Lake Mitchell Improvement Board Financial Report


2016-2019 Budget

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Lake Mitchell Improvement Board Assessment Reduction Proposal -- Alan Anderson

In calendar year 2013, $180,469 was spent on chemical treatment. This constituted 85% of the total amount spent for the year ($211,374). Anticipated expenditures for chemical treatment were trending upward, and this was consistent with the assessment increase unanimously approved by the Lake Mitchell Improvement Board (LMIB) on February 23, 2013 for the 2013/2014 fiscal year, beginning July 1, 2013.

In calendar year 2014, however, thanks in part to aggressive weed treatment the previous summer and a very cold winter and spring, the amount necessary for chemical treatment amounted to $84,579. This constitutes a reduction in spending for chemical treatment of $95,890 from the previous year. This reduction in expenditures for chemical treatment significantly contributed to the LMIB fund balance, which as of February 28, 2015 was $316,364.69. While chemical treatment spending this June will reduce this carry-over, it still exceeds anticipated needs.

As a result, a committee comprised of Chair Michael Solomon, Secretary Dave Foley, and Treasurer Alan Anderson met on January 22, 2014 and reviewed the LMIB budget. Consistent with agreements made in February, 2013 at the Public Hearing in which assessments were raised, and consistent with future anticipated needs, the unanimous recommendation of the budget committee is that the fiscal year assessment commencing in July of 2015 be reduced from $300 to $225 for “first tier” lot owners, $150 to $113 for “second tier” lot owners, and from $600 to $450 for commercial property owners. This will generate approximately $139,000 in assessment revenue next fiscal year, as opposed to approximately $208,000 generated this fiscal year. This recommendation will be presented to the board at the next LMIB meeting scheduled for April 11, 2015. Subsequent evaluation and adjustment recommendations will be made as needs warrant.

 



2014 Calendar Year Financial Record

 2014 Income  Jan.1-June 30  July 1-Dec. 31 Total 
 Interest 288.05 223.88 511.93
 U.S. Forest Service Grant 2,100.00   2,100.00
 Assessment Income 13,848.41 197,137.14 210,985.55
 Selma Twp Grant 1,800.00    
 Total 18,036.46  197,361.02  215,397.48

 

 2014 Expenditures  
 Roadside Weed Pickup  7,500.00
 Lakeshore Environmental Administration 20,000.00
 Chemical Treatment 84,579.25
 Purple Loosetrife Beetles 2,155.00
 Legal Fees 2,260.35
 Insurance/Bond 650.00
Service (audit, inspection, permit fees) 3,604.00
Print (mailings, newsletter, website, supplies) 1,921.24
Total 122,669.84

 

Fund Balance Jan. 1, 2014 223,058.53
2014 Revenue 215,397.48
Total 438,456.01
2014 Expenditures  122,669.84
Fund Balance Dec. 31, 2014 315,786.17

 



2013 Calendar Year Financial Record

Quick Facts about Lake Mitchell Assessments
1. There are approximately 594 front lot, 191 back lot, and 12 commercial lot owners assessed annually to make up the most significant part of the LMIB budget.
2. The anticipated fiscal year 2013/2014 revenue (from assessments, grants, and bank interest) is $215,400.
3. In calendar year 2013, $180,468.50 was spent on chemical treatment for weeds in lake Mitchell.
4. Historically, approximately 80% of annual dollars received are spent on chemical treatment.

 

2013 Income Jan.1-June 30 July 1-Dec. 31 Total
Interest 178.49 174.18 352.67
US Forest Service Grant 2,150.00  

2,150.00

Assessment Income 9,310.36 193,415.16 202,725.52
Total 11,638.85 193,589.34 205,228.19

 

 2013 Expenditures  
Roadside Weed Pickup 7,500.00
Lakeshore Environmental Administration 16,000.00
Chemical Treatment 180,468.50
Purple Loosestrife Beetles 2,100.00
GVSU Weed Analysis 0.00
Bass Tournament Monitor and fish return 0.00
Insurance/Bond 635.00
Service (audit, inspection, permit fees) 2,310.00
Print (mailings, newsletter, website, supplies) 2,360.98
Misc. (Conference registration fee)  
Total 211,374.48

 

Fund Balance Jan.1, 2013 229,204.82
2013 Revenue 205,228.19
Total 434,433.01
2013 Expenditures 211,374.48
Fund Balance Dec.31, 2013 223,058.53

 


2012 Calendar Year Financial Record

 2012 Income  Jan.1-June 30  July 1-Dec. 31  Total
Interest  181.88  149.87  331.75
Selma Twp Contribution  1,650.00    1,650.00
Assessment Income  16,364.11  182,069.82  198,433.93
       
Total  18,195.99  182,219.69  200,415.68

 

