GT’s Borrowing Practices

The township’s practice of borrowing money years before it’s actually needed raises concerns

about how tax dollars are managed. While borrowing is sometimes necessary for capital

projects, taking on debt too early can have long-term consequences.

How Early Borrowing Affects Township Finances

✅ Increases cash balances in the short term – Borrowing early puts a large sum of cash into

the township’s accounts, which may make the financial position appear stronger. However, this

money is borrowed debt, not tax revenue or other recurring income. This approach can create

the impression of financial stability while increasing long-term debt obligations.

✅ Delays necessary financial planning decisions – Instead of evaluating expenses based on

actual tax revenue, the township can use borrowed funds to cover costs, potentially postponing

difficult budget decisions.

✅ Leads to more reliance on debt – If a higher cash balance from borrowing makes future debt

easier to justify, the township may continue this cycle, rather than adopting more conservative

financial management practices.

How Early Borrowing Affects Taxpayers

❌ We pay interest on borrowed money before it’s even needed – When the township

borrows years in advance, taxpayers start paying interest immediately, even if the money sits

unused. This could mean that tax dollars are going toward interest payments rather than

public services.

❌ Pushes financial burdens onto future taxpayers – Instead of managing expenses within the

current tax base, this approach shifts the financial impact into future budgets, which could lead

to tax increases down the road.

❌ Reduces available funding for services – If a larger portion of the budget is used for debt

repayment, it reduces the money available for services like road maintenance, public safety,

and community programs.

What We Deserve as Residents

Our township should aim for responsible financial management. That means:

✔ Borrowing only when necessary and as close to the project timeline as possible.

✔ Ensuring tax dollars are spent efficiently, not relying too heavily on debt.

✔ Providing clear public disclosures on how much of the budget goes toward paying off

past debt versus funding services.

Residents deserve financial transparency and accountability. It’s important to ask: Why is

the township borrowing money years in advance, and how much is it really costing

taxpayers?

Public Notice: Speak Out Against Overborrowing at the February 24th Council Meeting

At the upcoming February 24th Council Meeting, there should be a public hearing on two
ordinances for bonds totaling $11 million (verify Ordinances 0-25-03 and 0-25-04 are on the
2/24/25 agenda by checking the clerk’s tab on the Township website starting 2/21). This raises
concerns about our township’s continued reliance on borrowing and the long-term financial
impact on taxpayers.

Residents have the right to know how their money is being managed and what the long-term
consequences of these financial decisions will be. Borrowing large sums of money years in
advance can result in additional interest costs, shift today’s financial burdens onto future
taxpayers, and reduce available funds for essential services like road repairs, public safety, and
community programs.

I am sharing this statement to inform the public and encourage residents to attend and
participate in this discussion. If you’re concerned about how debt affects taxes and public
services, now is the time to get involved. Join us at the meeting and ask for transparency and
accountability from our local government.

�� Date: February 24, 2025
�� Municipal Building – 1261 Chews Landing Rd
�� 7 PM