The Canton City Council approved it's FY 2011 Budget at the August 19th City Council Meeting. The budget was approved with no change in millage rate. The Council then however, voted to begin the process to consider a millage increase of approximately 0.4 mills which in theory would be revenue neutral since our overall property tax digest decreased by approximately 8.5%.
In reality, however not everyone's property value decreased and by increasing the millage would mean a tax increase for those individuals. As Mayor I know that most of our citizens are having difficulty in these current economic conditions. Many are having difficulty making mortgage payments and many are in foreclosure. The American Dream has become a nightmare for many. The basic family essentials are becoming more and more difficult to maintain. Small businesses in our community are finding it more and more difficult to make ends meet.
Our City has been especially hard hit due to the rapid growth from annexations and a policy of "development at all costs". To give credit where credit is due this city tried to prepare for all the development and population surge its' development and annexation policies were inviting. Unfortunately, the financial arrangements of the previous administration which allowed for the accumulation of tremendous debt, failed to consider any possibility of a slower economy. Now you are left to pay the bill.
The good news is this. In early 2009, this Mayor and Council took the very difficult measures to insure the financial stability of this City. We reduced the total number of our employees by approximately 15% (22). We eliminated unnecessary expenditures and more closely managed your tax dollars. While we are certainly not in the financial position we would like, we have turned the corner and stabilized our finances, even ending our last two fiscal years with a positive fund balance.
My point is this. We can do with less in difficult times; through cost cutting and good financial management. We have a balanced budget for 2011. Some have suggested that we raise the millage to increase and build up a larger reserve. We do not need to raise the millage. We have more than $500K in contingency funds built into our FY 2011 budget. We also should also have at the very least an additional $250K in fund balance from FY 2010 (ending Sept 30). The City should have at least $750K if unforeseen expenditures should arise during the fiscal year.
Certainly, a larger reserve would be nice, but now is not the time to pad our financial position on the backs of City property owners.
Welcome to my Blog!
Monday, August 30, 2010
~Gene Hobgood
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