Township Officials Make Real Progress In Breaking Shelby’s “Spending Circle”

The Tuesday, October 5th Shelby Board of Trustees meeting was a rather typical (and boring) meeting.  The agenda was short and non-controversial.  We called it boring because there were no angry mobs trying to force their will on others and no boos or loud heckles from the audience.  In fact, it wasn't until we got to the comments from the Board members that anything of real substance happened.  That's when our ears perked up as things started to get good!

During this part of the meeting, Shelby Township Treasurer Paul Viar made a very informational speech about the tough times in Shelby Township.  Mr. Viar noted that for eight years under the last Supervisor (Skip Maccarone) he was an outspoken critic of higher spending.  That point is indisputable.  Treasurer Viar fought Maccarone's spending tooth and nail.  As he did, he consistently pointed out the long-term impact this spending would have on the township and, more importantly, on taxpayers.

At the October 5th meeting, Mr. Viar began his remarks by noting how the township, right now, has $177,343 in delinquent water, lighting and dredging special assessment bills.  These delinquencies are but one snapshot of the larger financial problem facing Shelby Township - and communities across Macomb County and throughout the entire State of Michigan.

The main point of Mr. Viar's comments focused on a Detroit News article showcasing how bad times are right now for several communities.  The Detroit News reported that Shelby Township ranked #13 of the worst communities in economic performance between 2000 and 2009.  We have included the box in this article and if you want to enlarge it for easier viewing, just click on it.  This report was a sad and sobering reminder that elected officials MUST continue working to cut spending, or we will all suffer the fate of higher taxes. 

Below is a transcript of what Treasurer Paul Viar said at the October 5th Board of Trustees meeting.  We typed as fast as we could while Mr. Viar spoke, and so we hope this is a true reflection of his viewpoint.  If not, please let us know and we will make any corrections necessary.  We want all Shelby Township residents, as well as those who read our blog from across the country,  to hear what is really going on and why changing old spending habits is more than a recommendation - it is a requirement.

Treasurer Paul Viar responds to Detroit News article highlighting tough times in Shelby Township

I’m sure many of the residents are tired of hearing about the budgets and how our resources are continuing to decline.  I will add that I cannot remember this subject being talked about, or brought before the taxpayers like this in the last eight years.

It sometimes amazes me how some people on this Board seem to be out of touch with the economic realities we face today. Some say the bad economic times are pure speculation.  I believe that was referred to on two occasions at the last Board meeting.

For the last decade I have spoken about spending and the need to cut township costs.  I have repeatedly been told that I was either misinformed or mistaken about the facts.

Time and conditions have proven that I was not misinformed or mistaken and I choose to quote some of the facts that were in the September 29th (2010) edition of the Detroit News.

From 2000 to 2009:
• Shelby Township median household income declined by a shocking 26.8 percent.
• During those nine years, the number of people living below the poverty line increased from 6.5 percent to 10.2 percent.
• Throughout the Midwest, Shelby Township ranked #13 among the cities and townships with the worst economic performance.
• Shelby Township's income decline was, on percentage, worse than Flint, Pontiac, Warren, and Cleveland, Ohio.
• Sterling Heights ranked #1 as the worst city studied as median household income fell by 33.8 percent.

Shelby Township families, like families everywhere are hurting.  The taxpayers see it, but it is obvious that sometimes some members on this Board believe it is only speculation.

This is why, I believe, this Board must continue to try and bring the facts about spending to the taxpayer and make the difficult choices about spending.

When we heard the clerk say the best way to solve the pending financial crisis in the police department is by spending the reserve in order to balance the budget, to me this is nonsense.

Spending the surplus to prevent projected shortages makes no sense at all.  Talk to the Macomb County officials about spending the surplus.  They tried that for the last 10 years (Commissioners Jim Carabelli and Ed Szczepanski opposed this spending) they used the surplus until there was no surplus to spend, and then they promptly raised taxes on every citizen of this county by nine percent.

I hope this is not what Mrs. Kowal would hope to duplicate. 

I believe, over the protests of some, this Board has taken some very positive steps in the last two years. We have cut spending and made changes in the way things operate.  This is still a project in the making and I hope it proves fruitful for the sake of the taxpayer. 

