Milford Town Council members questioned LWG Consultant Jim Higgins, left, on how best to maintain fiscal health in the coming years during a special administrative meeting held Monday, Oct. 24. Pictured from left are Higgins, Clerk/Treasurer Tricia Gall, Ken Long, Bob Cockburn and Council President Doug Ruch. Photo by David Hazledine.

By David Hazledine
InkFreeNews

MILFORD — Milford Town Council held a special administrative meeting Monday, Oct. 24, during which members questioned LWG Consultant Jim Higgins on how best to maintain economic stability in the years to come.

Specific concerns included how to pay for a new fire truck and the Milford Police Department, which faces a roughly $200,000 budget deficit in 2023.

“You’ve got needs and funding and there’s a gap,” observed Higgins, “so you’re in the same boat as just about every community around the state.”

While the town’s revenues are mostly fixed, with funding coming from property taxes capped at a 5% levy growth, current inflation is 4%-8%. “Levy growth is eaten up by rising costs,” said Higgins, who added the situation has become exacerbated in recent years by the state cutting back on motor vehicle and highway funding to towns and capping the gas tax, which also goes to towns.

According to Higgins, many towns are able to use utilities revenue to fund other departments; however, as council member Ken Long noted, Milford just recently adjusted rates to bring utilities back into balance. “We aren’t in the best shape to begin with.”

On the plus side, said Higgins, the council has been fiscally responsible, paying cash and remaining “debt averse.” However, he suggested the town may need to look into lease purchases on town vehicles in the future.

“Where do you think your biggest needs are?” asked Higgins. Long responded with the need for a new fire truck and the police department being $200,000 over budget in 2023.

As to the fire truck, Long said the council saw “what a difference 15 months makes.” The trucks are on 20-year cycles, and Van Buren Township recently purchased a pumper truck for around $480,000. The same truck is now quoted at roughly $750,000 with a six- to eight-month wait. Additionally, the town has been unable to obtain price guarantees, so the price could go up when the time comes to pay.

On the bright side, Higgins found the town saves for such purchases with the cumulative capital development funds, currently accruing $17,500 per year; however, this fund has not been reestablished at the full 5% levy. He recommended the town do so and also “chase a grant.”

He also recommended the town consider purchasing the truck on a lease and use the Indiana Bond Bank, which gets quotes from 12 banks around the state. This way, he said, if “something critical” arises, the town is “not at zero.” Plus, when the full 5% enters town coffers in 2024, it could consider prepaying. “We see a lot of communities using lease purchases to have flexibility on how to deploy cash.”

Council President Doug Ruch, a 43-year veteran of the fire department, pointed out that as expensive as a new truck is, it is far cheaper than if the town had to support a paid fire department. Milford has a 29-member volunteer staff at a time when most towns need to resort to paid staff.

Higgins also informed the council that if it waited for prices to go down on a new fire truck, he did not think Milford’s ISO rating would be adversely affected, because of the township’s new truck.

Long added that Milford Fire Department “takes very good care of their equipment. We’re fortunate for that.”

Higgins also suggested the town consider setting a budget for capital improvements based on five-year analysis, while issuing three-year general obligation bonds to pay for its needs.

Turning to the police department, Gall said the coming $200,000 deficit is “primarily driven by salary and benefits.”

Higgins said he believed the state assembly will be offering more money for school resource officers in the forms of grants. It was also noted the town pays for Milford’s SRO, not Wawasee School Corporation.

The group then discussed ways of saving money in the future. Higgins was surprised to learn about the number of services the town offers at no cost to residents, such as leaf pickup and trash collection. “If you’re paying for trash collection you’re one of the last,” Higgins stated.

The town can still offer residents “economy of scale” by transferring the cost. In other words, the cost would still be much lower than if residents were paying the company individually.

A brief discussion was also held on ways the TIF district, Milford Redevelopment Commission, may pick up some costs in future by, as Ruch suggested, figuring the amount TIF should pay based on the acreage receiving services.

“We’re trying to look at every possible option,” said Long.