City proposes balanced budget of $12 million

The Canton City Council met July 9 for the first work session on the proposed budget for the fiscal year of 2016-’17.

City Financial Director Kim Kroha took hold of the reins and presented a proposed balanced budget of $12,195,176.

The proposed balanced budget brings in a total increase to the city’s fund balance of $287,060

Kroha said that proposed budget was “heavily dependent on sales tax.”

“We want to budget conservatively based on our current estimates and trends, we also want to support a philosophy of having each operating fund support itself as if First Monday were not here. We are heavily dependent on sales tax … but we would want to incrementally decrease First Monday transfers until each fund’s operations are self-supporting.”

Kroha said that the city would want to maintain a cash balance of not less than 25 percent of operating expenditures in each fund.

“Right now, the city has a cash balance fund to operate for three months. Our goal is to get that cash balance to support six months of operating funds,” Kroha said.

Kroha said that the city would operate a proposed general fund balance of $463,795 based on a proposed tax rate of $0.420332 with total budget revenues at $4,584,875.

Total budget revenues from First Monday Trade Days equal to $3,001,400. Rental income at First Monday brings in $2,716,200; with special events cashing in $40,000 and parking revenue totaling to $208,000.

Kroha said that some of the general fund cash would be put towards repairs, the police and fire departments, animal shelter, street maintenance and repair, parks and grants. 

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