Citizens Guide
MANAGEMENT’S DISCUSSION AND ANALYSIS
February 28, 2013
The Village’s Funds:
The fund financial statements begin on page 11 and provide detailed information on the most significant governmental funds – not the Village as a whole. The Village Council creates funds to help manage money for special purposes, as well as to show accountability for certain activities, such as special property tax millages. The Village’s major governmental funds for fiscal year 2013 include the General Fund and Municipal Street Fund.
Other major funds are the Sewer Fund and Water Fund, which are categorized asEnterpriseor business-type funds. These funds operate on revenues they received from the customers (users) of the sewer and water systems.
General Fund Budgetary Highlights:
Over the course of the year, the Village amended the budget to take into account various expenditures or revenue changes. These amendments were relatively minor.
Capital Assets and Debt Administration:
During fiscal 2013, the Village invested $81,988 in governmental capital assets, which was for land purchased to be used for a future parking lot, an addition to the salt shed, new sidewalks and a new server. The Village invested $23,785 in business-type capital assets, which was for a new generator for the lift station at lagoon #1.
During fiscal 2013, the Village repaid $55,000 of outstanding principal on its 2002 revenue bond.
Economic Factors:
The Village continues to maintain positive fund balances in each of its funds. However, concerns arise when considering the revenues and expenses that the Village is facing in upcoming years. The major sources of revenue for the Village are property taxes, State-shared revenues, and charges for services. These sources have certain limitations outside of the Village’s control – taxable value of property in the Village has remained flat so there are minimal increases in property taxes; the State of Michigan has experienced budget deficits and has reduced revenue-sharing payments to local governments to help in reducing their deficit; and the economy has restricted the Village in what it can charge its customers. In comparison, certain expenses continue to rise at a rate higher than inflation, such as health insurance, utility costs, and gasoline expenses.
We are continuing to plan for the long term, and will continue to balance the budgets through controls over spending, while striving to provide the Village’s residents with the same level of service to which they have become accustomed.
For more budget information, please click here:
Contacting the Village’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Village’s finances and to show the Village’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Village Office, 4018 Huron Street, North Branch, Michigan, 48461.