The News Herald: Breaking news coverage for Southgate, MI.
ALLEN PARK –– Mayor Gary Burtka addressed the city’s financial state and upcoming projects at the annual State of the City address.
The address was hosted by the Community Council Thursday evening at City Hall, 16850 Southfield Road.
Burtka spoke on what each department covered in 2009 and what plans are for 2010.
The assessor’s office report said that in the 2010 tax year the city will lose about $97 million in taxable value, which results in a decrease of about $1.5 million in revenue.
“As property values decline, our tax base declines,” Burtka said.
Residential values will fall overall by 12 percent and commercial and industrial values will drop 8 percent.
The financial overview said that at the end of fiscal year 2009 the city had a total fund balance of $4.9 million, which is equal to 21.6 percent. Generally accepted accounting practices recommend a balance of 10 percent to 15 percent in a rainy day fund.