Eaton County approves 10-year police services contract with Delta Township, pursues pension re-amortization

The Eaton County Board of Commissioners unanimously approved a 10-year police services agreement with Delta Township on a vote during the July meeting, moving responsibility for 40 full-time equivalent positions serving Delta to the township and authorizing related pension restructuring steps.

The contract, described in committee reports and presented by Controller’s Office staff, will commence Oct. 1, 2025, and automatically renew unless a party gives three years’ notice, the county said. Under the agreement, Delta Township will pay the “full cost plus the admin fee” for the services, and the county will continue to employ the deputies and retain payroll, benefits and liability responsibilities.

County staff said the personnel plan for Delta is 40 FTEs: 38 sheriff deputies that include a captain, a lieutenant, five sergeants and two full-time clerks. The contract states personnel assigned to Delta would not be used to backfill deputies contracted elsewhere and command staff would not be assigned away from Delta except by mutual agreement.

The nut of the financial framework is a multi-part reconciliation and support-service fee process county staff outlined: the county and township will prepare preliminary staffing and capital estimates by June 1, finalize the next year’s rate in October when the county adopts its budget, and perform a retrospective reconciliation each Feb. 15 to compare budgeted to actual expenses. If actual expenses are lower than amounts already paid, Delta would receive a credit in subsequent years; if they are higher, Delta would remit the difference. The contract also sets a 15% support-service (administrative) fee; a portion of that fee (described in the contract as roughly one-third of the fee) will be directed toward paying down the county’s MERS (Municipal Employees’ Retirement System) unfunded pension liability.

As part of the agreement, the county and Delta would make a one-time injection of $3 million into the command-group pension amortization: $1 million from the county and $2 million from Delta. County staff said that payment would allow adding five years to the amortization schedule for eligible pension groups; Delta would receive annual credit on that upfront payment (county staff described an example of a $200,000 annual credit toward Delta’s $2 million principal over the contract term). The board separately authorized county staff to pursue the amortization extension for eligible pension groups; staff estimated MERS projected savings of roughly $795,000 that reflect lower future required contribution rates, though staff cautioned the savings would be realized over time as contribution rates change.

The contract includes operational details: Delta is responsible for utilities and routine maintenance of a planned substation; the county will provide telephone, fiber and equipment costs per appendices; an emergency/unbudgeted purchase authority of up to $25,000 per contract year was included for speed of response; and procurements under the contract will follow the Eaton County purchasing policy. The agreement also describes a process for third-party overtime (for events) that would be billed to the third party and then credited to Delta at reconciliation, and it contains mutual-aid language unchanged from prior practice.

Sheriff Glen Reich told commissioners the agreement was a major step in addressing the county’s pension liabilities and public-safety staffing and thanked township partners. Controller’s Office staff and the county manager also thanked Delta and township officials for lengthy negotiations.

The board’s vote was recorded by roll call and passed unanimously. The motion to approve the contract was moved by Commissioner Drosius and supported on the floor; the formal roll call recorded each commissioner voting yes.

Why it matters: County staff and the board framed the contract as a way to restore a reliable patrol presence in Delta Township while addressing long-term pension obligations that affect service costs countywide. The arrangement shifts near-term staffing costs to Delta while using a combination of upfront pension prepayment and a recurring administrative fee contribution to reduce the county’s unfunded MERS liability over time.

What happens next: County staff will finalize contract language, manage appendices (personnel lists, capital and technology estimates, and pension calculations), and execute the agreement after township approval. The board also authorized steps to pursue the pension amortization changes with MERS and to implement the reconciliation and reporting timelines described in the contract appendices.

Direct quote: “I think it represents that commitment, not just from us, but also from the township, to see brighter days here at the county,” Sheriff Glen Reich said during the meeting.

Votes at a glance: The motion to approve the Delta Township police services agreement passed unanimously on roll call. The board also separately approved a motion to pursue the five-year amortization extension for eligible pension groups; that motion passed on voice vote.