Road maintenance projects drives increase in spending
By Bruce Rolfe
The Climax Township Board unanimously approved the 2023-2024 fiscal year end financial review at its September regular board meeting after Lisa Melnik of Flegal & Melnik CPA presented the review, which she felt was a positive year end report.
Melnik pointed out based on the review the CPA firm is not aware of any material modifications that should be made to the financial statements in order to be in accordance with accounting principles generally accepted in the United States of America.
The year end review was for April 1, 2023 through March 31, 2024.
Melnik said the total assets of the township as a whole as of March 31, 2024 was $1,740,090 compared to $1,831,210 as of March 31, 2023 for a decrease of approximately $91,000. She adds total liabilities have decreased by about $43,000 from $253,781 on March 31, 2024 compared to $296,500 on March 31, 2023.
The total net position of the township went from $1,534,710 on March 31, 2023 to $1,486,309 on March 31, 2024. The restricted net position total is $250,052 compared to $212,167 as of March 31, 2023. The unrestricted net position as of March 31, 2024 is $853,663 compared to $918,716 as of March 31, 2023. Of the $1,486,309, 25.7 percent was invested in capital assets, which are used to provide services to citizens. The restricted portion of net position was 16.8 percent, which represents resources that are subject to external restrictions on how the funds may be used. The remaining unrestricted net position, which was 57.4 percent, represents resources that may be used to meet Township obligations to citizens and creditors.
Melnik notes total revenues for the 23-24 fiscal year ended at $760,824, up about $88,000 from the prior year ($672,290, an increase of 13.2 due to increases in operating grants and property taxes). Expenses for the recently completed fiscal year were $809,225, about a $255,000 increase (46.1 percent increase) compared to the previous year, however Melnik said a lot of that increase was from approximately $200,000 that was spent on roads. The township had a deficit in net position of $48,401 for the 23-24 fiscal year compared to a favorable total of $119,414 in the prior year.
Of the township’s total governmental revenue, property tax revenue was approximately 44.4 percent, state revenue sharing was approximately 23.6 percent and operating grants was approximately 17.6 percent.
Of the township’s total governmental expenses, general government was approximately 27.0 percent, public safety was approximately 15.0 percent and capital outlay was approximately 20.0 percent.
Melnik said as of March 31, 2024 the township had $148,000 in ARPA funds available. She said spending commitments for ARPA funding has to be done by the end of the 2024 calendar year.
The fund balance totals for the township’s four government funds as of March 31, 2024, shows a total general fund balance of $853,663, road fund balance of $94,268, fire department fund balance of $167,583, and non-major fund street lights fund balance of $1,531 for a total government funds fund balance of $1,103,715.
In the statement of revenues, expenditures and changes in fund balance section, at the end of the 23-24 fiscal year, the general fund had a loss of $65,053, the roads showed a profit of $5,904, fire department a profit of $12,025 and non-major street lights fund had a loss of $44, for a total government funds loss of $47,168. Melnik pointed out again a significant reason for the general fund balance decrease was a large commitment for road maintenance of approximately $200,000, noting the township still holds a healthy fund balance total.
Melnik recommended the board monitor what is not covered by FDIC insurance. As of March 31, 2024 the township had $1,212,746 in total cash and equivalents, with $472,739 insured and $740,007 uninsured, meaning if the bank where the uninsured funds are located, would be at a risk if there is a bank failure. She emphasized bank failure is rare, but did recommend some of the uninsured funds be transferred to another bank or review another program a bank the township currently works with, may have.
Wolverine Gas & Oil Pulls Drilling Operations for Rest of the Year
Climax Township Supervisor Trent Piper said a representative from Wolverine Gas & Oil informed him the company have had a stretch where there were four or five straight dry holes and will pull all drilling operations in the township for the rest of the year.
Climax Township Fire Department
Climax Township Fire Chief Scott Smith said there were 35 calls for service in the month of August, including 23 EMS calls, two medical assist, six cancelled for service enroute, one false alarm, one special service for a tree down, one vicinity alarm and one carbon monoxide detector call.
Smith said he made a request to have the Climax Township Fire Department be a part of the KIVA Group, he said is an organization that is a group of township and city fire departments that are part of an organization designed to get better rates and better response times from the ambulance services. Smith said he will know more in November.
The Climax Township Board unanimously adopted a resolution that would go along with an application for a Par Plan Risk Assessment grant ($2,000) for the purchase of a back up camera on two of the department’s trucks. The estimate is $1000 for each truck.
Smith adds there will be no live burn at the intersection Q and s. 40th Street because the State has not responded to Smith’s request that is required because the proposed live burn was within two miles of a school.
