April 5, 2011
The Honorable David Hildenbrand, Senator
State of Michigan
P. O. Box 30036
Lansing, Michigan 48909-7536
Re: Simple, Fair & Efficient Government Service
Dear Senator Hildenbrand:
Recent appearances and comments made by Governor Snyder and many State Senators and Representatives have driven me to write to you. It is imperative that you be aware of the work being accomplished in local government to control costs, work collaboratively with our neighbors and continue to provide quality services to our citizens.
I have attached a copy of a recent letter to Governor Snyder that details what Cascade Charter Township has done in the realm of cooperation and collaboration to be more efficient in the delivery of our services to the public.
It has been said that public government health care costs are out of line. At a recent Grand Rapids Chamber of Commerce meeting, it was stated that average health care premiums are $19,700 per year for public employees and that the employees pay less than 10% of these costs. Please note that health care premiums for Cascade Township employees are not close to this figure. Our premiums range from $3,357/year for a single employee to $10,547/year for an employee with a family. Employees pay either 10% or 18% of these premiums (we have two plans), but no one has any insurance until they spend $1,200 (single) or $2,400 (family) on health care including prescription drugs. Therefore, a typical employee with medical costs pays about 33% of their health care coverage costs per year. The Township paid $286,011 toward health care premiums in 2006; this year the Township will pay $239,000 toward the premiums. This is an excellent track record considering the double-digit raises imposed by the insurance industry during this time. The reason Cascade is spending less is due to changes made in the plans and more costs being absorbed by the employees. Lastly (and most importantly for financial concerns), Cascade offers no retirement health plans regardless of the age that an employee retires. We have no health-related legacy costs!
Another argument made concerning the cost of government is the costly retirement plans many locals offer. Cascade Township enrolled (in 2004) in a defined benefit retirement plan. The Township did something a bit out of the ordinary by limiting its exposure to 10% of wages paid into the plan. Every year we receive an actuarial so we can determine the rate of contribution by employees the following year. This year it is 5.5%. The employer rate remains at 10%. The Township Board feels they are doing a good job of controlling wages and retirement costs by following this plan. The significant part of this arrangement is that the board keeps a close eye on it and will make changes before costs cause a problem for our budgets.
I believe Cascade Charter Township is doing a good job of controlling costs, serving the public and doing it in a transparent fashion. Our budgets have been available online and at our front counter. We will attempt to enter the data into the “dashboard”, but feel it is time consuming and not necessary. Every municipality has to file an F-65 form each year that is available to view on the state website. This appears to be a simple, fair and efficient way to review our financial condition and doesn’t require any more time than what we already spend on an annual basis.
This letter was written to inform you that not all governmental units operate in the manner that is portrayed at legislative breakfasts or expressed by some of your colleagues. Please keep the Cascade model in mind as you move bills through the legislative process in Lansing. Contact me if you wish to discuss any local items at any time.
Sincerely,
William T. Cousins III
Township Manager
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