[Ord. No. 757; amended 1-17-2018 by Ord. No.
1704]
Pursuant to Act No. 30 of the Public Acts of 1978 (MCLA §§ 141.441
to 141.445), a budget stabilization fund is created.
[Ord. No. 757; amended 1-17-2018 by Ord. No.
1704]
The purpose of the budget stabilization fund shall include those
purposes specified pursuant to § 4 of Act No. 30 of the
Public Acts of 1978 (MCLA § 141.444), including, but not
limited to:
(a)
To cover a general fund deficit, when the annual audit of the City
reveals such a deficit;
(b)
To prevent a reduction in the level of public services or in the
number of employees at any time in a fiscal year when the City's budgeted
revenue is not being collected in an amount sufficient to cover budgeted
expenses;
(c)
To prevent a reduction in the level of public services or in the
number of employees when, in preparing the budget for the next fiscal
year, the City's estimated revenue does not appear sufficient to cover
estimated expenses; and
(d)
To cover expenses arising because of a natural disaster, including
a flood, fire or tornado. However, if federal or state funds are received
to offset the appropriations from the fund, the money shall be returned
to the fund.
[Ord. No. 757]
Each fiscal year following the fiscal year in which the fund
is created, the City Council may appropriate, by ordinance or resolution
adopted by a two-thirds vote of the members elected or serving, all
or part of a surplus in the general fund resulting from an excess
of revenue in comparison to expenses, to the fund. The money in the
fund may be invested as provided by law with the earnings of the fund
to be returned to the general fund of the City.
[Ord. No. 757]
In the establishment and maintenance of the budget stabilization
fund, the City may not:
(a)
Impose additional taxes producing revenue in excess of that needed
for its estimated budget in order to provide money to be appropriated
to the fund;
(b)
Accumulate money in the fund which shall exceed either 15% of the
City's most recent general fund budget, as originally adopted, or
15% of the average of the City's five most recent general fund budgets,
as amended, whichever is less. If the money in the fund exceeds that
permitted in this subsection, the excess money shall be appropriated
in the municipality's next general fund budget, but shall not be appropriated
to the fund; or
(c)
Appropriate monies in the budget stabilization fund for the acquisition,
construction or alteration of a facility as part of a general capital
improvement project.