 2012 Expenditures  
Roadside Weed Pickup  7,250.00
Lakeshore Environmental Administration  16,000.00
Chemical Treatment  121,266.00
Purple Loosestrife Beetles  2,150.00
GVSU Weed Analysis  150.00
Bass Tournament Monitor and fish return  
Insurance/Bond 635.00
Service (audit, assessment, permit fees) 2,110.00
Print (mailings, newsletter, website, supplies)

1,898.82

Misc. (Conference registration fee)

 

Total 151,459.82

                                                  

Fund Balance Jan. 1, 2012  180,248.96*
2012 Revenue  200,415.68
Total  380,664.64
2012 Expenditures  151,459.82
Fund Balance Dec.31, 2012  229,204.82
*Corrected 2011fund balance reported
as $179.297.96
 

  


 

2011 Calendar Year Financial Record

2011 Income

 Jan.1-June 30

July 1-Dec. 31 

Total

Interest  

     201.52

       176.39

       377.91

Selma Twp Contribution

1,650.00

 

    1,650.00

Summer Assessment

 

185,624.17

185,624.17

 

 

 

 

Total 

1,851.52

185,800.56

187,652.08

                                                                         

 

2011 Expenditures

 

Roadside Weed Pickup

    7,250.00

Lakeshore Environmental Administration

16,000.00

Chemical Treatment

145,070.00

Weed Harvesting

 

Cladophora Harvesting

   

Bass Tournament Monitor and fish return

 

Insurance/Bond

       635.00

Service (audit, assessment, permit fees)

    2,510.65

Print (mailings, newsletter, website, supplies)

    1,792.27

Misc. (Conference registration fee)

 

 

 

Total

173,257.27

 

 

Fund Balance Jan.1, 2011

164,903.15

2011 Revenue

187.652.08

      Total   

352,555.23

2011 Expenditures

173,257.27

Fund Balance Dec.31, 2011

179,297.96

 


2010 Financial Record

2010 Income

Jan.1-June 30

July 1-Dec. 31 

Total

Interest  

372.61

173.14

545.75

2010 Collections from 2009

16,075.13

 

16,075.13

Summer Assessment

 

180,285.86

180,285.86

 

 

 

 

Total   

16,447.74

180,459.00

196,906.74

                                                                        

2010 Expenditures

 

Roadside Weed Pickup

7,500.00

Lakeshore Environmental Administration

17,000.00

Chemical Treatment

138,870.00

Weed Harvesting

5,400.00

Cladophora Harvesting

2,900.00

Bass Tournament Monitor and fish return

0.00

Insurance/Bond

645.00

Service (audit, assessment, permit fees)

2,523.65

Print (mailings, newsletter, website, supplies)

2,599.46

Misc. (Conference registration fee)

50.00

 

 

Total 

177,488.11

 

 

Fund Balance Jan.1, 2010

145,484.52

2010 Revenue

196,906.74

Total

342,391.26

2010 Expenditures

177,488.11

Fund Balance Dec.31, 2010

164,903.15

The $164,903.15 end-of-year balance will be used towards payment for chemical treatment, harvesting,

and other expenses incurred from January 1st to July 1st, 2011.


 2009 Financial Record

2009 Income

Jan.1-June 30

July 1-Dec. 31 

Total

Interest  

449.87

313.04

762.91

2009 Collections from 2008

73,078.59

 

73,078.59

Summer Assessment

 

175,459.56

175,459.56

USFS Weevil Grant

 

10,000.00

10,000.00

Total   

73,528.46

185,772.60

259,301.06

                                                 

2008 Expenditures

 

Roadside Weed Pickup

8,500.00

Progressive Engineering Administration

13,500.00

Chemical Treatment

129,525.00

Weed Harvesting

12,571.70

Milfoil Weevils

13,523.28

Bass Tournament Monitor and fish return

0.00

Insurance/Bond

645.00

Service (audit, assessment, permit fees)

2,480.00

Print (mailings, newsletter, website, supplies)

2,221.31

Misc. (1/2 conference fee)

30.00

 

 

Total 

182,996.29

 

Fund Balance Jan.1, 2009

69,179.75

2009 Revenue

259,301.06

Total

328,480.81

2009 Expenditures

182,996.29

Fund Balance Dec.31, 2009

145,484.52

The $145,484.52 end-of-year balance will be used towards payment for chemical treatment, harvesting, and other expenses incurred from January 1st to July 1st, 2009.

The LMIB has approved a transition from a calendar year budget to a fiscal year budget from July 1, 2010 through June 30, 2011. This will make our budget and record keeping consistent with the Townships. A 6 month transition budget has been prepared for January, 2010 through June, 2010.


