I think most people would agree that when you borrow money, you should pay it back. Much of our economy is set up on that premise.
For years, the township fire department has borrowed money from the general fund of the township. Currently, the general fund is owed over $1 million by the fire department, some of it dating back to 2001. The fire department has been living above their means, yet they provide a valuable service to the city and township, so it was the decision of past elected officials to loan the fire department this money. The current board agreed to loan about $135,000 in 2007 as well.
As we approach having to make a decision on a levy request for the fire department, I have heard numerous people ask whether the proceeds from a new levy will go to repay the general fund. Specifically I have heard queries as to whether proceeds from a citizens levy initiative will go to repay those advances. Many site the mismanagement of the prior township trustees as a reason why the fire department should not repay the loans. But the community as a whole voted for those trustees, so it would be unfair at this point to disavow borrowings that were made under prior trustees.
City residents do pay a 0.5 mill levy into the township's general fund, because the city has never removed itself from the township's borders. In addition to that levy, we receive general fund revenue from numerous other sources, including gas tax, licence fees, personal property tax, estate tax, etc. Except for the 0.5 mill levy, all general fund revenue is received directly or indirectly from activities in the unincorporated township. In all, the tax revenue from city property amounts to about 6% of the general fund receipts. To say that the fire department, which serves the city, should not pay back the general fund when only 6% of the revenue is derived from city property taxes is not logical to me. If the fire department does not repay the general fund, in essence we would be making taxpayers in the unincorporated township subsidize fire and
So should the fire department have to repay the general fund? We required loans made to the police department be repaid. We are also asking for repayment of loans made to the water and sewer district. The general fund is repaying a loan it received from the road department. Why should we treat the fire department differently? Fire services should be paid for by those who benefit from the services, so I think it is logical and fair to plan on having the fire department repay the general fund.
