City of Milan Budget 2014/15 presentation

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City of Milan Budget 2014/15 presentation

  1. 1. Note: 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.
  2. 2. 2013/2014 Overview general fund Revenue Projections  Budgeted original $3,476,852  Projected actual $3,477,741  Projected Net diff $ 889 more revenue
  3. 3. 2013/2014 Overview general fund Expenditure projections  Budgeted original $3,476,851  Projected actual $3,603,672  Projected Net ($ 126,821) more expenditures
  4. 4. 2013/2014 Overview general fund Deficits  Final Revenue Projection $ 889  Final Expenditures Projection $126,821  Projected deficit $125,932 more expenditures
  5. 5. 2013/2014 Revenue & Expense Summary  Real & Personal property tax revenue decreased  Drain assessments increased  Tax Chargeback’s increased  MERS/Retirement expenses increased
  6. 6. Project 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
  7. 7. 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.
  8. 8. General fund Summary of revenue vs expenses Expenses exceeded revenue by $125,932 This amount must be transferred from Reserve Fund Balance to General Fund to offset the deficit. 2013/2014
  9. 9. 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%
  10. 10. 2014/2015 General Fund Overview  Projected Revenues $3,584,677  Proposed Expenses $3,584,677  Net = balanced budget $ 0.00
  11. 11. 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
  12. 12. Unit Name School Name CVT Rate Total Rate Dundee Village Dundee 9.8110 27.8110 Plymouth TWP Plymouth-Canton 29.4074 29.4074 Canton TWP Plymouth-Canton 27.6073 35.6413 Plymouth City Northville 41.6423 41.6423 Tecumseh City Tecumseh 14.3966 42.3890 Clinton TWP Clintondale 4.5685 44.7712 Saline TWP Milan 0.9184 46.1454 Pittsfield TWP Milan 6.5916 51.8186 Dexter TWP Dexter 4.9944 52.3752 Milan City Milan 14.4000 61.2375 Chelsea City Chelsea 14.9555 62.0998 Saline City Saline 16.2800 62.5252 Ann 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
  13. 13. 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)
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18.  Created a dedicated, non allocated expense fund $31,893  Senior Millage Fund vote of the people .5 MIL is projected to generate $ 84,973
  19. 19.  Motor Pool Capital Outlay FUND DESCRIPTION 2011/2012 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 970.661 CAPITAL 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
  20. 20.  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
  21. 21. FUND DESCRIPTION 2011/2012 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 970.453 CAPITAL 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 $141,116 970.453 CAPITAL 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.xxx CAPITAL OUTLAY/BRIDGE REPAIR 0 0 0 0 0 85,000 Platt Road Bridge; (Wabash Bridge FY 15/16 $25,000) 970.463 CAPITAL OUTLAY/ROUTINE MTCE. 0 0 0 0 0 0 970.474 CAPITAL OUTLAY/TRAFFIC SERVICES 0 0 0 0 0 0 970.479 CAPITAL 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
  22. 22. 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
  23. 23. 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
  24. 24. Water / Sewer 14/15 Summary  Revenues projected $2,815,362  Expenses projected $3,035,589  Net difference ($ 220,227) shortfall
  25. 25. 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
  26. 26. 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
  27. 27.  Water/Sewer Fund Capital Outlay FUND DESCRIPTION 2011/2012 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 970.556 CAPITAL 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 970.556 CAPITAL 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 $203,000 970.567 CAPITAL 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
  28. 28. Water/sewer projected deficit 13/14 ($63,761)  Water/sewer projected deficit 14/15 ($220,227) (Before any rate increase.)
  29. 29.  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)
  30. 30. Water/Sewer Fund Balance and Future Projects with out Rate increase DESCRIPTION 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)
  31. 31. 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)
  32. 32. Rate increase proposal $11,345 Fund balance is insufficient 14% 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
  33. 33. 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%.
  34. 34. Rate 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 $1.32 Water & Sewer Readiness-to-Serve Charges, (Per Qtr) $91.68 $104.52 Water & Sewer Commodity Charges (Per 1000 Gallons) $5.75 $6.55 Typical Residential Usage (in 1000 Gallons) 18 18 Quarterly Water/Sewer Bill without Rubbish $196.26 $223.73 Percent Change 12.00% 14.00% Average Annual Increase $84.11 $109.90 Average Quarterly Increase $21.03 $27.48
  35. 35. Rate increase proposal Continued  Current Comparables 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 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
  36. 36. Rate 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
  37. 37. W
  38. 38. Water 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.
  39. 39. Water 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)
  40. 40. WATER FILTER PROJECT FINANCING PLAN Project Cost iron filter project $ 250,000 automated back washing system 105,000 $ 355,000 Financial Plan Water 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
  41. 41. 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
  42. 42. Thank you !!

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