Oshtemo Township’s general fund revenue is projected to fall short of operating costs next year, township officials told the board this week.
Officials said the shortfall is being driven primarily by declining state revenue sharing, even as local property values and the tax revenue the township collects from them continue to rise. The increase in local tax collections hasn’t been enough to offset the state’s reduced contribution, officials said, a trend they said has become clearer over the past three years of budgeting.
Part of the pressure comes from how the township funds police services, which relies on special assessment districts. Officials said the millage supporting police services was reduced several years ago, after the township’s fund balance had grown enough that a previous board decided to lower it. Since then, the cost of the township’s police services contract with Kalamazoo County has continued to rise, and officials said that gap has been steadily drawing down the police fund’s balance.
Officials outlined several ways the board could address the shortfall, without settling on any one approach: cutting planned capital projects, drawing down the township’s fund balance, or adjusting millage rates. No decisions were made at this meeting.
The board planned to continue the discussion at upcoming meetings.
