It has come to our attention that misleading, incomplete, and incorrect information about the City of Berkley’s financial position is being spread online in resident-run Facebook groups. These Facebook groups should not be treated as reliable sources of information about our city’s operations. If the source of information isn’t directly from the City of Berkley’s official channels or a verified journalist, it should not be assumed as fact. 

Claims are being spread that the City of Berkley is operating with a deficit of $1.6 million. This misinformation is not only incorrect but damaging to our community. The assertions surrounding this matter and the channel from which they come point to a larger issue of social media being used to spread misinformation and plant seeds of confusion and mistrust, both within Berkley and beyond. It’s important to remain mindful of this fact when it comes to the information about Berkley that you see on social media outside of the City’s official channels. 

The email engagement about this matter between the State of Michigan Department of Treasury and one of our residents that has been shared within these Facebook groups was both irresponsible and uninformed. It lacked the timely information and appropriate context of our local government officials, only adding to the sense of distrust and confusion that these posts attempt to spread throughout our community. Misinformation is costly to address, taking time away from City staff and elected officials that would otherwise be used to focus on larger issues affecting Berkley.

Did the City of Berkley have a negative cash balance to end the fiscal year that ended on June 30, 2023?
No, the audited financial report shows total cash and investments of $576,537 at the end of FY 2023. For FY 2024, any FOIA requests for June 30, 2024 balances until mid-September 2024 will yield incomplete and inaccurate numbers and any assumptions made on these interim balances will be factually incorrect. The interim balance does not represent the final reconciled numbers that will be included in our annual audit, which is the only financial information the State of Michigan Department of Treasury receives from the City. The June 30, 2023 audit was filed in December 2023, reviewed by the State, and no issues were found. In December 2024, the State will receive the audited numbers for the fiscal year that ended on June 30, 2024, and will perform the same review. The City anticipates the State will again find no issues with the Water and Sewer Fund or any other fund of the City.

Why did I hear that there is a negative balance in the Water and Sewer fund? 
Last year, for cash flow purposes, money from our General Fund was allocated to our Water and Sewer Fund at 6/30/23. In July of 2023, this short-term borrowing was repaid. As discussed during our budget workshop in April 2024, the City increased water and sewer rates on 7/1/23 and delayed starting the budgeted FY 2024 sewer lining and lead line replacement projects to ensure not only a positive cash balance in the Water and Sewer fund on June 30, 2024, but also to repay the amount borrowed from the General Fund. 

Additionally, large allocations of road/water and sewer construction projects have yet to be completed, which will result in notable increases in the cash balance in the Water and Sewer Fund at June 30, 2024. At the time of a mid-July FOIA request, the negative cash balance of $1.6 million in the Water and Sewer fund reflected this waiting period. The City anticipates a positive cash balance at June 30, 2024 once the records are completely reconciled and year-end close is complete. The quarterly report showing these facts will be presented at our September 16, 2024 City Council meeting, which is standard procedure.

Where can I find official information about the City of Berkley?
Official information is shared on the City of Berkley’s website; the City’s social media accounts including Facebook, Instagram, X, YouTube, LinkedIn, and NextDoor (Berkley Michigan); on mailers sent via USPS; and in-person or over the phone from City officials. Please don’t hesitate to contact us with any questions or concerns; we are here to help.