Bloomfield Township Revises Strategic Plan to Address Changing Economic Projections

In March 2009, the Bloomfield Township Board of Trustees adopted an issues-based Strategic Plan that described the impact declining property tax revenues have on the Township’s financial outlook. It also detailed strategies that would be implemented to close a deficit projected for the fiscal year that begins April 2011.

Since then, more recent projections show that while the eventual amount of the deficit will likely remain the same – $6 million (20%) in fiscal year 2011-2012 – the declines are occurring more rapidly than anticipated.

Township officials now expect a $2.7 million deficit in the fiscal year that begins April 1, 2010. This change calls for the Township to accelerate the timeline for major budget cuts and to consider strategies that would restore some of the lost revenue.

Over the years, the Township has steadily implemented many cost containment strategies. Some of the most significant include:

While all these help, even their cumulative effect cannot reduce a deficit of $2.7 million. Almost 80% of Township expenses are related to employee costs. Without revenue restoration, the only way to balance next year’s budget is to eliminate as many as 25 staff positions by April 1, 2010.

More than half of all Bloomfield Township employees are EMS, Fire and Police personnel. Staffing levels across all departments have always been kept to a minimum. Therefore, unless revenues are restored, job elimination would certainly include EMS, Fire and Police employees.

Services in every area would be affected. In addition to EMS, Fire and Police services, men and women who maintain and plow subdivision roads, keep police and fire vehicles running safely, maintain and repair the water and sewer systems, enforce local ordinances, and run local elections would be cut. Elimination of employees would drastically reduce levels of service that residents have come to expect.

Once these jobs are gone, they cannot be brought back. Even when the housing market improves, Proposal A will cap property tax revenues to the rate of inflation. That limit will not allow for the reinstatement of any eliminated jobs.

To restore some of the lost revenue, the Bloomfield Township Board of Trustees is considering asking residents to approve a millage of up to 1.3 mils, which would generate

$4.4 million in its first year. The Board is evaluating a survey that tested residents’ potential support for such a millage. The Board will be deliberating the millage issue in the next few weeks. If the Board decides to hold a special election to ask voters to restore Township revenues, full information about the proposal will be forthcoming.

Detailed information can be found by clicking here.  The section includes the fully updated strategic plan, financial charts and graphs, and a PowerPoint presentation.