June 26, 2014GROSSE POINTE SHORES — The fiscal year ends this month with a surplus.
"We're projecting a $164,000 surplus," said Councilman Bruce Bisballe, chairman of the Grosse Pointe Shores finance committee. "We anticipate transferring $100,000 of that to the retiree health care fund, which we can do in September, to more fully fund that activity."
The $64,000 balance is applied to next fiscal year's budget.
"That should keep our fund balance at about 20 percent of our total revenues, which is the target number for the audit," Bisballe said.
Fund balance is considered a financial reserve.
Auditors advise municipalities to maintain a fund balance equaling 20 percent of the general operating budget.
"With our $5 million general fund, the magic number to get 20 percent is $1 million," said Mayor Ted Kedzierski. "We're just about there."
"These kind of numbers strengthen our credit rating, which has already been improved," Bisballe said.
In related matters, Shores officials on Tuesday, June 17, amended the current fiscal year budget, expiring June 30, to reflect changes during the year.
Amendments are "an annual housecleaning item for the end of the fiscal year, so that when our books are audited, there's really no large variances," said Rhonda Ricketts, finance director.
increased revenue from building permits, which Bisballe cited as a bellwether of economic recovery — "It shows some signs of life in the community," he said;
higher cost of city-wide energy infrastructure improvements,
reduced ambulance runs,
purchase of a new public safety cruiser and
construction of a concession stand at Osius Park.
Auditors start preliminary work in the Shores this month, with most work done in late August, Ricketts said.