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CITY OF MILAN BUDGET
2014/2015Note: This is not the exact power point that was presented at the Council Meeting, Monday, May 19, 2014. That presentation has been updated here with additional information and slides in an attempt to provide better understanding to the reader absent a live narration to accompany it.
CITY OF MILAN BUDGET
2014/2015
CITY OF MILAN BUDGET
2013/2014 Overviewgeneral fund
Revenue Projections
Budgeted original $3,476,852 Projected actual $3,477,741 Projected Net diff $ 889
more revenue
CITY OF MILAN BUDGET
2013/2014 Overviewgeneral fund
Expenditure projections
Budgeted original $3,476,851 Projected actual $3,603,672 Projected Net ($ 126,821)
more expenditures
CITY OF MILAN BUDGET
2013/2014 Overviewgeneral fund
Deficits
Final Revenue Projection $ 889 Final Expenditures Projection $126,821 Projected deficit $125,932
more expenditures
CITY OF MILAN BUDGET
2013/2014 Revenue & Expense Summary
Real & Personal property tax revenue decreased
Drain assessments increased Tax Chargeback’s increased MERS/Retirement expenses increased
CITY OF MILAN BUDGETProject Summary 2013/2014 Server upgrade BS&A software upgrade Computer work stations Ice rink Liner Symons tornado pole replacement Wilson Park Lights Wilson park electric service upgrade Fire Alarm – Senior Center LED light upgrade Access Control/Alarms Established Grant Fund Increased contribution to Motor Pool
Total: $ 282,310
CITY OF MILAN BUDGET
13/14 General Fund Original Proposed Budget: $3,476,851
13/14 General Fund Final Projected
Budget w/Increased Expenses: $3,603,672
3.6% increase from original proposal.
CITY OF MILAN BUDGET
General fundSummary of revenue vs expensesExpenses exceeded revenue by
$125,932
This amount must be transferred from Reserve Fund Balance to General Fund to
offset the deficit.
2013/2014
CITY OF MILAN BUDGET
Reserve Fund Balance Summary 12/13 Fund Balance $1,193,366.81 13/14 Transfer from Fund Balance to General
Fund $125,932 13/14 Fund Balance Estimate $1,067,436.81 Auditor recommends 20 percent in fund
Balance which is $720,734. We currently have $1,067,437 = 29.6%
CITY OF MILAN BUDGET
2014/2015 General Fund Overview
Projected Revenues $3,584,677 Proposed Expenses $3,584,677 Net = balanced budget $ 0.00
CITY OF MILAN BUDGET
13/14 General Fund Budget Final Projected Total $ 3,603,672
14/15 General Fund Proposed Budget Total $ 3,584,677
Approximate 1/2% Decrease
CITY OF MILAN BUDGET
Unit Name School Name CVT Rate Total RateDundee Village Dundee 9.8110 27.8110
Plymouth TWP Plymouth-Canton 29.4074 29.4074
Canton TWP Plymouth-Canton 27.6073 35.6413Plymouth City Northville 41.6423 41.6423Tecumseh City Tecumseh 14.3966 42.3890Clinton TWP Clintondale 4.5685 44.7712Saline TWP Milan 0.9184 46.1454Pittsfield TWP Milan 6.5916 51.8186Dexter TWP Dexter 4.9944 52.3752Milan City Milan 14.4000 61.2375Chelsea City Chelsea 14.9555 62.0998Saline City Saline 16.2800 62.5252Ann Arbor City Ann Arbor 16.4501 63.0315
Ypsilanti City Ypsilanti 36.4947 83.5171
Millage Rates for some Municipalities in Monroe, Washtenaw, and Wayne in 2013
CITY OF MILAN BUDGET
14/15 Revenue Highlights Taxable Values Expected to increase Revenue sharing Expected to increase Potential revenue from Fire Run Billing
Ordinance (included in proposed budget-York Twp Ord under review)
CITY OF MILAN BUDGET
14/15 Expense Highlights
Health Insurance increased(Employees are Contributing)
MERS/Retirement slight increase Increased contribution to Motor Pool Decrease in energy cost due to led
project
CITY OF MILAN BUDGET
Capital Improvement Fund
For Non Street/Non Utility Projects Allows for Long term Project Planning Transferred Approximately $76,000
