Fund set up for equipment and replacements
By Lisa Brody
Bloomfield Township trustees unanimously approved establishing a new enterprise fund designated for the purchase of equipment and replacement of capital assets at their meeting on Monday, May 10.
Finance director Jason Theis explained they were looking to set up and transfer money into a new fund, which would be an independent accounting entity with restrictions, regulations and limitations.
“It is not a rainy day fund. It is classified as a capital projects fund, and it will accept incoming dollars from other funds, and then transfer out for assets,” Theis said.
He explained that as permitted by the Michigan Department of Treasury Uniform Chart of Accounts for Local Units of Government, the equipment and replacement fund would be for the purpose of funding the purchase of capital assets for Bloomfield Township when necessary and/or appropriate, and capital assets can include, but are not limited to: land, buildings, improvements, machinery and equipment, furniture and fixtures, vehicles, heavy equipment and infrastructure.
“We have received more than $1.3 million grant funds, FEMA and CARES Act monies. We've had a great year for the self-funded health care, which came in under budget, and the prescription rebate revenues were good, and 48th District Court came in under budget and the revenues were higher than expected,” Theis said.
He recommended transferring $1.75 million from the township's general fund to establish the new fund, as of March 31, 2021. Trustees voted 7-0 to approve the resolution.
“We did budget planning a little differently this year. We did a five-year budget. We'll have some expenditures coming up. Rather than running deficit spending, we chose to set this up for transparency,” supervisor Dani Walsh said.
“As Jason said, all of this money could be put in general fund reserves,” said treasurer Brian Kepes. “In future years, if something comes up, we don't have to run a deficit. I'm very supportive.”
“This is a spectacular idea,” said trustee Michael Schostak.