A study by Isabella County’s administrator has sprung up some controversy as it suggests smaller units of government statewide are sitting on sizable savings, despite calls to operate at a lower cost.

Administrator Tim Dolehanty concentrated on the 2009 fiscal year and sifted through financial audits of all 1,856 of Michigan’s local governments via the state Department of Treasury.

He said he didn’t begin with any specific expectation but examined the cumulative total of funds collected in undesignated or unrestricted accounts between cities, counties, villages and townships. That total, about $1.2 billion, he said he found surprising.

“We’ve got to get away from the rhetoric to dismiss things because we don’t like the way it looks,” Dolehanty said. “If you’re paying taxes to a community, we have a responsibility to know what our local government is doing with it.”

According to the findings, townships are the healthiest financially of all local entities, with an average undesignated fund balance in the same league as 150 percent of their yearly operating budgets.

Villages were close at 100.96 percent, while cities and counties were much further behind with 31.21 and 20.15 percent, respectively.

The study, “An Embarrassment of Riches: Exposing the Well-Kept Secret of Local Fiscal Surplus,” Dolehanty said was intended to spur discussion and to understand that funds are “not just sitting there and accumulating interest.”

“To put it frankly, unbudgeted or unrestricted funds suggest you don’t have plans for it,” he said.

Larry Merrill, executive director of the Michigan Township Association, said Dolehanty’s study compares apples to oranges by not taking into account how much of the undesignated money is spent by the fiscal year’s end, which for townships is March 30 and June 30 for cities and villages.

“We’re talking about a different time of the year and, on top of that, we collect our taxes at different times of the year,” Merrill said. “But these numbers that Mr. Dolehanty is measuring out is not at our lowest point. They’re at our highest point.”

Dolehanty’s study states the average accumulated undesignated fund balance for one township in Huron County is nine times higher than the amount recommended by the Government Finance Officers Association, surmising it could provide services at the current level for nearly 11 years.

He said in instances of plans to use undesignated funds, such as purchasing a new fire truck, other accounts could be formed so the public can clearly see its use.

But Merrill disagreed and said most townships will accumulate high balances for capital improvements and other projects because small units of government aren’t as apt to borrow money to pay for them as others.

“The townships, they know what their major capital outlays are and have no need to create any additional book-keeping,” he said. “Even if you’re a large government, a large city, and you have to put a new roof on something, you can go and borrow. But smaller (units), they’ve got to save up.”

Regardless, Dolehanty said he hopes the results inspire local residents to take an interest in the goings-on of their community.

George Green, a sixteen-year commissioner and one of only two Republicans on the seven-member board of commissioners, was unanimously elected chairman on Jan. 2. Green takes over for long-time chairman David Ling.

Green said it was “surprising” to be elected chairman, but it was not surprising to see the Democrats on the board cross party lines.

“Over the sixteen years Dave and I have been on the board, there have been 5-2 or 4-3 Democratic majorities every year,” Ling said. “But it’s rare, and I mean super rare, to see a vote come across party lines.”

Ling said votes typically reflect differences between those who represent metropolitan areas and those who represent rural areas.

“This is a group that knows how to work together and George has been terrific in being able to work out problems and differences,” Ling said.

Green said he will continue to collaborate with his fellow commissioners to work to find solutions to the problems Isabella County faces.

“I’m looking for (financial) sustainability so that the county can function as a county should,” Green said. “I know we’re going to be short on money next year, but I believe we can overcome that.”

Ling will remain on the board but said he is stepping aside to give himself more freedom to pursue other projects. He said he has complete confidence Green will be able to follow in his footsteps well.

“We’ve become good friends over the years, and he’s very bright,” Ling said. “He has a real sense of what the county needs and a real passion to provide some leadership.”

Green, who represents District 1, had similar praise for Ling.

“(Ling) and I started on the board at the same time back in 1996,” Green said. “We’ve gone through many diversions in that time, and we’ve handled them. David has relied on me as much as I’ve relied on him.”

Initially, Ling endorsed Vice Chairman Frances Lichtman to replace him as Chairman. Lichtman declined the opportunity to replace him, however. He will remain Vice Chairman after a unanimous vote in.