from Health Benefit Fund into Capital Improvement Fund
CITY OF MILAN BUDGET
Target projects from capital improvement fund
Roof Replacement on Preschool and Community House
Surge protection for Buildings Fire Department Siren upgrade Upgrade Security Camera @ Senior Center Tasers DPW Radios Police Radars Basket ball Hoop Backboards
Total: $ 58,500
CITY OF MILAN BUDGET
13/14 Capital Fund Balance $ 13,206.94
14/15 Transfer of $76,000 from health benefit fund into capital improvement fund
14/15 Project Cost $ 58,500
Capitol Fund Balance after projects $ 44,521.94
CITY OF MILAN BUDGET
Created a dedicated, non allocated expense fund $31,893
Senior Millage Fund vote of the people .5 MIL is projected to generate
$ 84,973
CITY OF MILAN BUDGET
Motor Pool Capital Outlay
FUND DESCRIPTION2011/2012 ACTUAL
2012/2013 ACTUAL
2013/2014 BUDGET
ACTUAL 02/28/2014
ESTIMATED 2013/2014
2014/2015 REQUESTED COMMENTS
661-900.000-
CAPITAL OUTLAY/FIXED ASSETS
970.661CAPITAL OUTLAY/MOTORPOOL 0 0 20,000 247,860 302,860 90,000
Police Cruiser-Sedan ($40,000); 4x4 Pickup with Plow ($30,000); Sweeper Lease/Purchase ($40,000/yr @ 7 yrs - start 1/2 in FY 12/13 & 1/2 in FY 13/14)
TOTAL CAPITAL OUTLAY/FIXED ASSETS 0 0 20,000 247,860 302,860 90,000
CITY OF MILAN BUDGET
Motor Pool Fund Balance
Cash & Cash Equivalents 6/30/2009 = $150,331.36
Cash & Cash Equivalents 6/30/2010 = $120,223.98
Cash & Cash Equivalents 6/30/2011 = <$ 9,106.37>
Cash & Cash Equivalents 6/30/2012 = $ 25,397.47
Cash & Cash Equivalents 6/30/2013 = $ 24,331.48
Est. Cash & Cash Equivalents 6/30/2014 = $ 24,331.48
Est. Cash & Cash Equivalents 6/30/2015 = $ 29,011.48
CITY OF MILAN BUDGET
FUND DESCRIPTION2011/2012 ACTUAL
2012/2013 ACTUAL
2013/2014 BUDGET
ACTUAL 02/28/2014
ESTIMATED 2013/2014
2014/2015 REQUESTED COMMENTS
202-900.000-
MAJOR STREET Expenditures - CAPITAL OUTLAY/FIXED ASSETS
970.453CAPITAL OUTLAY/SURFACE CONST. 558 0 52,500 20,841 52,500 0
Redman/Platt Intersection Beginning June 2015 FY 14/15 approx. 0% (TTL $90,780 Const Engr included in $141,116 Grant Match = $141,116); FY 15/16 $141,116
970.453CAPITAL OUTLAY/SURFACE CONST. 0 0 0 0 55,000 0
North St from First St to Michigan Beginning June 2015 FY 14/15 approx. 0% construction (TTL EST. $55,000 Design Engr; $92,000 Const Engr; $91,200 Grant Match = $238,200); FY 15/16 $183,200
970.xxxCAPITAL OUTLAY/BRIDGE REPAIR 0 0 0 0 0 85,000
Platt Road Bridge; (Wabash Bridge FY 15/16 $25,000)
970.463CAPITAL OUTLAY/ROUTINE MTCE. 0 0 0 0 0 0
970.474CAPITAL OUTLAY/TRAFFIC SERVICES 0 0 0 0 0 0
970.479CAPITAL OUTLAY/WINTER MTCE. 4,864 0 0 0 0 0
TOTAL CAPITAL OUTLAY/FIXED ASSETS 5,422 0 52,500 20,841 107,500 85,000
Major Street Project Budget
CITY OF MILAN BUDGET
MAJOR STREET FUND BALANCE AND FUTURE PROJECTS
Fund Balance 6/30/2010 = $ 412,716.73
Fund Balance 6/30/2011 = $ 412,716.73
Fund Balance 6/30/2012 = $ 515,074.45
Fund Balance 6/30/2013 = $ 541,496.83
Est. Fund Bal. 6/30/2014 = $469,821.83
Est. Fund Bal. 6/30/2015 = $369,120.83 FY 15/16 project balance
Est. Fund Bal. 6/30/2016 = $ 19,804.83 $ 349,316
$ 369,120.83 June 30, 2015 Estimated Fund Balance
$ (349,316.00) FY 2015/16 Road/Bridge Project Bal Due
$ 19,804.83 Estimated June 30, 2016 Fund Balance
CITY OF MILAN BUDGET
Water / Sewer 13/14 Summary
Revenues budgeted $3,043,598 Revenues projected $2,825,460 Expenses budgeted $3,043,600 Expenses projected $2,889,221 Net difference ($63,761) shortfall
CITY OF MILAN BUDGET
Water / Sewer 14/15 Summary
Revenues projected $2,815,362 Expenses projected $3,035,589 Net difference ($ 220,227)
shortfall
CITY OF MILAN BUDGET
Summary of Water/Sewer Fund 13/14 & 14/15
Projected revenues decreased because of decreased usage
