Troy Budget: How it Works

Here are some things to know about how Troy's city budget works:

• Fund balance is not a “slush” fund. It provides a level of financial assurance that the city can meet unexpected financial obligations or reduce the near-term effects of services to residents during times of economic downturn.

• Just as Oakland County has been using a three-year budget plan, the city of Troy has also been projecting ahead, working to provide necessary services with less revenue due to declining property values in residential, commercial and industrial properties.

• The city budgeted $2,610,131 of general fund balance to cover the expected shortfall between revenues and expenditures for the 2012 fiscal year. This is expected to bring the unassigned general fund balance down to $9,700,000, or 17.5 percent of annual expenditures.

• The city budgeted $780,660 of general fund balance for the 2013 fiscal year and an additional $2,653,160 to cover shortfalls expected in the 2014 fiscal year. This is expected to bring the unassigned general fund balance down to $6,266,000, or 12.4 percent of annual expenditures at the end of the 2014 fiscal year.

• The city has an established minimum fund balance policy of 15 percent, which is aligned with the Government Finance Officers Association minimum fund balance recommendations.