Dollars and Sense:
How the City of Marlette Spends Your Money
2011 Citizen’s Guide to
The City of Marlette’s Financial Health
Presented by
Sarah Kady, City Treasurer
Welcome
Greetings,
As part of Governor Snyder’s plan to reduce the state budget, we are required to prepare and distribute an accountability and transparency report.
This report is a supplement to our annual audit provided by King & King CPA, and uses the Audited Financial Statements from July 2006 to our last financial statement on June 2010, to help present this information in an easy to understand manner.
Included in this publication is financial information and charts to show the residents of the City of Marlette how we handle your City financials.
We hope after you read this report, you will understand the sources of revenue used to operate the City, the services the City of Marlette offers and the cost of offering these services. We hope you will compare the City of Marlette against private business, other local governments, and the State of Michigan to see if we are operating more or less efficiently, and if we are spending your money wisely.
If you have questions about this report, please feel free to stop into City Hall or contact City Hall at 989-635-7448 and I will try to answer any questions you may have.
Sincerely,
Sarah Kady, City Treasurer
How Governments Use Your Money
WHERE CITIZEN DOLLARS GO
In the United States, everyone earning an income, including citizens of Marlette, pay federal income taxes. Everyone in Michigan pays state sales tax on purchases and Michigan income tax on income earned. Everyone owning property in Michigan, including the City of Marlette property owners, pay property taxes. The City of Marlette is a collecting agency for property taxes and we distribute taxes to all entities we collect for. The City of Marlette has a city operating tax (16.2417 mills) on the summer property tax bill. In the fiscal year ending June 30, 2010 the City collected $1,760,446.74 and paid out to Sanilac County, Marlette Community Schools, Sanilac County Intermediate School District, State of Michigan, Marlette Downtown Development Authority and the Local Development Finance Authority; all except $834,130.00 in City operating taxes. The $834,130.00 operating tax is the only amount the City can use for operating revenue.
Marlette citizens pay to both the State and Federal governments. Interim City Manager Lou LaPonsie is working to bring a share of the State and Federal taxes you paid back to Marlette. We look for State and Federal grant opportunities to help with City infrastructure, street improvements, water and sewer equipment/line improvements, etc.
In the fiscal year ending June 30, 2010, we received $205,688.00 in State shared revenue from the State of Michigan. This money paid by you as the taxpayer could have been spent in other areas of the State, if not brought back to the City of Marlette. The City also collected $243,723.00 in other revenue sources (permits, fire runs, park and recreation fees, administration fees, interest, sale of fixed assets, etc.)
The City of Marlette also collects revenue from charges for services. Our water and sewer systems are enterprise funds (self supporting). The water and sewer operating expenses are paid by the people using the services. Marlette Township users pay 2 times the amount as City residences for water usage.
Debt information is also available in this guide. The Fiscal year 2010 outstanding balance of bonds and contracts payable as structured debt is $7,966,535.00. In other words, this represents all City liability. The largest portion of this debt being the loan from USDA for the mandated upgrade to our Waste Water Treatment Plant in the amount of $5,791,535.00 and other obligations totaling $2,175,000.00 (1994 Downtown Development Authority Bond, City Building 6407 Morris Street, Marlette, 2001 Transportation Bond payments).
SERVICES THAT GOVERNMENTS PROVIDE
The revenue listed above goes to provide you as the taxpayer the following services. We provide services that all local governments are required by state law to provide such as elections, assessing and tax collection. The City Assessor Dale Wood sets the value on all tax parcels in the City and keeps detailed records for each parcel. The City provides a Board of Review where citizens can protest their assessed value. The City also prints, mails, records taxes paid, balances tax records with the Sanilac Country Treasurer Kathy Dorman at tax settlement time, and provides tax records on-line for the convenience of our taxpayers.
The City provides election services for federal, state, local and school elections. We train and pay election workers, provide voting equipment, ballots, and a certified state election clerk to oversee the election process. All this insures that your vote is counted on Election Day.
The City provides other services that some local governmental municipalities are not required to provide. The City along with Marlette Joint Fire Authority provides fire protection for City residents. The City pays a quarterly amount to the joint fire authority for operations out of our general fund.
The City also provides a 20 hours per day, 7 days a week Police Department. We purchase and repair police vehicles, provide equipment and uniforms to our officers, provide training for our officers, with Chief Brian McGinnis running the department. Our police department when needed by the 911 dispatcher will respond outside the City limits.
The Department of Public Works takes care of our streets and keeps the streets plowed during the winter months. They do the snow plowing and street maintenance (clean catch basins and cold patch streets) in the City limits. They help keep the City clean by picking up brush, maintaining the City parks, maintain City buildings, operate and maintain the City cemetery, repair/maintenance on the community pool, sidewalk repair, tree trimming along with maintaining our water and sewer infrastructure.
The City provides water and sewer services for City residents and some township residents. The City provides the facilities for water and sewer services, such as the water tower and wells along with water and sewer lines. The City works on a contracted basis with Wade-Trim to maintain and operate our Waste Water Treatment Plant. The Department of Public Works employees take water samples, and send them out to the Michigan Department of Environmental Quality to ensure safe drinking water.
The City of Marlettes operating hours are Monday – Friday 8:00 A.M. to 4:30 P.M. If you have questions or concerns about your tax bill, utility bill, or any other service the City may offer please contact us at 989-635-7448.
Number of Government Employees
In the City of Marlette, we have eight full time employees and four part time employees. The Clerk staff currently has 3 full time employees. One employee from the Clerk staff will be retiring in November and will be replaced with a part time employee. We currently have a part time Interim City Manager (in the office Monday, Tuesday, and Wednesday). The Police Department has 3 full time employees and 2 part time officers. The Chief of Police is considered one of the full time employees. The Department of Public Works has two full time employees and 2 part time employees.
How Taxpayer Money is Spent:
Government Revenues and Expenditures
The City’s budget is very much like your personal budget. It lists the revenue or income you receive, and the expenditures you expect to pay out in a year. And like your personal budget if you receive more than you spend, you can save the balance for an emergency or to insure future financial stability or if you receive less than you spend, you use up your “Savings” that you had from prior years.
Attached you will find a breakdown of City revenues and expenditures along with debt information.
Click on the following link to view Citizens’ Guide to Local Unit Finances Breakdown or refer to attached sheets
How This Report Was Developed
The goal of this report was to provide the public with as much information as possible on the revenues, expenditures, and other financial activities of local government. If you have any questions about the information presented, please call the City Treasurer at 989-635-7448.