The large grow operation was discovered in Union Township after Michigan State Police officers responded to an alarm at the residence. They obtained a search warrant and seized 9.75 pounds of marijuana, 151 marijuana plants and some weapons from the home.

One person was arrested for outstanding warrants.

Mount Pleasant Director of Public Safety Anthony Gomez-Mesquita said there was no further information available because the investigation is ongoing.

Det. Jeff Anthony with BAYANET approximated the value of the plants at $1,000 per plant, and depending on the kind of marijuana seized, $1,000 to 2,200 per pound of manufatured marijuana.

“Since our task force wasn’t directly involved with the bust I can’t comment on size and type of operation,” he said. “But it’s definitely a significant seizure. If you break down the amount of marijuana into ounces, the street value is approximately worth $160,000.”

Check back with cm-life.com for updates to this story. 

If you live in Isabella County, you may register at the county clerk’s office, at the respective clerk’s office in the city or township where you live or by mail. You must be age 18 by Nov. 8 in order to vote and residents of the district in which you register.

Click here for a voter’s registration form, or here to see if you’re already registered. For more information, visit www.michigan.gov.

To visit stories from last year’s election, visit cm-life.com/category/news/election-2010.

State officials and social service groups are working to find a solution for helping people pay overdue utility bills after losing a main source of funding.

Republican state Rep. Ken Horn, chairman of the House Energy Committee, said an energy bill passed in 2008 allowing the Public Service Committee to collect rates from Detroit Edison and Consumers Energy Co. customers for a low-income reserve fund left out the appropriate language. They can no longer cover the costs by utilizing this fund.

“The court ruled that we’re not able to collect any money this way,” he said. “In addition, the Low Income Home Energy Assistant federal money is likely to be cut in half because of budget concerns in Washington.”

He said there is currently $60 to $65 million in uncollected debt from unpaid electricity bills.

Michigan forbids utility companies from shutting off heat to customers between Nov. 1 and March 30, but there is still concern for the days before and after that time period.

At 11.2 percent, Michigan has the nation’s third-highest unemployment rate and nearly 17 percent of residents are living in poverty, reported by The Detroit News.

Isabella County and Midland Department of Human Services Director Mark Stevens said there are a lot of different heating aids in the community to help low-income residents.

“There’s still going to be some help, but there’s never enough to cover the need,” he said.

An increase in need will be seen in October, according to Bethany Smith, Salvation Army case worker.

“Typically there is a very high need in Isabella county,” she said.

Smith said about 200 to 250 Isabella County residents receive utility assistance every year.

Starting Oct. 1, cash assistance is cutting off about 4,000 people who have received aid for four years during their lifetime, she said, which may cause a higher increase.

“People must go to the Department of Human Services before coming to the Salvation Army for help,” she said. “If we can’t help, we refer them to agencies we know have funding for it.”

Capt. Brian Reed, Mount Pleasant Corps Community Center officer of the Salvation Army, 1308 Burch St., said the decrease in funding may affect how the organization approaches resources.

“We encourage people to plan ahead instead of waiting for a crisis to happen,” he said. “People need to do research on who can help and how they can help.”

Creating a realistic budget will help people be more prepared, Reed said.

“We’ve made a strong commitment to provide to the needs that need to be met,” he said. “God knows what our needs are and he will provide for those needs. We have every confidence in him.”

Horn said the senate and house energy committees are running out of time, but there are two things they want to find possible solutions for.

“We want to get people hooked up, providing immediate help and we want to solve this problem for years to come,” he said. “We are trying to negotiate a settlement; we haven’t dropped the ball on this yet.”

The road, which is located on the south side between Mission Road and Crawford Road, will see a temporary fix, said Tony Casali, Isabella County road commission manager.

“There will be a two inch overlay of asphalt over the bad patches,” Casali said. “The road has been used up for its life cycle and it’s time for it to be replaced.”

This fix is only temporary since the conditions of the road must see more improvements in the future, he said.

With funds running low, the county is hoping to have enhancement and safety grant funding for a more permanent fix within the next two or three years, Casali said.

Union Township and the Isabella County Road Commission will split the $30,000 cost to pay for the temporary fix.

