Community Interests

Wixom’s Budget Stabilization Fund Realities

Nick Kennedy is Keystone to Change in Leadership

I was forwarded a politically motivated communication that purported to provide information pertaining to, in part, Wixom’s Budget Stabilization Fund.

As most of you have speculated, only part of the story was being told. Below, for the record, and to the best of my knowledge,  here is what has been known about the Budget Stabilization Fund.

From fiscal year 2008/09 to fiscal year 2012/13, the City used $2,165,848 of its Budget Stabilization Fund (the rainy day fund) to pay its bills. That is, the City was spending more money than it was receiving from taxes, fees, state revenue sharing and from other sources of income. At the close of fiscal year 2012/13 the balance in the Budget Stabilization Fund was $522,898.

When Mr. Nowicki was appointed to the position of City Manager, he initiated the preparation of a financial strategy that would help guide the City out of the fiscal debacle previously created.

Through the implementation of this strategy, expenditures were reduced by approximately $750,000 annually as calculated by an independent accounting firm. Furthermore, through Economic Development efforts, the City experienced private sector growth resulting in a calculated new future tax revenue of approximately $300,000 annually. These two amounted to a financial improvement of $1,050,000.

Returning to the Budget Stabilization Fund.

With the reduction in expenditures, contributions to the Fund were then made for the first time in many years. During Nowicki’s tenure with the City, approximately $2,125,927 was added to the Fund. That addition resulted in a balance on June 30, 2015 of $2,648,825 as published in the City’s Budget document.

Now, the politically motivated e-mail states that the Budget Stabilization Fund will have a balance of $3,431,078 on June 30, 2016. That means that the City will be able to contribute $776,950, plus earned interest, to the Fund during fiscal year 2015/16. You will recall from above, that approximately $1,050,000 has been derived from cost reduction and new growth.

So, it appears that without those fiscal initiatives undertaken by Mr. Nowicki, the Budget Stabilization Fund would have been exhausted. And guess what?  Wixom voters would have been asked for another supplemental millage increase, reminiscent of the November 2012 millage increase, and its failed predecessor of August 2012.

You will recall from above that approximately $1,050,000 has been derived from cost reduction and new growth. So, it appears that without those fiscal initiatives undertaken during Mr. Nowicki’s tenure as City Manager, the Budget Stabilization Fund would have been exhausted.

Therefore, Wixom voters would have been asked for another supplemental millage increase reminiscent of the November 2012 millage increase and its failed predecessor of August 2012.

Still, lacking the right leadership, history may soon repeat itself.

For these $1,050,000 reasons, you do not fire or dismiss the City Manager that generated savings of taxpayer’s dollars and sustained essential and critical city services. Now this was LEADERSHIP in reality!

Vote and Elect Mr. Kennedy Mayor!

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