1/30/13 - An improving financial forecast for the City of Howell was detailed during Monday nightâs council meeting. A multi-year financial forecast has been prepared by staff since 2005, which is intended to serve as a tool in identifying future needs. Howell City Manager Shea Charles provided the update to Council, which will really start getting into the budget process in the spring. The Cityâs fund balance is anticipated to drop from around $2 (m) million to between $1.5 and $1.6 (m) million for the current year, based on resolution to several tax tribunal cases with the most significant being Thai Summit. The Cityâs current exposure is $425,000, with the cases expected to be heard within the next year and a half. For the first time in years, Charles says the Cityâs tax base is starting to stabilize and show signs of small growth over the next two to three years, including an increase in residential property values. The forecast shows small growth within the fund balance of $100,000, assuming an anticipated vacancy in the police department is not filled and current millage rates are maintained. It was reported that residential property values grew for the first time since 2007 while commercial and industrial values dropped due to the tribunal actions. For the coming 2014-2015 budget year; officials say continued, small increases in residential values are being projected while commercial and industrial values will remain flat or decrease slightly as there are no major projects planned. However, a new exemption under the personal property tax reform will result in more than a $50,000 annual hit to the general fund beginning that year. (JM)
↧