Township finance director: bridge operations showing surplus but bond and insurance costs loom

Teresa McLaughlin, the township’s financial director, briefed the commission on the bridge’s initial fiscal reports and warned that one-time and timing issues make headline numbers misleading.

McLaughlin told commissioners, “The bottom line is that we have revenue in excess of expenditures of $1,300,000.” She immediately added that some receipts recorded at purchase — notably $7.5 million held for engineering work — are bond proceeds not operational revenue and that tag deposits and prepaid bridge-pass balances are not recognized as revenue until used.

Why it matters: the township sold bonds in February 2025 to buy the bridge and to fund engineering costs. McLaughlin said the first bond payment, which includes a large interest component because of the timing of sale, is due April 1, 2026; she warned the commission that interest-only and semiannual interest payments raise near-term cash demands.

Key financial details and constraints:
- Fiscal year: the township’s fiscal year runs April 1–March 31; McLaughlin said she prepared reports through July 31 showing cumulative activity to that date.
- Bond proceeds: $7.5 million of bond proceeds were set aside for engineering costs and are currently in fund balance; those funds are not recurring operational revenue.
- Engineering and construction: the township has funded engineering costs from bond proceeds and will bond separately for construction after bids are received.
- Insurance: McLaughlin and commissioners described unusually high bridge insurance premiums tied to the structure’s current rated condition; the supervisor and staff said premiums are expected to fall after upgrades.

Budget and reporting next steps: McLaughlin said the adopted budget will require amendments because initial assumptions (for example, projected free-bridge closures and short-term staffing costs) did not match actual operations. She told commissioners she will provide an amortization schedule for the bond and a more detailed monthly ledger report that breaks out vendor checks and payroll coding.

Commissioners asked for more granular reports comparing current staffing and operational costs to the vendor RFPs; they also asked staff to flag any potential exposures such as unemployment reimbursement if employees are laid off during a prolonged closure for construction. No budget adjustments were approved at the meeting; McLaughlin said she would prepare amendment proposals for the commission and township board as needed.