Torch Lake Township Budget Review FY23-FY24

Torch Lake Township's budget review for fiscal years 2023-2024 reveals tax allocations, fund balances, and cash flow changes driven by various factors such as new millages and increased tax values. The township's cash flow projections and strategies for ambulance and fire operations are outlined to address the financial implications of the upcoming year.

• Torch Lake Township
• Budget Review
• FY23-FY24
• Tax Allocation
• Cash Flow

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1. TORCH LAKE TOWNSHIP TORCH LAKE TOWNSHIP FY 23 FY 23 24 BUDGET REVIEW 24 BUDGET REVIEW (April 1, 2023 thru March 31, 2024) (April 1, 2023 thru March 31, 2024) MARCH 7, 2023 1

2. TORCH LAKE TORCH LAKE TOWNSHIP TAX TOWNSHIP TAX INFORMATION INFORMATION TLT TWP RECEIVES $.19 ON EVERY DOLLAR OF TAX COLLECTED . . 82% GOES OUTSIDE THE TOWNSHIP . . TLT TAX BILL MAKEUP 2021-2022 ACTUAL 2022-2023 ACTUAL ESTIMATED 2023- 2024 ALLOCATION % V$ V% TOTAL TAXES $ 9,096,255 9,774,588 $ 10,674,677 $ $ 900,089 9.2% 100% SCHOOL TAXES COUNTY TAXES TOWNSHIP TAXES PTAF $ $ $ $ 5,773,755 2,011,401 1,229,040 82,062 6,191,632 $ 2,039,215 $ 1,458,774 $ $ $ $ $ $ 6,473,172 2,131,935 1,980,738 88,833 $ $ $ $ 281,540 92,720 521,964 3,866 4.5% 4.5% 35.8% 4.5% 61% 20% 19% 1% 84,967 PROPERTY VALUATION $ 288,781,726 302,538,446 $ 328,280,868 $ 13,756,720 $ 5% TAX INCREASE FOR TOWNSHIP OF $521,OOO DRIVEN BY NEW MILLAGE FOR FIRE FUND $246,000; AMBULANCE FUND $131,000; TAXABLE VALUE $67,000 SCHOOL AND COUNTY TAXES UP $374,000 RELATED TO INCREASED TAX VALUES 2

3. REDUCTION IN CASH DRIVEN BY ROAD WORK, FIRE TRUCK PURCHASE, AMBULANCE PAID OFF ESTIMATED CASH CHANGE ESTIMATED FUND BALANCE BUDGET CASH CHANGE ESTIMATED FUND BALANCES FUNDS FUND BALANCE 'MARCH 2022 FY '22-'23 MARCH 2023 FY '22-'23 MARCH 2024 GENERAL FUND* $1,116,005 ($289,793) $826,211 ($29,169) $797,043 FIRE FUND* $551,021 $93,904 $644,925 ($127,379) $517,546 AMBULANCE FUND* $699,830 ($164,586) $535,244 ($20,303) $514,941 ROAD FUND $296,593 ($34,588) $262,005 ($213,741) $48,264 ALL OTHER FUNDS* 140,435 ($12,973) $127,462 ($2,890) $124,572 TOTAL TOWNSHIP CASH FLOW * for cash change '22-'23 includes loan and ARPA $ to FIRE; loan to ambulance; tranfer interest income from Tax/Trust fund to General fund $2,803,884 ($408,037) $2,395,847 ($393,481) $2,002,366 ESTIMATED FUND BALANCE BUDGETED CASH FLOW ESTIMATED FUND BALANCE BUDGETED CASH FLOW ESTIMATED FUND BALANCES FUNDS MARCH 2023 APRIL -DEC 2023 DECEMBER 2023 JAN - MAR '24 MARCH 2024 GENERAL FUND $826,211 ($246,558) $579,654 $217,389 $797,043 FIRE FUND $644,925 ($327,859) $317,065 $200,481 $517,546 AMBULANCE FUND $535,244 ($401,848) $133,396 $381,545 $514,941 ROAD FUND $262,005 ($439,035) ($177,029) $225,294 $48,264 ALL OTHER FUNDS $127,462 ($4,464) $122,998 $1,574 $124,572 TOTAL TOWNSHIP CASH FLOW $2,395,847 ($1,419,763) $976,084 $1,026,282 $2,002,366 3