Township Resident Thanks Supervisor for Good Deed
Climax Township resident Jennie Hayward offered a public thank you to Climax Township Supervisor Trent Piper for taking his own time and providing staff on a Sunday to clean up a large amount of debris on 36th Street she said was in the roadway. Hayward said she called the Road Commission of Kalamazoo County about the debris. She said there was a response, however the RCKC employee brought a truck with a snow plow blade and scattered the debris off the side of the road.
The Climax Crescent reached out to RCKC Managing Director Joanna Johnson. She said she was not aware of the particular facts surrounding the incident, but did send a RCKC policy item relating to roadside litter. The policy notes, “Road Commissions are responsible for the construction or maintenance of public roads within the state per Public Act 51. We are not responsible for roadside litter of any type. Some townships may have litter ordinances that apply for possible enforcement.”
CERES Partners Representative Informs Supervisor
With a rumor still present that the owners of a large section of land south of the Village of Climax were interested in leasing the land for solar, Piper said a representative from Ceres Partners, which owns over 600 acres of land in Climax Township, informed the Supervisor the company has not designated the land for solar. He said the email he received from the Ceres Partner representative said “the farm currently has no solar lease in place.”
Other items covered at the September 10 meeting include:
• Clerk Marcia Lewis said as of the September 10 board meeting, approximately 30 percent of the registered voters in Climax Township are either on the absent voter application list or the permanent ballot list.
• The new cemetery ordinance will take effect October 6.
• Lewis said Ron and Sylvia Pease resigned as election inspectors. The township board unanimously approved Lewis’ recommendation to appoint Marian Peck and Kathy Steffey as new election inspectors and promote Carol Brock Cook as precinct chairperson.
• The township will attempt to regain a source of water at Gilson Cemetery next spring. Supervisor Trent Piper thanked trustee Richard Thierjung for bringing gallon jugs filled with water to the cemetery for visitors to use.
• After Planning Commission trustee Joel Amos explained some highlights of the Battery Energy Storage System and Solar Energy System ordinances the Planning Commissioned recommended the township board consider for approval, the Township Board unanimously approved both ordinances.
A new state law signed into law by Governor Whitmer that removes local control from townships and other units of government for siting of certain renewable energy wind, solar and battery storage facilities goes into effect November 28.
The Climax Township Board unanimously approved the 2023-2024 fiscal year end financial review at its September regular board meeting after Lisa Melnik of Flegal & Melnik CPA presented the review, which she felt was a positive year end report.
Melnik pointed out based on the review the CPA firm is not aware of any material modifications that should be made to the financial statements in order to be in accordance with accounting principles generally accepted in the United States of America.
The year end review was for April 1, 2023 through March 31, 2024.
Melnik said the total assets of the township as a whole as of March 31, 2024 was $1,740,090 compared to $1,831,210 as of March 31, 2023 for a decrease of approximately $91,000. She adds total liabilities have decreased by about $43,000 from $253,781 on March 31, 2024 compared to $296,500 on March 31, 2023.
The total net position of the township went from $1,534,710 on March 31, 2023 to $1,486,309 on March 31, 2024. The restricted net position total is $250,052 compared to $212,167 as of March 31, 2023. The unrestricted net position as of March 31, 2024 is $853,663 compared to $918,716 as of March 31, 2023. Of the $1,486,309, 25.7 percent was invested in capital assets, which are used to provide services to citizens. The restricted portion of net position was 16.8 percent, which represents resources that are subject to external restrictions on how the funds may be used. The remaining unrestricted net position, which was 57.4 percent, represents resources that may be used to meet Township obligations to citizens and creditors.
Melnik notes total revenues for the 23-24 fiscal year ended at $760,824, up about $88,000 from the prior year ($672,290, an increase of 13.2 due to increases in operating grants and property taxes). Expenses for the recently completed fiscal year were $809,225, about a $255,000 increase (46.1 percent increase) compared to the previous year, however Melnik said a lot of that increase was from approximately $200,000 that was spent on roads. The township had a deficit in net position of $48,401 for the 23-24 fiscal year compared to a favorable total of $119,414 in the prior year.
Of the township’s total governmental revenue, property tax revenue was approximately 44.4 percent, state revenue sharing was approximately 23.6 percent and operating grants was approximately 17.6 percent.
Of the township’s total governmental expenses, general government was approximately 27.0 percent, public safety was approximately 15.0 percent and capital outlay was approximately 20.0 percent.
Melnik said as of March 31, 2024 the township had $148,000 in ARPA funds available. She said spending commitments for ARPA funding has to be done by the end of the 2024 calendar year.