The looming pension and health care crises in the fire and police departments is very serious.  Anyone up here who chooses to brush them aside as "speculation" is not thinking straight.  A problem becomes a crisis through inaction. That is why I believe the Supervisor proposed a one-year contract to the Chief of Police to help address the looming financial problem. The longer we wait for solutions, the less viable solutions there will be.

We have all heard the phrase about how old habits are hard to break.  In this township I have seen firsthand how difficult it is to break the spending circle of taxpayer money.  Money comes in and we go ahead and spend it.  No worries, because all concerns about the future problems are just speculation.

I don’t believe we can speculate about the future.  We have begun to break the prior spending habits but we have not done enough.  We will take some heat from some for this kind of action.  However, the financial realities we face trump any speculation or concerns anyone could raise.

==

VERY WELL STATED!

We have to hand it to Treasurer Viar.  Sure, he doesn't speak out at every meeting, but when he does speak he make some very valid points.  By contract those who come to speak at nearly ever Board meeting just to see themselves on television (including Mr. Viar's 2008 opponent and rumored 2012 candidate for Treasurer) show their true colors.  Face time on television at these meetings seems to be more important to these people than making a rational (and understandable) argument.  Ain't free speech great!

We are reminded of something Mark Twain once said: Better to keep your mouth shut and be thought a fool than to open it and remove all doubt.

Some people will do anything to advance their agenda, no matter how wrong or dangerous that agenda actually is.  So here's the bottom line:
• Are there a couple Board members and a handful township residents who oppose spending cuts and support tax/fee increases?  You betcha!  These people will do anything to keep things they way they have always been.
• Are there a couple of Board members who oppose efforts to reform township government just because their guy lost the last election?  Yup!
• Are there supporters of these same Board members who are trying to muscle their way to stop progress and maintain the status quo? Obviously!  Why?  That is a good question.

As to Mrs. Kowal's rebuttal statement that she was misquoted by Mr. Viar, here is what Clerk Terri Kowal actually told the Shelby Utica News.  It was in the story written about the Police Chief's new one-year contract, which she opposed.  Here is her quote taken directly from the newspaper:

"It looks like the chief (Leman) is going to have to spend into his rainy-day fund...and it's pouring outside," Kowal continued.

Was Mrs. Kowal, as she said, misquoted, or is she trying to run and hide from what she actually said?

It is easy to keep spending.   It is tough to make cuts.  The current Board is seeing what happens when tiny, yet boisterous, mobs of people (including those who lost in the 2008 election) decide to play revenge politics.

The fact is that in just two years in office, Supervisor Rick Stathakis and the current Board of Trustees have done more to cut spending and improve township services than Mr. Maccarone and his Board did in eight years.

Just imagine how bad our township would be right now if that "campus" idea was built.  Think of how much more spending we would be forced to pay for with higher taxes/bonds/fees because of Maccarone's $50 million proposal.  Consider what a $20 million "justice center" would have done to our township at a time when people's incomes were falling by 26 percent.

Those who hate Mr. Stathakis (the 30% who supported the loser in 2008) may not want to hear the truth, but the truth is that Shelby Township is better off today than it was just two years ago.  Our township is spending less, our taxes are not going up, and our essential services are being protected without cuts.  When you look at what is happening to other cities and townships, that is a remarkable achievement by Supervisor Stathakis and the Board in just a short period of time.  Everyone knows the work is not over, but at least the light we see at the end of the tunnel is not a freight train.

Times are indeed tough for all of us, but at least we have a township Supervisor and Board majority that is committed to working for the taxpayers - not just talking the talk.

Finally, although we are certainly no fans of Governor Granholm, one of her spokeswoman recent said: "A sustainable recovery will require a radical change in the state's economy.”

The same can (and must) be said about Shelby Township.

A sustainable township budget will require structural changes in the way our officials budget and spend money.  The "same old same old" is a formula for disaster.  Thankfully, some people on the Board of Trustees -- Supervisor Rick Stathakis, Treasurer Paul Viar and Trustees Mike Flynn, Paula Filar and Doug Wozniak -- understand this.  We may disagree with either (or all) of them from time to time on particular issues, but at least these five officials recognize the challenges Shelby Township faces and are working to bring costs down to protect the pockets of taxpayers.

Until next time...