Expenditures decreased Meter replacement costs increased 30% North St. engineering Costs 13/14 Hydrant replacement costs Wastewater treatment plant replacement
pump
CITY OF MILAN BUDGET
Summary of Water/Sewer Fund 13/14 & 14/15
Continued
Water Treatment Plant pump upgrade North St water line replacement 15/16 Variable Debt and Loan payment
CITY OF MILAN BUDGET Water/Sewer Fund Capital Outlay
FUND DESCRIPTION2011/2012 ACTUAL
2012/2013 ACTUAL
2013/2014 BUDGET
ACTUAL 02/28/2014
ESTIMATED 2013/2014
2014/2015 REQUESTED COMMENTS
592-900.000-
Water / Sewer Fund Expenditures - CAPITAL OUTLAY/FIXED ASSETS
970.556CAPITAL OUTLAY/WATER DEPT. 0 0 4,417 0 4,417 25,000
Fire Hydrant Replacement ($6,250 * 4); Water Filter Project - Pd by RRI & tap fees
970.556CAPITAL OUTLAY/WATER DEPT. 0 0 0 0 25,000 0
Water Main - North St from First St to Michigan Beginning June 2015 FY 14/15 approx. 0% construction (TTL EST. $25,000 Design Engr; $92,000 Const Engr; $111,000 Grant Match = $228,000); FY 15/16 $203,000
970.567CAPITAL OUTLAY/SEWER DEPT. 0 0 4,417 0 4,417 15,000
Pump Station Pump ($5,000); Variable Frequency Drive (VFD) ($10,000)
TOTAL CAPITAL OUTLAY/FIXED ASSETS 0 18,240 8,834 0 33,834 40,000
CITY OF MILAN BUDGET
Water/sewer projected deficit 13/14 ($63,761)
Water/sewer projected deficit 14/15 ($220,227)
(Before any rate increase.)
CITY OF MILAN BUDGET 13/14 deficit of $63,761 is covered
from Water Sewer Reserve Fund transfer leaving water/sewer Fund balance $442,800 after 13/14
14/15 deficit of $220,227 is covered from Water Sewer Reserve Fund transfer leaving water/sewer Fund balance $ 214,345 after 14/15 ($203,000 is dedicated to FY 15/16 North St. Project)
CITY OF MILAN BUDGET
Water/Sewer Fund Balance and Future Projects with out Rate
increaseDESCRIPTION
2011/2012 ACTUAL
2012/2013 ACTUAL
2013/2014 BUDGET
ACTUAL 02/28/2014
ESTIMATED 2013/2014
2014/2015 REQUESTED COMMENTS
(63,761) (220,227)difference
Cash & Cash Equivalents 6/30/2007 = $ 443,816.00
Cash & Cash Equivalents 6/30/2008 = $ 873,763.46
Cash & Cash Equivalents 6/30/2009 = $ 904,836.51
Cash & Cash Equivalents 6/30/2010 = $ 878,151.73
Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance 203,000
Cash & Cash Equivalents 6/30/2012 = $ 529,490.70
Cash & Cash Equivalents 6/30/2013 = $ 514,061.21
Est. Cash & Cash Equivalents 6/30/2014 = $ 442,800.21 214,345.21 June 30, 2015 Estimated Fund Balance
Est. Cash & Cash Equivalents 6/30/2015 = $ 214,345.21 (203,000,.000) FY 2015/16 Road Project (North St.) Bal Due
$ 11,345.21 Estimated June 30, 2016 Fund Balance
(Assuming All Else Status Quo)
CITY OF MILAN BUDGET
Water/Sewer Fund Balance and Future Projects with rate increase
Cash & Cash Equivalents 6/30/2007 = $ 443,816.00
Cash & Cash Equivalents 6/30/2008 = $ 873,763.46
Cash & Cash Equivalents 6/30/2009 = $ 904,836.51
Cash & Cash Equivalents 6/30/2010 = $ 878,151.73
Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance $ 203,000
Cash & Cash Equivalents 6/30/2012 = $ 529,490.70
Cash & Cash Equivalents 6/30/2013 = $ 514,061.21
Est. Cash & Cash Equivalents 6/30/2014 = $ 450,300.21 $ 450,300.21 June 30, 2015 Estimated Fund Balance
Est. Cash & Cash Equivalents 6/30/2015 = $ 450,300.21 $ (203,000.00) FY 2015/16 Road Project (North St.) Bal Due
$ 247,300.21 Estimated June 30, 2016 Fund Balance
(Assuming All Else Status Quo)
CITY OF MILAN BUDGET
Rate increase proposal
$11,345 Fund balance is insufficient14% rate increase is required to
address the projected 14/15 deficit of $220,227 and provide sufficient revenues to cover expenses
This fund must be self sustaining
CITY OF MILAN BUDGET
Rate increase proposal
Auditors Reserve Fund Balance Recommendation is 50% which equals $1,511,000
Current Reserve Fund Balance is $247,300 which is 8.1%.
