From Parks to Payroll: Suggestions for the 2026-27 Township Budget

Editor’s Note: Paula Kelley reviews the proposed Peninsula Township budget and offers specific suggestions to tighten operations, reduce expenses, and protect Enterprise Funds. The budget is on the agenda for tomorrow’s Township Board meeting at 7 p.m. Read on for her notes to the Board. -jb

Dear Town Board Members,

First, thank you for all the hard work you do! Board members have a tremendous amount of responsibility and it can be challenging at the best of times.

I have reviewed the proposed budget for next fiscal year, and I was a little taken aback to see that it appears to be “business as usual” with no obvious lessening of expenses. I would think in this political climate the Board would strive to make the budget as thin and tight as possible, even if that results in hard choices. I have put some suggestions below – I’m sure there are other areas for improvement.

Please note that these suggestions are NOT to fund the winery lawsuit, but to tighten operations and lessen the burden on the Enterprise Funds. As we all know, the Enterprise Funds carry a heavy load for our Parks, as well as supplementing the General Fund as needed. Data shown below has been gathered either from FOIA requests or from budgets presented by the town board in meeting packets.

Parks

1. The Dougherty House, Replica Log Church, and the Hessler Log Home: The township might want to consider selling or donating (if allowed under statute) to the non-profit groups that are already taking care of these properties. This would free up monies from the Enterprise funds, along with the time associated in the Clerk’s office to process bills, write checks, and reconcile each of the individual bank reconciliations.

Here are the expenses associated with each property, including monies from the Enterprise Funds that have been used to offset these expenses.

2. Fund 208 for Parks (Archie, BH, Haserot) shows estimated revenues at $59,200 with no appropriations in from the Enterprise Funds, yet expenses for this fund are estimated to be $280,075. Last year, there was $110,000 from the Enterprise Funds supporting the parks. How are the parks being funded in this upcoming year?
3. In the past, the Clerk has received a stipend of $1500 to sit on the Parks Committee as the Township Board representative. Adding in 13% pension and payroll taxes, the costs of this stipend are about $1800. The Clerk’s Office has a tremendous amount of responsibility. The Town Board might want to reconsider having the 3 elected officials not sit on ad hoc committees and leave those jobs to the 4 at large trustees. This would free up the Clerk’s time to focus solely on the duties of the Clerk’s Office and may also reduce the expense of $32,000 in temporary employees budgeted for the Clerk’s office.
4. Kelley Park boat launch. Plans have been underway for several years to construct a boat launch at this park and now the township has received notice from EGLE that the permit has been denied. There is $63,000 in proposed expenses for next year. In the interests of conserving money from the Enterprise Funds, it might be wise at this point to put the project on hold until a final determination from EGLE is received and excess funds through donations/grants/park millage are available.

5. Several months ago, I asked for clarification from the Parks Committee on several items from the current budget that were overspent and was told that these items were to be reclassified. I still see the following on the current budget YTD, so I am assuming these numbers are valid and that Parks are grossly overspent?

Grant cost – Kelley Park; Budget: 0; YTD: $73,233
Grant Cost – BHNA; Budget: 0; YTD: $21,415
Grant Cost – Non motorized trail; Budget: 0; YTD: $59,589
Capital Outlay; Budget: $75,000; YTD: $95,331

6. I am excited to hear discussions that a millage dedicated to Parks could be in the foreseeable future. This would definitely free up money in the Enterprise Funds.

Lighthouse/Gift Shop

The Lighthouse and Gift Shop were not included in the meeting packet that was emailed on Thursday, March 5th.

Currently, the lighthouse manager is full-time, with all the related benefits which include: medical/dental/vision insurance, 13% township pension match, health savings account, as well as vacation/sick days.

Here are the expenses for the manager position:

Here is total revenue & expense data for the lighthouse and gift shop:

The township might want to consider putting the manager position back to part time. This would:

• Save expenses for the lighthouse and gift shop, allowing more cash to accumulate in the bank for needed repairs in the future for these historic structures;
• Allow the lighthouse to repay the monies that were loaned from the Enterprise Funds in previous years, thereby increasing the cash balances of the Enterprise Funds which support the township General Fund, as well as the Parks Fund.

It would be helpful to include in the budget packet a schedule of how much money was lent to the lighthouse and how much has been paid back.

Newsletter

For the last 7 out of 8 years, expenses for the township newsletter have been overbudget.  The proposed budget for next year is again $17,000. Adding in the stipend the Clerk receives to work on the newsletter, the real cost for this is closer to $20k.

Suggestions to save money are:

• Eliminate postage and printing costs by putting the newsletter online in a web-based format or distribute to residents via email. This would reduce impacts on the environment for printing;
• Create a newsletter committee – there are many talented people on the peninsula. The Clerk’s Office has a tremendous amount of responsibility. This way, all the Clerk’s efforts can be focused on tasks in the Clerk’s Office. Perhaps this would eliminate some of the $32,000 in the proposed budget for temporary employees in this department. This would also eliminate the costs of the stipend the Clerk receives for the newsletter;
• Eliminate all articles that are not strictly related to township government.

