Upcoming budget sees losses to fund pensions

CLINTON TOWNSHIP — A preliminary budget forecast for Clinton Township’s upcoming fiscal years shows general fund spending dipping into the red as a result of additional retirement expenditures. However, the city’s finances are expected to be back in the black within a few years.

On March 3, the Clinton Township Board of Trustees got its chance to look at the first presented draft of the township’s fiscal year 2025-26 budget. The board also opened a public hearing to let residents and stakeholders comment about the details of the proposed budget.

Though no attendees took up the offer at the meeting — and the hearing was left open for residents to send in their thoughts ahead of the March 17 board meeting — Clinton Township Finance Director Mary Hein guided trustees through highlights of the budget as presented.

The general fund is expected to see expenditures outpace revenues in the upcoming budget, with a loss of $1.9 million expected on the back of $25.2 million in revenues and $27.1 million in expenditures. Part of the deficit is the result of the township ramping up its additional contributions to the state’s Municipal Employees’ Retirement System pension program, which will see additional annual contributions in the range of $3 million for the next few fiscal years.

“The board has prudently elected to make additional contributions to fund the liabilities,” Hein said. “The projections assume the additional contributions will continue to be made through the (2027-28) fiscal year, after which we currently expect the unfunded liability will be paid and we can return to making just the required contributions.”

The additional MERS contributions are assumed to be equal to the required contribution amount for each year. Even with the expected loss, the general fund would have a fund balance of $21.2 million at the end of the 2025-26 fiscal year. This would roughly be a $2 million decrease from the 2024-25 fiscal year.

Losses are also expected in the police fund and capital improvement revolving fund. Gains are expected in the fire fund, sanitation fund, senior housing fund and the water and sewer fund.

To look over the full budget, visit clintontownship.com/129/Agendas-Minutes where it can be found under item four in the March 3 meeting packet. Residents can contact the finance department at m.hein@clintontownship-mi.gov or by calling (586) 286-9353 extension 8001.

The budget will be discussed and likely voted on at the March 17 meeting.

 

Inclusive playground plaque
Trustees also approved the placement of signs acknowledging donors to the township’s inclusive playground. The signs will be placed on the fence surrounding the playground.

“This was started as a committee that was formed by the board, but they said, ‘Go out and raise the money for it,’” Clinton Township Supervisor Paul Gieleghem said. “We started with private donations, received grant funding from the state and then, as the costs continued to escalate because construction costs were going up dramatically, the board … used federal infrastructure money.

“We did have a general fund commitment to the inclusive playground but, because this was a donor effort, the committee would like to recognize many of those big donors,” Gieleghem said.

No budget amendments are required to install the signs, which Public Services Director Mary Bednar said costs less than $1,000.