 2008 Financial Record

2008 Income

 Jan.1-June 30

July 1-Dec. 31 

Total

Interest   

687.98

426.83

1,114.81

2008 Collections from 2007

14,367.81

 

14,367.81

Summer Assessment

 

108,573.21

108,573.21

Total   

15,055.79

109,000.04

124,055.83

                                                                         

2008 Expenditures

 

Roadside Weed Pickup

8,500.00

Progressive Engineering Administration

13,000.00 (Inc. $1,000 for Dec., 2007)

Chemical Treatment

107,773.20

Weed Harvesting

12,476.20

Bass Tournament Monitor and fish return

181.88

Insurance/Bond

696.00

Service (audit, assessment, permit fees)

3,100.50

Print (mailings, newsletter, website)

1,962.79

Assessment review

552.57

 

 

Total 

148,242.57

 

Fund Balance Jan.1, 2008

93,366.49

2008 Revenue

124,055.83

      Total   

217,422.32

2008 Expenditures

148,242.57

Fund Balance Dec.31, 2008

69,179.75

The $69,179.75 end-of-year balance will be used towards payment for chemical treatment, harvesting, and other expenses incurred from January 1st to July 1st, 2009.

In addition, approximately $60,000 of assessment revenue is yet to be credited to the Lake Mitchell account for FY 2008 (July 1, 2008 through June 30, 2009), and this revenue will also be used in large part for January through June lake treatment expenses.

The 2009 summer assessment will generate revenue to address expenses after July 1st, 2009, and for the first 6 months of calendar year 2010.


 

2007 Financial Record

Income

 Jan.1-June 30

July 1-Dec. 31 

Total

Interest (includes 70.89 in June)  

303.60 

591.08 

894.68 

Winter Assessment

62,575.00  

 

62,575.00

Summer Assessment

 

169,928.07

169,928.07

Total   

62,878.60

170.519.15 

233,397.75

                                                                      

Expenditures  

 Jan.1-June 30 

 July 1-Dec.31

 Total

Professional Lake Management (PLM)

5,562.50

44,485.10

50.047.60

PLM deferred 

 

84,526.00

84,526.00

Service (Insurance)

 

735.00

735.00

Office supplies

 

207.00

207.00

Print (mailings, newsletter, website)

2,001.34

145.33

2,146.67 

Transfer (loan)

3,000

 

3,000.00

Total 

10,830.84 

129,891.43

140,722.27

   

Itemized Expenditure

 

Roadside Pickup

8,250.00

Progressive Engineering Administration

12,000.00

Chemical Treatment

105,924.00

Harvesting

7.024.60

Other 

1,005.00

Lake Inspection

370.00

Service (insurance) 

735.00

Office (supplies)

267.00

Print (mailings, newsletter, website)

 2.146.67

Transfer loan

3,000.00

Total 

140,722.27

 

Fund Balance Jan.1, 2007 

891.01

Net gain 

92,675.48

Fund Balance Dec.31, 2007

93,366.49

Included in the income total is $2700 which is annually paid by Selma and Cherry Grove Townships to be used toward control of Eurasian milfoil.

Income for 2007 included both winter and summer collections. In the future the winter collection will be eliminated. If a surplus is accumulated due to reduced expenditures or large collections, assessments may be lowered. Annual income is expected to be about $170,000.

The $84.256 referred to as “PLM deferred” is stated in this way because that was work done before June 30 and bills could not be paid until the summer collection was made.

The $93,366.49 end-of-year balance will be needed to pay off the chemical treatment and harvesting work that will be done before June 30. After that the 2008 summer collection will be used to pay for the rest of the 2008 expenses and leave a similar balance to start 2009.

 


 2006 Financial Record

Assessments

After sending notices to those with lakefront or deeded access to the lake, a public hearing was held on January 13, 2007. After nearly two hours of discussion with the seventy people in attendance, the Lake Mitchell Improvement Board approved raising the assessment to the following level for the years 2007 to 2009:

 

No. Assessment Units

2007-2009 Assessment

Lakefront

1.0

$275/year

Backlot

0.5*

 $138/year

Commercial

2.0

 $550/year

*Backlot unit was also raised from .25 to .50.

This higher assessment will yield approximately $188,000 which will be needed to deal with the approximately 450 acres of Eurasian milfoil that was growing in Lake Mitchell last year. In 2006 we treated 138 acres and harvested 50 acres; the sudden increase in the presence of milfoil last year necessitated the increase in assessments.

2006 Financial Record

Beginning cash balance 12/31/05

$10,955

Plus assessments

$63,375

Plus bank interest

$533

Plus transfer from Cherry Grove TWP. To be repaid

$3000

Less expenses detailed

-$77,171

Ending cash balance

$692

 

2006 Expenses

Professional Management licensing (DEQ permit)

$1350

Chemical Treatment (aquatic plant control)

$48,482

Harvesting (aquatic plant control)

$11,000

Progressive Engineering

$7,000

Shoreline Cleanup

$6,250

Newsletter/Website

$1498

Insurance

$735

Audit

$465

No Wake signs/lake inspection

$391

Total Expenses

$77,171

 

2007 Budget

Aquatic plant control

$153,500

Inspections and Oversight

$12,000

Weed Pick-up

$10,000

Information Dissemination

$2,500

Administration & Contingency

$10,000

Total Annual Cost

$188,000