City holds steady in annual audit

BURTON — It was another study in falling numbers as city leaders gathered to discuss the annual audit last week.

After 2011’s budget year, Burton’s generated revenues come in at $6.14 million. The city over budgeted on revenue by $57,000 but ultimately made up for the miscalculation by spending $2.4 million total instead of the originally predicted $2.9 million, leaving $2.2 million in unassigned fund balance coming into the new year.

All told, Burton has reduced its spending by more than $1 million annually over the past three years.

“On a short-term basis, the general fund is in better shape than it was last year,” said Tadd Harburn of auditing firm Plante and Moran.

The revenue amount still remains low when compared to almost $7 million in 2009.

Harburn was commended on doing a “great” job of keep expenditures in line with the loss of revenue. Compared to three years ago, police funding is down from $2.9 million to $2.7 million, city government spending dropped from $1.8 million to $1.2 million, fire funding sunk from $815,000 to $515,000 and parks spending went from $73,000 to $43,000.

Total legacy costs for the city continue to climb upward, topping $2.7 million this year between health care, pensions and retiree health care while employee payroll and fringe benefits ate up 53 percent of the general fund this year.

State statutory shared revenue is also forecasted to drop again in 2012, with Burton expected to receive no more than 66.7 percent of last year’s $191,000 if they comply with new state mandates on sharing services and cutting costs.

“A city will go through their budget process not knowing what a big chunk of their funding will be,” stated Councilman Dennis O’Keefe.

Over the last 10 years, Burton has lost about $1 million annually in state funding, coupled with downward-spiraling home values. Burton receives 36 percent of their total funding from the state; 49 percent comes in from property taxes, which are expected to fall again this year and next.

“It’s no secret. Property values aren’t what they used to be,” said Harburn. “Is 2013 going to be the bottom of the trough? Hopefully, we can start to discuss this optimistically then.”

Special assessments, like Mallard Ponds, are adding to Burton’s fiscal burden. Debt interest from special assessment properties is slated to reach $900,000 in the coming years.

The city’s water and sewer account balances were also a point of discussion. Combined, the two accounts hold over a million dollars and administration says that it’s time to start using the balance to make capital improvements on aging water mains in the city’s south end water system.

Harburn recommends that the city outline budgets two years in advance in the future.