4. STRATEGY UPDATES FOR TLT PROJECTS STRATEGY UPDATES FOR TLT PROJECTS BIFURCATED AMBULANCE AND FIRE TAXES BETWEEN OPERATIONS AND CAPITAL PLANS AMBULANCE: OPERATIONS 1.85 MILLS; CAPITAL .40 MILLS FIRE : OPERATIONS 1.00 MILLS; CAPITAL .75 MILLS ROAD WORK STRATEGY WITH ANTRIM CTY ROAD COMMISSION WORKING WITH BURT THOMPSON TO EVALUATE ALL TOWNSHIP PUBLIC ROADS ANTRIM COUNTY HAS COMMITTED ALL FUNDS FOR NEXT 5 YEARS NOTHING FOR TORCH LAKE TOWNSHIP 8.1% INCREASE IN REAL AND PERSONAL TAXABLE PROPERTY VALUES WILL PROVIDE ADDITIONAL MILLAGE INCOME IN COMING YEARS THANKS TO TOM STILLINGS/JOHN ROTH FOR THEIR EFFORTS TO BRING ADDITIONAL STATE MONEY TO TLT FOR ADDITIONAL NEW AMBULANCE, FIRE TRUCK AND DAY PARK IMPROVEMENTS . . . APPROVAL WILL PROVIDE FUNDS /ACCELERATE CAPITAL PLANS GRANT FOR DNR GRANT FOR PARK DENIED . . . . CAPITAL PLAN FOR DAY PARK: FIX BOAT LAUNCH INSTALL SAFETY FENCE ALONG DOCK ROAD BUILD A PATH FOR HANDICAP ACCESS TO SHORELINE PLANT ADDITIONAL TREES FOR FUTURE SHADE OF PARK GROUNDS 4

5. TLT BOARD MUST CONTINUE TO IMPLEMENT TLT BOARD MUST CONTINUE TO IMPLEMENT LONG TERM STRATEGY PLANNING PROCESS LONG TERM STRATEGY PLANNING PROCESS LONG TERM CAPITAL PLAN WILL REQUIRE ONGOING ANALYSIS OF MILLAGE RATES AND PROPERTY VALUATION GROWTH. INFLATION IS KEY UNKNOWN GOING INTO THE FUTURE. GRANT MONEY REQUESTED FROM STATE:THANKS TO TOM STILLINGS & JOHN ROTH FOR THEIR EFFORTS TO BRING ADDITIONAL STATE MONEY TO TLT FOR: $150,000 FOR DAY PARK $300,000 FOR NEW AMBULANCE $400,000 FOR NEW FIRE TRUCK TANKER RECEIPT OF THESE FUNDS MAKES LONG TERM PLANNING EASIER GIVEN CURRENT MILLAGE RATES FOR CAPITAL ITEMS 5

6. AMBULANCE FUND FOCUS ON NEW VEHICLE CURRENT VEHICLES ARE : 24 YEARS (1998): Replaced 2022 15 YEARS (2008) TRADE VALUE TBD ESTIMATED DELIVERY TIME IF ORDERED IN 2024 IS 30 MONTHS COSTS INCREASING 10% ANNUALLY STRATEGY CREATION OF CAPITAL FUND OPERATING MILLAGE OF 1.85 INCREMENTAL CAPITAL MILLAGE OF .4 MILLS PURCHASED ROAD RESCUE UNIT AT $311,000 (11/22) UTILIZED FUND BALANCE OF $146K, GENERAL FUND LOAN OF $165K ESTIMATED PAYOFF OF LOAN DECEMBER 2024. CAPITAL FUND BALANCE OF $77,000 CARRY FORWARD UTILIZE 1998 AMBULANCE AS FIRE RESCUE VEHICLE PART 2 STRATEGY REPLACE 2008 UNIT IN 2028 MAINTAIN CAPITAL MILLAGE AT .4 MILLS WHEN ORDER IS PLACED, PRICE BECOMES FIXED ORDER UNIT IN 2024 DELIVERY IN 2027 PAY CASH ESTIMATED COST ~$400,000 (ASSUME 10% COST INCREASE ANNUALLY FROM $311,000 PRICE IN 2022) ESTIMATED FUND BALANCE IN 2027 $415,000 (ASSUMING 2.5% INFLATION ON TAX BASE) UTILIZE 2008 AMBULANCE AS FIRE RESCUE VEHICLE RETIRE 1998 AMBULANCE CONTINUATION OF .4 MILLS FOR LIFE OF AMBULANCES; POSITIONS TOWNSHIP TO MINIMIZE FUTURE BORROWING COSTS 6

