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A Message From the City Manager
A Sound Offense and Defense….key to Novi’s team.
Spring is just around the corner and soon children of all ages will
be playing soccer on the numerous fields in Novi, with friends and
family cheering them on….dreaming of, per chance, one day winning a
World Cup. And, anyone who knows soccer, or any team sport for that
matter, knows a winning team is made up of a sound offense and sound
defense. It takes both to make a successful team. It may sound
simple, but that is how we are looking at this year’s budget and the
challenges which lie ahead here in Novi.
You have undoubtedly picked up a newspaper or turned on the
television to see communities facing cut backs, failed millages and
the like due to the economic climate. And, Novi is not immune to the
hardships. Novi’s revenue to provide critical services will be
decreasing in Fiscal Year 2010/11 and in subsequent years as
projected in our fiscal analysis. Property tax revenue, our largest
source by far, is going to be, overall, $3.7 million less in Fiscal
Year 2010/11 from our current Fiscal Year 2009/10. And, declining
existing property values indicate property tax revenue could be as
much as $8.5 million lower overall in three years from the current
$36.5 million we collect. The facts, too, are interest income,
building permits, and State Shared Revenue are declining, as well.
At the same time, facts are that the City of Novi is faring better,
considerably better, on several measures than our peers. Moreover,
we have already taken many steps in anticipation to mitigate and
adjust to our reality. The City of Novi retains particular, unique
strengths that will see us come back sooner and stronger; the
challenge is to keep balancing our offense and defense.
Novi has played good offense…..The City has been making multiple
year projections for the purpose of decision making since 2002.
Projections range from a scope of services to all funds influenced
by property tax revenue. The City looks forward and back to provide
analytical information in preparing current three-year projections.
Novi has a diverse economic tax base made up of more than 1,600
businesses. More than 30% of property tax revenue comes from retail,
office, and commercial properties. The City will continue to focus
on business attraction and retention to maintain this base. New
investments, which seem to be showing some signs of life in the
retail sector (Best Buy will open its second Novi location in May,
Tin Fish will open soon at Twelve Oaks Mall) will lessen the impact
of some of the future declines. Attracting and positioning ourselves
to gain new businesses, while retaining/growing what we have, is
paramount.
Novi’s property tax rate will remain constant at 10.5416 and we will
live within that established total rate and our other revenue
sources. Here is where we need a great defense….
Our Mayor and City Council provide great strategic leadership.
City staff is asked each day to seek and share efficiencies and to
continue to make decisions that benefit the community and save money
– they are a great team! These cost savings measures are shared in
Fiscal Fitness, a monthly
publication highlighting initiatives which lend to Novi’s
healthy bottom line.
We are in the final stages of completing a Proposed Annual Budget
for Fiscal Year 2010/11. The proposed budget will include the
elimination of full-time positions where they made sense for our
organization and had limited impact on delivering public services to
the extent possible. We are currently at 259 full-time positions
total, down by 25 from the 284 in FY 2008/09. Many of the position
eliminations were accomplished through attrition and
reorganizations, such as the new structure to align Fire and Police
administrative functions into one Department of Public Safety
administration. A similar re-alignment occurred last year in the
Department of Public Services, combining Engineering, Public Works,
Water and Sewer, and Parks maintenance at the Field Services
Complex. Changes like these provide several strategic enhancements,
including flexibility and integrated delivery of services; and a
focused management of planning, implementation, and staff
utilization.
We are going to make additional cost savings wherever possible.
Managing the revenue decline requires continued action, but it is
manageable in its scope with the right combination of offense and
defense. The challenge ahead for our Novi team is manageable…..we
now look to you as our supporters, “family,” friends. We value your
input, ideas, and spirit and are proud of your interest in community
happenings.
I welcome your ideas and thoughts and encourage you to contact me as
we finalize the recommended City Budget. Years from now, I would
like us all to say we won Novi’s World Cup, because we did it
together!
Clay Pearson
Novi City Manager
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