FISCAL YEAR 2011 BUDGET

General Fund Expenditures at FY 2002 level.

By: Adam Smith

June 8, 2010

The Fiscal Year 2011 (July 1, 2010-June 30, 2010) Budget was adopted by Council on Wednesday evening June 2, 2010. The Council Budget Committee and department heads worked diligently to balance this year’s budget. It continues to be increasingly difficult to meet the demands of the escalating costs of “doing business” while revenues decline; all while investing in necessary infrastructure improvements. Declining property tax revenues are estimated at a 7.16% reduction. Difficult choices have to be made and new innovative approaches must be adopted. Services must be prioritized and alternative revenue sources must be sought.

We have accordingly reduced the FY 2011 General Fund expenditures below $1 million, the lowest level since FY 2002. State of Michigan Statutory Revenue Sharing has been proactively phased out as it does not represent a stable source of revenue in which we can count on. Any statutory revenue received will be utilized for capital outlay activities, it will not be used to supplement annual operating expenses. In an effort to maintain current staffing levels, employees must complete cross training programs, will be subject to five furlough days, and will not receive COLA increases for the third year in a row. The FY 2011 Budget represents tough choices that need to be made in order to remain fiscally responsible and sustainable.