Note 1 is the relationship between the various “Fund Balances” that appear in the budget.   

Restricted Funds – Can only be used for the purpose they were collected.  For Example, voters approved the Fire millage thus any money paid on that portion of the property tax bills can only be used for fire related expenses.   This holds true for the Landfill fund as well.  The liquor Fund is a little different in that money in the fund comes from shared revenue from liquor sales or licensing (not enough to cover the expense so we supplement from General Fund) 

The General Fund is funded by our operating millage.  We also receive payment in lieu of taxes (PILT) from the Military and State instead of paying property taxes on the land they own in Lovells.  Michigan also shares a portion of sales taxes. The General fund is the only fund whose balance requires only Board approval to be transferred to another fund (unrestricted). 

Only voters can approve a transfer of money out of a “restricted fund”.  This occurred in 2013 when Lovells Township voted to use money from the Landfill Fund for the purchase of a Fire truck.   

This is why we can’t just “use the money in the bank for any one project”.