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Board adopts deficit‑elimination plan for block grant fund; Wayne County reimbursement expected
Summary
Trustees adopted a deficit‑elimination plan for a $17,017 deficit in the township’s block grant fund tied to timing of Wayne County reimbursements; staff said Wayne County grant funds will cover the outstanding amount when received.
The Grosse Hill Township Board on Sept. 8 adopted a deficit‑elimination plan required by Michigan law after the township’s block grant fund closed FY2025 with an unassigned deficit of $17,017. The board’s resolution directs the finance director to submit the plan to the Michigan Department of Treasury for certification.
Why it matters: state rules require a formal plan when a local fund finishes the fiscal year with an unassigned deficit. The deficit resulted from timing: the township incurred engineering and planning costs on a Wayne County‑administered block grant project (ADA improvements to the pool bathhouse) before Wayne County released reimbursement funds. Staff said the county funding will be received this fiscal year and will eliminate the deficit.
Finance staff explained at the meeting that the township had spent roughly $18,545 on initial engineering and planning before Wayne County released grant proceeds; once Wayne County remits the award, the township will recognize the revenue and the deficit will reverse. The board’s resolution formalizes the plan and directs staff to file it with the state.
Ending — next steps: staff will file the deficit‑elimination plan with the Michigan Department of Treasury and process the county reimbursement when it arrives; staff described the item as a timing issue rather than a structural budget shortfall.
