City of East Lansing
FY 2016 Budget & Program of Services
Mayor Nathan Triplett Mayor Pro Tem Diane Goddeeris Councilmember Ruth Beier Councilmember Kathleen Boyle Councilmember Susan W. Woods City Manager George Lahanas Director of Finance Mary L. Haskell
City Council
From left to right: Mayor Pro Tem Diane Goddeeris, Councilmember Ruth Beier, Mayor Nathan Triplett, Councilmember Kathleen Boyle and Councilmember Susan W. Woods
City of East Lansing 410 Abbot Road East Lansing, MI 48823 (517) 337-1731 www.cityofeastlansing.com
City Manager
Finance Director
George Lahanas
Mary L. Haskell
Boards & Commissions Arts Commission
East Lansing-Meridian Water & Sewer Authority
Michigan Avenue Corridor Improvement Authority
Board of Review
Economic Development Corporation
Officers Compensation Commission
Brownfield Redevelopment Authority
Historic District Commission
Parks, Recreation & Arts Advisory Commission
Art Selection Panel
Building Authority
Hometown Housing Partnership, Inc.
Building Board of Appeals
Housing Commission
Seniors’ Commission
Commission on the Environment
Human Relations Commission
Transportation Commission
Downtown Development Authority
Library Board of Trustees
University Student Commission
Local Development Finance Authority
Zoning Board of Appeals
Downtown Management Board
Planning Commission
City of East Lansing Directors 54-B District Court...................................................................... Denise McCrimmon, Court Administrator Administrative Services.............................................................. George Lahanas, City Manager ................................................................................................... Marie E. Wicks, City Clerk Finance....................................................................................... Mary L. Haskell, Director ................................................................................................... Jill Feldpausch, Assistant Dir./Treasurer ................................................................................................... David Lee, Assessor Fire.............................................................................................. Randy Talifarro, Chief East Lansing Public Library......................................................... Kristin Shelley, Director Human Resources....................................................................... Shelli Neumann, Director Parks & Recreation Facilities....................................................... Tim McCaffrey, Director Planning, Building & Development............................................. Tim Dempsey, Director Police.......................................................................................... Juli Liebler, Chief Public Works & Environmental Services..................................... Scott House, Director Seniors’ Program........................................................................ Kelly Arndt, Director
TABLE OF CONTENTS Executive Summary Section: Budget Message Document and Acknowledgement Reader's Guide to the Budget Consolidated Budget - Table 1 Personnel Summary - 3 Year Budget Time Table Organizational Chart
Page #s i–x xi - xiii xiv xv - xxii xxiii xxiv
Financial Section by Fund GENERAL FUND: General Fund-Graphs & Summaries
3
General Fund Revenues
7
General Government: Mayor & City Council City Manager Legal Counsel 54-B District Court Finance Assessing Treasury Other Activities Clerk & Elections Communication & Cable Services Human Resources Government Buildings
15 16 17 18 21 22 23 24 25 26 27 28
Public Safety: Police Operations Fire Operations and Fire Prevention Building Permits and Inspections Housing Licenses and Inspections
30 32 34 36
Public Works: Administration Engineering Downtown Maintenance Street Lighting Sidewalks, Drains and Alley Maintenance
37 38 39 40 41
Health, Welfare & Community Development: Planning & Zoning Social Services & Economic Development Assistance
42 44
Culture and Recreation: Parks Maintenance
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Transfers to Other Funds
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TABLE OF CONTENTS (CONTINUED) SPECIAL REVENUE AND OTHER GOVERNMENTAL FUNDS: Major Street Fund Local Street Fund Parks and Recreation Fund Solid Waste Management Fund Prime Time Seniors Fund Drug Forfeiture Fund Library Fund Community Development Block Grant Fund Public Art Fund Art Festival Fund Debt Service Fund Capital Improvements Fund Parks Capital Improvement Fund
53 57 61 73 77 83 87 91 95 99 103 107 111
ENTERPRISE FUNDS: Automobile Parking System Fund Building Authority Fund Sewage Disposal System Fund Water Supply System Fund
117 121 125 131
INTERNAL SERVICE FUNDS: Garage and Public Works Services Fund Insurance and Benefits Fund Computer Services Fund
139 145 151
COMPONENT UNITS: Brownfield Redevelopment Authority Downtown Development Authority Downtown Management Board Local Development Finance Authority
157 163 169 173
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________
Executive Summary
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________
Executive Summary: The Budget in Brief Major assumption factors used in forecasting expenses in FY2016 across all funds are as follows:
General Expenses: Bargaining Groups Contract Increases: Contractual Step Increases, where applicable: Defined Benefit Pension Contributions Health Insurance and Rx Costs:
2.1% CPI 1.0% COLA* 5.0% 4.1% 3.5%
*The majority of the bargaining groups and the non-union group are budgeted to receive a 1% increase in the FY2016 budgets presented here. The General Fund is $34,045,985, which is $648,925 more than the FY2015 budget. The increase is attributable to the changes in the cost classifications shown below:
Personnel Service Costs Operating Costs Capital Outlay Replenish Fund Equity Transfer Out to Other Funds
$926,805 281,665 321,610 (81,860) (799,295)
Personnel service costs include wages and benefit costs that contain the cost of living, step increases, defined benefit pension contributions and health insurance cost increases identified under the major assumption factors. The largest budget increases in this category are associated with police at $543,400, fire at $344,995, and the 54B District Court at $83,405 which, in total, are offset by a net reduction from other department’s combined changes. Projected increases in the City’s defined benefit pension contributions remain one of greatest challenges in the next several years. In recent estimates, provided by Michigan Employees Retirement System’s (MERS) actuaries, contributions will increase from 4.0% to over 7.0% a year. Operating costs include items such as contract services, general operating supplies, utilities, etc. Among the FY2016 budget items contributing to the increase are higher contracted labor utilization in the Building Permit & Inspections department, higher equipment rental costs charged by the DPW internal service fund, and more activity in 54B’s Sobriety and Veteran’s courts. Capital outlay costs are increasing primarily because of the Fire Department’s planned purchases funded by the Competitive Grant Assistance Program awarded in FY2015. Replenish fund equity was budgeted in FY2015. The budget has since been amended to use fund equity to fund a retiree healthcare pre-funding contribution to the trust in December 2014. Equity is again being reappropriated in the FY2016 budget to assist in funding capital projects. Transfer out to other funds is decreasing by almost $800,000 in the FY2016 budget when compared to the amended FY2015 budget. We have not budgeted a transfer to the retiree healthcare trust in FY2016 whereas $648,445 is in the FY2015 budget. Additionally, a $600,000 transfer to Local Streets is in the FY2015 budget as well, while no transfer is in the FY2016 budget. These decreases are offset by CPI – related increases in the transfers to the Prime Time Seniors Fund and the Parks and Recreation Fund. The operating transfer to the Parks and Recreation Fund is also getting an additional $200,000 added to it in the FY2016 budget.
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Property tax revenue in the FY2016 budget is based upon anticipated taxable valuation of approximately $948 million (3.5% more than prior years budget); or $907 million of taxable value after accounting for all tax increment captures. In FY2012, the general operating millage was increased to the Headlee limit of 17.5891 mills and will remain at this level in FY2016. With the expected property tax value increases and new developments, we are expecting a 3.2% increase over FY2015 budgeted tax revenue. Our budget continues to be challenged by the cumulative loss of revenue sharing from the State of Michigan. In FY2012, Governor Snyder introduced the Economic Vitality Incentive Program (EVIP) which replaced and reduced the statutory revenue sharing monies that we received. In FY2015, this was replaced with City, Village, and Township Revenue Sharing (CVTRS) which is a simplified version of EVIP. CVTRS is expected to remain flat into FY2016 with a 3.2% increase anticipated for the Constitutional piece based on the State’s latest estimates released. The Major Street Fund’s budget for FY2016 is $2,450,010 which is consistent with the previous year budget. The statement of fund balance shows an anticipated operating surplus in FY2015 of $130,955 along with a $56,145 surplus in FY2016 resulting in a 22.7% fund balance amount. Projects costs bid in the spring of 2015 greatly exceeded engineering estimates, therefore, this accumulated fund balance will be preserved until there is a better understanding of road funding following the May election. If there is an increase, additional projects will be developed to improve the Major Street network. The Local Street system budget is $1,314,065 which is $518,630 or 28.3% decrease from FY2015’s budget. The FY2015 budget included a $600,000 transfer from the General Fund to support the Chesterfield project and this money will reside in fund balance at fiscal year end until the project begins. The Parks and Recreation Fund budget for FY2016 is decreasing by $497,765 or 11.4% from the FY2015 budget. The budget is decreasing primarily due to the discontinuance of the Bailey Early Age Childcare program (effective September 4, 2015), the closure of the Bailey Community Center, and the transfer of the Scene Metrospace’s administration to the MSU Department of Art, Art History, and Design. There are some fee increases proposed in the FY2016 budget request. Modest fee adjustments are proposed in the Soccer Complex to begin in fall 2015, the Aquatic Center to begin in summer 2016, and the Hannah Community Center which were started in January 2015. The fund balance at the end of FY2015 is estimated to decline by $341,782, making this the third straight fiscal year total equity will have declined. Continued pressure on the fund due to the financial struggles in the Bailey Early Age Childcare program, consecutive years of cool weather impacting the attendance at the Aquatic Center and the use of fund balance to finance capital projects have depleted the total equity in the fund to an estimated $37,842 at the end of FY2015, down from a high of $955,375 at the end of FY2012. Finally, over the last several years, the Parks Fund has absorbed most of the City’s community events activities from their earlier placement in the General Fund without increasing the operating transfer from the General Fund to the Parks and Recreation Fund more than by a CPI factor. In the FY2016 budget, the operating transfer from the General Fund has increased by not only a CPI factor of 2.1%, but by an additional $200,000. The Solid Waste Fund’s budget totals $2,317,690 for FY2016, which is a 21.8% increase from FY2015. This increase is primarily due to the proposed changes to the recycling program, replacing the small blue bins with recycling carts and changing to bi-weekly collections. It is recommended that 1.8250 mills be allocated to Solid Waste Management, which is an increase from last year’s 1.7680. The millage increase is needed to cover the costs of new monitoring requirements for the Burcham Park remediated landfill and the deployment of new recycling carts. There are a few risks facing this fund and the amount of fund
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balance expected for the year ending June 30, 2016. First, we hold a land contract on one Burcham Park home which is due in full in January 2016. If this land contract is not paid in full, this may adversely affect the unassigned fund balance amount. Second, if grant revenue of $100,000, budgeted in FY2016, is not received as anticipated, this would deplete fund balance and would most likely result in a delay of implementing the recycling cart program for the entire City. Last, the Burcham Park remediation requirements have continued to change and increase as MDEQ monitoring and close out requirements evolve. This fund will be monitored closely as some of these key factors/risks become known. The Prime Time Seniors fund’s FY2016 revenue budget is higher than the FY2015 budget by $14,780 (4.9%) and is based on increases in membership fees, program activity fees and budgeting a higher amount of use of fund balance ($50,340 in FY2016 budget compared to $36,095 in the FY2015 budget). The operating transfer from the City’s General Fund is increasing from $137,740 in FY2015 to $140,630 in the FY2016 budget. Revenue recorded in the Drug Forfeiture fund comes from monies that have been forfeited at the time of illegal activities. The funds can only be used to purchase equipment and supplies that are directly related to the future suppression of illegal drug activities within the City of East Lansing. These funds are required by state law to be accounted for and remain segregated in a separate fund. A very small amount of expenditures, $2,025 is in the FY2016 budget with $2,000 being budgeted as forfeiture revenue and $25 as interest income. Fund balance is projected to be at $8,496 at the end of the 2015 and 2016 fiscal years. The Library fund is showing an increase of $59,835 or 3.1% in the FY2016 budget, when compared to FY2015. To assist the Library in funding operations and to help reduce the impact of the large operating transfer on the General Fund, the City Council approved the levy of a dedicated millage of 1.0000 mill, as authorized under Public Act 164, in FY2013 for the first time. In the November 2012 election, the voters of East Lansing approved an additional 1.0000 mill levy. The 2.0000 mill levy yields an estimated $1,760,000 in property tax revenue, compared to the $1,725,385 budgeted in FY2015. The FY2016 capital outlay budget has decreased over the FY2015 budgeted costs by 16.8% predominately because of reclassifying materials processing costs and the costs of digital resources. The library is planning on being able to replenish fund balance in both FY2015 and FY2016 and fund balance is estimated to increase to $793,716 by the end of FY2016. This represents 40.7% of estimated operating expenditures for one fiscal year. The FY2016 budget for the Community Development Block Grant fund is $13,400 or 3.2% lower than the FY2015 budget. All grant dollars are received from the federal government and we continue to see declines each fiscal year. The Public Art fund is new to the FY2016 budget. Under the new Percent for Art ordinance, (Ordinance No. 1339), 1% of the cost of private construction projects (up to $25,000) and 1% of the City’s general fund’s capital spending for designated public facilities will be allocated for the purchase of new and maintenance of all public art owned by the City. The Percent for Art ordinance was approved by City Council in FY2015 and appoints the City’s Arts Commission to advise the city council on matters pertaining to art programs within the City, to implement a program so as to provide for the acquisition, placement and display of works of art within the City, and to review the proposed public art accompanying a developer’s site plan application for compliance, all subject to approval by city council. In FY2016, $11,525 will be transferred by the City of East Lansing’s general fund and is budgeted for the purchase of public art. The Art Festival Fund is being budgeted at $180,050 which is $16,065 or 9.8% higher than FY2015. As sponsor contributions and grants are harder to obtain, the staff plans on offering more booth spaces and
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increasing the rental rate for the space. The City employs a part-time festival director to manage the event annually and also a part-time employee to assist in administrative and operating work. The 20.9% increase in personnel services is attributable to wage increases for both employees. Operating costs are budgeted 4.8% higher in FY2016 when compared to FY2015’s budget. Most of the increase is due to higher user rental fees from the City’s Information and Technology Fund and more money budgeted for performers. In the FY2016 Debt Service fund’s budget, the millage rate is decreasing slightly (.0258 mills) from the prior year. Total property tax revenue is still expected to increase though as taxable values are growing and debt payments also are increasing as we near the end of the bonds (scheduled to be paid in full in FY2019). Special assessment revenue continues to decline each year as interest amounts due decrease each year. The debt related to the SmartZone (Technology Innovation Center) build-out was defeased in FY2015. This resulted in approximately $600,000 of cash being deposited into a restricted escrow account which will pay off the related bonds as they become due and callable. FY2016 budget also includes reappropriating $103,200 of this escrowed balance as well as $82,575 planned use of fund balance accumulated from prepaid special assessments. The Capital Improvement (CIP) Fund has a FY2016 budget of $610,370 which is $161,990 or 36.1% higher than the FY2015 budget. FY2016 includes facility improvement projects of $220,000 for the City Hall Security Project and $25,000 for courtroom, court lobby, secured corridor, jury room and offices painting as well as new carpet in the secured corridor. FY2015, although not budgeted, will see $235,000 of City Hall security improvements. These costs will be fully funded by a General Fund transfer. Also budgeted in this fund in FY2016 are continued debt service support accumulated for the Avondale Square project deficit and a transfer to the General Fund from Brownfield capture to reimburse the fund for project completion costs for St. Anne Plaza. Please see the Capital Improvement (CIP) fund for complete details on the revenue and expenditures in the FY2016 budget request. The Parks Capital Improvement Fund shows a decrease of $460,000 (92.0%) in its FY2016 budget over this fiscal year’s budget. $500,000 is budgeted in FY2015 to reimburse the General Fund the money it transferred, in FY2014, to this fund for the Partriarche Park playground project. The project, completed last summer, is funded by a reimbursement-based DNR grant and contributions from the Rotary Club of East Lansing’s fund-raising efforts. The estimated transfer to the General Fund in FY2015 will be grant proceeds of $300,000 and contributions of $100,000. The remainder of the transfer to the General Fund will be in future fiscal years and will come from the this fund as contributions are received and from the Parks and Recreation Fund, as the budget permits. $20,000 of donations is budgeted in the Parks CIP fund to be received and transferred to the General Fund in FY2016. The Automobile Parking System’s FY2016 budget at $4,455,190 is decreasing by $436,725 (8.9%) from that of the prior fiscal year. The primary reason is the decrease of capital outlay spending as the amount of bond proceeds (from the FY2011 capital improvement bond issue) is extinguished. The parking system is continuing to see some revenue growth from the recent housing and restaurant developments downtown. For FY2016, it is projected that parking lot revenue will increase by $255,665 of which $168,000 of this is from a proposed rate increase in the attended lots. The contribution from the DDA is used to offset the debt service costs for the Marriott Garage (Lot 12). Beginning in FY2015 the DDA no longer captured any of the school related taxes as the State capture had sunset. The local taxes will continue to be captured and FY2016 is seeing a 5.9% ($13,725) increase over FY2015 as taxable values increase. The contribution from the General Fund is $107,755. This is the allocation from 54B District Court for the ticket revenue of unpaid night notices issued in the parking garages. This amount was decreased by
