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1. Does Canton have a budget?

Canton annually adopts a budget for its various funds. The budget is adopted by the Board of Trustees each fall. The annual budget document is quite large and fills 4 binders. Copies are available for public inspection at the Canton Clerk's Office and at the Canton Public Library.

2. What are the major funds?

The major operating funds are the general, fire, police, Community Center and water and sewer funds.

3. Can funds be transferred between funds for operating purposes?

The Township Board can approve the transfer of monies between funds for operating purposes, except water and sewer. This fund is operated as a utility. All funds, regardless of type, may transfer monies to cover costs.

4. How is the Finance Department different from the Treasurer?

The Treasurer's Office is responsible for the collection, distribution and investment of funds. The Finance Department prepares the annual budget, processes invoices and purchases, manages payroll and records the Township's financial activity.

5. Describe the budget approval process.

Managers submit their budget requests to their Department Director, who reviews and adjusts the budget requests as necessary. The Director submits their budget requests to the Township Supervisor, who reviews the budget requests with that Director and the Finance Director and suggests changes where necessary. Their budget requests are then compiled by fund, reviewed for completeness and compared to available revenues. When necessary, budgets are further adjusted to stay within available funding. The Township Board will review, approve comment, and approve the annual budget document at least 60 days before the start of the fiscal year.

6. What is an Annual Finance Report?

This report presents two types of statements: one focusing on the township as a whole (government-wide) and one focusing on the fund financial statements. The government-wide financial statements provide both short-term and long- term information about the township's overall financial status. The fund financials focus on individual funds and report the source, use and balance of current financial resources. This report is audited by an independent auditing firm as well as the Government Finance Officers Association (GFOA). In addition to financial statements prepared in accordance with generally accepted accounting principles (GAAP), the Comprehensive Annual Finance Report provides readers with a wide variety of statistics on Canton Township.

7. Do all communities create a Comprehensive Annual Financial Report...how many do?

Not all communities issue a Comprehensive Annual Financial Report , and even less receive the Certificate of Achievement for Excellence in Financial Reporting from the GFOA. The Certificate Program was established by the GFOA in 1945. It was instituted to encourage all governments to prepare and publish an easily readable and understandable Comprehensive Annual Financial Report . The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by the township and its management.

8. How many years has Canton prepared a Comprehensive Annual Financial Report?

Canton has issued a comprehensive annual financial report since 1991. Each of our Comprehensive Annual Financial Reports has been awarded the Certificate of Achievement for Excellence in Financial Reporting.

9. When and how does Canton borrow money?

General obligation bonds may be issued with a vote of the people. Without a vote, Canton can issue Limited Tax General Obligation bonds and Revenue Bonds to finance construction projects. All bonds must be issued in compliance with state law. As a municipal corporation, Canton can also enter into lease contracts for the acquisition of equipment.

10. What is Canton's allocation of local property taxes?

In December 2005, Canton levied 2.366 charter mills, 2.158 fire protection special assessment mills and 4.126 police protection special assessment mills, for a total of 8.650 mills on all real property. This amount represents approximately 26.3% of the taxes on real property. 1 mill equals 1/10 of a cent.

Other taxing units are Wayne County 6.638 mills, Wayne County Jails .9381 mills, Wayne County Parks .2459 mills, Huron Clinton Metro Parks Authority .2146 mills, Wayne County RESA Intermediate School District 3.4643 mills, Schoolcraft Community College 1.7967 mills, State Education Tax 6.00 mills, Plymouth Canton Community Schools debt 3.43 mills and Canton Public Library 1.5554 mills.

11. What are enterprise activities?

Enterprise funds account for business type activities such as Pheasant Run Golf Course and the water and sewer utility operations. Revenues are derived from user fees while expenses are directly related to the services provided.

12. How is the sewer and water funds administered?

The Water and Sewer Utility is managed by the Municipal Services Department. An annual operating budget lists the anticipated revenues and expenditures for distribution of water and collection and disposal of sanitary sewage and the fleet maintenance operations. A multi-year Capital Improvement Program is also used to plan for system improvements.

13. How is State of Michigan revenue sharing calculated?

The State Revenue Sharing Program distributes sales tax collected by the State of Michigan to local governments as unrestricted revenues. The distribution of funds is authorized by the State Revenue Sharing Act, Public Act 140 of 1971, as amended (MCL 141.901). Funding for the State Revenue Sharing Program consists of the following dedicated tax revenue:

• Constitutional - 15% of the 4% gross collections of the state sales tax
  
• Statutory - 21.3% of the 4% gross collections of the state sales

14. What is the difference between Constitutional vs. statutory revenue sharing?

• Constitutional Portion: As the name suggests, this portion is guaranteed in the Michigan Constitution. It allocates a portion of the state sales tax to local units of government and is distributed on a per capita basis using the last decennial census to determine population.
  
• Statutory Portion: This component is provided for by legislative action. The legislature has allocated an additional portion of the sales tax to be distributed to the local units, in lieu of the income and single business taxes no longer being collected. As of October 1, 1996, state-shared revenues are distributed to local units in 6 bimonthly payments.

15. What is the allocation of property tax collections by fund?

For example: In 2005, $30,968,620 was assessed in township property taxes. Of that, $8,017,782 was collected for general operating, $6,920,384 for Fire, $13,231,587 for Police and $1,289,016 for special assessment debt service.

16. What systems are used for the various Township functions?

Using a blend of custom developed and purchased software, IT provides computer automation for financial, payroll, recreational, property management, tax collection, voting, dog license, accessing, inventory, and water billing applications.