Subtracting general fund expenditures from revenues for any given year, then divided by revenues
If the number is less than -0.01 then the unit received a score of 1 because this indicates a non-trivial operating deficit; unit is given a 0 if there is no deficit or if the deficit is trivial
Municipal-specific comments: The city of Novi continues its strong financial position as a result of long-term financial planning and maintaining responsible fund balances in conformance with GFOA recommended practices and low debt obligations. In keeping with sound fiscal procedures the city utilizes fund balance responsibly each year for one-time purchases of capital and special large projects. Planned use of fund balance results in an incorrect negative graph of operating deficit. The City operates a balanced budget each year for operational expenses.
Why it Matters: This variable is computed by subtracting general fund expenditures from general fund revenues for a given year. This figure is then divided by general fund revenues. If the number that results is less than -0.01, this indicates a unit has a nontrivial operating deficit and this unit received a score of 1. If the unit does not have a general fund operating deficit, or if this deficit is trivial, the unit is given a 0.
Data Source: The historical data presented has been loaded from information provided by the State Department of Treasury. Current and future year data has been entered by the municipality itself based on current budget and forecast information, or by Munetrix from available audited or budget information found in the public domain.