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$150,000 from previous years as the allocation from parking meter tickets has been discontinued. The decrease has been offset by a proposed five cent per half hour rate increase in the attended parking lots. The Building Authority’s FY2016 budget remains stable with a slight increase of $4,140 (0.2%). The Authority is responsible for the debt service on the bonds which financed the MAC Avenue Garage, the City Center/Charles Street Garage, the Division Street Garage, and renovations to the Albert Avenue Lot and Bailey Street Lot. The full debt service on the bond issues is included here. The minimal operating costs primarily relate to expenditures for the taxes and trash collection at the commercial space of the Division Street Garage. No capital outlay is requested in the FY2016 budget. The Sewage Disposal System fund’s budget is $21,577,920 which is a large increase (97.1%) from FY2015’s budget. The increase is attributed to the first of a series of waste water treatment plant upgrades, starting first with the construction of a ultra-violet disinfection system and enhancements of the tertiary filter system. In April 2015, the City issued debt to finance the first of a series of upgrades to the Waste Water Treatment Plant, using low interest loans from the State Revolving Fund (SRF). The first project is a $15,000,000 project to replace the tertiary filters, replace a chemical disinfection process with ultra-violet light disinfection and construct a new effluent discharge line. It is expected that $2,000,000 will be executed in FY 2015 and $10,000,000 in FY 2016, with the balance in FY 2017. A utility rate model was developed in FY2008 which calculates utility rates based on the estimated cost to provide water and sewage services while maintaining adequate fund balances. New rates are divided into three components; billing, readiness to serve, and commodity charges. Rates now more accurately cover administrative costs, such as customer billing, that do not vary with yearly fluctuations in weather. This rate study recommends an overall increase of 8.4% in sewage billing rates for FY2016, and this sets the stage for a series of increases to fund infrastructure renewal. The rate increase for a typical sewer bill of 8.4% is an increase of $8.87 per quarter. The Water Supply System fund’s budget is $4,015,200, an increase from last year of $229,650 or 6.1%. The utility rate model mentioned earlier is used to calculate water rates in addition to sewer rates. Based on expenses and projected revenues, the rate model calculated an overall increase of 15.8% increase in water billing rates for typical residential users. The rate increase for a typical water user is $10.26 per quarter. The increase reflects the cost for adjusting rates for system renewal. Operating costs are remaining consistent with a slight increase of $6,625 in FY2016. Garage equipment rental amounts are expected to increase due to underfunding in prior years, however, that is offset by a lower budgeted amount for the purchase of water from ELMWSA. The FY2015 amount was inflated due to some unknown circumstances of ELMWSA at the time the City’s budget was approved. Capital outlay for FY2016 increased $115,000, or 35.9%. This includes funding for Chesterfield Hills Neighborhood water line replacement in late FY2016, as part of a multi-year project, and the painting of the Alton Water Tower. The Computer Services fund is budgeted at $1,127,750 which is $92,080 or 8.9% higher than the current year budget. We are budgeting for additional rental income in FY2016 (we missed charging users for debt service from the financing of the New World software in the prior fiscal year so we are charging users an additional payment in FY2016) and also for the replenishment of replacement reserves as these have become depleted in prior fiscal years. Garage and DPW Services’ FY2016 budget is lower than prior year by $215,645 or 4.9%. A decrease in the capital outlay for vehicle replacement in the FY2016 budget makes up the majority of the decrease.
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The City’s Insurance and Benefits fund’s budget is $7,335,045, which is $500,070 or 6.4% lower than FY2015 amended budget. One major factor contributes to this change. The FY2015 budget was amended in December 2014 to transfer the balance of our FY2014 other post employment benefits (OPEB) pre-funding contribution ($648,445) to the Retiree Healthcare Funding Vehicle at MERS so the FY2015 budget is higher by that amount. Nothing is budgeted for a pre-funding OPEB contribution in FY2016 at this time so if we subtract the OPEB payment ($648,445) from the FY2015 budget we get a better comparison between the budget years. This results in an increase of $148,375 from the adjusted FY2015 budget or 2.1%. Medical benefits are budgeted in FY2016 at a rate of 2.6% over that of FY2015 (after decreasing the FY2015 amended budget by the OPEB pre-funding payment). We see a 8.1% decrease in other fringe benefits due to a correction in the long-term disability rate upon conversion to the new financial software in October 2014. Worker’s compensation claims are budgeted relatively flat in FY2016, when compared to the current year, but increases in this budget are not ruled out in future years if reserve levels decrease significantly. General liability claims are budgeted 6.1% higher in FY2016 to accommodate higher premium cost increases, due to an increased amount of claims activity in the current fiscal year. The Brownfield Redevelopment Authority is seeing most of the projects experience an increase in TIF revenue, reflecting the improving condition of property values after several years of decline. The FY2016 budget reflects this as it is increasing $77,715 or 8.8% over the FY2015 budget. Trowbridge Village TIF capture will begin in FY2017. FY2016 includes $2,225 of reappropriated equity (shown as other financing sources) to repay the General Fund for expenses related to the St Anne Plaza that are not allowed to be reimbursed through the TIF plan. This planned use of fund balance will leave the fund with a very small fund balance, however, that is the nature of this fund. Monies captured each year should be reimbursed and there should be minimal, if any, fund balance remaining. The Downtown Development Authority (DDA)’s recommended budget for FY2016 is $1,376,390. This number is much less than the previous fiscal year’s budget because in FY2015 the budget included refinancing the debt associated with the Evergreen properties with limited operations as we expected the development to move forward. In addition, FY2015 budget included operations of the Technology Innovation Center which will end the year with only one month of activity. Property tax revenue is expected to increase as we see taxable values rise due to an improving economy and new developments in the downtown area. FY2016 budget includes $128,000 from the DDA millage, $248,000 from the TIF1 plan capture, and the remaining $638,400 from the TIF2 plan capture. The City’s Downtown Management Board (DMB) is seeing a $7,285 or 12.0% decrease in its FY2016 budget. The size of the budget is dependent on the number of events offered and their advertising efforts for downtown businesses. Specific events have not yet been planned by the DMB Business Relations Committee in FY2016, but the budget does assume a minimum of three key events in the downtown. The Local Development Financing Authority (LDFA)’s FY2016 budget is decreasing by $118,435 or 70.8%. In 2012, the LDFA entered into a management agreement with the Lansing Economic Area Partnership (LEAP) for SmartZone management services to be provided by LEAP. As part of a larger sustainability plan for the SmartZone, LEAP was successful in obtaining funding to pay off the DDA’s debt associated with the Technology Innovation Center buildout. The City, DDA, LDFA and LEAP entered into a SmartZone and TIC Transfer Agreement in July of 2014, which eliminated the DDA’s debt and the City’s responsibilities toward management of the Technology Innovation Center.
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The recommended budget for FY2016 is $48,900. This figure represents only the East Lansing portion of the estimated tax increment revenue. TIF revenue is projected to increase again in 2016 due to high occupancy within the LDFA boundaries and related increasing property values. In FY2015, the LDFA transferred its small fund balance to the SmartZone in accordance with the SmartZone and Technology Transfer Agreement. Overall Layout Respective to overall content, you will find two basic sections: Executive Summary: This section presents an overview of the entire budget. It contains a discussion of East Lansing’s type of government, organization chart and the mission and vision statement. The City Manager’s Budget Message, a Readers Guide to the Budget and several tables are also included in this section to give the readers an executive summary of the budget. Finance Section: The finance sections are displayed by fund type. The General Fund is subdivided by functional categories to give a more user-friendly feel to the budget. We have presented a fund overview at the beginning of each fund to give the readers a summary of the activities of each fund. As an introduction to the General Fund, we have prepared as a synopsis, a table which not only shows the expenditures by function and classification, but also shows the particular revenues generated by each of the departments and classifications. While City government is in the business of providing public service to our citizens and does not operate under a profit motive, we believe it is useful to depict the revenues generated by each department, the expenditures for producing these revenues and their net impact on the General Fund. Each department activity lists a financial summary, and a description of the activities performed by each department or division. Acknowledgements We actually started the tasks of building assumptions and compiling data much earlier in the fiscal year for the update of the City’s five year financial forecast. We presented this forecast to the City Council at a council work session on Saturday, February 7, 2015. Throughout this process, all Directors, their staff and the City Council have provided thoughtful guidance and direction in setting budget guidelines and assisting with the revisions of these documents. This budget preparation season has been an especially challenging one. While this is our second year of budgeting in Financial Management in our new software system, we only converted and went live on payroll in October 2014. This was our first year of budgeting wage and fringe costs using the Position Budgeting portion of the software system and there was a steep learning curve for staff. Several employees deserve special recognition for their efforts in the preparation of this document. Jill Feldpausch, Assistant Finance Director/Treasurer, provided many of the General Fund revenue numbers as well as interest income and debt service numbers to all departments. She also drafted, reviewed and proofed many of the sections and provided excellent support to many departments. Her work and work ethic are commendable. Peggy Luckhurst, Senior Finance & Budget Analyst, and Erica Darnell, Payroll Specialist, provided all of the labor and fringe budget numbers and worked many hours to implement and learn position budgeting on the new system. Melissa Doten, Finance Accountant, provided much needed
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assistance in preparing back up documents for FY2016 journal entries and checking numbers for accuracy. Betsy Caesar, Finance Administrative Assistant, set up the entire budget document in a new format, coordinated file and document transfers with all departments and assembled the document. To all Department Directors and their staffs, we give thanks for the collaborative way they approached solving our budget challenges and for their increased involvement in the creation of our budget document. We would also like to thank Kathryn Gardner, Communications Specialists, for her help in designing the cover and other title pages in the document.
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READERS GUIDE TO THE BUDGET Fund Balance Background City governments usually organize their accounting systems on a “fund” basis. A fund is a separate set of accounting records, segregated for the purpose of carrying on an activity. A fund is established for accountability purposes to demonstrate that financial resources are being used for only permitted purposes. A fund will have “balance sheet” accounts consisting of “assets”, “liabilities” and “fund balance,” as well as a series of “revenue” and “expenditure” accounts. A fund balance is created or increased when fund revenue exceed fund expenditures for a fiscal period. The difference between the fund’s assets and liabilities equals the “fund balance.” A common misconception is that fund balance is a cash account and therefore corresponds to the City’s bank balance. While cash is an asset, it usually is not a fund’s only asset.
Our City’s Funds General Fund - The General Fund is a major fund of the City and is used to account for the resources devoted to funding services traditionally associated with local government. It uses the modified accrual basis of accounting for budgeting purposes, which recognizes revenue when it is both measurable and available. Expenditures are recognized when the liability is incurred. It has some limited interaction with a majority of the other funds. The fund balance of the General Fund can be appropriated as specified by the City Council to:
Provide a fund or reserve to meet emergency expenditures; Demonstrate financial stability and therefore preserve or enhance its bond rating, thereby lowering debt issuance costs; Avoid short-term borrowing and associated interest costs; Used to fund expenditures of the next fiscal period
Special Revenue Funds - Special Revenue Funds are maintained to account for specific revenue resources that are legally restricted to expenditures for specific functions or activities. The legal restrictions may be imposed by State Statute or Constitution, City Council Charter or City Council Resolution. Special Revenue Funds use the modified accrual basis of accounting for budgeting purposes as well. The Special Revenue Funds found in our budget are: Major Streets: The Major Streets Fund is used to finance the maintenance and construction of the City’s major thorough-fares. State Statute restricts these funds. Local Streets: The Local Streets Fund is used to finance the maintenance and construction of the City’s minor thorough-fares. State Statute restricts these funds. Parks and Recreation: The Parks & Recreation Fund is used to account for funds raised (user fees and General Fund operating subsidy) for operating and maintaining a parks and recreation program. Solid Waste Management: The Solid Waste Management Fund is used to finance the collection, recycling and disposal of the City’s garbage and refuse. It is funded by a tax levy on property and user charges for sales of residential containers, trash bags and recyclable materials.
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Prime Time Seniors: A fund created to account for the activities associated with providing services to meet the needs of area seniors. Drug Forfeiture: The Drug Forfeiture Fund includes all money seized by the police department in accordance with MCL 333.7521 of the Public Health Code. Library: The Library Fund is used in a local unit of government to account for the operations of the library. State statute and city charter governs the establishment of a library board. The library board is responsible for budgeting and expending the library funds. Community Development Block Grant: The Community Development Block Grant (CDBG) Fund is financed by grants received from the federal government and is restricted for use by economically disadvantaged citizens of the City. Public Art: A fund created, per ordinance, to purchase new public art and maintain all public art owned by the City. Funding comes from the General Fund as well as private construction projects. Art Festival: The Art Festival Fund is a project of the Arts Commission and led by its own Board of Directors. A special revenue fund is desired to account for all of the Art Festival activities.
Debt Service Funds - Debt Service Funds are established by State Statute and bond covenants to account for the recording of the collection and expenditures of resources earmarked for the retirement of debt issued directly by the City. Debt Service Funds use the modified accrual basis of accounting for budgeting.
Capital Improvement Funds - Capital Improvement Funds are used to account for financial resources to be used for the acquisition or major improvements of capital facilities. These funds use the modified accrual basis of accounting for budgeting. The City has two capital improvement funds; one for general activity and one devoted to parks and recreation capital activities.
Enterprise Funds - Enterprise Funds are financed and operated in a manner similar to a private enterprise. The intent is that costs (expenses, including depreciation) of providing services to the general public are recovered through user charges. These funds use full accrual accounting for budget purposes, which is based on Generally Accepted Accounting Principles (GAAP). Accrual accounting attempts to record transactions, events and circumstances as they occur rather than only in the periods in which cash is received or paid. The City has four enterprise funds: Automobile Parking System: The Parking Fund is used to record all activities related to the operations of the city’s parking facilities. It is financed, primarily, through user charges. Building Authority: This fund was established to serve as a financing board that authorizes and oversees the construction of city parking facilities. Sewage Disposal and Water Supply Systems: The Water and Sewer Funds are used to account for the provision of water and sewer services to the residents of the City, financed primarily by user charges. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital improvements, billing and collection.
xii
Internal Service Funds - The City’s Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City, or to other governmental units, on a cost-reimbursement basis. These funds use the flow of economic resources for measurement purposes and the full accrual basis of accounting for budget purposes. Their objective is to recover the full cost of supplying the goods or services. The City’s three internal service funds are: Garage and Public Works Services: A majority of the Public Works employees are centrally accounted for in this fund and billed out to other departments as services are provided. This fund also accounts for the purchase and maintenance of the City’s fleet. Its revenue comes from work order charges for labor and rental charges for equipment to other funds. Insurance and Benefits: This fund is used to record health and other benefit insurance & costs as well as fund workers compensation expenses and excess insurance premiums. Other funds are charged a combination of actual and manual premiums for its employees to provide the revenue for this fund. Computer Services: This internal service fund coordinates and manages the computer network system design, configuration and installation of equipment across all city departments. This cost center recovers its expenses through user rental fees that capture annual cost recovery as well as a future replacement component.