“After doing estimates on the bad spots and knowing the cost of asphalt labor, we are working to cooperate and make a short term fix until we find better funding for a solution because we both want to service the needs of the residents,” Casali said.

Caledonia sophomore Danny Karadsheh said it will be beneficial for all of the students who reside in the several apartment complexes located on Deerfield Road.

“I can truthfully say that Deerfield Road is one of the worst roads I’ve driven on,” he said. “I have to slow down to at least 20 miles per hour, so the road doesn’t bring any sort of damage to my car.”

Some people try to avoid the road as much as possible by driving off the side a bit, but in the winter that is not the safest option, Karadsheh said.

After an unanimous vote by 35 board members in April, Terry Moore, the Great Lakes Bay Regional Alliance president, said it was official that Isabella County would join Bay, Midland and Saginaw counties.

“Isabella County has great leadership and character and is a great fit with the alliance,” Moore said.

Due to its proximity and offerings, Isabella brings a lot to the table, Moore said.

President and CEO of the Mount Pleasant Chamber of Commerce Lisa Hadden said the county’s attractions pull a large crowd from not only the area, but statewide as well.

“This alliance has realized the value of collaborating based on the regional reach of the College of Medicine at CMU, the Soaring Eagle Casino and Resort and having a consistently low unemployment rate,” Hadden said.

She said Isabella County adds to the Great Lakes Bay region’s already high level of technology and strong base of advanced medical care facilities, education, tourism, hospitality and manufacturing industries.

“There are so many people that cross Midland, Bay, Saginaw and Isabella County boundaries for work, entertainment, and recreation,” Hadden said. “Hundreds of people drive M-20 everyday from Midland to Mount Pleasant and vice versa to work at Dow or teach at CMU.”

The four counties gathered for the Regional Progress Update event in June at the Midland Center for the Arts.

Sheril Tarrant, program director at the Great Lakes Bay Regional Alliance, said over 220 people including investors, community leaders and ambassadors joined together to discuss the alliance’s progress.

“The importance of the event was to update the 171 regional graduates (with) what the region accomplished over the last two years and demonstrate how well the moniker has caught on,” Tarrant said.

Moore said the alliance strengthens each county’s ability to compete against outside businesses and broadens their base.

Isabella County will benefit from the other counties’s expertise and knowledge that they all share with each other, Moore said. Mount Pleasant will also gain more awareness because of the engaged relationship of Dow Chemical representatives.

“There is no magic in systems or organizations, but there is magic when people work together,” Moore said.

To make magic happen, the chambers, economic department councils and leaders for the convention and visitor bureau all work together.

“We’ve got the right people in the room,” Moore said.

In order to add Isabella County, Moore noted the Great Lakes Bay Regional Alliance will soon be changing their logo and branding their alliance that is now four years and four counties in the making.

Gary John Reen

Gary John Reen, 56, charged with open murder and felony firearm possession, has been terminated from his position as a maintenance technician at Copper Beech Townhomes, 4750 E. Bluegrass Road, according to a letter sent to tenants on Wednesday.

“Gary Reen worked for us for about three years and he has never given us any reason or cause to believe that he could be involved in a tragedy such as this,” the letter from apartment management said. “As is standard policy for Copper Beech, we conducted a thorough and complete background check on Mr. Reen before he was hired.”

Reen allegedly shot his wife, Cheryl Kristine Reen, three times Friday with a snubnose .38 caliber pistol at their residence, 7120 E. River Road. He later turned himself into Isabella County Sheriff’s Department officials.

According to an affidavit filed in court, Reen said the couple was having marital issues with plans to divorce, and he had accused his wife of having an affair.

Copper Beech management, who declined comment on Monday, said the apartment complex had no knowledge of the situation in the letter.

Copper Beech residents received a note on their front doors about the situation.

“It’s good that Copper Beech did this,” said Tyler Stephens, a Traverse City sophomore and Copper Beech resident. “It lets Copper Beach (tenants) know what was going on and that (management) is cooperating.”

Stephens said the incident appears to be isolated and is nothing to worry about.

Reen’s arrest surprised Macomb sophomore Lauren Brooks because of his personality on the job.

“I thought it was weird because he’s been around our apartment,” Brooks said. “I thought that he was just a normal guy. I wouldn’t suspect anything like that from him.”

