eastpointe
- BHS recognized as one of the most challenging high schools in the state - Berkley
- Auto accident critically injures Stevenson student - Sterling Heights
- A mother’s dream come true - Macomb Township
- Stevenson student dies after M-53 accident - Sterling Heights
- Sheriff shares latest developments in fatal Stony Creek crash - Shelby Township
- East Detroit approves school uniform policy - Eastpointe