Politics & Government

Novi City Council Passes Budget That Cuts Taxes, Maintains Services

The city's finances are stabilizing, City Manager Clay Pearson said.

The Novi City Council approved the city's 2012-13 budget at its meeting Monday night, boasting a cut to the overall tax rate that will not cause any decrease in public services.

The from 10.5416 to 10.2 mills, which is estimated to save the taxpayers nearly $1 million.

"I think we're the only city in the country that can boast of that feat. We're reducing your taxes without any reductions in the services that we're providing to you," said Novi Mayor Bob Gatt.

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This will be done by cutting the drain revenue fund millage in half from 0.6851 to approximately 0.34. The drain fund is used to manage the regional storm water system and to protect wetlands and natural resources and is a separate fund from the general fund.

The city's overall budget does not cut any personnel or services.

Find out what's happening in Noviwith free, real-time updates from Patch.

2012-13 Budget Projection

General Fund Special Revenue Funds Total Appropriated Funds Projected Balance end of 2011-12 Fiscal Year $8,193,586 $32,414,203 $40,607,789 2012-13 Budgeted Revenue $28,601,171 $22,116,070 $50,717,241 2012-13 Budgeted Expenditures -$29,786,566 -$25,526,610 -$55,313,176 2012-13 Appropriations -$1,185,395 -$3,410,540 -$4,595,935 Projected Balance End of 2012-13 Fiscal Year $7,008,191 $29,003,663 $36,011,854

Although taxable values are again down this year, they are down less than last year, just shy of 2 percent. Novi City Manager Clay Pearson told Novi Patch that after going through some tough times a few years ago, finances are slowly stabilizing for the city.

In a message written by Pearson about the budget, he says, "[W]hile other communities remain focused on managing daily financial struggles, Novi, through prudent fiscal preparation throughout the past years, is poised to blaze an unprecedented trail in fiscal year 2012-2013."

Council discussed the budget at two prior meetings to make adjustments, including in the upcoming fiscal year.

"This was my first budget as your mayor. I think it was very smooth. I think we had some very robust discussions and in the end, I believe that what we're going to approve tonight is the very, very best deal for the citizens of Novi," Gatt said.

Multi-year planning

The council also acknowledged the city staff's development of a multi-year budget, which includes the next three fiscal years. Council made a resolution recognizing the multi-year budget as a planning document.

Gatt said Novi is moving toward a three-year budget plan, following that practice of Oakland County.

"I think Novi's going to be the first municipality in the state of Michigan to do a three-year budget, and we should be very proud of that," Gatt said.

The city has been showing three-year projections since 2004, but this year the city has taken the planning to the next level.

"This year we're formalizing it, it's being brought forward in the budget. It used to be in the appendex, and now it's a top document in the packet," said council member Justin Fischer.

Multi-Year Budget

2012-13 Budget 2013-14 Budget Projection 2014-15 Budget Projection Beginning Fund Balance $8,193,586 $7,008,191 $6,659,243 Annual Revenue $28,601,171 $28,794,382 $29,639,010 Annual Expenditures -$29,786,566 -$29,143,330 -$29,661,420 Estimated Ending Fund Balance $7,008,191 $6,659,243 $6,636,833 Fund Balance as Percentage of Total Annual Expenditures 23.14% 21.9% 20.98%

The fund balances for the next three years are where the council wants them to be; the members have a goal of keeping them between 18-22 percent.

For a detailed look at the 2012-15 budgets, view the 272-page PDF prepared by city staff, which is attached.


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