Hartland in Hindsight #20: Recovering from the Great Recession

Though the recession of 2008 technically falls outside the parameters of the past decade, there’s no question that it had a lasting impact on Hartland Township over the subsequent 10 years.

One of the ways the ripple effect of the recession was felt right here in the Township was via sewer rates. In 2008, the owners of some large, vacant parcels in the Township’s Special Assessment Districts (SAD) were delinquent in paying their obligations. As the property remained undeveloped due to the economic downturn, the Township began to operate at a deficit (as of 2009), and its obligation to repay over $27 million in bonds was at risk.  The state required Township leadership to submit a five-year deficit elimination plan.

“Those were challenging times for everyone," says Bill Fountain, Township Supervisor.  “There was so much uncertainty about the future. We had to tighten our budget belt by cutting 12.5% right away, and that was tough. But, we never lost our resolve to work hard through the issues.”

In an effort to counteract the financial impact of this issue, the Township hired J.H. Boyle International to assist with the preparation of a 25-year cash-flow forecast—the Boyle Model—for the Sewer fund, including an analysis of best, worst, and expected scenarios relating to the probability of certain properties going delinquent. 

In 2011 the Township implemented several legal and financial actions to mitigate SAD delinquencies.  Those strategies have proven successful as annual updates to the Boyle model continue to demonstrate year-over-year improvements to the financial health of the sewer system, even exceeding original projections.

“The Board and staff invested a great deal of effort and many night meetings to stay ahead of these issues,” says Township Manager James Wickman. “We were well prepared and fared better than many other communities I watched go through the same issues. The future is much brighter now for our sewer fund.”