Component Units Brownfield Redevelopment Authority: Brownfield Redevelopment Authorities are established under a State Public Act and allow local governments to capture taxes for development projects, preferably on contaminated or blighted areas. Downtown Development Authority: Local governments are allowed to create Downtown Development Districts under the Downtown Development Authority Act and assess an authorized millage and use tax increment financing to promote downtown development. Downtown Management Board: Local governments are allowed to create Downtown Management Boards under PA120 (also known as the Principal Shopping District Act). Activities are financed through special assessments on downtown businesses. Local Development Financing Authority: Local governments are allowed to create Local Development Financing Authorities under Public Act 281 of 1986 and utilize tax increment financing for the purpose of developing SmartZones. DOCUMENT LAYOUT As you review the City of East Lansing’s budget document, note that it is organized by fund type. These fund types are distinguished by a unique colored title page. The General Fund is divided into functional categories as follows: General Government, Public Safety, Public Works, Culture and Recreation, Health, Welfare & Community Development, and Other Activities. Special Revenue and Other Governmental Funds will be divided with the specific fund name. The Enterprise, Internal Service and Component Unit sections are divided in the same manner.
xiii
TABLE 1 CONSOLIDATED BUDGET - ALL FUNDS
FY2015 AMENDED BUDGET
FY2016 BUDGET REQUEST
INCREASE (DECREASE) AMOUNT
General $ 33,397,060 $ 34,045,985 $ Special Revenue Funds: Major Streets 2,458,740 2,450,010 Local Streets 1,832,695 1,314,065 Parks & Recreation Facilities 4,384,600 3,886,835 Solid Waste Management 1,902,535 2,317,690 Prime Time Seniors Program 301,690 316,470 Drug Forfeiture 2,015 2,025 Library 1,961,665 2,021,500 Community Dev Block Grant 424,230 410,830 Public Art 11,525 Art Festival 163,985 180,050 Debt Service 2,192,730 2,158,700 Capital Improvements 448,380 610,370 Capital Improvements - Parks 500,000 40,000 Enterprise Funds: Automobile Parking System 4,891,915 4,455,190 Building Authority 2,047,095 2,051,235 Sewage Disposal System 10,946,305 21,577,920 Water Supply System 3,785,550 4,015,200 Internal Service Funds: Computer Services & Technology 1,035,670 1,127,750 Garage & DPW Services 4,381,810 4,166,165 Self Insurance and Benefits 7,835,115 7,335,045 Component Units: Brownfield Redevelopment Authority 882,235 959,950 Downtown Development Authority 7,589,210 1,376,390 Downtown Management Board 60,900 53,615 Local Development Financing Authority 167,335 48,900 Sub-Total Less Interfund Transfers TOTAL ALL FUNDS
648,925
-0.36% -28.30% -11.35% 21.82% 4.90% 0.50% 3.05% -3.16% 100.00% 9.80% -1.55% 36.13% -92.00%
(436,725) 4,140 10,631,615 229,650
-8.93% 0.20% 97.13% 6.07%
92,080 (215,645) (500,070)
8.89% -4.92% -6.38%
77,715 (6,212,820) (7,285) (118,435)
8.81% -81.86% -11.96% -70.78%
96,933,415
3,339,950
(20,122,740)
(18,935,910)
1,186,830
xiv
1.94%
(8,730) (518,630) (497,765) 415,155 14,780 10 59,835 (13,400) 11,525 16,065 (34,030) 161,990 (460,000)
93,593,465
$ 73,470,725 $ 77,997,505 $
INCREASE (DECREASE) PERCENT
4,526,780
3.57%
6.16%
PERSONNEL SUMMARY The City of East Lansing employs full and part-time staff in various capacities. The costs for these employees are budgeted within their respective departments. This summary represents headcount for each department, not full-time equivalents (FTE). The Actual FY2014 column indicates the number of employees on staff as of June 27, 2014. The Budgeted FY2015 column indicates what positions are currently budgeted and the Requested FY2016 indicates requests and changes for the upcoming fiscal year. The final column FY2016 Increase/Decrease indicates the changes from FY2015 to FY2016.
FY2014 ACTUAL
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
GENERAL FUND MAYOR & CITY COUNCIL Mayor** Council Mayor Pro Tem** Council Member** Asst. City Council CITY MANAGER Manager Asst. to City Manager JUDICIAL - 54B DISTRICT COURT Judge** Court Administrator Court Deputy Administrator Court Warrant Officer Court Warrant Officer PT Court Warrant Officer PT* Court Senior Clerk Court Senior Clerk PT* Court Chief Probation Officer Court Probation Officer Court Probation Secretary Court Recorder/Secretary Court Financial Coordinator Court Probation Compliance Officer Court Probation Intern PT* Court Deputy Clerk Court Deputy Clerk PT Court - Law Clerk PT* Court Administrator Clerk Court/Clerk Asst/Collections Intern/Work Study
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xv
1 1 3 1 6
1 1 3 1 6
1 1 3 1 6
0 0 0 0 0
1 1 2
1 1 2
1 1 2
0 0 0
2 1 1 1 1 1 4 2 1 2 1 2 1 1 1 4 1 4 1 0 1 33
2 1 1 1 1 2 6 2 1 2 1 2 1 1 1 8 2 3 1 0 1 40
2 1 1 2 0 2 5 1 1 2 1 2 1 1 1 6 2 3 1 1 0 36
0 0 0 1 -1 0 -1 -1 0 0 0 0 0 0 0 -2 0 0 0 1 -1 -4
FY2014 ACTUAL
FINANCE Finance Director Finance & Budget Analyst Payroll Purchasing/Accounting Asst. Administrative Asst. ASSESSING City Assessor Deputy City Assessor Administrative Secretary Intern PT* Board of Review Members*** TREASURY Treasurer/Asst. Finance Director Assistant Treasurer Receptionist Finance Assistant FT Finance Assistant PT HUMAN RESOURCES HR Director HR Compensation & Benefits CLERK/ELECTIONS City Clerk Administrative Clerk FT Administrative Clerk PT* Administrative Secretary PT* Election Worker's* COMMUNICATION SERVICES Communications Coordinator Communications Specialist FT Communications Specialist PT POLICE Police Chief Police Captain Deputy Police Chief
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xvi
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
1 1 1 1 1 5
1 1 1 1 1 5
1 1 1 1 1 5
0 0 0 0 0 0
1 1 1 2 5 10
1 1 1 3 5 11
1 1 1 3 5 11
0 0 0 0 0 0
1 1 1 3 2 8
1 1 0 5 1 8
1 1 0 5 1 8
0 0 0 0 0 0
1 1 2
1 1 2
1 1 2
0 0 0
1 1 1 0 189 192
1 1 1 1 197 201
1 1 1 1 210 214
0 0 0 0 13 13
2 1 1 4
2 1 1 4
2 1 1 4
0 0 0 0
1 1 0
1 1 0
1 0 1
0 -1 1
FY2014 ACTUAL
Administrative Asst. FT Administrative Asst. PT Building Security PT* Lieutenant Sergeant Police Secretary Jail Service Officer FT Jail Service Officer PT PACE Supervisor Pace Officer FT Pace Officer PT Administrative Clerk PT Police Officers Police Evidence/Technology Support of Info/Tech Records Police Records Assistant Police Cadets* Crossing Guards* FIRE Chief Deputy Chief Captain Lieutenant Firefighter/Paramedic Fire Marshall Fire Inspector Fire Safety Training Officer Administrative Assistant PUBLIC WORKS ADMINISTRATION Director Environmental Service Administrator Infrastructure Administrator Accounting Assistant PT Accounting Clerk Administrative Clerk PUBLIC WORKS ENGINEERING Engineering Administrator Engineering Asst Administrator Design Engineer
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xvii
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
1 1 0 5 8 1 4 3 1 1 9 2 42 1 1 4 8 20 114
1 1 0 4 9 1 4 3 1 1 8 2 42 1 1 4 8 19 112
1 1 6 5 8 1 3 5 1 1 9 2 42 1 1 4 10 23 126
0 0 6 1 -1 0 -1 2 0 0 1 0 0 0 0 0 2 4 14
1 3 6 6 31 1 1 1 1 51
1 3 6 6 31 1 1 1 1 51
1 3 6 6 31 1 1 1 1 51
0 0 0 0 0 0 0 0 0 0
1 1 1 1 1 0 5
1 1 1 1 0 2 6
1 1 1 1 2 0 6
0 0 0 0 2 -2 0
1 0 1
1 0 1
1 1 1
0 1 0
FY2014 ACTUAL
Engineering Technician II Senior Engineer Intern/Work Study PT* BUILDING & CODE Building & Code Administrator Inspector II Administrative Secretary Administrative Clerk BUILDING & HOUSING RELATIONS Housing & University Relations Administrator Inspector I Housing Inspector I Housing Inspector I PT Administrative Secretary CENC Admin Clerk CENC Admin Clerk PT Vacant Property Coordinator PT Intern/Work Study PT* PLANNING AND ZONING Planning and Zoning Administrator Comm. Development Director Comm. & Economic Development Administrator Comm. Development Specialist II Comm. Development Analyst Administrative Secretary Administrative Assistant Intern* GOVERNMENT BUILDINGS Facilities Technician Coordinator Facilities Technician
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
3 1 0 6
3 1 1 7
3 0 2 8
0 -1 1 1
1 3 1 0 5
1 4 1 0 6
1 4 1 1 7
0 0 0 1 1
1 1 1 1 1 0 1 0 0 6
1 1 2 1 1 1 0 1 1 9
1 1 1 1 1 1 0 1 1 8
0 0 -1 0 0 0 0 0 0 -1
1 1 1 1 2 1 1 1 9
1 1 1 1 2 1 1 2 10
1 1 1 1 2 1 1 3 11
0 0 0 0 0 0 0 1 1
1 1 2
1 1 2
1 1 2
0 0 0
1 1 1 1 4
1 1 1 1 4
1 1 1 1 4
0 0 0 0 0
PARKS AND RECREATION FUND ADMINISTRATION Parks & Rec Facilities Director Parks & Rec Facilities Asst. Director Parks & Rec Administrative Asst. Parks & Rec CC Administrative Asst.
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xviii
FY2014 ACTUAL
ATHLETICS/SOFTBALL/AQUATICS Recreation Coordinator Athletics CSA* CC Pool Manager* CC Lifeguard* Aquatics Head Lifeguard* Aquatics Lifeguard* Aquatics Slide Operator* Team Leader* Soccer Complex CSA PT* Soccer Complex Supervisor PT* Soccer Complex Monitors PT* Recreations Aide* Recreational Specialist* PARK STEWARDSHIP Env Stewardship/Vol Coordinator* GUEST SERVICES Parks & Rec CC Admin. Asst. Parks & Rec CC Events Planner Parks & Rec Theatre Tech Parks & Rec CC Coordinator Parks & Rec CC PT Customer Srv PT Parks & Rec CC PT Customer Srv PT* Parks & Rec Guest Services PT* SUMMER SOLSTICE JAZZ FESTIVAL Jazz Festival Coordinator PT* Jazz Festival Intern PT* COMMUNITY EVENTS Communication Intern PT* Community Events Assistant PT* SCENE METRO SPACE Scene Metro Space Director PT* PARKS, RECREATION and ARTS Team Coordinator Artistic Dir/Leader* Aerobic Instructor*
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xix
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
1 7 1 1 3 28 14 2 1 1 1 1 1 62
1 7 1 1 3 28 14 2 4 1 1 1 1 65
1 7 1 1 3 28 14 2 1 1 4 1 1 65
0 0 0 0 0 0 0 0 -3 0 3 0 0 0
1 1
1 1
1 1
0 0
1 1 1 1 1 6 4 15
1 1 1 1 1 6 4 15
1 1 1 1 1 7 4 16
0 0 0 0 0 1 0 1
1 1 2
1 1 2
1 1 2
0 0 0
0 1 1
1 1 2
1 1 2
0 0 0
1 1
1 1
0 0
-1 -1
1 1 2
1 1 2
1 1 1
0 0 -1
FY2014 ACTUAL
Camp Supervisor* Camp Aide* Ceramics Instructor* Dance Instructor* Event Aide* Personal Trainer* Massage Therapist* Fitness Instructor* Parking Attendant* Recreations Aide* Theatre Aide* Aide* CHILD CARE Childcare Coordinator Child Care Lead Teacher PT Site Supervisor Child Care Aide * Bailey Night Office Assist* Childcare Coordinator Bailey P/T CSA* Bailey Site Supervisor PT* Site Leader* Child Care Aide* Summer Camp Aides PT*
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
2 1 4 0 1 1 0 2 5 2 3 1 26
3 1 4 0 1 1 1 2 5 1 3 1 27
2 0 4 1 1 1 0 1 0 1 3 1 18
-1 -1 0 1 0 0 -1 -1 -5 0 0 0 -9
1 2 0 42 1 1 1 1 10 39 0 98
1 5 0 42 1 1 1 1 10 39 0 101
0 1 2 42 0 1 0 2 10 21 18 97
-1 -4 2 0 -1 0 -1 1 0 -18 18 -4
1 1 1 1 3 1 8
1 1 1 1 3 1 8
1 1 1 1 4 1 9
0 0 0 0 1 0 1
1 1 1 1 1 1 1
1 1 1 1 1 1 1
1 1 1 1 1 1 1
0 0 0 0 0 0 0
SENIORS FUND Program Director Program Planner Secretary PT Secretary PT* Sub Secretary PT* Recreation Specialist PT*
LIBRARY FUND Library Director Exec. Asst to Director Library Digital Resource Special Library Tech Services Supervisor PT Librarian - Senior Librarian - Teen Librarian - PT
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xx
FY2014 ACTUAL
Library Tech Assist PT Library Tech Assist Desktop PT Library Tech Assist PT* Library Assistant PT Library Page 1* Library - Work Study Page* Library-Technology Specialist Maker PT Library Marketing/Dev Spec PT Library Collect/Tech Services Librarian Library Reference PT Library Youth Specialist PT Library Circulation Supervisor
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
7 0 0 4 5 0 0 0 1 0 0 1 25
6 0 1 4 7 6 0 0 1 1 0 1 34
5 1 1 4 6 2 1 1 1 0 1 1 31
-1 1 0 0 -1 -4 1 1 0 -1 1 0 -3
1 1 2
1 1 2
1 1 2
0 0 0
1 1 1 1 2 1 5 35 47
1 1 1 1 2 1 5 35 47
1 1 1 0 2 1 6 35 47
0 0 0 -1 0 0 1 0 0
1 1 1 1 4 1 1 4 1 2 17
1 1 1 1 4 1 1 4 1 2 17
1 1 1 1 4 1 1 4 2 3 19
0 0 0 0 0 0 0 0 1 1 2
ART FESTIVAL FUND Art Festival Director PT Art Festival Assistant PT*
PARKING FUND Parking Administrator Parking Asst. Administrator Parking Operations Coordinator Accounting Clerk Parking Maintenance Tech FT Parking Maintenance Asst. PT Parking Lot Attendant Supervisor PT* Parking Lot Attendant PT*
SEWAGE DISPOSAL SYSTEM FUND WWTP Plant Superintendent WWTP Asst. Superintendent WWTP Maintenance Supervisor WWTP Physical Plant Maintainer WWTP Maintenance Specialist WWTP Maintenance Spec/Instru Elec Maintenance Specialist Fac. Main WWTP Process Control Spec -Days WWTP Process Control Spec - Afternoons WWTP Process Control Spec - Midnights
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xxi
FY2014 ACTUAL
FY2015 FY2016 AMENDED BUDGET BUDGET REQUEST
FY2016 Increase (Decrease)
DEPARTMENT OF PUBLIC WORKS FUND SERVICE POOL Public Service Employee Public Service Supervisor Public Service Employee - Lead Worker Meter Tech GARAGE Public Service Mechanics Public Service Mechanic* GIS GIS Analyst
33 1 5 3
35 1 4 3
35 1 5 3
0 0 1 0
5 1
4 0
5 0
1 0
1 49
1 48
1 50
0 2
1 1 1
1 1 1
1 1 1
0 0 0
3
3
3
0
821
859
873
14
INFORMATION SYSTEMS FUND Information Systems Manager Deputy Information Systems Manager Info Systems Support Analyst
GRAND TOTAL
* Means Contingent Employee (Hours minimal with no benefits) **Means Elected Official ***Means Appointed (Hours minimal with no benefits)
xxii
FY 2016 BUDGET TIME TABLE Friday, January 23, 2015
Payroll budget sheets out to departments for initial review
Wednesday, January 28, 2015
Payroll budget sheets back to finance with changes/revisions, etc.
