Politics & Government
New Fees Likely in GP Park's 2012/13 Budget
The Grosse Pointe Park city manager provided details Monday to city council about the 2012/13 proposed fiscal year budget, which does not include any tax increases. New fees are likely, however.
residents will avoid an increase in property tax rates this year, but they’ll be assessed new fees to cover an increase in water rates and to install new water pumps.
Under a budget proposal approved unanimously Monday by the city council, residents will pay $5 every other month for the next two years to pay for the installation two $135,000 water pumps, one this year and one next year. Another $3.28 will be billed to residents every two months to cover an increase in water rates from the City of Detroit Department of Water and Sewerage.
City Manager Dale Krajniak presented the budget to council during a public hearing that was attended by only two regular visitors to the meetings and three reporters.
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Krajniak said the city's general operating budget will see a revenue reduction of about 3 percent, including a $60,000 decrease in property tax revenue. .
"Generally speaking we see housing prices firming up,” Krajniak said. “And the number of homes on the market are half what they were a year ago."
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Property owners will continue to be assessed at a rate of $14.10 per $1,000 of taxable property value.
Krajniak, who is also a certified public accountant, said most numbers throughout the budget remained consistent, including the amount of state revenue sharing that comes to the city from the state. He said he expects the city to sale more properties creating a higher revenue stream to offset losses and he does not expect any further staff cuts.
There will be no increases in marina fees, a step taken in the past to shore up the city budget.
There is likely to be a $150,000-$200,000 shortfall in contributions to the city’s reserve fund, which currently is at $1.1 million.
If projections are accurate, he expects the city to return to full reserve funding in two years, when $4 million in debt will be off the books, he said.
“We’ll limp along for the next two years,” he said, “and we expect that will offset the shortfalls that may occur this year and next year.”
The Park’s budgeting process, unlike cities such as , is a quick process with little public discussion or breakdown of the city’s annual spending plan.
Despite that Mayor Palmer Heenan said, after the budget was voted on: “Our council is more informed than most….They understand the reasons behind the numbers.”