Like many apartment complexes, maintenance workers such as Reen have access to apartments in order to make repairs, even when the tenants are not present.

“I didn’t really know who he was,” said Canton sophomore David Hales. “I’m already going to be living here next year, but I would definitely consider moving because of this.”

Reen’s former employment at Copper Beech has little bearing on Brooks’ future housing plans.

“I’m still going to be living here,” Brooks said. “And it doesn’t bother me because he’s in jail now.”

Copper Beech management is speaking with police and cooperating with the investigation, the letter said.

Reen remains lodged in the Isabella County Jail on $5 million bond.

Snyder revealed last month that local governments will be able to compete for $200 million in incentive money under the plan. Isabella County Administrator Tim Dolehanty said whether the county and city of Mount Pleasant will be eligible for the incentive money remains uncertain at this point.

The county has already consolidated and cut services in many places, he said.

“This plan is something doable, but nothing that would have immediate impact,” Dolehanty said.

Dolehanty said he is concerned whether the county’s consolidations and cuts will qualify it for the incentive money if they have already been enacted.

This incentive money would result from a plan which encourages local governments to create transparency in financing, adopt best practices and employee benefits and prove they have consolidated service provisions.

“This would cut statutory state-shared revenue first by two-thirds, but reserve a third of that for local governments to compete for it,” said Mount Pleasant City Manager Kathie Grinzinger. “The other third is reserved or kept to assist the state in balancing its deficit.”

Grinzinger said legislation still has to sort out details of the plan.

She said local governments will create dashboards by Oct. 1. The dashboards will show a measure of both local governments’ performance and financial statements.

“We have had a long history of collaboration and consolidation for a number of years,” Grinzinger said.

Union Township Supervisor John Barker said the township would not likely be eligible for the incentive money because it operates with constitutional revenue sharing.

“The whole program, in my mind, is a farce,” he said. “We’ve got all these great things going on in our community, but we don’t get to take advantage of the incentive money.”

Barker said the money will only affect a small number of townships in the state.

Local governments must create a plan to consolidate their services or notify the state of service-sharing measures they have taken by Jan. 1, 2012.

Grinzinger said Mount Pleasant already teams up with the county, township and other local governments to cut costs and consolidate services.

She said the City Commission will have to weigh in on whether there will be more cost-cutting measures taken.

“No one knows if you get to count things you’ve already done,” Grinzinger said. “We’re not even sure if we’re competing against each other.”

The city further showed its intent to develop jobs and attract people to the region by unanimously voting Thursday to purchase the Mount Pleasant Center property. The city only witnessed a 70-person increase from 2000, but the Mount Pleasant Center alone offers a great opportunity for economic development that will likely bring up population totals even more over the next 10 years.

Most notably, Isabella County as a whole, and the ever-expanding Union Township, saw significant increases in population.

The population spikes are concurrent with increasing enrollment at Central Michigan University. Students apparently made it a point to register in the area last year and the results show. The township relied heavily on students for its decennial head count.

CMU and Soaring Eagle Casino have kept employment strong and the city is intent on maximizing the potential of the land it encompasses. This includes the recently purchased Mount Pleasant Center property and land bought through the Project 2000 initiative in the 1990s. The intent was to buy and develop that land in both a residential and commercial way. For the most part, the city succeeded.

What has happened in Detroit is devastating and the complete opposite of Isabella County. Southeast Michigan is still the driving point for Michigan’s economy and ultimately, the Census results there have a much larger impact than mid-Michigan.

Unfortunately, the city of Detroit has seen more and more land become vacant and building after building continues to deteriorate. Plans to turn that empty land into a vast network of urban farms are in the early stages. The city may have the right idea with this, but it has yet to be proven on a large scale.

Isabella County has become a tremendous exception to the downtrodden economy that has loomed over the state for the past decade. It is an encouraging sign that may not be noticed by the rest of the state because it is a mostly rural county. However, other cities can learn from this area.

While Mount Pleasant may rest for the most part on the twin pillars of gambling and education, it has worked to diversify itself over the years and is rapidly developing into a well-rounded city of its own right.

Though we hope the best for the Motor City, the future of Michigan may lie closer to its heart.