Friday, January 30, 2015
Revised payroll budget sheets out to departments for final review
Friday, February 06, 2015
Payroll budget sheets and direct charges back to finance with changes/revisions, etc.
Saturday, February 07, 2015
Present 5 year financial plan at City Council Budget Retreat
Friday, March 06, 2015
Departmental budget submission deadline – all numbers and misc. info. entered into New World
March 09 – 13, 2015
Budget discussion meetings with City Manager, Finance Director and Departments, as needed
Friday, March 13, 2015
Departmental budget and narrative information keyed into word document
Friday, April 10, 2015
Preliminary budgets delivered to City Council
Tuesday, April 14, 2015
Budget Work Session – 5:30 PM Budget overview presentation Receive Council’s questions on Budget
Tuesday, April 21, 2015
Budget Work Session – 5:00 PM Human Services Capital Improvements Fund Parking Fund Council Meeting – Council to set date of Wednesday, May 6, 2015 for a Public Hearing on Budget & Tax Rate
Tuesday, April 28, 2015
Budget Work Session – 5:30 PM Utility Funds Street Funds Solid Waste Fund
Wednesday, May 06, 2015
Budget Work Session – 5:30 PM Parks & Recreation Fund Capital Improvements Fund-Parks Council Meeting – Hold Public Hearing on Budget & Tax Rate
Tuesday, May 12, 2015
Budget Work Session – 5:30 PM Final wrap up with all questions answered & review budget resolution
Tuesday, May 19, 2015
Council Meeting – Adopt FY2016 Budget and Tax Rate
xxiii
City of East Lansing, Michigan
ORGANIZATIONAL CHART East Lansing Citizens City Attorney
54-B District Court
Tom Yeadon
Chief Judge Andrea Larkin Judge Richard D. Ball
Library Director Kristin Shelley
Administrator
City Manager George Lahanas
Administrative Services
Planning, Building & Development Director Tim Dempsey
Administrator Dan O’Connor
Planning & Zoning
Human Resources
City Clerk/ Elections
Director Shelli Neumann Compensation/ Benefits Manager Sally Schepis
City Clerk Marie Wicks
Administrator Darcy Schmitt
Information Systems Administrator Alan McCarrick
Community & Economic Development Administrator Lori Mullins
City Council
Denise McCrimmon
Parking
Administrator Annette Irwin
Director Tim McCaffrey Assistant Director Wendy Wilmers-Longpre
Building & Code Administrator Glen Dempsey
Director Kelly Arndt
Director Michelle Carlson
Fire Department
Communications Coordinators Ami Van Antwerp Mikell Frey
Chief Randall G. Talifarro
Public Works & Environmental Services
Prevention
Director Scott House
Fire Marshal Gerald Rodabaugh
Operations Deputy Chief Jeff Murphy
Director/CFO Mary Haskell Assistant Director/ Treasurer Jill Feldpausch
Seniors’ Program
Art Festival
Police Department
Operations
Finance Services
Parks, Recreation & Arts
Chief Juli Liebler
Housing & University Relations
Boards and Commissions
Deputy Chiefs Jeff Alleman Steve Alvarado Troy Brya
Treasury
Assessing
Assistant Treasurer Amy Harmer
Assessor David Lee
Accounting Senior Budget Analyst Peggy Luckhurst
Infrastructure
Engineering
Administrator Ron Lacasse
Administrator Bob Scheuerman
Environmental Administrator Cathy DeShambo
Waste Water Treatment Plant Superintendent Paul Stokes
Communications Department Updated February 2015
General Fund Revenues & Expenditures
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 2
FY2016 General Fund Budget $34,045,985 Sources - Revenues
Charges for Services 13.6% Fines & Forfeits 10.1%
Investment Income 0.3%
Intergovernmental Revenues 20.6%
Other Revenues 1.5% Reappropriated Equity 1.0% Interfund Contributions 0.3%
Licenses & Permits 4.6%
Taxes 48.0%
3
FY2016 General Fund Budget $34,045,985 Uses by Function
Public Works 6.8% Public Safety 60.1%
Culture & Recreation 8.6% Health, Welfare & Community Development 2.4% Debt Service 0.2% General Government 21.9%
Uses by Account Classification Transfers to Other Funds 5.4% Personal Service 72.9%
Capital Outlay 2.0%
Operating Costs 19.7%
4
GENERAL FUND Summary of Fiscal Year 2016 Operating Activity FY2016 Budget Request
Revenues & Financing Sources: Property Taxes Intergovernmental Revenue Fines and Forfeitures Licenses and Permits Charges for Services Rental Income Cable Franchise Fees Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
16,351,285 6,996,075 3,424,745 1,559,140 4,643,380 46,040 385,000 108,950 90,000 441,370
% of Total 48.0% 20.6% 10.1% 4.6% 13.6% 0.1% 1.1% 0.3% 0.3% 1.3%
34,045,985
100%
24,802,625 6,717,295 689,765 1,836,300
72.9% 19.7% 2.0% 5.4%
34,045,985
100.0%
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Nonspendable (Inventory and Prepaids)
7,365
Assigned to Encumbrances/Appropriations
81,967
Assigned to Special Purposes
1,425,000
Unassigned
5,148,899
Total Audited Fund Balance at June 30, 2014 Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
6,663,231 (578,415)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016
6,084,816 (343,270) $
Estimated Total Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
5
5,741,546 16.9%
GENERAL FUND Revenues, Expenditures & Net Impact Function
Revenues
Division
Expenditures
Net Impact
$
$
General Government 54B District Court
$
4,638,995
3,211,495
1,427,500
Mayor and City Council
-
175,755
(175,755)
City Manager
-
341,110
(341,110)
Finance
30,000
602,275
(572,275)
Assessing
64,750
441,685
(376,935)
Treasury
4,500
349,435
(344,935)
20,000
483,400
(463,400)
-
340,095
(340,095)
148,100
376,725
(228,625)
-
274,200
(274,200)
385,000
149,460
235,540
5,291,345
442,155 7,187,790
(442,155) (1,896,445)
297,875
10,533,360
(10,235,485)
3,338,765
8,494,770
(5,156,005)
925,000
810,275
730,000 5,291,640
640,830 20,479,235
89,170 (15,187,595)
40,000 158,380 75,000 273,380
248,405 432,915 178,965 390,440 205,030 33,435 825,300 2,314,490
(248,405) (392,915) (20,585) (315,440) (205,030) (33,435) (825,300) (2,041,110)
29,000 29,000
10,000 734,020 744,020
(10,000) (705,020) (715,020)
13,900 23,146,720 23,160,620
62,300 1,421,850 1,836,300 3,320,450
(62,300) (1,407,950) (1,836,300) 23,146,720
Total $ 34,045,985
$ 34,045,985
Legal Counsel Human Resources Clerk and Elections Communication Services Cable Services Government Buildings Total General Government Public Safety Police Operations Fire Operations and Prevention Building Permits and Inspections Housing Licenses and Inspections Total Public Safety
114,725
Public Works Administration Engineering Downtown Maintenance Sidewalks Drains Alley Maintenance Street Lighting Total Public Works Community and Economic Development Economic Development Assistance Planning and Zoning Total Community and Economic Development Other Functions Social Services Parks Maintenance Transfers to Other Funds Unassigned Revenue Total Other Functions x
6
19,840,170 $
-
GENERAL FUND Estimated Revenues FY2014 Actual
Revenues & Financing Sources: Property Taxes Property Tax - Operating Millage Property Tax Administration Fee Penalties and Interest Payment in Lieu of Taxes
$
Total Property Taxes Intergovernmental Revenue State Revenue Sharing PA289 Fire Protection Federal/State Police Grants Federal/State Fire Grants Other Grants Total Intergovernmental Revenue Charges for Services City Attorney Cost Recovery Court Costs and Fines Administrative Service Charges to Other Funds: Major Street Solid Waste Management Automobile Parking System Sewage Disposal System Water Supply System Garage & Public Works Services Finance Services - ELMWSA Assessor Shared Services - Meridian Township Dispatch - MSU and Meridian Township OUIL Cost Recovery Impound Lot Charges Police - Other Fire Chief Shared Services - City of Lansing Ambulance Services Fire Rescue Contract - MSU Fire - Other DDA Downtown Maintenance Sidewalks Inspection Shared Services - Meridian Township Other Total Charges for Services
Schedule continued on next page 7
FY2015 Amended Budget
FY2016 Budget Request
14,871,563 $ 626,008 149,256 56,899
14,989,980 $ 630,500 152,500 56,900
15,475,170 664,500 152,500 59,115
15,703,727
15,829,880
16,351,285
5,093,520 1,121,971 244,552 29,052 69,926
5,258,835 1,120,000 15,075 16,300
5,382,135 1,120,000 24,375 317,265 152,300
6,559,021
6,410,210
6,996,075
43,156 1,073,351
35,630 1,000,000
20,000 1,000,000
104,510 59,050 100,860 296,145 135,765 68,685 30,000 59,297 19,000 52,565 42,333 190,661 97,911 1,212,404 326,000 124,577 93,400 30,188 267,267 95,759
106,285 100,060 102,575 301,180 138,075 69,855 30,000 63,480 19,000 50,000 30,000 154,005 50,000 1,350,000 326,000 112,795 108,935 75,000 246,525 96,450
108,520 102,160 104,730 307,500 140,970 71,320 30,000 64,750 19,000 35,000 30,000 185,000 100,000 1,350,000 326,000 125,500 123,380 35,000 250,000 114,550
4,522,883
4,565,850
4,643,380
GENERAL FUND Estimated Revenues (Continued) FY2014 Actual
Revenues & Financing Sources: Fines and Forfeitures Parking Fines Allocation of Parking Fines to Parking System District Court Ordinance Fines and Costs District Court Alcohol Screening Fees Restitution Fines Total Fines and Forfeitures Licenses and Permits Housing Licenses and Inspections Building Permits and Inspections Sign Licenses Business and Restaurant Licenses Other Licenses and Permits Total Licenses and Permits Rental Income Cable Franchise Fees Other Miscellaneous Revenue Interest Income Other Financing Sources Transfer from CIP Fund Transfer from Parks CIP Fund Contribution From DDA Contribution From BRA Reappropriated Fund Balance Total Other Financing Sources Total Revenues & Financing Sources $ x
8
FY2015 Amended Budget
FY2016 Budget Request
1,363,497 (303,820) 1,836,482 33,604 10,290
1,500,000 (270,980) 2,000,000 32,000 2,500
1,600,000 (107,755) 1,900,000 30,000 2,500
2,940,053
3,263,520
3,424,745
751,070 598,979 2,865 175,964 37,242
730,000 555,765 164,630 28,100
730,000 675,000 116,100 38,040
1,566,119 52,465 483,905 118,432 85,687
1,478,495 48,270 385,000 109,000 72,000
1,559,140 46,040 385,000 108,950 90,000
30,000 -
56,390 500,000 30,000 648,445
44,875 20,000 30,000 3,225 343,270
30,000
1,234,835
441,370
32,062,292 $
33,397,060 $
34,045,985
GENERAL FUND Estimated Revenues The FY2016 total revenue budget is $34,045,985 which is $648,925 more than the FY2015 amended budget. This is primarily due to a smaller amount of planned use of fund balance offset by increases in other areas described in more detail below. $ 15,475,170 Property Tax - Operating Millage - Based upon anticipated taxable valuation of approximately $948 million (3.5% more than prior years budget); or $907 million of taxable value after accounting for all tax increment captures. In FY2012, the operating millage was increased to the Headlee limit of 17.5891 and will remain at this level in FY2016. With the expected property tax value increases and new developments, we are expecting a 3.2% increase over FY2015 budgeted tax revenue. $
664,500 Property Tax Administration Fee - In FY1989, the City instituted a 1% tax administration fee which is permitted by law. This fee helps offsets part of the Assessing and Treasury functions. This is directly related to the amount of property taxes billed by the City for all jurisdictions.
$
152,500 Penalties and Interest - This represents the interest and penalties paid when taxpayers are late in paying their property taxes.
$
59,115 Payment in Lieu of Taxes - Payment received from Pebble Creek, East Glen, Deerpath and Woodside Glen housing developments. This is the City's share of the amount to be received from the projects due to their tax abatement.
$
5,382,135 State Revenue Sharing - The State of Michigan distributes a portion of the sales tax collected to municipalities. These State monies are unrestricted and can be used by a local unit to help fund core services. In FY2012, Governor Snyder introduced the Economic Vitality Incentive Program (EVIP) which replaced and reduced the statutory revenue sharing monies that we received. In FY2015, this was replaced with City, Village, and Township Revenue Sharing (CVTRS) which is a simplified version of EVIP. CVTRS is expected to remain flat into FY2016 with a 3.2% increase anticipated for the Constitutional piece based on the State’s latest estimates released.
$ 1,120,000
PA289 Fire Protection - This is a reimbursement for fire protection costs for state-owned buildings under Public Act 289. In FY2003, former Governor Engler was unsuccessful in eliminating the State's reimbursement for fire protection, but he was able to reduce the amount to about half of what we were getting. This source of funding has been at risk each year as the State balances their budget and continues to put more substantive reporting requirements in place to qualify for this funding. We expect FY2016 to remain flat.
$
24,375 Police Grants - The City has been awarded various grants for police activities including training funds for command officers, purchase of bullet proof vests, and overtime reimbursement for programs relating to youth alcohol, seatbelt enforcement, etc. In FY2011, the police department was awarded a federal COPS hiring grant which was being used to fund 3 police officers over a period of three years. FY2014 was the final year of the COPS hiring grant causing the FY2015 & FY2016 budget to decrease significantly.
$
317,265 Fire Grants - The City had been awarded a fire hiring grant which funded 2 firefighters over a two year period. Similar to the police grant, this fire grant was also complete in FY2014 resulting in a zero budget amount in FY2015. During FY2015, the City was awarded a State grant through the Competitive Grant Assistance Program in the amount of $793,167. This grant will offset the costs of fire equipment as well as training and will begin in FY2015 with the remaining amount expected to be expended and reimbursed in FY2016.
