Did you know:
The Michigan Department of Treasury is withholding 25% of the statutory State Revenue Sharing dollars for the Village of Stockbridge?
In September of 2010, the Village was notified by the Department of Treasury that a deficit elimination plan must be filed within 30 days of receiving that letter.
(This would be the $24,399 deficit to the Major Street Fund. Please refer to your audit, page 4)
The Village Manager was responsible for sending that plan to the State.
He assured everyone he had.
However.
No letter was sent.
January 13, 2011 another letter was received that stated that the Department of Treasury would begin to withhold 25% of revenue sharing until such time as a deficit elimination plan was submitted.
The letter sent in response by the former Village Manager did NOT address the Major Street Deficit whatsoever. Instead, it referred to the discrepancies found by the auditors regarding the limitations of checks and balances in a two-person office.
Hence, the letter contained no plan to eliminate the deficit.
Hence, the 25% withholding of your state revenue sharing dollars until such time as a plan has been submitted to the state.
At this point, you should consider the possibility that just because you cut out the cancer, doesn't mean the patient isn't still bleeding on the operating table.
Huh.
I guess you would call this proof.
Tune in for updates as to HOW the Major Street Fund ended up with a deficit cash balance.
This is gonna get interesting.....
*** The writers would like to direct your attention to the "Comments" to this post for an accurate time line regarding correspondence between the Michigan Department of Treasury and the former Village manager and council. Please note that the deficit elimination plan was needed for fiscal year ending 2/28/2010, a full 9 months before the elections and seating of new council members.
This is just the beginning, along with nearly $600,000 in fund equity that disappeared over the last 4 years. Did the prior Council know they were spending more than they were taking in???? Did they know there is no money left for an emergency of any kind????? I would imagine not. I know some of those folks personally and I know they would not willingly have left this Village in such a mess. So, who made the decision to spend all of that money???? The worm turns.
ReplyDeleteWow, you’d think our local newspaper would pick up on some of this, but unfortunately the person referenced in this post is now an employee of that same paper. WOW, where do think they stand on all of this? Thank you for caring about our town who ever is posting this blog. The people on the council have there jobs cut out for them and thank you for donating your time to fix this mess. Stay focused and don’t let those folks that come to council meetings and harass you get you down. They are clearly misinformed, perhaps by the same person that got us into this mess. Ya think?
ReplyDeleteSo I'm assuming the problem has been remedied?
ReplyDeleteno, it has not been remedied. Would suggest you attend the next council meeting to see what the Council needs to do.
ReplyDeleteHere is the law, all the Village has to do is submit a plan. This is what the letters say, this is what the statute says. As usual, a lot of activity around something not researched and thus a non-issue. They (the village) have 90 days from the end of the fiscal year which ends on February 28 of each year, Treasury certifies the plan. The 25% holdout is the incentive to get it done. So all they need to do is follow the directions as stated.
ReplyDeleteThis is the Law, right from the State Web site:
(1) If a city, village, township or county fails to provide an annual financial report or audit which conforms with the minimum procedures and standards prescribed by the state treasurer and is required under Act No. 2 of the Public Acts of 1968, as amended, being sections 141.421 to 141.440a of the Michigan Compiled Laws, or Act No. 71 of the Public Acts of 1919, being sections 21.41 to 21.53 of the Michigan Compiled Laws, the payments required under this act may be withheld until the financial report or audit is submitted as required by law.
(2) For a fiscal year of a unit of local government ending on or after October 1, 1980 or any year thereafter, if a local unit of government ends its fiscal year in a deficit condition, the local unit of government shall formulate and file a financial plan within 90 days after the beginning of the fiscal year to correct this condition. Upon request of a local unit of government the department of treasury may assist that local unit in the formulation of the financial plan to correct the deficit condition. The local unit of government shall file the financial plan with the department of treasury for evaluation and certification that the plan ensures that the deficit condition is corrected. Upon certification by the department of treasury, the local unit of government shall institute the plan. An amount equal to 25% of each payment to a local unit of government entitled to payments under this act may be withheld until requirements of this subsection are met.
