4/19/14 - A grim financial outlook for the City of Fenton may lead to a Headlee override or special property tax being offered to voters in the future. The city council held a special meeting to discuss its five-year plan on Monday, and the conclusion it reached was that expenses are growing faster than revenues. The 2014-2015 budget will be balanced with a surplus of only $300, according to the Tri County Times, but expenses will increase by 4% each year while revenues will only grow by 1%. Unless something is done to correct the disparity, the city will have to spend down its $1.9 million fund balance to the minimum of $300,000. A ballot proposal to give an override to the Headlee Amendment, which limits property tax growth, could increase the cityâs current 10-mill property tax to the 13 mills originally outlined in the city charter. This would give the city an extra $750,000 per year, which would cover the future deficits. The city council has not made any plans to offer that option to voters at this time. The financial consultant at Monday nightâs meeting praised the city government for doing all it could to cut costs. Every department in the city has made concessions, paid higher healthcare deductibles, and accepted pay freezes to help address the deficit. (TD)
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