FeedsLean city budget approved
A lean budget for the 2008-09 fiscal year was approved by the Romulus City Council members Monday night.
After several discussions, public hearings and study sessions regarding city finances, the councilors voted unanimously to accept the balanced budget provided by Financial Director Debra Hoffman with no additional debate. Councilman John Barden was absent from the meeting.
The general fund budget pays for city services, such as police, fire, public service, library, and city hall functions. This year, few extras were permitted in the budget because of the potential for reduced state shared revenue. The city, which has not had to introduce any layoffs since the economy soured in 2000, also will keep everyone on board this year, according to city sources.
Total expenditures for 2008-09 should reach close to $24 million – a match for the $24 million in revenue the city expects to receive.
The five top expenditures for the city are police, which will cost the city $9 million; fire, which will cost $2.5 million; buildings and grounds, which will cost $2.4 million; fund transfers, which will cost $899,525; and recreation, which will cost $755,552.
Other notable expenditures include the mayor’s office, which will cost $438,004 and the finance department, which will cost $655,601.
The major source of revenue is property taxes, of which the city expects to collect $10.9 million. Intergovernmental revenue will account for $3.9 million, and fines and forfeits should produce about $3 million, according to the budget.
The 34th District Court budget of $3.6 million was also approved as part of the overall budget package Monday night.
Though Romulus has fared better than many other cities because of its business base, Hoffman said in April that the city rainy day fund would contribute about $2 million to make sure the books are balanced for the next fiscal year. The biggest concerns about finances were the rise in fuel costs incurred for city vehicles, and an additional, one-time cost of implementing requirements for retirement funding.
Grant funding is not as plentiful as it used to be, and several business development efforts like the casino or racetrack that city hopes would be up and operating – and producing a dedicated revenue stream – are shuttered or in limbo.
Going forward, foreclosures could cause problems in the city. Though the county pays an assessment of taxes to municipalities, as years go by with no takers on the homes, the city would receive nothing if a property is foreclosed on for back taxes.
It’s unclear whether the state Legislature will agree to another round of revenue cuts, but if that occurs, the city will likely have to shuffle revenues and expenditures to account for the loss in funding. The approval of a budget amendment by the seven-member council would then be required.
The new fiscal year begins in July. After it is approved, a copy of the final budget must be filed with the state, in accordance with state law. The budget must be balanced – cities are not technically allowed to carry a deficit from year to year.
A copy of the budget is available for public examination at the city clerk’s office, or at the Romulus Public Library.