9
GENERAL FUND Estimated Revenues (Continued) $
152,300 Other Grants - Represents a Veterans’ Treatment Court grant of $56,000 and a Sobriety Court grant of $56,300 through the 54-B District Court. In addition, $40,000 of CDBG grant is expected to help offset costs of the sidewalk program.
$
20,000 City Attorney Cost Recovery - Represents revenues received by 54-B District Court as ordered by the judges to recover the City’s cost for the prosecuting attorneys.
$
1,000,000 Court Costs and Fines - Represents revenues of the 54-B District Court from various fines and costs assessed by the Court. FY2016 is expected to remain flat with that of FY2015.
$
835,200 Administrative Service Charges to Other Funds - Represents an allocation of general administrative expenses to other funds. These expenses include the Finance Department, Human Resources Department, City Manager, City Clerk, and City Attorney offices.
$
30,000 Finance Services - This is an administrative charge to the East Lansing Meridian Water Sewer Authority (ELMWSA) for administrative services performed by the City under an amended agreement. This amount was last adjusted in FY2010; it had been $25,000 since 1992.
$
64,750 Assessor Shared Services - In FY2011, the City entered into an agreement with Meridian Township where the City’s Assessor also acts as their Assessor. This allowed the City to recognize some savings as well as comply with the Governor’s EVIP requirements to collaborate and consolidate with other local governments.
$
19,000 Dispatch for MSU and Meridian Township - With the County consolidation of the dispatch center completed in FY2012, and the City retaining the legacy costs of retired employees, MSU and Meridian Township agreed to contribute $10,000 and $9,000, respectively for a ten-year period (thru FY2022).
$
35,000 OUIL Cost Recovery - The actual costs incurred by the police arresting someone for operating under the influence of alcohol or drugs can be assessed by judges to the guilty party. The judges have agreed to assess these costs.
$
30,000 Impound Lot Charges - The Police Department operates an impound lot at the DPW Garage for abandoned cars and those towed for outstanding tickets. This revenue represents a fee imposed per day while vehicles are impounded.
$
185,000 Other Police Charges - Includes police records reports and FOIA charges of $40,000, School Resource Officer cost sharing of $35,000, PBT tests of $16,000, inmate reimbursements of $40,000, and services to MSU of $54,000. This remains consistent with prior years except that the Resource Officer was accidentally excluded in FY2015.
$
100,000 Fire Chief Shared Services - Beginning January 1, 2012, the City entered into an agreement with the City of Lansing for job sharing the position of Fire Chief. FY2015 budget only expected a half year of services, however, the contract was extended and FY2016 assumes a full year of shared services.
$
1,350,000 Ambulance Service Charge - Most of this revenue is paid through health insurance and fees have been adjusted in previous years to accommodate the amounts insurances are generally willing to pay. FY2016 is expected to remain flat with that of FY2015 budget.
10
GENERAL FUND Estimated Revenues (Continued) $
326,000 Fire Rescue Contract - Represents the charge for fire and rescue services provided to areas owned by Michigan State University but outside the City limits. This fee formerly was a formula based on our fire costs, the state shared revenues, and the state fire protection reimbursement. MSU has canceled the contract, and instead, initiated a plan which reduced MSU's payment by $200,000 per year until it leveled off at $326,000.
$
125,500 Other Fire Charges - Includes hazmat clean up fees of $13,500 and services to MSU for special events of $112,000.
$
123,380 DDA Downtown Maintenance - Charges to the Downtown Development Authority for maintenance of the downtown area including litter and refuse services, snow removal, landscaping and assistance with downtown activity preparations.
$
35,000 Sidewalks - As the City repairs broken sidewalks, a portion of the cost is assessed to the property owner. FY2015 is expected to end the year with $43,750 of revenue compared to the budgeted $75,000. FY2016 assumes a more conservative revenue amount for the billings to property owners.
$
250,000 Inspection Shared Services - In FY2011, the City entered into an agreement with Meridian Township where the City’s Code Enforcement Department performs inspection services for plumbing, electrical and mechanical permits. This revenue is dependent on the number of permits issued by Meridian Township. FY2016 is expected to remain consistent with prior years.
$
114,550 Other Charges for Services - Charges include $27,150 from a Municipal Services Agreement with Deerpath Apartments; $29,000 of fees for rezoning and regulatory planning services; $15,000 of engineering fees for review of development plans; $32,000 of clerk FOIA and notary services as well as cost sharing for the primary election in March 2016; $5,000 of DPW downtown service charges; $1,900 of parks maintenance service charges; and $4,500 of treasury services to mortgage companies.
$
1,600,000 Parking Fines - This represents revenue collected by the Court for parking tickets issued. It includes revenue from East Lansing parking tickets that are either paid before they are due or paid after they are arraigned by the Court.
$
(107,755) Allocation of Parking Fines to Parking System - Starting in FY2009, the General Fund transferred an allocated amount based on the two years prior actual parking tickets collected to the Automobile Parking System Fund. FY2016 includes an initial reduction of $150,000 to phase out this practice with the remainder to be eliminated in FY2017.
$
1,900,000 District Court Ordinance Fines and Costs - Represents revenue derived by the Court on fines charged to those found guilty of violating City Ordinances. These fines are returned to the City which is the district control unit for the Court. FY2015 is trending low to date, therefore, the FY2016 amount was lowered.
$
30,000 District Court Alcohol Screening Fines - Fine imposed upon those convicted of alcohol related crimes to be screened for various alcohol treatment seminars, classes, etc.
$
2,500 Restitution Fines – The Police and Fire departments receive various restitution fines from individuals based on Court ordered charges.
11
GENERAL FUND Estimated Revenues (Continued) $
730,000 Housing Licenses - The bulk of this revenue is derived from housing license fees for multiple dwelling units and is meant to be cost recovery of performing the inspections and issuing the permits.
$
675,000 Inspection Fees and Permits - Includes building permit charges, as well as fees for electrical, plumbing and grading permits within the City. During the most recent recession, this revenue had decreased significantly. As the economy recovers, there has been an increase in the number of building permits issued, allowing for an increase in FY2016 budget.
$
-0- Sign Licenses – Represents annual sign licenses for all businesses within the City. Beginning in FY2015, this license will no longer be required or enforced.
$
116,100 Business and Restaurant Licenses - Estimated revenues from various business permits issued by the City including restaurant, taxi cab and entertainment licenses. FY2014 and FY2015 saw some additional revenue due to effects of the change in licensure year and prorating fees. FY2016 is expected to return to levels more consistent with FY2013 and prior.
$
38,040 Other Licenses and Permits – Includes engineering permits and inspections of $25,000 as well as $12,000 of park reservation permits and $1,040 of residential parking permits.
$
46,040 Rental Income – Represents the recognition of cell tower revenue. The cell tower lease revenue stream was sold to AP Wireless in FY2011 and the General Fund received $784,236 up front; however, this amount has to be recognized over the life of the revenue stream sold, 30 years.
$
385,000 Cable Franchise Fees - The cable franchise calls for a franchise fee of 5% of revenues collected by the cable companies doing business in the City. Currently, the City is receiving cable franchise fees from AT&T and Comcast and these are expected to remain consistent. FY2014 saw a one-time bump in revenue due to a revenue recognition timing adjustment.
$
108,950 Other Miscellaneous Revenue - Includes $104,450 of miscellaneous court revenues received from the State and $4,500 of other miscellaneous revenues from various departments.
$
90,000 Interest Income - Interest on short-term investments at current interest rates. Interest rates have stabilized and we are starting to see an increase in interest income. FY2015 is expected to end the year with an amount more consistent with that of FY2014, therefore, FY2016 is really only expecting a small increase of $2,000.
$
44,875 Transfer from Capital Improvement Fund - In FY2014, the General Fund transferred $105,000 to cover the unexpected costs to complete the St. Anne Plaza. This amount will be fully replenished in FY2016 with a portion of the Brownfield TIF capture on the St. Anne project.
$
20,000 Transfer from Parks Capital Improvement Fund - In FY2014, the General Fund transferred $500,000 to cover the costs associated with the Patriarche Park playground project. The Rotary Club continues to do fundraising for this project and the full amount was budgeted to be returned to the General Fund in FY2015, however, only $400,000 is expected at this time. An additional $20,000 is expected in FY2016 as fundraising continues and the remaining $80,000 will be reimbursed as available.
12
GENERAL FUND Estimated Revenues (Continued) $
30,000 Downtown Development Authority Contribution - The General Fund contributed the matching piece for the grant work that was completed to East Grand River by MDOT. The DDA has agreed to reimburse the General Fund, beginning in FY2013, over a period of 3-5 years by using the funds available from the taxes of the expanded DDA district.
$
3,225 Brownfield Redevelopment Authority Contribution - St. Anne Plaza costs covered by the General Fund exceeded the available amount to be reimbursed via the Brownfield TIF capture. The Brownfield Authority had available fund balance to make the General Fund whole for this small difference of $3,225 which will be completed in FY2016.
$
343,270 Reappropriated Fund Balance - Fund balance represents accumulated surpluses from prior years. It can be spent on the current year's budget, but must be done cautiously as it is like spending your savings account and when spent--it's gone. Fund balances are a cushion for emergencies and Council has set a guideline of 8-15% of operating expenditures as a target amount to hold. The FY2015 year end estimates show a planned use of fund balance of $578,415 which will bring the percentage of fund balance to 17.9% of FY2015 estimated operating expenditures. Because we ended FY2014 with total fund balance that was 20.4% of operating expenditures, in December 2014, City Council approved a budget amendment to transfer the balance ($648,445) of our FY2014 annual required contribution for OPEB to the Retiree Healthcare Funding Vehicle. In FY2016, we are planning the use of fund balance in the amount of $343,270 to assist in funding capital improvements at City Hall ($295,000), personal protective gear for the Fire Department ($34,500), Police Department body cameras ($5,000) and a small portion ($8,770) of the capital work budgeted in the Public Work’s sidewalk division. The FY2016 estimated fund balance as a percentage of operating expenditures will be 16.9% after the planned use described above, which is just over the range established in the City’s fund balance policy.
13
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 14
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Legislative Mayor and City Council George Lahanas FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
124,285 $ 48,969 -
121,770 $ 53,330 -
123,470 52,285 -
$
173,254 $
175,100 $
175,755
ACTIVITIES •
• •
Provide policy leadership to the City on a wide variety of local issues. The City Charter states, "All powers of the City shall be vested in and all matters of policy of the City shall be exercised and determined by the City Council" Listen and interpret the demands of the community Enact legislation and policy to achieve goals
EXPLANATORY INFORMATION Personnel service costs are increasing 1.4% over the FY2015 budget due to a 1.0% cost-of-living increase for the administrative staff and the difference in the cost allocation formula for work performed for the City Clerk’s office. Operating costs in the FY2016 budget are lower than the current fiscal year primarily because the training budget for City Council has been significantly reduced. The City Manager and City Council budgets have each added $500 for additional supplies that may be provided as gifts for visiting dignitaries, scholars, special speakers or employee recognition.
15
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Executive City Manager George Lahanas FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
265,201 $ 53,708 -
270,035 $ 65,315 -
277,280 63,830 -
$
318,910 $
335,350 $
341,110
ACTIVITIES • • • •
To coordinate the activities of all the departments of East Lansing City Government To facilitate communication between City management and the East Lansing City Council To provide critical information necessary for effective City Council policy decisions To marshal over City resources for the accomplishment of the City Council Strategic Priorities
EXPLANATORY INFORMATION The FY2016 budget reflects an increase in personnel services costs from prior fiscal years. The budget increase (2.7%) over FY2015 is due to a 1.0% pay increase and a scheduled step increase for the Assistant to the City Manager. Additional increases can be attributed to the annual rise in healthcare and retirement costs. Operating expenditures are budgeted slightly lower than in FY2015 due to the biennial community survey, which was conducted last year, not being included in FY2016 numbers. There are planned increases in employee training costs, internal user charges from the City’s information system fund and office supplies. The City Manager and City Council budgets have added $500 each for additional supplies that may be provided as gifts for visiting dignitaries, scholars, special speakers or employee recognition.
16
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Other Legal Counsel Tom Yeadon/Dennis McGinty FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
- $ 463,598 -
- $ 479,400 -
483,400 -
$
463,598 $
479,400 $
483,400
ACTIVITIES • • • • •
Advise City Council, the City Manager and staff on legal matters and policy Draft Ordinances as directed by City Council Defend the City in lawsuits and other legal matters Prosecute violators of City Ordinances Working with the Assessor, defend all challenges to assessments and negotiate settlements when appropriate
EXPLANATORY INFORMATION Budgeted fees from the City Attorney are estimated to increase less than 1.0% over the fees budgeted in the current fiscal year. The majority of the fees paid to the City Attorney are budgeted in this cost center but those related to housing licenses ($27,000) are budgeted directly in the City’s Housing Department.
17
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Judicial 54-B District Court Judge Andrea A. Larkin/Denise McCrimmon FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
2,172,532 $ 604,730 330
2,355,400 $ 673,530 -
2,438,645 772,850 -
$
2,777,592 $
3,028,930 $
3,211,495
ACTIVITIES As a separate branch of government and a component of Michigan's one court of justice, the court provides, through effective staff operations and management of court's activities, an accessible forum for the fair, impartial, and expeditious resolution of criminal charges, civil infraction matters, and civil claims by performing the following activities: •
• • •
• •
Arraigns defendants charged with felonies and misdemeanors, determines pretrial release conditions, conducts preliminary examinations on felonies and provides pretrial conferences, non-jury and jury trials for misdemeanor charges Assesses fines and costs in sentencing criminal defendants, and pursues enforcement of payment through issuance of bench warrants and other collection procedures Provides for and oversees community service as a component of sentencing and, when appropriate, as an alternative to payment of fines and costs Places some defendants convicted of misdemeanor criminal offenses on probation in lieu of incarceration, imposes conditions of probation designed to promote rehabilitation, and monitors defendants placed on probation to insure compliance with probation requirements Resolves traffic, parking and municipal civil infractions, and assesses civil fines and costs after finding responsibility, through informal hearings and formal hearings Resolves civil claims, small claims and landlord tenant disputes expeditiously through pretrial conferences, motions, non-jury trials and jury trials
This Court collaborates with other Ingham County District Courts and the Circuit Court and serves as the Ingham County Veterans’ Treatment Court, known as a “Specialty Court.” Qualified Veterans charged with a crime in Ingham County are offered to have their case heard in this specialty court. This allows for probation oversight and utilizes the specialized services and intervention of the Department of Veterans’ Affairs and seeks rehabilitation for those that may be suffering from injury or illness due to service to our Country. In 2014, the Court started a Sobriety Court, which is its second “Specialty Court.” Qualified participants that have been arrested for drunk driving and have been assessed as having a substance abuse disorder are given specialized treatment for drug and alcohol dependency during the term of their pending case. The purpose of this treatment court is the rehabilitation and treatment of the defendant. Statistics prove that sobriety court programs have marked success in preventing repeat offenses. A Federal Grant pays for this specialized treatment that would be otherwise unaffordable for the defendant.
