Budget

Property Taxes

The 2010 beginning taxable value for the Village is $232,565,490; a decrease of $37,666,150 from the prior year. The general operating budget is based on 3.4931 mills; the same millage rate as the prior four years. The Tax Increment Finance (TIF) capture is estimated at  $97,000 ($27,848,145 taxable value) from the general operating millage; or slightly less than the prior year. The Village approved a payment in lieu of taxes (PILOT) for the South Hill Apartments in 2006, which removed $1,497,840 of taxable value from the tax roll. The PILOT is based on 10% of net shelter rents.

Refuse collection tax revenue is based on the maximum allowable millage rate of 2.0029 mills. The total amount collected after the TIF capture will not be sufficient to pay the cost of refuse collection in 2010-2011 and the DDA will refund the total amount of the refuse capture. In addition to the ad valorem millage, a special assessment is included in the proposed budget to cover the cost of refuse collection expenses.

State Revenue Sharing

A significant source of revenue to the Village is State Revenue Sharing. There are two distinct categories of Revenue Sharing payments. One portion is guaranteed under the Michigan Constitution; this constitutional portion is estimated at $394,000 in 2010-2011. The second portion of revenue sharing is statutory, and the State can choose to fund this or not. Beginning in fiscal year 2001-2002, the State did not fully fund the statutory portion of revenue sharing.  The amount of statutory Revenue Sharing is expected to be approximately $50,000 in 2010-2011. The grand total of State Revenue Sharing in the proposed budget is $444,000, almost $300,000 less than the $740,000 the Village was scheduled to receive in fiscal year 2001-02.

Other Revenue 

Other revenue includes a cable television franchise fee that is based on 5% of gross annual revenue earned by Comcast from Village residents. The Police Department Administrative Fee reimburses the General Fund for costs related to Civic Center maintenance and a portion of  administrative salaries.

The Equipment Rental line item refers to charges to other funds for the use of equipment owned by the General Fund, with hourly rental rates set by the State of Michigan. Maintenance/Utilities Reimbursement is a combination of reimbursements from Major Street, Local Street, Parking, and Water/Wastewater funds. Rental Income reflects income from the YMCA lease of the Hubbell Pond Park property.  The Rental Income – Radio Tower line item accounts for funds received from MetroPCS to rent space on the Village’s radio tower.

FUND BALANCE

The fund balance represents the total of all surpluses and deficits that have accumulated from all prior fiscal years since the Village was incorporated.

Fund Balance 6-30-09

$562,275

Projected Activity 2009-10

$384,450

Projected Fund Balance 6-30-10

$946,725

Budgeted for use in 2010-2011

($42,937)

Projected Fund Balance 6-30-11

$903,788

The projected fund balance as of June 30, 2011 is approximately 40% of budget, however, approximately $300,000 is the unspent balance of the Capital Improvement Bond proceeds and approximately $45,000 is reserved for refuse collection expenses. The unrestricted fund balance is approximately 25% of General Fund Expenditures.

Revenue Summary:

Property Taxes/Special Assessment

$1,309,000

Block Grant

$31,243

State Shared Revenue

$451,300

Licenses Permits

$75,000

Fees/Fines

$289,125

Interest

$19,000

Miscellaneous

$39,678

Appropriation from Fund Balance

$42,937

Total Revenue

$2,257,283