The general fund balance that sat at roughly $5 million in June of 2012 has grown to nearly $5.5 million in the course of just one year.  Plante Moran noted that the larger fund balance was attributed to an increase in revenues and a decrease in expenditures, with nearly all of the City departments coming in under budget for the year.

The larger fund balance reflects City finances that are stabilizing and an increase in its rainy day fund for unexpected emergency expenditures or unanticipated revenue shortfalls.  It is also a reflection of ongoing, incremental actions taken over the past several years to solidify the City's financial footing.

"The benefits of a stabilized fund balance mean a better bond rating, which helps the City realize lower interest costs when bonding for larger capital projects;" explained Finance Director Steven Smith.  "Residents benefit from this because the City pays less in interest costs, leaving funds available for City services."

Auditors generally recommend a 10-15 percent unassigned fund balance, which would be between $5.7 million and $8.5 million.  Westland has gotten closer to achieving this goal, growing its fund balance in each of the last three fiscal years, even while property values continue to decline.

"The overall financial forecast for the City of Westland continues to improve and we want to keep that positive momentum going;" said Mayor William R. Wild.  "With the City's long-term infrastructure needs, an improved fund balance by the City will have a positive effect on the City's bond rating.  This will save the City on future borrowing costs,"  Wild continued.  He noted the five year financial forecast conducted in 2009 forecasted a significant deficit in funds (-$23 million in 2012/13 and -$37 million in 2013/14 budget years). Through several aggressive and innovative approaches to managing expenses including cost cutting, negotiating union concessions and working collaboratively with other communities to share services and related costs, the City now has a $60 million 2-yr balanced budget.  All of these actions contributed to the growth in the City's fund balance and officials' cautiously optimistic financial outlook.  "Improving Westland's finances is fiscally responsible, prudent and necessary for the long-term viability of the City;" he concluded.