Kasson Township, long a government with a deep savings account, is scraping bottom.

"I've never seen (the township budget) hurting this bad — no, never," said supervisor Fred Lanham after the Township Board and residents gave their seal of approval on a fiscal plan that will reduce Kasson’s fund balance by 43 percent in the next year.

Township officials acknowledge — and the budget verifies — that legal fees associated with two zoning disputes are the main culprits. Kasson has spent or is budgeted to spend $293,240 in legal fees over a three-year period ending March 31, 2008.

The township has been trying to prevent gravel extraction on a 115-acre parcel owned by Edith Kyser, who filed suit in 2004. Circuit Court Judge Thomas G. Power ruled in her favor last summer, but the township has appealed.

Leelanau Excavating is also seeking permission to gravel on a 70-acre parcel. That request is pending in Circuit Court.

The upshot is that the township has drawn down a fund balance that stood at $314,074 on April 1, 2003, to defend its zoning decisions. Kasson has budgeted $50,000 in legal fees in the 2007-08 budget, dropping its fund balance from $101,052 to $57,414 in the present fiscal year ending March 31, 2008.

Township insurance will only pay for legal defenses arising from cases seeking monetary damages. Kyser and Leelanau Excavating are seeking permission to mine their properties; they are not claiming damages.

Township officials did not seek — and were not provided — raises by the 10 residents attending the 1 1/4-hour meeting. Consequently, supervisor Lanham’s salary will remain at $8,200; clerk Kathlyn Feys’ salary will stay $12,300; and treasurer Beth Noonan will continue to be paid $11,800. Compensation was also unchanged for township trustees Thomas A. Triebes and Roger Noonan.

Triebes was absent from the meeting.

Electors attending annual meetings in general law townships may increase the salaries of elected officials.

The salary of township assessor David Noonan was increased $500 to $14,100. and the recording secretary’s compensation was hiked from $12 per hour to $15 per hour.

Discussions dealing with funding issues at the meeting dealt more with the increased costs for fire protection than defending lawsuits. Kasson contracts with the Cedar Fire and Rescue to cover the eastern portion of the township; Empire Fire and Rescue covers the western portion.

The township paid $65,500 to the two departments for fire protection in its 2005-06 budget. That cost increased to $76,500 in the 2006-07 budget, and is expected to jump to $88,500 in the next year — a 35 percent hike in two years.

“Things are getting very expensive,” said resident Glen Noonan.

“We’re kind of stuck between a rock and a hard place,” conceded Lanham. “Everybody hates that landfill, but it’s doing a lot for the township.”

The supervisor was referring to a “landfill impact fee fund,” one of the larger revenue sources for the township. Landfills were expected to bring in $33,574 in last year’s budget, and another $32,000 in the 2007-08 fiscal plan.

State-shared revenue, however, is the township’s largest revenue source, expecting to contribute $107,000 out of $206,912 in total revenues during the next fiscal year. That comes to nearly 52 percent. Income from state-shared revenue has essentially been flat for the past two years.

Property tax revenues have increased slightly. They were budgeted at $44,000 during the previous budget, and are expected to grow to $46,000 in the 2007-08 budget.

In all, the township is expecting $206,912 in revenues and $249,550 in expenses.

Glen Noonan warned Kasson officials that a movement may be organizing to replace township government.

“I think it’s important that we preserve township government,” he said. “We could lose this privilege if we aren’t careful, and it goes to county-wide.”