GREENWOOD TWP- Greenwood Township residents, at their annual meeting on Tuesday, approved a significant increase in their levy for next year, putting the township’s tax levy in line with its spending for the first time in several years.
The township approved much smaller levies in several previous annual meetings in order to draw down accumulated reserves that had once topped $1.3 million.
But on Tuesday, residents rebuffed the town board’s request for a $175,000 levy for next year, approving a $300,000 increase, instead. About two-thirds of the 50 voting residents in attendance voted in favor. About 60 people attended the meeting, but only registered voters are allowed to vote on the levy.
Chairman John Bassing’s presentation showed a modest increase in projected expenditures from 2024 to 2025, increasing from $332,980 to $352,580, while anticipating receipts holding steady at $246,000. Township reserves as of Jan. 1 of this year sat at $672,008 and were projected to drop to $433,673 at the beginning of 2025.
While there is no set formula for a required amount a township should hold in reserve, Bassing said in past years the state auditor had recommended an unreserved fund balance of 35 – 50 percent of annual operating expenses.
The 2025 budget included line item increases for snowplowing, insurance, election-related costs, and fire protection and training, along with decreases in wages, fire department repair costs, and telephone costs, for an overall budget increase of $19,600.
Former clerk Debby Spicer asked why the reserves had fallen so steeply.
Bassing explained the board had lowered the levy and had been spending down the reserve.
“That reserve was too high,” Bassing said. “That is money we collected from our property owners.”
A motion by Steve Roskoski to set the levy at $250,000 started the discussion. He noted that the township was looking at increased expenses in the next few years including a requested $25,000 expenditure for the $91,000 pickleball project, expenses for the upkeep of County Rd. 4136, and possible investments in fire department equipment.
Roskoski’s motion was soon amended to increase the levy to $300,000.
Bassing said the town board wasn’t intending to spend down the reserves to nothing, and noted the township gets other income besides the levy, estimated at $150,000 a year. But most in the audience seemed to feel that increasing the levy from the suggested $175,000 was a good idea.
“I think we should be paying for the Tower Ambulance,” said Dale Horihan. “We are getting that service.” He also noted that most people who live in Greenwood could afford to see the township portion of their taxes, which has been set at an effective rate of $24 per $100,000 in property value, go up.
Sue Drobac questioned whether all township residents could afford to see their levy increase.
“We have enough in reserves,” Drobac said. “No reason to have all that extra money. Everything here is insured.”
Former supervisor Mike Ralston said he felt that setting reserves at 35-percent of township spending was not sustainable. The financial projections from the town board were still showing the township with reserves set above the annual expenditures, so above 100-percent.