City Expects Surplus in Latest Budget

ST. CLAIR SHORES, MI — The city is forecasting a budget surplus for the coming fiscal year after a number of lean years due to declines in property values, according to media reports. The City Council last week went over a proposed budget for fiscal 2017-'18, which includes nearly $1 million for the city's rainy day fund, the St. Clair Shores Sentinel reported.

The budget projects that general fund revenues will total $38 million and general fund expenditures will total $37.1 million. The City Council is scheduled to vote June 5 on the budget, which goes into effect July 1.

During two days of budget hearings last week, City Manager Michael Smith told the council that the approval by voters last year of a 5-mill increase in property taxes has helped the city's finances. The city asked for the increase to provide more funds for the police and fire departments.

But with state laws restricting property tax increases, Smith said the city will not collect the full amount of the 5-mill increase, according to the St. Clair Shores Sentinel.

The Fire Department has been working with aging equipment that needs to be replaced, according to the Macomb Daily. But the department is holding the line on capital outlays for the coming fiscal year, Smith told the council.

He warned the council, however, that in future years, the Fire Department will be asking for money for new equipment, the Sentinel reported.

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