CITY OF MILAN BUDGETRate increase proposal
Continued
Average increase per household with a 14% increase is $27.48/qtr
Billing Code
Effective Feb 1, 2013
(Current Rates)
Proposed Effective April 1, 2014 (w/ 14%
increase)Billing Charge, (Per Bill) $1.15 $1.32Water & Sewer Readiness-to-Serve Charges, (Per Qtr) $91.68 $104.52Water & Sewer Commodity Charges (Per 1000 Gallons) $5.75 $6.55Typical Residential Usage (in 1000 Gallons) 18 18Quarterly Water/Sewer Bill without Rubbish $196.26 $223.73Percent Change 12.00% 14.00%Average Annual Increase $84.11 $109.90Average Quarterly Increase $21.03 $27.48
CITY OF MILAN BUDGETRate increase proposal Continued
Current Comparables
Canto
n
Clinto
n
Tecum
seh
Saline
Mila
n
Dunde
e
Plymou
th
Dexte
r
Chelse
a0
50
100
150
200
250
300
350
Total Fees for Water, Sewer, and Readiness to Serve
3/4"meter/bill
Total Fees for Water, Sewer, and Readiness to Serve 3/4"meter/bill
Municipality Total Fees for Water, Sewer and Readiness to Serve ¾” meter/bill
Canton N/A
Clinton N/A
Tecumseh $122.11
Saline $176.63
Milan $195.18
Dundee $219.73
Plymouth $222.02
Dexter $243.00
Chelsea $321.42
CITY OF MILAN BUDGETRate increase proposal Continued
Average increase per household with a 14% increase is $27.48/qtr
Municipality Total Fees for Water, Sewer and Readiness to Serve ¾” meter/bill
Canton N/A
Clinton N/A
Tecumseh $122.11
Saline $176.63
Dundee $219.73
Plymouth $222.02
Milan $222.41
Dexter $243.00
Chelsea $321.42
0
50
100
150
200
250
300
350
Total Fees for Water, Sewer, and Readiness to Serve 3/4"
meter/bill
Total Fees for Water, Sewer, and Readiness to Serve 3/4" meter/bill
CITY OF MILAN BUDGETIRON FILTERS
W
CITY OF MILAN BUDGETWater Filter Project
why we’re doing it?
The treatment plant has been in production since 1988. In this 25 year span it has pumped nearly 8 Billion gallons
of water. It removes almost 2 tons of Iron per year from the water
(or nearly 50 tons in 25 years) The last filter inspection showed that the media needed
replacement. Water production only competes with taxes as the income
generator for the City. The City must remove Iron from the water as a State
regulation.
CITY OF MILAN BUDGETWater Filter Project
why we’re doing it?
Allowing breakthrough of Iron, through the filters, could result in fines.
Allowing Iron to even some iron could result in staining white clothes.
Proactively approaching this problem means we will have some choices.
This brings us to the subject of those choices: Do the Minimum of filter refurbishment (approximately
$250,000 see attached) Address all the known issues of 25 years of service (not
suggested) Some compromise in-between (approximately $350,000 see
attached)
CITY OF MILAN BUDGETWATER FILTER PROJECT FINANCING PLAN
Project Cost iron filter project $ 250,000
automated back washing system 105,000
$ 355,000
Financial PlanWater RRI through June 30, 2014 $ 95,014.43 Sewer RRI through June 30, 2014 68,293.69
$ 163,308.12 Water RRI July 1, 2014 thru Dec, 31, 2014 15,740.00 Sewer RRI July 1, 2014 thru Dec, 31, 2014 26,180.00
$ 205,228.12 $ 205,228.12 Water RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00 Sewer RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00
$ 205,228.12 50,000.00 FY 2014/2015 W/S capital transfer (tap fees) 50,000.00 284,628.12 12/31/14
$ 255,228.12 YTD 3/31/14 FY 2013/2014 Wtr NO TAPS BUDGETED 14,700.00 YTD 3/31/14 FY 2013/2014 Swr NO TAPS BUDGETED 14,700.00
$ 284,628.12 12/31/14
CITY OF MILAN BUDGET
Closing Comments……….
For the first time in several years we will be able to use a portion of the annual County 911 fees to offset Dispatch Center wage costs. (911 Center upgraded is funded)
Maintaining reduced Residential water sewer taps fees. Reduced from 10K to 5K in 13/14.
There is no change to the 14.4 City Millage Tax Rate. Milan still has the lowest city tax rate in Washtenaw County
CITY OF MILAN BUDGET
Thank you !!