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Overview  
FY2011-2012 FY2010-2011 FY 2009-2010 FY 2008-2009   FY 2007-2008    FY 2006-2007 
FY 2005-2006:  Commentary    Five Year Plan    Charts
FY 2004-2005:  Commentary    Five Year Plan    Charts
FY 2003-2004:  Commentary    Five Year Plan    Charts
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FY 2001-2002:  Commentary    Five Year Plan    Charts

FY 2005-2006 Commentary

General Fund Budget Fiscal Year 2006

General Description of Activity

The General Fund accounts for all police, fire, public works, planning & zoning and administrative functions of City government. On page 101 - 3 is a graphical summary of the proposed General Fund budget. On pages 101 – 4 and 101 - 5 is a summary of the General Fund budget for comparison with the prior year.

Proposed Fiscal Year Overview

Overall, the proposed General Fund budget reflects an increase of 3.41% from last year. The City of Northville’s budget is essentially a "maintenance" budget. The proposed general operating millage has not been increased from the prior year, despite a 3.53 % decrease in State Shared Revenue which is the City’s second largest source of revenue. The overall increase in revenue, therefore, is due to the increase in the City’s taxable value.

Labor contracts were settled for three of the City’s four unions during FY 2005. Wage adjustments are not included in the budget line items for the one remaining union and for all the non-union employees. An allowance has been included in the unallocated reserve line item for possible wage adjustments. Like all units of local government, personnel costs are a primary expenditure, especially related to healthcare.

Despite the challenges faced in preparing the City’s General Fund Budget, there have been no changes to the level of services. In addition, a modest increase in fund balance is proposed.

Long Term Plan

The goals of the long-term plan are to continue to provide a high level of service to the Northville community, implement capital improvements as necessary, and set the millage rate at a steady or decreasing amount. In light of an uncertain economy, limited development opportunities, and taxable value constraints imposed by the combined effect of Proposal A and the General Property Tax Act, this will continue to be a greater challenge.