7. FIRE DEPARTMENT CAPITAL PLAN CURRENT EQUIPMENT POINTS TO PONDER ISO REQUIRES REPLACEMENT AT 25 YRS End of ISO Useful Life (purchased + remaining) Remaining life (yrs) (current less "end") Remaining life (yrs) (current less "end") Replacement ordered in year Estimated Replacement Cost # Yrs Useful ISO Life Decomm Year Est'd Resale Value ID# Equipment Yr Bought POTENTIAL $1.9 MM COST FOR REPLACING 8830, 8821, 8820 (EARLY) Tanker- 2000 gal PURCHASED TANKER IN 2022, DELIVERY IN 2023/Q1 2024 FOR $425,000 PAID OFF IN DECEMBER 2024 INFLATION ASSUMED AT 5% FROM CURRENT ESTIMATES OFF OF TODAY S PRICES . . NOW AT 10% 8831 1998 25 2023 0 1 PLACE ORDER IN 2024 . . DELIVERY ESTIMATED IN Q1 2026 . . ESTIMATED COST $550,000 PAID OFF IN DECEMBER OF 2026/2027 Tanker- 2000 gal NEED TO REPLACE 8820 SOONER THAN 2042 WHEN PRICE COULD HIT $1.7 MM 8830 2003 25 2028 5 6 MONITOR INFLATION TRENDS PLACE ORDER IN 2026 . . DELIVERY ESTIMATED IN Q1 2028 . . ESTIMATED COST $650,000 - 700,000 ADJUST CAPITAL FUND MILLAGE TO OFFSET INFLATION 8821 pumper 2008 25 2033 10 11 PURCHASE SOONER TO LOCK IN LOWER COSTS pumper- engine1 8820 2017 25 2042 19 20 TARGET PRICE OF ROUGHLY $1.7 MM 7

8. TORCH LAKE TOWNSHIP GENERAL FUND PROPOSED 2023-2024 MILLAGE RATE - 1 MILL FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 1,116,005 $ ESTIMATED REVENUES COLLECTED 4/1/2022-3/31/2023 $ 572,711 ESTIMATED EXPENSES 4/1/22-3/31/2023 TRANSFER ARPA MONEY /LOAN $ $ (651,955) (210,549) NET CASH IMPACT $ (289,793) ESTIMATED ENDING FUND BALANCE @3/31/2023 $ 826,211 BUDGET FOR 2023-2024 BUDGET REVENUES REPAYMENT OF LOAN FROM AMBULANCE LOAN TO FIRE FUND BUDGETED EXPENSES NET CHANGE $ $ $ $ $ 592,574 165,000 (68,200) (718,543) (29,169) ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2024 $ 797,043 Per L-4022, March 01, 2023, real and personal property, Taxable value= 333,808,068 8 Total GENERAL FUND tax revenue $333,808,068 X (.001) = $333,808

9. TORCH LAKE TOWNSHIP CEMETERY FUND - ALL OTHER FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 $ 73,431 ESTIMATED REVENUES COLLECTED 4/1/2021-3/31/2022 $ 1,130 ESTIMATED EXPENSES 4/1/22-3/31/2023 $ - NET CASH IMPACT $ 1,130 ESTIMATED ENDING FUND BALANCE @3/31/2023 $ 74,561 BUDGET FOR 2023-2024 BUDGET REVENUES BUDGETED EXPENSES $ $ $ 1,190 - 1,190 NET CHANGE ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2024 $ 75,751 9

