Michigan Laws 141.444 – Budget stabilization fund; purposes; sufficiency of municipality’s revenue
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(1) Money in the budget stabilization fund may be appropriated by an ordinance or resolution adopted by a 2/3 vote of the members elected and serving of the governing body of the municipality which created the fund for the following purposes:
(a) To cover a general fund deficit, when the municipality’s annual audit reveals such a deficit.
Terms Used In Michigan Laws 141.444
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fund: means a budget stabilization fund. See Michigan Laws 141.441
- Municipality: means a county, city, village, or township. See Michigan Laws 141.441
(b) To prevent a reduction in the level of public services or in the number of employees at any time in a fiscal year when the municipality’s budgeted revenue is not being collected in an amount sufficient to cover budgeted expenses.
(c) To prevent a reduction in the level of public services or in the number of employees when in preparing the budget for the next fiscal year the municipality’s estimated revenue does not appear sufficient to cover estimated expenses.
(d) To cover expenses arising because of a natural disaster, including a flood, fire, or tornado. However, if federal or state funds are received to offset the appropriations from the fund, that money shall be returned to the fund.
(2) In determining whether a municipality’s revenue is not sufficient to cover its expenses, a reduction in the amount of money received for the fiscal year from any source in comparison to the amount of money received for the previous fiscal year, including a reduction in the allocation of state tax money, shall be considered.