SOUTHFIELD, Mich. (Michigan News Source) – The city of Southfield reported that it had $5.2 million more in General Fund expenses than revenues in 2024, something attributed to the rising cost of public safety for the city.

Southfield reported its annual 2024 audited budget to the state of Michigan on March 12. The data showed the city had $93.6 million in revenues in its General Fund and $98.8 million in expenditures.

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Southfield has had rising revenues over the past several years as the city’s General Fund revenues increased from $76 million in 2018-19 to $93.6 million in 2023-24.

Michael Manion, community relations director for the city, said that although revenues were less than expenditures in 2024, the General Fund was not overbudgeted or in a deficit. Instead the city just took money out of its fund balance to cover that cost overrun. The fund balance is similar to a savings account for municipalities.

“This was a planned/budgeted use of fund balance,” Manion said in an email to Michigan News Source. Manion said the city’s unrestricted portion of its fund balance was $18.7 million and within the city’s policy of having enough money set aside equal to 20% of the city’s General Fund expenditures.

The city’s public safety, which includes the police and fire departments, has seen its expenditures increase from $50.5 million in 2018-19 to $68 million in 2023-24.

“The largest variances from budgeted amounts related to increases in expenditures for Police and Fire personnel and sanitation,” the Southfield audit stated. “The Police department exceeded budgetary amounts driven by personnel costs and related benefits. During the year, the City entered into a collective bargaining agreement with the Southfield Fire Fighters. This resulted in an expenditure variance of $3.4 million in Fire.”