18
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Judicial 54-B District Court Judge Andrea A. Larkin/Denise McCrimmon
EXPLANATORY INFORMATION The Court combined two 25-hour per week part-time positions into one full-time position in FY2015. This fulltime position was originally cut in the FY2013 budget. It was determined that part-time employees are difficult to schedule, train and keep. In a review of the cyclical nature of the busy times, it was determined additional staff is needed September through November and possibly in the spring. Three temporary/seasonal staff positions have been added each fiscal year since FY2013. These temporary employees are hourly with no benefits. As of March 13, 2015, no temporary employees have been needed, except for some nominal hours for additional training for staff in the fall of 2014. The FY2016 budget request includes the same three temporary/seasonal staff positions and the Court continues to budget but hold open one part-time position that it will likely fill. The FY2016 personnel services budget is 3.5% higher than the FY2015 budget. While it contains a modest costof-living increase of only 1.0%, higher healthcare and defined benefit pension contribution costs put upward pressure on the rate of increase. Operating costs are 14.7% higher in the FY2016 budget than the current fiscal year. These costs are higher largely due to the increased activity in both the Veteran’s and Sobriety Court operations: •
The Court was once again awarded a state grant to fund the operations of the 54-B’s Veterans Court. This is a no-match grant, and while adding a significant amount to expenditures, it is offset on the revenue side as the Court gets fully reimbursed for paid invoices. A combined amount of estimated expenditures was split between the FY2015 year end estimate and the FY2016 budget request to coincide with the State of Michigan’s fiscal year. Operating expenditures, related to this court’s operations, are budgeted at $56,300 in FY2016, compared to the $16,300 budgeted in FY2015 (FY2015 expenditures are estimated to be $45,000 by the end of the fiscal year).
•
The Court started a Sobriety Court and received a Federal Grant for its operation in FY2015. It is a nomatch grant, however, there was minor expense added for the defense attorney that attends treatment team meetings and specialty file folders. Reimbursement for those items is not reimbursed by the grant and amounts to about $7,800 per year. Total Sobriety Court expenditures budgeted in FY2016 are $71,700, compared to the $40,000 estimated for FY2015 year end.
Other budget items of interest are as follows: •
In December of 2014, the Court contracted with a third-party vendor that collects convenience fees for all credit card transactions. We estimate a $50,000 reduction in this line item in the FY2016 budget from the FY2015 amount.
•
Collection fees paid to an outside agency fluctuate, based on the level of collection activity each year, and are more than offset by the parking ticket revenue collected. Revenue collections for FY2013 were $444,037, offset by the $210,329 fee paid to the collector, and 17,321 cases were paid in full and closed, compared to $260,530 collected, $114,197 in service fees and 9,936 cases for FY2014. Results through March 1st of FY2015 are $323,565 in revenue, $140,039 paid in service fees and 13,570 cases.
19
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government - Judicial 54-B District Court Judge Andrea A. Larkin/Denise McCrimmon
EXPLANATORY INFORMATION (Continued) •
The Court continues to reduce its printing and publishing budget by performing an internal cost analysis before any form is reordered. This line item has consistently come in under its annual budget as more printing is done in-house. We expect this trend to continue through FY2016.
•
Postage costs remain steady due to an increase in utilizing electronic mail. The Michigan Court Rules allow for electronic mail for service of documents. The Court expects this trend to grow and to see a continued reduction in postal expenses.
20
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Financial Services Finance Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
514,379 $ 169,546 -
564,240 $ 78,555 -
525,320 76,955 -
$
683,924 $
642,795 $
602,275
ACTIVITIES • • • • • • • • • • • • •
Promote sound financial policies and practices and facilitate the wise use of financial resources Coordinate the 5-year forecast & budget process and prepare the annual budget document to the Council Process the biweekly payroll and pay all related taxes and liabilities Oversee the Treasury and Assessing Departments Perform risk management functions and maintain all liability insurance policies Maintain the fixed asset records for the City Deliver monthly financial reports, for internal management reporting, to Department Directors, Leading Managers and City Manager Deliver quarterly financial reports to City Council Manage the annual audit and preparation of the Comprehensive Annual Financial Report Perform financial analysis and consult with departments and the City Manager Operate as the general ledger custodian; review the processing of all business transactions and report results to City Manager Manage the conversion to the New World financial software system Issue bonds or other debt instruments when needed at lowest interest rate possible
EXPLANATORY INFORMATION The Finance Department’s budget, in total, has decreased $40,520 or 6.3% from the FY2015 budget year primarily due to a reorganization of staffing in the department. Personnel services have decreased primarily because the Budget and Accounting Administrator position has been replaced with a Finance and Budget Analyst position, in a lower pay grade. Secondly, the actual benefits needed by replacement staff were less costly than what was budgeted in FY2015 for the current staff and open position at that time. Operating expenditures are expected to decrease by $1,600 or 2.0% as the need for contracted labor to assist with work because of the software conversion is no longer needed, as was the case in FY2014 and to a smaller degree in FY2015. No capital outlay is being requested in FY2016.
21
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Financial Services Assessing David Lee/Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
383,078 $ 34,573 -
379,065 $ 46,680 -
386,790 54,895 -
$
417,651 $
425,745 $
441,685
ACTIVITIES • • • • • • • • • • •
Serve as Assessor of Record for both City of East Lansing and Meridian Township Establish values for all classes of property and prepare annual assessed and taxable values Annually canvas City for entities conducting business and send each a Personal Property Statement Compile millage rates for biannual tax collection Maintain a database inventory of all property in the City, its owner, legal description, and land and building information Inspect properties and determine value increases due to new construction Process all property transfers and determine if transfer of ownership is cause for uncapping of taxable value Process all address changes and post to tax roll Defend valuation appeals to Michigan Tax Tribunal and State Tax Commission Conduct audits on various personal property accounts Provide a resource on property tax information for taxpayers and City departments
EXPLANATORY INFORMATION In FY2011, with the retirement of the former City Assessor, the City entered into a partnership with Meridian Township to share the services of the new City of East Lansing Level 4 Assessor when hired in September 2010. According to the contract with the Township, the City bills anywhere from 40.0% to 60.0% of wage and benefit costs for the assessor. Cost recovery fees from Meridian Township were $61,847 in FY2014, budget of $64,680 in FY2015, and estimated budget of $64,750 in FY2016. The FY2016 personnel services budget is estimated to increase by 2.0% due to step and cost of living increases (1.0%) as well as higher defined benefit pension costs. The FY2016 operating costs budget increase of 17.6% is primarily attributable to anticipated costs of Michigan Tax Tribunal defenses.
22
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Financial Services Treasury Jill Feldpausch/Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
230,911 $ 120,319 -
215,505 $ 126,130 8,000
220,940 128,495 -
$
351,230 $
349,635 $
349,435
ACTIVITIES • • • • • • • • • • • • •
Collect and account for all funds received by the City including investment of idle funds Establish policies and procedures for cash and investments Ensure compliance with Federal, State and Local laws pertaining to Treasury activities Prepare and collect tax billings and distribute tax revenues to the applicable jurisdictions Prepare and collect utility billings and assist customers with billing concerns Prepare revenue budgets for most of the General Fund Administer debt service on all bonds Prepare and collect accounts receivable for monthly rents, insurance premiums, condo parking, parking validations, ambulance charges, false alarms, sidewalks program, etc. Administer Residential Parking Permit Program Monitor and receipt all parking revenues Establish, implement and monitor internal controls over all cash receipt functions in the City Assure prompt and courteous answering and routing of all phone calls for all departments within the City Effectively collect and distribute all City mail and correspondence
EXPLANATORY INFORMATION The Treasury budget is remaining consistent with prior year. Personnel services is increasing approximately 2.5% as many employees are new and in step increases. Operating costs are expected to increase 1.9% mostly due to an increase in the internal computer rental rates. All other operating cost line items are either decreasing or remaining constant. The capital outlay in FY2015 was for a small remodeling plan that added an actual office for the Assistant Finance Director/Treasurer. There is no capital outlay expected in FY2016.
23
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Financial Services Other Activities Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Contingencies Replenish Fund Balance Total Expenditures
$
- $ -
- $ 81,860
-
$
- $
81,860 $
-
EXPLANATORY INFORMATION Based on the projected revenue and expenditures used at the time we prepared the FY2015 budget request, we ended with a surplus (more revenue than expenditures) of $81,860. Accordingly, we budgeted a replenishment of fund balance in this amount for the FY2015 budget year. However, in December 2014, the FY2015 budget was amended to reappropriate the use of fund balance in the amount of $648,445 to transfer to the Self Insurance Fund to pay the balance of the City’s FY2014 annual required contribution for retiree healthcare to the trust. FY2016 budget request is expecting a use of fund balance. See reappropriated equity in the revenue section.
24
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Other Clerk and Elections Marie Wicks FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
242,242 $ 81,749 -
265,045 $ 92,610 -
291,060 85,665 -
$
323,991 $
357,655 $
376,725
ACTIVITIES • • • • • • • •
Maintain and update properly produced and indexed City Code, City Charter, and Policy Resolutions Conduct all elections in accordance with election law requirements Provide synopsis and minutes for City Council meetings Issue business licenses in a timely and efficient manner and collect related fees Oversees administration of the Greater Lansing Taxi Authority Maintain Qualified Voter File, enter new registrations, address changes, cancellations, election inspectors, voter history, and process absent voter ballot requests Serve as Freedom of Information Act Coordinator - accept, process, and maintain FOIA requests for the City's records according to appropriate statutes Serve as Chair of East Lansing Election Commission as required by City Charter
EXPLANATORY INFORMATION FY2015 was a very busy year due to the primary and general gubernatorial elections. In addition, the State Legislature in lame duck called a special election to consider a sales tax increase resulting in a third, unanticipated election scheduled for May 5, 2015. We do expect reimbursement from the state for most costs associated with the May election. FY2015 was also a busy election year as we were able to successfully implement the Electronic Poll Book in all 17 precincts. This required numerous training sessions with small groups of election inspectors but the hard work paid off. East Lansing is very fortunate to have engaged citizens who very competently staff our elections. FY2016 promises to be equally busy as we launch the Greater Lansing Taxi Authority (GLTA) which the Office of the City Clerk will be administering on behalf of the region. We will also hold a City Council Election on November 3, 2015 and a Presidential Primary on March 8, 2016. It should be noted that the majority of the 9.8% increase in personnel costs from FY2015 to FY2016 reflects the cost of Election Inspectors who work in the polls on Election Day. Like the May 2015 election, we do anticipate reimbursement from the Federal Government for many costs associated with holding the Presidential Primary including pay for Election Inspectors. The FY2016 budget for operating costs is decreasing by 7.5% largely due to reductions in the budgets for operating supplies, printing, and legal notice publications.
25
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Other Communication and Cable Services Ami Van Antwerp/George Lahanas FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
219,956 $ 188,451 -
218,045 $ 190,450 -
224,050 199,610 -
$
408,407 $
408,495 $
423,660
ACTIVITIES • • • • • • • • • • • • •
Produce the City’s printed publications, including the Dialog and Annual Report Write and distribute news releases Manage content for the City’s website and intranet Manage social media for City of East Lansing, Downtown East Lansing, East Lansing Farmer’s Market, East Lansing Police Department Help administrate Nixle alerts and e-Town Hall topics Create e-newsletters for various departments Provide graphic design services to all City departments Take photos for City marketing materials/publication and historical purposes Plan news conferences and media events for various City departments Oversee delivery services on Channel 22 and community bulletin board information Provide printing support to various neighborhood associations Serve as staff to the East Lansing Arts Commission Work on a variety of community initiatives, including One Book, One Community and Celebrations Committee
EXPLANATORY INFORMATION The responsibilities of the Communications Department are performed by three full-time staff and one part-time staff person. Two of the staff members have a percentage of their time charged to Community Events (in the Parks and Recreation Fund) so the increase in personnel service costs is largely a function of how many labor hours are allocated here. Increases in both health insurance and defined benefit pension costs are also contributing to the higher budget for FY2016. The Communications and Cable Services operating cost budget is being increased by 4.8% to cover the costs of new audio recording services for the East Lansing City Council Work Sessions and a full subscription to Nixle.
26
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Other Human Resources Shelli Neumann FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: $
Personnel Services Operating Costs Capital Outlay
276,637
$
61,050 Total Expenditures
$
337,687 $
263,570 $ 66,490 330,060 $
270,385 69,710 340,095
ACTIVITIES • • • • • • • • • •
Administer and negotiate eight collective bargaining agreements Recruit, interview, test and hire applicants for all City positions Administer and manage the City's workers’ compensation program Coordinate, develop and administer all benefits programs Plan, direct and coordinate health and wellness training activities Assist City Manager with special projects Provide professional staff support to the Human Relations Commission Develop and administer all personnel policies, procedures, rules and regulations of all related human resource programs Act as professional resource for all City departments and legal counsel on human resources issues including employee grievances, prohibited conduct investigations and disciplinary actions Administer a sound wage and classification system which effectively attracts and retains well-qualified personnel for all job classes and which promotes internal equity
EXPLANATORY INFORMATION Personnel service costs are increasing in the FY2016 budget from the current fiscal year by 2.6%. This cost increase is due to a 1.0% annual cost of living increase, associated benefit cost increases, as well as the Human Resources Director’s step increase. Operating costs are increasing by 4.8% in FY2016 largely attributable to higher user charges from the Information Systems Fund for the department’s computer rental. Small increases were also made to both the training account and the employee recognition account. No capital outlay is being proposed in the budget request.
27
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Other Government Buildings Carlos Barajas/Timothy McCaffrey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
227,342 $ 306,547 88,052
220,895 $ 269,405 94,655
209,235 232,920 -
$
621,941 $
584,955 $
442,155
ACTIVITIES The Government Buildings division provides maintenance services for certain City buildings. These activities include: •
• •
•
Provide maintenance services for City Hall/54B Municipal Court, Hannah Community Center, East Lansing Public Library, Fire Station #1, Bailey Community Center, Valley Court Community Center, Orchard Street pumphouse, DPW Building, and building structures at Aquatic Center, Softball Complex and Soccer Complex. Coordinate the planning, administration and implementation of building capital projects, equipment replacement and other maintenance related projects at City buildings. Coordinate the planning, administration and implementation of the custodial services agreement for City buildings (City Hall/54B Municipal Court, Hannah Community Center, East Lansing Public Library, Bailey Community Center, and DPW Building). Coordinate the HVAC preventative maintenance program for City buildings (City Hall/54B Municipal Court, Hannah Community Center, East Lansing Public Library, Bailey Community Center and DPW Building). In FY2013, the HVAC preventative maintenance program was moved from a contract service to in-house service performed by City staff from the DPW/Waste Water Treatment Plant. Due to a recent staff resignation it is anticipated that the preventative maintenance program implementation will continue as an in-house service performed by City staff, however, the new staff person will be a part-time Government Buildings/Parks and Recreation staff person instead of a full time DPW/Waste Water Treatment Plant staff person sharing time between both functions.
28
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General General Government – Other Government Buildings Carlos Barajas/Timothy McCaffrey
EXPLANATORY INFORMATION The FY2016 Government Buildings budget request is $442,155. The responsibilities and activities of this division are performed by two full-time staff (Facilities Maintenance Coordinator and Facilities Maintenance Technician) under supervision of the Director of Parks and Recreation. In addition, the Assistant Director of Parks and Recreation often serves as the Project Manager for the larger government building related projects. As explained earlier, HVAC maintenance is to be performed by a part-time Government Buildings staff position instead of a higher-cost DPW staff position, so the personnel service budget in FY2016 is decreasing by 5.3% from the FY2015 budget. Operating expenditures in the FY2016 budget are $36,485 (13.5%) lower than the current budget. In past years, the supervisor of the contracted custodial service was charged solely to the General Fund, even though custodians were charged out to their service location. In the FY2016 budget, we will be allocating the supervisor’s costs in a manner consistent with the ratio of the custodial labor assigned to other fund’s cost centers. Additionally, the City Hall repairs and maintenance budget request is $15,005 lower than the FY2015 budget, in spite of having $19,045 budgeted for the repair of roof areas A1/A2 and roof area B at $10,920. Due to the nature and scope of the City Hall Building Security project, capital outlay expenditures in FY2016 are being budgeted in the Capital Improvements Fund under the Facility Improvements Division rather than in the Government Buildings budget as was done in FY2014 and FY2015.
