Advertisement

At the Dec. 27 meeting, Accountant Joyce Hagan reported she had to borrow $146,000 to make payroll and pay off the November bills.

Accounts payable was $89,113.63 compared to $21,071.45 in accounts receivable at this point.

Hagan often has to borrow from the internal debt fund when the state weight and gas tax money arrives after the first meeting of the month. But she is always able to pay it back right away. This month she had to borrow $108,000 the beginning of the month and has not been able to repay it. The debt fund, which is their reserve fund for winter maintenance, is now down to $365,380

The latest revenue drop was in the state's December check, which was about $167,000 less than last month, and the smallest of the year.

There is still $219,997 in the road millage fund, but Hagan is holding off until she sees the last of the bills for the Todd Road project.

They are expecting in excess of $139,000 for state maintenance on state highways in December, so that will help. But Hagan does not expect to be able to repay the debt fund this winter.

What scares her is the December weight and gas tax check is based on October revenues, so she is worried the next checks will be still smaller. The weight and gas tax is based on state gas tax revenue and vehicle registrations for the month, which reflect the state economy as well as businesses and individuals that have left the state.

Winter expenses are so variable due to overtime to plow the roads during snow-storms. At the beginning of the month the road crews were called out 10 times, while over the previous two weeks it was six times.

One cost saver the board approved was amending the pension plan contract to agree with the labor contract.

Hagan estimates it will save the road commission about $15,000 per year to use the employees' base, not gross, compensation to calculate pensions.

In other business, the road commission:

*Came out of an approximately one hour long closed session about contract negotiations and agreed to the union's request to go to a fact-finder.

Labor attorney Mike Kluck said a fact finder appointed by the Michigan Employment Relations Commission will listen to the information from the union and the board during the hearing. The fact finder will make a recommendation, but neither side is bound by the recommendation. They will continue to meet and try to reach an agreement.

The agency has paid Kluck $23,919.95 to date since negotiations started in February.

*Adopted a third quarter budget adjustment, which increased the 2007 budget by $1.368 million, to a total of $14.171,453. Over $600,000 of the new revenue was federal and state monies for construction projects. Approximately 35% of the budget is federal, state and road millage monies paid to contractors for big construction projects.

In addition, $275,000 of the added expenses were for winter maintenance.

*Learned federal aid will only pay for the resurfacing of Marlette Road between Juhl and Germania roads because asphalt costs so much. Falls said he will pay for the rest of the one course of preventative maintenance asphalt out of this year's road milage fund.

*Extended Robert Wellington's contract for engineering consultations.

Wellington will continue to work a minimum of $250 hours per year in return for a salary of $23,378 plus milage.

*Learned the regional task force approve using federal funds on the Forester Road and City of Sandusky projects. Their recommendation now goes to the state.

The road commission wants to upgrade Forester Road between Ruth and Maple Grove roads. The city wants to bring Campbell Road up to Class A standards to use as a truck route.