Salaries & Pensions

There are 3 types of full-time employees that work at the township in the General Fund expense category:

• Professionals (ie Assessor, Planner, Zoning) – specialized college education, certifications, or other continuing education is required to fill these positions. These positions are harder to fulfill, and no residency requirement is needed;
• Other full time (ie Office Manager, Deputy Treasurer, Deputy Clerk) – while no specific college degree is required, certain skills such as proficiency with computers and software, basic bookkeeping, communication skills, etc are needed. These positions are easier to fulfill, and no residency requirement is needed;
• Elected Officials (Supervisor, Treasurer, Clerk) – no skills are required, but person’s holding these positions are required to be 18 years of age and a registered voter in the township.  A person may only be elected (or appointed if there is a vacancy).

All these categories are important and the employees in these positions work hard. However, salaries, in my opinion, are running high for the Elected Officials. If one of these elected offices were to become vacant, then anyone who would fill that job would start work with a salary of upwards of $70,000, plus full time benefits, and yet be expected to function as CEO, COO, CTO, and CFO of our township.

All full-time employees may also receive a pension contribution match.

The Town Board may want to consider reducing salaries for the Elected Officials and reducing overall pension contributions from 13% to 8% and use these cost savings to hire a professional business manager. Key elements of this position could include:

• No residency requirement would be needed so a larger pool of qualified candidates would be available;
• Create/update SOP’s for each department;
• Work on Emergency Action Plans with county or other officials;
• Review liability insurance, make sure each property is properly valued, create and maintain a fixed asset spreadsheet;
• Work with the Clerk and Treasurer at audit time;
• Work with the Supervisor at budget time and prepare quarterly reports for the Town Board;
• Review the General Ledger monthly and submit adjusting journal entries to the Clerk;
• Implement Board policies and procedures;
• Provide continuity and education over the years to incoming officials/trustees.

Capital Improvement Plan

It is a reality that big ticket items such as HVAC systems, roofs, asphalt etc will need replacing.  The township should have a CIP with estimated costs over 10 years. CIP costs can be combined with annual buildings & grounds upkeep and put to a vote for a millage increase. A restricted millage for these items will reduce expenses in the General Fund and relieve pressure on the Enterprise Funds.

Road Brining

Currently, the township pays the County to put a brine solution on the dirt roads twice per summer. Unfortunately, the solution the County uses does not last more than three weeks. The brine solution performs better on shady roads with little to no traffic. On the dirt roads in the village of Old Mission, for example, not only do we have the usual garbage and post office vehicles, but UPS and Fed Ex use these dirt roads to cut through the neighborhood. Additionally, summer boat trailer traffic and tourists going to the trail head also use these dirt roads. Some residents in the area have contracted a private company to apply other (DNR approved) solutions to the roads.

Additionally, does it make sense to pay to have roads with no housing brined? For example, Brinkman Road between Woodland and Tompkins. Further study by the township in this area might net some cost savings.

Paper Meeting Packets

Is the township still printing off paper packets for board meetings? The packet for the meeting on March 5th is over 340 pages. That is almost an entire case of paper. In this day and age, packets could be emailed to all board members and they can print off selected portions of the packet that are easier to have in printed form.

HR & Payroll Software

The township uses BS&A software for a variety of functions, and there is a software component for Payroll. Other companies such as Paycor also offer payroll components. If the township does not already utilize a payroll software, then I would strongly recommend researching some options. 

Payroll software can offer the following electronic efficiencies, freeing up time and saving money:

• Eliminate the need for in person contact to fill out new hire employment forms – employees are given a link to set up access to their personal information, W-4s and I-9s. DocuSign contracts can also be included;
• Employees can change their marital status, exemptions, etc. on the portal;
• Employees can enter time worked manually or supervisors can set up shifts;
• Employees submit time off requests to supervisors for approval;
• At the end of a pay period, employees submit their time to supervisors for approval. Once all supervisors have approved payroll, then an office Admin is notified and the Admin (ie Clerk or Deputy Clerk), clicks a button to submit payroll;
• Payroll taxes are automatically entered into the accounting software and paid to State and Federal agencies electronically;
• Employees can access their own W-2 forms at year end – no need to print and mail out.

Zero Budget Line Items

On the proposed budget, I see a few line items with zero budget dollars, yet these had activity for last year. I’m sure the budget will be reviewed again, so just pointing these discrepancies out:

• 101-702-607 – Zoning Permits and Fees Revenue
• 101-701-818.ENG – Planning, Engineering Services Expense
• 213-806-710.LIB – Hessler Liability Insurance
• 216-807-710.LIB – Dougherty Liability Insurance
• 298-261-807 – Cable Audit Fees

The expenses page for Tower Fund is also missing from the packet.

Also Read…

A Deep Dive Into Peninsula Township Finances