The fund balance totals for the township’s four government funds as of March 31, 2024, shows a total general fund balance of $853,663, road fund balance of $94,268, fire department fund balance of $167,583, and non-major fund street lights fund balance of $1,531 for a total government funds fund balance of $1,103,715.
In the statement of revenues, expenditures and changes in fund balance section, at the end of the 23-24 fiscal year, the general fund had a loss of $65,053, the roads showed a profit of $5,904, fire department a profit of $12,025 and non-major street lights fund had a loss of $44, for a total government funds loss of $47,168. Melnik pointed out again a significant reason for the general fund balance decrease was a large commitment for road maintenance of approximately $200,000, noting the township still holds a healthy fund balance total.
Melnik recommended the board monitor what is not covered by FDIC insurance. As of March 31, 2024 the township had $1,212,746 in total cash and equivalents, with $472,739 insured and $740,007 uninsured, meaning if the bank where the uninsured funds are located, would be at a risk if there is a bank failure. She emphasized bank failure is rare, but did recommend some of the uninsured funds be transferred to another bank or review another program a bank the township currently works with, may have.
Wolverine Gas & Oil Pulls Drilling Operations for Rest of the Year
Climax Township Supervisor Trent Piper said a representative from Wolverine Gas & Oil informed him the company have had a stretch where there were four or five straight dry holes and will pull all drilling operations in the township for the rest of the year.
Climax Township Fire Department
Climax Township Fire Chief Scott Smith said there were 35 calls for service in the month of August, including 23 EMS calls, two medical assist, six cancelled for service enroute, one false alarm, one special service for a tree down, one vicinity alarm and one carbon monoxide detector call.
Smith said he made a request to have the Climax Township Fire Department be a part of the KIVA Group, he said is an organization that is a group of township and city fire departments that are part of an organization designed to get better rates and better response times from the ambulance services. Smith said he will know more in November.
The Climax Township Board unanimously adopted a resolution that would go along with an application for a Par Plan Risk Assessment grant ($2,000) for the purchase of a back up camera on two of the department’s trucks. The estimate is $1000 for each truck.
Smith adds there will be no live burn at the intersection Q and s. 40th Street because the State has not responded to Smith’s request that is required because the proposed live burn was within two miles of a school.
Township Resident Thanks Supervisor for Good Deed
Climax Township resident Jennie Hayward offered a public thank you to Climax Township Supervisor Trent Piper for taking his own time and providing staff on a Sunday to clean up a large amount of debris on 36th Street she said was in the roadway. Hayward said she called the Road Commission of Kalamazoo County about the debris. She said there was a response, however the RCKC employee brought a truck with a snow plow blade and scattered the debris off the side of the road.
The Climax Crescent reached out to RCKC Managing Director Joanna Johnson. She said she was not aware of the particular facts surrounding the incident, but did send a RCKC policy item relating to roadside litter. The policy notes, “Road Commissions are responsible for the construction or maintenance of public roads within the state per Public Act 51. We are not responsible for roadside litter of any type. Some townships may have litter ordinances that apply for possible enforcement.”
CERES Partners Representative Informs Supervisor
With a rumor still present that the owners of a large section of land south of the Village of Climax were interested in leasing the land for solar, Piper said a representative from Ceres Partners, which owns over 600 acres of land in Climax Township, informed the Supervisor the company has not designated the land for solar. He said the email he received from the Ceres Partner representative said “the farm currently has no solar lease in place.”
Other items covered at the September 10 meeting include:
• Clerk Marcia Lewis said as of the September 10 board meeting, approximately 30 percent of the registered voters in Climax Township are either on the absent voter application list or the permanent ballot list.
• The new cemetery ordinance will take effect October 6.
• Lewis said Ron and Sylvia Pease resigned as election inspectors. The township board unanimously approved Lewis’ recommendation to appoint Marian Peck and Kathy Steffey as new election inspectors and promote Carol Brock Cook as precinct chairperson.
• The township will attempt to regain a source of water at Gilson Cemetery next spring. Supervisor Trent Piper thanked trustee Richard Thierjung for bringing gallon jugs filled with water to the cemetery for visitors to use.
• After Planning Commission trustee Joel Amos explained some highlights of the Battery Energy Storage System and Solar Energy System ordinances the Planning Commissioned recommended the township board consider for approval, the Township Board unanimously approved both ordinances.
A new state law signed into law by Governor Whitmer that removes local control from townships and other units of government for siting of certain renewable energy wind, solar and battery storage facilities goes into effect November 28.
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