Village to retain current millage levy

The Wolverine Lake Village Council unanimously adopted a budget for the 2012-13 fiscal year that nets a gain in the fund balance of over $110,000 and retains the overall millage rate at current levels.

The fund balance as of Sunday, July 1, the start of the new fiscal year that ends on June 30, 2013, is projected at $1.6 million, while the fund balance is projected to be $1.78 million by the end of the budget year, according to Village Council President John Magee.

“I’m very proud of this council and past councils who have put us on stable footing,” Magee said. “We have a healthy fund balance now.”

However, the $110,280 being added to the fund balance may dwindle quickly due to some properties in tax foreclosure.

“We are aware of a contingency that some property is in tax foreclosure and if it doesn’t sell at auction, the village could be on the hook for approximately $90,000 in taxes to Oakland County,” Magee said.

Total General Fund operating revenues for the village are estimated at $2.25 million. The primary source of revenue is property taxes pegged at $1.27 million, a small increase from the current fiscal year.

“This is important because we have had a steady decline in property tax, so this indicates an uptick in taxable value,” Magee said.

Other primary sources of revenue include state-shared revenue, estimated at $302,900, and refuse collection fees ($315,000).

Total General Fund expenditures are approximately $2.25 million. The main expenditures are for the Wolverine Lake Police Department ($668,000); general services ($411,600); and waste and leaf collection ($315,000).

One large capital outlay expense has been accounted for in the budget: a $150,000 expenditure for a new weed harvester.

“We really kept a tight lid on capital expenditures over the last few years while waiting for our revenue situation to stabilize,” Magee said.

The village stands to receive roughly $169,700 in major road revenue and $169,800 in local road revenues. The budget appropriates $219,650 for several local road projects during the new fiscal year, including paving along Lakeview and in the Spring Lakes Annex subdivision.

The budget calls for maintaining a millage rate of 9.573 mills, the village tax rate since 1996.

“We’re still below the Headlee (Amendment) maximum, which makes us fairly rare among local communities,” Magee said.

A mill is equal to $1 for every $1,000 of a property’s taxable value, which is generally equal to half the property’s market value. The owner of a village property with taxable value of $100,000 is expected to pay $957 in village taxes during the budget year.