10. TORCH LAKE TOWNSHIP AMBULANCE FUND PROPOSED 2023-2024 MILLAGE RATE - 2.25 MILL FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 $ 699,830 ESTIMATED REVENUES COLLECTED 4/1/2022-3/31/2023 $ 655,765 LOAN PROCEEDS FROM GENERAL FUND $ 116,651 ESTIMATED EXPENSES 4/1/22-3/31/2023 $ (937,002) NET CASH IMPACT $ (164,586) ESTIMATED ENDING FUND BALANCE @3/31/2023 $ 535,244 BUDGET FOR 2023-2024 BUDGET REVENUES REPAYMENT OF LOAN TO GENERAL FUND BUDGETED EXPENSES NET CHANGE $ $ $ $ 822,312 (165,000) (677,615) (20,303) ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2024 $ 514,941 Per L-4022, March 01, 2023, real property, Taxable value= 328,280,868 Total AMBULANCE FUND tax revenue $328,280,868 X (.00225) = $738,632 10 REVENUE SPLIT OPERATIONS $585,320 . . CAPITAL ALLOCATION $131,312

11. TORCH LAKE TOWNSHIP FIRE FUND PROPOSED 2023-2024 MILLAGE RATE - 1.75 MILL FISCAL YEAR APRIL 1, 2022 TO MARCH 31, 2023 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 $ 551,021 ESTIMATED REVENUES COLLECTED 4/1/2022-3/31/2023 $ 419,512 FUNDS FROM ARPA ESTIMATED EXPENSES 4/1/22-3/31/2023 $ $ (18,064) (307,544) NET CASH IMPACT $ 93,904 ESTIMATED ENDING FUND BALANCE @3/31/2023 $ 644,925 BUDGET FOR 2022-2023 BUDGET REVENUES LOAN FROM GENERAL FUND BUDGETED EXPENSES NET CHANGE $ $ $ $ 593,751 68,200 (789,329) (127,379) ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2023 $ 517,546 Per L-4022, March 01, 2022, real property, Taxable value= $328,280,868 11 Total FIRE FUND tax revenue $328,280,868 X (.00175) = $574,492 REVENUE SPLIT OPERATIONS $328,281 . . CAPITAL ALLOCATION $246,211

12. TORCH LAKE TOWNSHIP ROAD FUND PROPOSED 2023-2024 MILLAGE RATE - 1 MILL FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 $ 296,593 ESTIMATED REVENUES COLLECTED 4/1/2022-3/31/2023 $ 316,804 ESTIMATED EXPENSES 4/1/22-3/31/2023 $ (351,392) NET CASH IMPACT $ (34,588) ESTIMATED ENDING FUND BALANCE @3/31/2023 $ 262,005 BUDGET FOR 2023-2024 BUDGET REVENUES BUDGETED EXPENSES $ $ $ 336,259 (550,000) (213,741) NET CHANGE ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2024 $ 48,264 Per L-4022, March 01, 2023, real and personal property, Taxable value= 333,808,068 12 PROPOSED Total ROAD FUND tax revenue $333,808,068 X (.001) = $333,808

13. LIQUOR ENFORCEMENT FUND PROPOSED 2023-202 BUDGET FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2021 $ 37,808 ESTIMATED REVENUES COLLECTED 4/1/2021-3/31/2022 $ 2,000 ESTIMATED EXPENSES 4/1/21-3/31/2022 $ (1,097) NET CASH IMPACT $ 903 ESTIMATED ENDING FUND BALANCE @3/31/2022 $ 38,711 BUDGET FOR 2022-2023 BUDGET REVENUES BUDGETED EXPENSES $ $ $ 2,310 (1,170) 1,140 NET CHANGE ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2023 $ 39,851 13

14. TORCH LAKE TOWNSHIP TRAVERSE BAY NATURE PRESERVE PROPOSED 2023-2024 BUDGET FISCAL YEAR APRIL 1, 2023 TO MARCH 31, 2024 PROPOSED BUDGET HEARING, TUESDAY, MARCH 7, 2023 SUMMARY FUND BALANCE BEGINNING OF PERIOD APRIL 1, 2022 $ 21,002 ESTIMATED REVENUES COLLECTED 4/1/2022-3/31/2023 $ 25 ESTIMATED EXPENSES 4/1/22-3/31/2023 $ (6,840) NET CASH IMPACT $ (6,815) ESTIMATED ENDING FUND BALANCE @3/31/2022 $ 14,187 BUDGET FOR 2023-2024 BUDGET REVENUES BUDGETED EXPENSES $ $ $ $ 30 5,250 (5,220) 8,967 NET CHANGE ESTIMATED FUND BALANCE CARRY FORWARD APRIL 1, 2024 14

