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Tuesday, February 1, 2011

Budget Planning for new Fiscal Year 2011-2012

It is the time of year when the City begins work on the new fiscal year (FY) budget that runs
July 1, 2011 through June 30, 2012.  The budget includes revenues from dozens of sources, including your taxes and State revenue sharing, and expenses, including hundreds of line items.

The City budget is a plan for spending.  The budget includes many different funds such as the General, Major Streets, Water, Sewer, and Marina funds (to mention a few).  Each fund has different rules and requirements based on Michigan law.  For example, the General Funds can give money into Major Streets, but once money is in the Major Street fund, it can not go back to the General Fund, except to pay not more than 10% for adminstration charges.

Actual spending, that is the accounting record, may be different than the budget due to future events.  Of course, it is very important for actual spending to remain within the budget and stay in the "black."  Each fund has a "fund balance" in case the actual spending is over budget and in the "red."  Fund balances are recommended to be between 10-15% to protect against a "rainy day."  Rogers City's fund balances are within the recommended range.

Per the City Charter, the City Council must adopt a balanced budget (plan) for the new FY before the end of the month of May.  To that end, the City Council will hold a budget workshop at 7:00 pm on Thursday, February 3, 2011.  This will be the first of several workshops, prior to final action on the budget in May.

All residents and taxpayers are welcome to attend these workshops.  Be aware that the primary purpose of these workshops is not to seek public comment but to allow the Council ample time to consider and discuss financial issues and the impact on public services.  Public comment on the budget and public services are welcome at any time.

City staff is available answer questions about the budget, budget process, and how it may impact our community and you.

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