4/2/13 - Fenton City Council discussed the coming fiscal year and the deficits projected for the following years at a work session last night. According to a five-year projection from a public financial consulting firm, the city currently has a deficit of $300,000 for the 2013-2014 budget. City Manager Lynn Markland says the council plans to continue to adapt that budget to make sure it balances before it is passed. However, barring a decision by voters, a decision by the state legislature is set to eliminate the personal property tax in 2014. This will remove $650,000 from the cityâs budget, leading to deficits of about $1 million beginning in the 2014-2015 budget year. Markland says the city has already made significant cuts to spending and staffing, so compensating for the lost revenue will pose a challenge to the council. He tells WHMI that an override of the Headlee Amendment, which limits how much property tax can be levied against citizens, could potentially alleviate some of the problem by generating about $600,000 annually. This would have to be approved by voters, and Markland says other communities that have tried to pass similar overrides have been met with mixed results. The city currently has a $1.8 million fund balance, and Markland says he is not sure if enough cuts can be found to balance the budget in future years. (TD)
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