(3) The department of treasury shall notify each house of the legislature of any local unit of government that fails to provide a financial report or an audit required by subsection (1) and of any local unit of government required to file a financial plan under subsection (2).
(4) As used in this section, “deficit condition” means a situation where, at the end of a fiscal year, total expenditures, including an accrued deficit, exceeded total revenues for that fiscal year, including any surplus carried forward.
This was covered in the audit from 2010, there was a projected shortage in the Major streets fund and a projected overage in the General Fund - and since the fiscal year for the village ends on February 28th there are 90 days from that point to file a plan with the state. Therefore this is simply the current management's responsibility to resolve.
This situation is the responsibility of current council. All they need to do is file a plan with treasury and they will get the 25% back. Read the letters, read the law it is referenced to. The law states they with hold until a plan is approved, and there is 90 days after the end of fiscal year, which would be 90 days from February 28,2011 the problem would be resolved. So, since the president is the acting manager, he needs to address this in the specified time frame or the village will lose the money. This was posted this morning, it must have been "accidentally" erased.
ReplyDeleteThen why didn't the former manager do it? It happened on his watch.
ReplyDeleteRegardless, current council needs to address, stop the grandstanding and get to work. Effort continually expended in this manner is non productive and makes one wonder if they are going to sit around and play the blame game, just get on with it.
ReplyDeleteTo Our Readers: No comments are ever "erased" accidentally or otherwise. We do not limit, edit, or delete comments.
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The Stockbridge Citizen-Herald
Blame game? How about the truth? No more hiding facts. I want to know what and why the council is doing what it's doing and if it's because a former employee didn't do his job, then so be it. Shall we 'get on with it' of course, but let's do it with facts not someone's version of the truth and with the integrity this community deserves.
ReplyDeleteActually, it was for the fiscal year ended 2/28/2010. It needed to be filed 90 days after THAT date. The actual letter from the state asked that it be remedied within 90 days of the receipt of the letter date which was 10/3/2010...so January of 2011 is when they got mad.
ReplyDeleteThe current council is working on filing this, but the fiscal year ending 2/28/2011 had an ADDITIONAL deficit that now needs to be addressed as well. Not so easy to just get on with it. A true plan needs to be worked out and submitted, not a shell game.
thank you for the information. Glad to see someone knows what they are talking about - again, facts over "someone's version of the truth" are essential to moving forward in the right manner.
ReplyDeletethe current council could do their job if the previous council steps back and lets them. i think more time is being spent dealing with the BS than what really needs to get done. the previous council and employees of the village messed up, end of the dicussion!! Move on and lets get done what is right for the village!
ReplyDeleteand thank you for allowing things to be posted. the "other blog" has to approve your post. and people wonder why things are the way they are right now.
ReplyDeleteamen
ReplyDeleteI know i posted an honest opinion to the other blog, didnt make it to the list though. Now he has his hands full, or wallet empty, which ever way u look at it. everyone will get what is just. you mess up, just bc ur not here doesnt mean u dont pay and just walk away, oh no. ull get whats deserved 10 fold. you cant just buy new tv and expensive things, ur not rich, quite the opposite. if so why work at a newpaper where u get paid 30 cents a word, what a joke, just to jab at the ppl. This village will work its problems out as long as we stick together. Def need get over the bs conversations at the meeting, really the details that are pointed out are rediculous, if they paid that much detail before they might not be in this mess..he said, she said, i didnt say that. what a load. takes hours going over minutes but is the first to approve everything with a question. who runs this show. speak up council dont be over turned by a bitter old member. your in charge and ur voice counts...its not a one person show, like i see. i wish ppl on council knew what they were motioning or seconding, i wish i could see more than one name on all motions and the uninformed one to second... Shut her up and make a stand, together we are united. and together we will make it through with our heads held high.
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