Spending freeze for Alpena Township Fire Department
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ALPENA -- Despite a property tax dedicated to the Alpena Township Fire Department, and about $200,000 in supplemental money from the general fund, the fire department finds itself in the red.
Township Supervisor Nathan Skibbe said needed budget adjustments were not made and when the error was recently discovered, he needed to issue a spending freeze on the fire department so the revenue shortfall didn't deepen.
The township's budget year runs from April 1 until March 31.
Skibbe said Fire Chief Mark Hansen failed to make needed adjustments to his budget, which skewed revenues and expenses and pushed the budget, which is entering the fourth quarter, into a significant deficit. As a result, he said, spending needed to be reeled in. He said other than spending on labor and gasoline and other expenditures to respond to emergency calls, the spending freeze could remain in place until the end of the fiscal year.
"I'm holding firm on the spending freeze. Our department heads are in charge of their own budgets and as chief fiscal officer, I only step in when I absolutely have to," Skibbe said. "We are still going to be in the red and the budget for that department will remain tight. It has always been tight, but we have to know how much money there is so we don't end up further in the red."
Township residents approved a 10-year renewal of its fire millage, for 1.5 mills for fire department operations, equipment, and training in August 2018. That millage generates more than half a million dollars a year.
A person who owns a home in Alpena Township that is valued at $100,000 pays about $75 a year for the fire tax.
"The general fund also allocates about $200,000 to narrow the gap between revenues and expenses, which takes away from other projects, such as road improvements and other infrastructure needs," Skibbe said.
Skibbe said his proposed budget for next fiscal year is already complete and he is recommending the same allocation amount for general fund to the fire department as this fiscal year.
With inflation, higher wages, and other cost increases, Skibbe said the department will have to be vigilant in its spending.
"It is going to get harder and harder if the department continues to use the same business model," Skibbe said.
In 2022, the township attempted to get another fire tax passed that could have increased revenue for the department and taken pressure off the general fund. The initiative was on the ballot twice, and each time voters declined the 3-mill tax increase.
The tax would have cost the owner of a $100,000 house about $150 a year and would have raised about $1.1 million a year for the township.
Earlier this week, the trustees received eight options for staffing and operations the fire department could implement. Some would lower operational costs, but potentially cut services, while others were more costly, but add staff and possibly a new station.
The trustees took no action on the proposals during the meeting Wednesday, but the issue of how to staff and fund the department isn't going away, Skibbe said.
"I'm going to be providing the names of some consultants and other options," he said. "Anything that could potentially help us."