A SPECIAL NOTE ABOUT TOWNSHIP FUNDING
The new Flex-Fund Grant Program has a new requirement. To qualify for the grant funding from the state, townships will now be required to levy a minimum of 18 mills on property.
The reason for the minimum is that the legislature wants to invest in improving rural roads and not just replacing the local levy. The goal is to help townships that are trying to help themselves and need the help to make necessary substantial improvements to their roads. They want to support townships that are showing a commitment to maintaining and improving the roads by contributing 18 mills for their upkeep.
Nearly half of the townships are below 18 mills, some may have thought they were at 18 mills, but the recent property value increases have decreased the effective mill rate.
Unless you know for certain that your township is well over the required 18 mills you should check with your county auditor. If it turns out that the levy is below 18 mills you should also get the taxable value total for the township from the auditor.
There is a way to revise the budget and raise the levy enough to qualify for funding, but you will need to act fast, the first step must be taken by August 10th.
Once you have verified the mill rate and you have the taxable value for your township and a copy of the budget you filed last March, you need to hold a meeting of the township board to propose an amendment to that budget.
There are a couple of ways to make the needed adjustment. If your levy is just a few tenths of a mill low, you can just increase the amount budgeted for road maintenance or snow removal but be sure to add enough dollars to make the change large enough to get to at least 18 mills. (Don’t worry about putting down too many dollars because the county auditor will only give you 18 mills worth.)
If you need to make a substantial change in order to bring your levy up, I have an Excel spreadsheet calculator that could help you work it out. Email me larry.ndtoa@gmail.com
Once you have everything for the meeting, the board should approve the amendment and recommend that the voters approve the amendment at a special meeting of the entire township. That special meeting must be held after September 7th but before the October deadline your auditor uses for final budget submission.
By August 10th you must submit that preliminary budget (amendment) along with the date, time, and place of the special meeting of the township, to the office of the auditor. (You should find out what the final budget submission date is in that office.)
At least 10 days before the special meeting the notice must be published in the official newspaper, and it must state that the purpose of the meeting is to approve the amended budget (to qualify for state funding). Remember, only items listed in the notice can be acted upon at a special meeting. If the voters approve the amended budget, bring it to the auditor along with a copy of the published notice and a copy of the minutes of the meeting before the submission deadline.
If the voters do not approve the amendment the original budget you filed in March will stand.
This requirement will continue for future funding so remember to invest enough in your township roads to qualify for some more money from the state. Any questions email: larry.ndtoa@gmail.com
Revised 9-1-23