29
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Police Operations Chief Juli Liebler FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
8,637,919 $ 1,064,447 -
$
9,702,366 $ FY2014 Actual
8,755,075 $ 1,296,685 13,000
9,298,475 1,229,885 5,000
10,064,760 $ 10,533,360
FY2015 Amended Budget
FY2016 Budget Request
Police Operation Divisions: General Administration Patrol and Enforcement Detective Bureau Custody Dispatch Support and Records Parking Enforcement Total Expenditures
$
544,740 $ 1,137,206 5,234,736 1,169,098 375,451 59,670 560,972 620,494
665,325 $ 1,193,245 5,219,860 1,191,085 397,410 60,175 581,505 756,155
645,020 1,434,110 5,283,390 1,335,795 414,950 61,340 556,530 802,225
$
9,702,366 $
10,064,760 $
10,533,360
ACTIVITIES • • • • • • •
Prevent crime, protect life and property & preserve peace, order and safety Enforce laws and ordinances & safeguard constitutional guarantees of all citizens Promote community cooperation and problem solving through partnerships Assure compliance with all applicable laws, regulations, and internal controls through training, pre-audit reviews, and audits Investigate problems and incidents and present evidence for prosecution of offenders Provide information to the public to foster a sense of openness and public trust Enforce parking and code ordinance violations including: all parking ordinances; other code violations to include, but not limited to, litter and rubbish violations, abandoned vehicles, over-grown lawns and nonoutdoor furniture violations
30
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Police Operations Chief Juli Liebler
EXPLANATORY INFORMATION The combined police budget for FY2016 is $10,533,360. The increase over the FY2015 budget ($468,600 or 4.7%) is driven entirely by the increases in personnel service costs described below: •
• • •
Hiring of part-time security officers for the City Hall Security Project which will add $100,000 in personnel service and operating costs in the administration division of the department. These will be contingent positions and as such, will not be eligible for healthcare, retirement or other fringe benefits. Staff and officers receiving a modest 1.0% cost-of-living increase and/or receiving contractual step increases make up $229,760 of the total increase in the full-time wage budget. Part-time and contingent employee hours/wages, other than the $100,000 for the new building security officers, account for another $115,650 in increases. The remaining increases in FY2016 can be attributed to higher defined benefit pension costs and healthcare costs.
Our sworn strength will remain at 57 officers in FY2016. Operating costs are going down $66,800 (5.2%) due to a reduction in equipment replacement charges from the Computer & Services Technology Fund. The budget for gasoline and oil fleet charges was also reduced by the DPW Director to bring it more in line with actual costs in prior fiscal years. Capital outlay of $5,000 is included in the FY2016 budget for the purchase of ten body cameras.
31
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Fire Operations and Fire Prevention Chief Randall Talifarro FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
6,635,263 $ 867,880 -
6,815,330 $ 936,135 -
7,160,325 982,680 351,765
$
7,503,143 $
7,751,465 $
8,494,770
ACTIVITIES The City of East Lansing Fire Department is comprised of forty-six full-time professional firefighters. We provide a host of services on a 24-hour around the clock basis. These services include: • Fire Suppression • Advanced Emergency Medical Life Support (Paramedic Level) • Hazardous Material Response (Technician Level) • Confined Space/Structural Collapse Rescue (Technician Level) • High Angle Rescue (Technician Level) • Swift Water Rescue • Rail response (Technician Level) • Emergency Management Fire Prevention services and activities include: • Plans Review (new construction and remodels) • Code Enforcement and Promulgation • Public Safety Education (Pumper & Pals, Juvenile Fire Setters, 4-H, etc.) • Fire and Arson Investigation The Fire Department also participates in a number of Greater Lansing Regional Teams including: • The Lansing Metro Haz-Mat Response Team • The Lansing Area Rapid Regional Response Team (a State led WMD Team) • The Lansing Area Special Operations Technical Response Team • The MSU/ELFD Rapid Assessment Team (RAT ) • Ingham County Local Emergency Planning Committee (LEPC) • (LEPC/MSU/Lansing) Disaster Drill Development Committees
32
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Fire Operations and Fire Prevention Chief Randall Talifarro
EXPLANATORY INFORMATION We are seeing the personnel service budget in FY2016 increase $344,995 over that of FY2015. This is a 5.1% increase and can be attributed to increases in annual defined benefit contributions, increased healthcare costs, and a 1.0% cost-of-living wage increase. It should be noted that with the exception of new hires, all uniformed employees also paid 1.0% more in their personal contributions to their pension fund. In the upcoming fiscal year, up to six employees are eligible for retirement and, if need be, we would likely have an opportunity to address any required staffing reductions through attrition. In the FY2016 budget, operating costs are increasing by $46,545 or 5.0%, largely as a result of higher internal user charges for equipment maintenance and replacement from the Department of Public Works and from the Information and Computer Services Fund. In January 2015, the Fire Department was awarded Competitive Grant Assistance Program (CGAP) funding from the Michigan Department of Treasury in the amount of $793,167 to fund a new Lansing Metro Active Violence Response Initiative. This reimbursement-based grant is a multi-year grant and a budget amendment will be requested in FY2015 to appropriate grant-related capital outlay expenditures (and the associated revenue) in the amount of $475,900 in addition to the purchase of $125,000 of EKG monitors and defibrillators which will be paid for with reappropriated fund balance that was assigned for special purpose at the end of FY2014. The remaining grant proceeds are budgeted to be spent and received in the FY2016 budget in the amount of $317,265. Additional capital outlay in the FY2016 budget, $34,500, is for replacement of several units of personal protective gear and Self-Contained Breathing Apparatus (SCBA).
33
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Building Permits and Inspections Glen Dempsey/Tim Dempsey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
427,366 $ 77,867 -
557,335 $ 103,975 2,000
650,470 159,805 -
$
505,233 $
663,310 $
810,275
ACTIVITIES Assures the safety of the built environment by: • Administering and enforcing State codes and standards controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and their various components • Reviewing building plans for code compliance • Issuing permits regulating construction within the City • Coordinating staff attendance to state approved training and education programs, to stay in-tune with new approved products in an ever changing industry and to maintain compliance with the "Building Officials and Inspectors Registration Act" and International Code Council (ICC) certifications • Coordinating and inspecting temporary structures (tents and stages) • Responding to complaints of dilapidated and non-code compliant structures and actively pursuing to correction • Responding to and inspecting homes and businesses for damage by fire, wind, flooding, … etc. • Assisting other departments to plan and construct physical improvements and provide expert advice • Providing administrative, clerical, research and technical assistance to the Building Board of Appeals • Providing inspection services to Meridian Township for plumbing, electrical and mechanical permits • Coordinating with the fire department proper installation and testing of fire protection and alarm systems • Coordinating with others, including county health department and plan review committee, for approvals for new businesses • In conjunction with the Planning and Zoning division, administering, enforcing, and interpreting the sign code to regulate the location, size and placement of all signs in the City through inspection and licensing • Actively participating in state and national organizations to influence code development and legislative issues that impact building safety • Serving as the manager and point of contact for the Americans with Disabilities Act (ADA) requirements • Managing the City’s efforts to gain entry in FEMA’s Community Rating System as part of the National Floodplain Insurance Program
34
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Building Permits and Inspections Glen Dempsey/Tim Dempsey
EXPLANATORY INFORMATION FY2016 will be the third full fiscal year that the Code Enforcement Department has been consolidated with the Planning and Economic Development Department. Inspection staff currently includes two building inspectors, one electrical inspector, one plumbing/mechanical inspector, and the division administrator. Employee inspector staffing is supplemented with contracted labor; one electrical, one plumbing, and one combined plumbing/mechanical inspector. Due to the increase in permit activity, the additional administrative staffing has helped fulfill the requirements of front office administrative duties (customer inquiries, handling of permit applications, issuance of permits, maintenance of files, FOIA requests, the closing of files, and assisting other staff as needed), timely plan reviews, inspections, handling complaints, and assisting the public. The replacement of a plumbing/mechanical inspector with a building inspector, along with the use of contract inspectors, has helped address timely plan reviews, inspections, handling complaints, and assisting the public. With the increase in activity, our department’s total budget is increasing by 22.2%. Personnel service budgets are increasing 16.7% because of the additional staffing and operating costs budgets are going up by 53.7% due to more staff to train, and utilizing more contract services. All of these extra costs will be off-set by the increase in revenues from the continued growth in construction activity. Our contract services will also include scanning services for record retention which will allow us to preserve blue prints and files in electronic form and eliminate many hard copies. We are scheduled to continue in the second year of a four-year plan to purchase a code and standards library as required by state law and have included extra money in office supplies ($2,000) to purchase file cabinets for improvements in file and documentation storage. We also are continuing to explore options with a partnership or other ways to have access to the required codes and standards.
35
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Safety Housing Licenses and Inspections Annette Irwin/Tim Dempsey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
499,114 $ 115,579 -
527,185 $ 142,010 500
496,955 143,875 -
$
614,693 $
669,695 $
640,830
ACTIVITIES Assures the safety of the built environment by: • • • • • • • • • • • • • •
Conducting inspection of rental housing and administering the rental housing license process Administering and enforcing the property maintenance code Providing administrative, clerical, research and technical assistance to the Housing Commission Investigating and performing case management related to problem properties, noise problems, etc. Investigating and enforcing rental licensing violations, including renting without a license and overoccupancy Maintaining the rental property database and related statistical information Serving as a source of information and assistance for citizens, tenants and property owners regarding specific rental community issues Working cooperatively with PACE and the Fire Department in coordination of code enforcement issues Tracking and registering vacant properties, including follow-up activities to ensure code compliance and minimize blight Working cooperatively with student organizations to find ways to improve housing education communication to the student body Work with Michigan State University on off-campus student living issues Participate on the Community Relations Coalition, Capitol Area Housing Partnerhsips, and the Celebrations Committee Provide training opportunities for inspectors through Michigan Association of Housing Officials and encourage attendance to attain certification Take advantage of opportunities through the International Town Gown Association (ITGA)
EXPLANATORY INFORMATION The proposed FY2016 personnel service budget is down 5.7% from that of FY2015 as overall staffing allocated between the building and housing functions have changed. A part-time Vacant Housing Coordinator position was budgeted and filled in FY2015; it is now vacant but will be filled as soon as a replacement can be found. Operating costs are being budgeted to increase only 1.3% in FY2016, largely a reflection of inflationary cost increases and an increase in the user rental charges from the City’s internal service fund, Computer Information & Technology.
36
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Works Administration Scott House FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
190,549 $ 32,460 -
181,960 $ 9,850 -
210,105 38,300 -
$
223,008 $
191,810 $
248,405
ACTIVITIES • • • • • • • • • • •
Coordinate and administer the day to day activities of the Public Works Department Receive and provide information regarding all Public Works-related telephone calls and emails Process Public Works Department daily payroll records Initiate Public Works generated bills Maintain the Public Works data and documents Administer accounting, budgetary and purchasing functions of the department Provide department clerical services Administer department safety programs Administer DPW and UAW contracts Administer drug and alcohol testing, commercial drivers’ licenses, MIOSHA requirements, etc. Administer State and Federal required programs
EXPLANATORY INFORMATION A portion of the Director of Public Works, the Infrastructure Administrator, the Environmental Services Administrator and the department’s clerical staff are all charged to the Administration Department in the City’s General Fund. The balance of the administrative staff’s costs are charged out to several funds that are part of the public work’s function in recognition of the work they perform for all public work’s activities. For FY2016, the personnel service costs in the General Fund are increasing by 15.5% largely due to more time being spent on administrative duties by the new Director and Administrators. Operating costs are increasing by $28,450 in FY2016, when compared to the FY2015 budget, primarily due to increases to equipment rental rates being charged by the Garage Fund and the addition of contract services for safety consultants.
37
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Works Engineering Scott House/Bob Scheuerman FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
319,393 $ 116,413 -
353,750 $ 126,690 -
285,070 147,845 -
$
435,806 $
480,440 $
432,915
ACTIVITIES • • • • • • • • •
Evaluate and recommend projects to improve and maintain the City's infrastructure system Design and supervise the construction of City infrastructure improvements Review, approve and monitor new and redevelopment project site improvements Monitor traffic systems and design safety improvements Provide staff support services to Transportation Commission and Neighborhood Groups on traffic related issues Monitor and permit all work that occurs within the City right of ways by public and private contractors Provide engineering knowledge and expertise to City departments for ongoing capital projects Administer the City's soil erosion and sedimentation control program Maintain the City's engineering records
EXPLANATORY INFORMATION The engineering department is composed of one Engineering Administrator, one Engineering Assistant Administrator, one Design Engineer and three engineering technicians. The respective accounts are billed through internal service charges for the services provided to other funds that account for public work’s activity. Personnel services costs decreases of 19.4% in the FY2016 budget are due to more activity being billed to other funds or departments, such as the Sewer Fund for the Waste Water Treatment Plant project, and a decrease in pension costs. Operating costs are being budgeted higher (16.7%) in FY2016 largely due to the need for contract engineering services for studies and services of a specialized nature.
38
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Works Downtown Maintenance Scott House/Cathy DeShambo FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
139,734 $ 38,445 60,373
137,245 $ 40,025 -
125,125 45,840 8,000
$
238,552 $
177,270 $
178,965
ACTIVITIES • • • • • •
Provide litter and refuse container services in the Downtown and Parking Structures Maintain the downtown area landscaping and plantings Provide snow removal in the Downtown area Provide support services to Downtown activities Install street banners and holiday decorations in the Downtown Provide support services to the Downtown Development Authority
EXPLANATORY INFORMATION The public works staff is pooled and recorded in the Garage and DPW Services Fund. Charges are billed via internal charges for the services provided to the other funds. The public works activities related to special events are included in this activity. DPW staffing for downtown maintenance continues to be evaluated to effectively utilize staffing to maintain downtown East Lansing. In the FY2016 budget there is an 8.8% decrease in personnel costs due to a decrease in pension costs. The 14.5% increase in operating costs is the result of an adjustment in the internal equipment rental rate. Capital outlay of $8,000 is budgeted in FY2016 to begin the study to improve banner hardware and mounting systems.
39
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Works Street Lighting Scott House/Ron Lacasse FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
- $ 788,693 -
- $ 786,000 -
825,300 -
$
788,693 $
786,000 $
825,300
ACTIVITIES •
Coordinate the City's street lighting contracts with the Board of Water and Light and Consumers Energy Company
EXPLANATORY INFORMATION The FY2016 budget reflects a 5.0% increase to cover higher electricity rates, maintenance costs, and additional growth in the system.
40
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Public Works Sidewalks, Drains and Alley Maintenance Scott House/Bob Scheuerman FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
50,577 $ 179,890 74,675
89,050 $ 178,550 250,000
79,695 224,210 325,000
$
305,142 $
517,600 $
628,905
ACTIVITIES • • • • • • • • • •
Administer the City's hazardous sidewalk replacement program Construct new sidewalks as ordered in by City Council Fund MS4 Storm water Management Program Provide routine maintenance on City's open drains Fund County drain maintenance programs Fund County and/or inter-County drain special assessments Plow sidewalks in the Downtown area, along school routes and adjacent to most major streets Maintain the existing alley surfaces for vehicle traffic Plow alley surfaces Reconstruct alley surfaces as permitted by funding levels
EXPLANATORY INFORMATION This division combines the costs of sidewalks, drains and alley maintenance, as well as County and inter-county drains’ special assessments. In FY2016, a hazardous sidewalk program and sidewalk improvements as part of street projects have been included in the budget (capital outlay of $250,000). The hazardous sidewalk program provides inspections of the sidewalks in a portion of a city neighborhood and replaces any walks that are deemed hazardous and assesses a portion of these costs back to the property owners and pays for the City portion of sidewalk improvements. The remaining $75,000 in capital outlay is intended for sidewalk work in the Chesterfield Neighborhood as part of the utility and street project expected to start in the spring of 2016. In FY2016, drains consist of $15,500 for the permit fees and other costs associated with the MS4 storm- water management program, $64,000 for the Towar Snell Drain assessment, $28,000 for the Remy-Chandler drain assessment and $27,500 for miscellaneous Clinton and Ingham county assessments. Included in the FY2016 drain’s operating budget (contract services) is $40,000 for culvert lining of storm sewers. The alley maintenance budget is estimated to decrease slightly in FY2016 at $33,435 compared to $35,740 in the FY2015 budget.