15. APPENDIX APPENDIX 15

16. TORCH LAKE TOWNSHIP - CASH FLOW OVERVIEW TOTAL CASH: ESTIMATE FYR 2022- 2023 ORIGINAL BUDGET FYR 2022- 2023 ESTIMATE: CASH BALANCE 3/31/2023 BUDGET FYR 2023-2024 BALANCE SHEET ESTIMATE: CASH BALANCE 3/31/2024 OPERATIONS ONLY: ESTIMATE FYR 2022-2023 BALANCE SHEET ADJUSTMENTS BUDGET FYR 2023-2024 OPERATIONS ACTUAL FYR 20-2021 ACTUAL FYR 2021-2022 CASH BALANCE 3/31/2022 GENERAL FUND REVENUE FUND/ LOAN/ARPA ACTIVITY EXPENSE 515,873 0 (449,412) 66,461 511,590 61,702 (624,228) (50,936) 578,865 0 (709,415) (130,550) 570,703 0 (651,955) (81,252) 2008 (210,549) 0 (208,541) 572,711 (210,549) (651,955) (289,793) 592,574 0 (718,543) (125,969) 0 96,800 0 96,800 1,116,005 826,211 797,043 CEMETERY FUND REVENUE EXPENSE PROFIT/ (LOSS) 1,610 0 1,610 4,267 0 4,267 1,100 0 1,100 1,130 0 1,130 0 0 0 1,130 0 1,130 1,190 0 1,190 0 0 0 73,431 74,561 75,751 ROAD FUND REVENUE EXPENSE PROFIT/ (LOSS) 135,155 (306,656) (171,501) 141,175 (13,117) 128,058 2,100 (348,250) (346,150) 316,804 (351,392) (34,588) 0 0 0 316,804 (351,392) (34,588) 336,259 (550,000) (213,741) 0 0 0 296,593 262,005 48,264 FIRE FUND REVENUE FUND/ LOAN/ARPA ACTIVITY EXPENSE PROFIT/ (LOSS) 265,042 0 (310,926) (45,884) 284,682 0 (208,412) 76,270 313,572 0 (279,455) 34,117 621,318 419,512 0 (307,544) 111,968 0 419,512 (18,064) (307,544) 93,904 593,751 0 (789,329) (195,579) 0 (18,064) 0 (18,064) 68,200 0 68,200 551,021 644,925 517,546 AMBULANCE FUND REVENUE NET LOAN/FUND ACTIVITY EXPENSE PROFIT/ (LOSS) 545,138 0 (528,992) 16,146 646,123 0 (613,426) 32,697 637,189 0 (648,804) (11,615) 342,452 655,765 0 (937,002) (281,237) 0 655,765 116,651 (937,002) (164,586) 822,312 0 (677,615) 144,697 0 116,651 0 116,651 (165,000) 0 (165,000) 699,830 535,244 514,941 LIQUOR ENFORCEMENT REVENUE EXPENSE PROFIT/ (LOSS) 2,082 (758) 1,324 2,196 (1,022) 1,174 2,000 (1,590) 410 39,143 2,200 (1,097) 1,103 0 0 0 2,000 (1,097) 903 2,310 (1,170) 1,140 0 0 0 37,808 38,711 39,851 TBNP REVENUE EXPENSE PROFIT/ (LOSS) 46 (469) (423) 30 40 25 0 25 30 0 0 0 (1,867) (1,837) (7,000) (6,960) (5,000) (4,975) (1,840) (1,840) (6,840) (6,815) (5,250) (5,220) 21,002 14,187 8,967 TRUST / TAX FUNDS REVENUE EXPENSE PROFIT/ (LOSS) 0 0 0 9 0 9 0 0 0 1,059 (7,242) (6,183) (1,056) (952) (2,008) 3 0 0 0 0 0 0 (8,194) (8,191) 8,194 3 3 TOTAL - ALL FUNDS RESULTS REVENUE EXPENSE PROFIT/ (LOSS) 1,464,946 (1,597,214) (1,462,074) (132,268) 1,590,073 1,534,867 (1,994,515) (459,648) 1,967,198 (2,253,991) (286,792) 953 1,967,950 (2,375,987) (408,036) 2,348,426 (2,741,907) (393,481) 0 0 0 16 (114,753) (113,799) 127,999 2,803,884 2,395,847 2,002,366