Grosse Pointe Farms Council Passes Budget

Council discussed the 2011-2012 fiscal year budget Monday during its public hearing with a focus on how to bridge a roughly $550,000 gap between revenues and expenditures. 

Ultimately, the council passed the budget 4-2 with a 0.5 millage increase to generate $344,000 to help close a $550,000 gap. The remainder of the gap will be supplemented with money from the savings fund account.  

Monday's hearing was the first time this year the council had discussed the budget publicly. Mayor James Farquhar told members of the public, however, that each of the council members had met with City Manager Shane Reeside individually to review the proposed budget before Monday's public hearing. 

The $12.4 million budget assumes the same state revenue sharing of $250,000 as earned during the current fiscal year, Reeside said. 

Reeside presented a short presentation about 10-year trends in the Farms, noting the repeated drop in home values since 2008. He also showed a comparison of millage rates among all of the Pointes—pointing out the Farms has the lowest rate. 

The budget is also suffering from a dip in revenues from three main sources, Reeside said. As with many communities, property taxes are down $440,000; building/construction permits are down significantly; and lastly there is no more rent from the former Kroger, which has been demolished. 

Council members were complimentary to Reeside and all of the department heads, saying they had been creative in finding ways to cut or make changes without impacting the services to residents. 

Two residents spoke against the tax increase.

Catherine Saurbier, of Provencal Road, told council she was "astounded" a tax hike was even being discussed, explaining that the city's reserves are much higher than most communities and should be used as intended—to supplement unbalanced budgets. She also explained that she has a child in college and watches "every penny," even noting her coupon-clipping as a routine. 

She said she feels the Farms has missed the biggest opportunity in savings by way of employees, noting a new health care/401K plan only applies to eight current employees. She told council they should be looking to aggressively renegotiate employee contracts as they come up for renewal. 

In response, Councilman Louis Theros said the Farms has done a lot with employees during the last several years.

"Personnel is an area we look at. We have fewer employees with more services than 10 years ago," he said. "We can do better, I agree, but we've done a pretty good job."

Councilman Charles "Terry" Davis tried to vote to hold the budget decision until after the current fiscal year ends so a true determination of figures could be drawn up, and therefore allow council to evaluate whether a tax increase would be truly necessary. 

Among the other Pointes, the Woods has also planned its budget with 0.5 millage increase to help balance the budget.