Today:

TOP JOBS 1 LIQUOR & 1 BEER /WINE Carry-out LICENSE for City of Wyandotte. Best Offer. Serious Inqui... HVAC TECHNICIAN Own Tools & Truck. Wanted in downriver area. 734-282-5507  [ View All Top Jobs ] TOP AUTOS DEVILLE 1992. 150k miles, dark maroon, great condition. $2500. 734-692-7750 ESCORT 1998 4 door, 110K miles, runs good, $1200 or best offer. 313-291-6038  [ View All Top Autos ] TOP HOMES LINCOLN PARK LAND CONTRACT AVAILABLE Home ownership with: **No Bank Approval **Low Down P... YSPILANTI Special Sale on Ford Lake Condo 1625 Cliffs Landing Reduced to $84,600 or bes...  [View All Top Homes ] TOP RENTALS SIBLEY & Inkster Area. Room for rent, all utilities, $90/wk. 734-783-0603 Fall Into Savings 2 Bdrm. Specials Reduced Rates From $535 + $200 off 1st Month! 1 Bdrm. ...  [ View All Top Rentals ] TOP MERCHANDISE TAYLOR ESTATE SALE (in Church) antiques, household, collectibles, jewelry, China, porcela... DEARBORN HOLIDAY SPECTACULAR Craft/Vendor Show, Nov. 15, 10-4, Snow Elementary, 2000 Culve...  [ View All Top MDSE ]   View Classifieds   Submit a TopAd        or call 1-734-246-0890

	The Ypsilanti Courier A Heritage Newspaper Weekly Publication

Tax increase still not enough to offset shortfall

City manager said budget is "best we can do" and not cut services

By Rod Smith, Special Writer

PUBLISHED: May 5, 2005

An increase of 1.114 mills overall, bringing the total millage to 29.0301, and representing a 4 percent increase in taxation for city residents, still isn't sufficient to offset revenue shortfall.

Advertisement

In a sobering document presented to the Ypsilanti City Council on May 3, City Manager Ed Koryzno Jr. offered a budget balanced by delaying capital expenditures, selling city property and dipping into the city's savings.

"Its the best we can do without cutting services further and laying people off," Koryzno said, acknowledging that this is neither a sustainable nor desirable situation.

Koryzno identified several reasons for the revenue shortfall including tax limitation laws and the erosion of revenue sharing from the state.

The budget also included amended budget figures for 2004/2005, representing a blowout of more than $700,000, due largely to "one off" expenditure items. Proposed expenditure for 2005-2006 represents an increase of more than 10 percent on last year's projections, and more than 4 percent on the amended figures.

In the millage breakdown, the General Operating fund is down slightly, the Police and Fire Pension fund is up sharply due to poor performance of investments, while other retirement funds are down slightly. The Sanitation fund is down slightly, the Street Improvement Bond 2001 is up sharply due to lack of funds with which to subsidize it, and the Street Improvement Bond 2003 is down slightly.

With uncertainty over the future of Visteon, and future cuts to State Shared Revenues, any proposal that extends and stabilizes the City's revenue base has to be considered seriously.

The Blue Ribbon Committee on Finance has been working on a number of measures to address the revenue issue, some of which already have been implemented by Council. Still on the drawing board is an Income Tax proposal which, if implemented, would spread the tax base and increase city revenue in a more sustainable manner.

Developing and improving existing properties in the city is another way to generate greater revenue, and City Council is supporting a broad range of initiatives to that end.

[an error occurred while processing this directive]