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START
BUDGET YEAR
2002
BUDGET YEAR
2003
BUDGET YEAR
2004
BUDGET YEAR
2005
"PAYING
FOR IT" -- POSSIBLE SOLUTIONS
YEAR-TO-YEAR BUDGET OBSERVATIONS
"PADDING THE
BUDGET"
MORE
INFORMATION
QUESTIONS
& ANSWERS
FORUM
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City Finances Seminar, continued
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More Information
Interest Income
How the City accounted for interest on investments and reserves highlights
two of the most glaring budgeting problems. First, like the examples cited
previously, the City grossly overstated the expected revenue from interest. This is
an inexcusable practice; interest on reserves and investments should be one of
the easiest revenue sources to quantify.
Second, the declining actual revenues illustrate the double “hit” that the City
suffers by funding budget deficits out of the reserve account. Not only is the
reserve depleted, but the City loses the interest income.
|
Interest Revenue |
2002
Budget/Actual |
2003
Budget/Actual |
2004
Budget/Actual |
| |
130,000 / 81,791 (63%) |
140,000 / 44,419 (32%) |
140,000 / 36,171 (26%) |
“Top Performers”
Some revenue categories are consistent revenue generators. Here are a few
examples:
| Category |
2002
Budget/Actual |
2003
Budget/Actual |
2004
Budget/Actual |
| Municipal Court Fines |
640,000 / 795,095 |
650,000 / 728,827 |
700,000 / 603,331 |
| Ins. Premium Taxes |
265,000 / 288,197 |
275,000 / 310,608 |
310,000 / 336,615 |
| Rents and Royalties |
45,000 / 46,311 |
45,000 / 46,640 |
45,000 / 50,170 |
Municipal Court Fines as a Percentage of Total
Revenues
Some Clarkston residents have expressed a concern that the Police Department
is used as a means to finance the budget-- law enforcement activities are
nothing more than a revenue-generating "speed trap." However, an
examination of the numbers does not support that contention.
|
2002 |
2003 |
2004 |
2005 |
| 795,095
/ 39.3% |
728,827 / 37.6% |
603,331 /
32.2% |
560,000 / 22.8-29.6% |
Clarkston's revenue from police activities has
steadily declined over the past three years. The revenue as a percentage
of the city's total revenue for each year has also declined. City
officials attribute this to a greater emphasis on neighborhood and park patrols,
and less emphasis on traffic enforcement.
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