41
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Community and Economic Development Planning and Zoning Tim Dempsey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
688,280 $ 154,457 -
643,260 $ 128,220 -
625,440 108,580 -
$
842,737 $
771,480 $
734,020
ACTIVITIES Planning & Zoning: • Perform ongoing Site Plan and Special Use Permit reviews • Enforce the Zoning, Subdivision and Historic Preservation Codes • Provide staff support to the Planning Commission, Zoning Board of Appeals, and Historic District Commission • Undertake the update to the Comprehensive Plan • Prepare the annual update to the Capital Improvement Program • Craft modifications to the relevant ordinances as necessary • Participate in regional planning initiatives through the Tri-County Regional Planning Commission and other regional agencies Community & Economic Development: • Provide staff support for the Brownfield Redevelopment Authority, Community Development Advisory Committee, Corridor Improvement Authority, Downtown Development Authority, and Downtown Management Board • Administer the Community Development Block Grant funding and Section 108 Loan • Implement development and redevelopment projects • Partner with regional entities on transportation related initiatives, e.g., bus rapid transit and the new multimodal transit center • Promote homeownership in East Lansing by completing the Avondale Square project and providing support to Hometown Housing Partnership • Promote economic development through business retention and attraction activities, as well as tools such as the economic development web site • Continue to provide financial support for the Technology Innovation Center through the Local Development Finance Authority (LDFA) Parking: • Provide staff support for the Parking Task Force • Work with the Parking Division to update the Parking Master Plan • Assist with implementation of the Capital Improvement Program • See parking division budget for detailed parking activities
42
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Community and Economic Development Planning and Zoning Tim Dempsey
EXPLANATORY INFORMATION The department’s proposed FY2016 personnel services budget is down 2.8% compared with FY2015. The reduction is primarily due to cost allocation of staff to other funds supported by the department. Funds from the Community Development Block Grant program, Brownfield Redevelopment Authority, Downtown Development Authority, Downtown Management Board, Local Development Finance Authority, Parking, Building, and Housing now offset almost $318,000 of Planning staff costs. Overall staffing is proposed to remain static from FY2015. Operating costs are expected to decrease by 15.3% or $19,640 primarily due to a reduction in contract services. The consultant work for the Comprehensive Plan will be ending and we are not planning on any substantial consultant work in FY2016. If possible, we hope to utilize future grant dollars to help with future zoning code amendments. In addition, we are planning to purchase digital tablets for the Planning Commission members to use, an expense to be offset by significantly reduced copy costs.
43
DEPARTMENT APPROPRIATION General Health and Welfare & Community Dev Social Services and Economic Dev Assistance Tim Dempsey/Amy Schlusler
FUND FUNCTION DIVISION STAFF RESPONSIBLE
FY2014 Actual
FY2015 FY2016 Amended Budget Budget Request
Expenditures: Social Services
$
74,945
Economic Development and EHOP Total Expenditures
$
912 $
75,857 FY2014 Actual
69,800
$
10,000
15,000 $
84,800
62,300
$
72,300
FY2015 FY2016 Amended Budget Budget Request
Social Services: $
2,500 1,996 2,750 2,500 1,000 14,999 2,027 3,434 2,388 3,000 3,122 14,328 3,500 8,000 9,401 -
$
3,000 2,772 3,950 1,500 2,000 3,000 3,750 4,500 4,000 3,000 4,000 14,328 3,500 9,000 7,500 -
$
2,000 2,000 3,588 1,000 2,500 3,250 3,000 3,338 2,000 3,590 14,758 3,200 7,700 3,750 2,838 3,788
$
74,945
$
69,800
$
62,300
$
3,000 10,500 10,000
$
3,000 10,500 25,000
$
3,500 10,500 25,000
Total Social Services $
98,445
$
108,300
$
101,300
Big Brothers & Big Sisters Capital Area Center for Independent Living Capital Area Literacy Coalition Capital Area United Way Child and Family Charities-CAPS Program Community Relations Coalition EVE, Inc. Gateway Community Services/Child and Family Haven House MSU Community Music School MSU Safe Place East Lansing Youth Scholarship Tri County-Consortium Dues Tri County-Meals on Wheels Volunteers of America MI Listening Ear Greater Lansing Food Bank Information Technology Empowerment Center
Social Services Budgeted in Other Divisions: Martin Luther King Jr. Commission - City Council Arts Comm Agencies - Arts Admin (P&R Fund) Comm Relations Coalition - Housing Licenses/Insp
44
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Health and Welfare & Community Dev Social Services and Economic Dev Assistance Tim Dempsey/Amy Schlusler
EXPLANATORY INFORMATION Employee Home Ownership Program (EHOP) - $10,000. Joint program between the City of East Lansing and Michigan State University provides down-payment assistance for employees to purchase homes within targeted neighborhoods in the City. The Community Development Advisory Committee has made the following recommendations on the funding of Social Service Agencies. Requested $
2,000 Big Brothers Big Sisters - The CD Advisory Committee recommended $2,000 in funding. Children from the East Lansing public schools are paired with an adult mentor, to serve as positive, listening ears and a support person in his/her life.
$
2,000 Capital Area Center for Independent Living - The CD Advisory Committee has recommended funding at a total of $2,000. This agency provides community education programming to residents and students in the East Lansing Public Schools. Specific programming is geared towards anti-bullying education and one-on-one short-term life skills counseling.
$
3,588 Capital Area Literacy Coalition - The CD Advisory Committee recommended funding at $3,588. This organization provides diagnostic and tutoring services for low-moderate income residents. Several persons are also provided English as a Second Language mentoring services.
$
1,000 Child & Family Charities (formerly known as Child Abuse Prevention Services) - The CD Advisory Committee recommended funding for this organization at $1,000. This proposed program will provide educational services and community presentations focused on the prevention of child abuse and neglect, and raising healthy and happy children. The CD Advisory Committee has also recommended CDBG funding for the administration of child care services for this agency in the total amount of $6,400.
$
2,500 EVE, Inc.- The CD Advisory Committee recommended that this contribution be $2,500. The proposed programming includes community education, crisis counseling, and individual counseling regarding domestic violence. EVE, Inc. is also recommended to receive CDBG funding of $7,375 for shelter and crisis legal services.
$
3,250 Gateway Community Services (now a division of Child & Family Charities) - The CD Advisory Committee recommended that $3,250 is allocated for the Street Outreach Program which provides outreach, emergency shelter, independent living education, and job skills training to runaway, homeless, and at-risk youth (ages 12-21). In January of 2015 (after application was due), Gateway Community Services officially merged with Child & Family Charities and now serves as a division within the organization.
$
3,000 Haven House – The CD Advisory Committee recommended $3,000 in funding. Haven House provides shelter and counseling services to families with children. Through the proposed programming, agency staff members will instruct individual life skills classes for tenants. Haven House is also recommended to receive CDBG funding of $31,024 for support of the shelter operations.
45
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Health and Welfare & Community Dev Social Services and Economic Dev Assistance Tim Dempsey/Amy Schlusler
Requested (Continued) $
3,338 MSU Community Music School - The CD Advisory Committee recommended that $3,338 is allocated for Music Education and Music Therapy classes for low income East Lansing residents. The majority of persons provided with financial aid for tuition of the classes are children.
$
2,000 MSU Safe Place –The CD Advisory Committee recommended funding at $2,000. Proposed programming includes community and college course presentations, educating persons on the prevention and warning signs of sexual and emotional violence. The CD Advisory Committee has also recommended that this organization receive $7,375 in CDBG funds for a shelter and counseling program.
$
3,590 Youth Scholarship Program (East Lansing Parks & Recreation Department) - The CD Advisory Committee recommended funding at $3,590. This program allows youths from low-moderate income families to participate in programs provided by East Lansing Recreation & Arts and Middle School sports.
$
14,758 Tri-County Aging Consortium – Recommending $14,758 be allocated for the City of East Lansing’s annual Consortium membership dues.
$
3,200 Tri-County Aging Consortium Meals-on-Wheels - The CD Advisory Committee recommended funding at $3,200. This organization provides a nutritious meal and “wellness check” to home bound Senior citizens residing in East Lansing.
$
7,700 Volunteers of America - The CD Advisory Committee recommended funding in the total amount of $7,700. These dollars will aid in the administration of the New Day Shelter, which provides homeless persons with assistance in housing and employment, life-skills and substance-abuse education, health care and mental health services.
$
3,750 Listening Ear - The CD Advisory Committee recommended funding in the total amount of $3,750. These dollars will aid in the administration of crisis intervention phone bank which operates 24/7, 365 days a year.
$
2,838 Greater Lansing Food Bank - The CD Advisory Committee recommended funding in the total amount of $2,838. This organization will administer the creation of home or community gardens in which East Lansing residents will grow their own food, with the Food Bank providing training assistance, access to seeds, plans starts, tools, and other resources.
$
3,788 Information Technology Empowerment Center - The CD Advisory Committee recommended funding in the total amount of $3,788. This organization will provide after-school instruction to elementary students that are underperforming in their math classes or on standardized tests. Assistance is provided through one-on-one tutor instruction, mentorship, and access to an online math tutoring program.
46
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Culture and Recreation – Parks Parks Maintenance Scott House/Cathy DeShambo FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Expenditures: Personnel Services Operating Costs Capital Outlay Total Expenditures
$
848,197 $ 514,902 -
942,060 $ 460,795 -
903,790 518,060 -
$
1,363,099 $
1,402,855 $
1,421,850
ACTIVITIES • • • • • • • • • • • • •
Mow and trim all City parks and City owned property Operate and administer a seasonal Tree Planting Program Administer and maintain the City’s urban forest which includes trees located along streets and at City owned property Coordinate all shrub and small tree trimming in parks and on City owned property Maintain baseball and softball fields in City parks Operate preventative maintenance programs for play equipment and recreational facilities Remove snow from sidewalks along park property and City owned facilities Implement the expansion of the non-motorized pathway system Coordinate the maintenance of non-motorized pathway system Respond to and resolve public inquiries and complaints Confer with residents and City staff to resolve problems and provide assistance as necessary Maintain grounds and plantings at City owned facilities Provide assistance to other City Departments (police abatements, snow/ice removal)
EXPLANATORY INFORMATION The Public Works staff is pooled and recorded in the Garage and DPW services fund. Charges are billed via internal charges for the service (both labor and equipment) provided to the various funds. The staff charged here are assigned to parks maintenance, sidewalk plowing and recreation facility maintenance. Personnel service costs being budgeted in FY2016 are decreasing by 4.1% primarily due to the expected time allocation from the service pool. Operating costs are increasing 12.4% in the FY2016 budget largely because of higher internal equipment rental costs.
47
DEPARTMENT APPROPRIATION FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Transfers Out Transfers to Other Funds Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Transfers to Other Funds: Transfer to Debt Service Fund Transfer to Public Art Fund Transfer to Senior Program Transfer to Parks & Rec Facilities Transfer to Insurance Fund Transfer to Local Street Fund Transfer to CIP-Parks Fund Transfer to CIP Fund Total Transfers
$
80,195 $ 135,440 1,100,230 700,960 300,000 555,870 244,710
78,495 $ 137,740 1,118,935 648,445 600,000 51,980
60,795 11,525 140,630 1,342,430 280,920
$
3,117,405 $
2,635,595 $
1,836,300
EXPLANATORY INFORMATION The transfer to the Debt Service Fund covers the debt service related to the 2008 capital improvement bonds. These bonds will be paid in full in FY2028. The transfer to the Public Art Fund is being budgeted for the first time in FY2016. Under the new Percent for Art Ordinance (Ordinance No. 1339), approved by City Council in FY2015, the General Fund will transfer 1.0% of the City’s General Fund’s capital spending for designated public facilities to fund the purchase of new public art and maintain all current art owned by the City. See the Public Art Fund for additional information. The transfer to the Prime Time Seniors Program provides an operating subsidy to support the programs made available to our seniors. This amount is only increased in the FY2015 and FY2016 budgets by the inflation factor used in the respective General Fund five year forecasts. See the Prime Time Seniors Program Fund for additional information. The transfer to the Parks and Recreation Fund subsidizes their operating budget. The FY2015 budget was increased by a CPI factor of 1.7% over the FY2014 transfer. With the impact of the operating deficit in the Bailey Child Care program and the absorption of the Community Events budget (transferred from the General Fund) in FY2014, the Parks and Recreation Director is requesting an increase of $200,000 to the FY2016 transfer in addition to the customary CPI increase. See the Parks & Recreation Facilities Fund for additional information. In FY2014, (December 2013) City Council approved the transfer of $700,960 assigned General Fund balance to the Insurance Fund to make the remainder of the annual required FY2013 contribution to the Retiree Healthcare Funding Vehicle at MERS. We followed the same strategy and amended the FY2015 General Fund budget in December 2014 to transfer the balance of our annual required contribution for the FY2014 year to the Insurance Fund in the amount of $648,445. No transfer to the Self Insurance Fund is being requested in the FY2016 budget at this time. See the Insurance Fund for additional information.
48
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION DIVISION STAFF RESPONSIBLE
General Transfers Out Transfers to Other Funds Mary Haskell
EXPLANATORY INFORMATION (Continued) In an effort to invest in much needed reconstruction of our neighborhood streets, the General Fund transferred $300,000 to the Local Street Fund in FY2014. In FY2015, we budgeted another $600,000 transfer to the Local Street Fund to continue capital project work. No additional transfer is in the FY2016 budget request. During FY2014, City Council approved two budget amendments to transfer a combined total of $555,870 from General Fund to the Parks Capital Improvement Fund to assist in funding both the Patriarche Park equipment playground replacement project and the Valley Court project. The $55,870 transfer for the Valley Court project was reallocated from operating budgets in the Government Building department in the General Fund. The $500,000 transferred for the Patriarche playground project was financed out of General Fund reserves until grant and contribution dollars come in. No additional transfers were budgeted in FY2015 and FY2016. See the Parks Capital Improvement Fund budget for additional information. A transfer from the General Fund to the CIP Fund of $244,710 was made in FY2014. It was comprised of $120,000 to service the Avondale Square project debt service and $124,710 to complete the St. Anne Plaza project. An additional transfer of $51,980 was budgeted to service Avondale Square project debt service in FY2015. The transfer in the FY2016 budget, $280,920, is to fund capital projects in City Hall ($245,000) and provide debt service support ($35,920) for the Avondale Square project. See the Capital Improvement Fund budget for additional information.
49
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 50
Special Revenue & Other Governmental Funds
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 52
MAJOR STREET FUND
53
MAJOR STREET FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
2,357,541 $ 48,800 (553) 110,000
2,309,040 $ 40,000 (300) 110,000
2,406,610 43,000 400 -
2,515,789
2,458,740
2,450,010
748,136 824,750 570,198 400,000 -
834,175 767,610 151,800 475,000 230,155
721,660 937,205 200,000 535,000 56,145
2,543,084
2,458,740
2,450,010
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Transfers Out Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(27,295) $
- $
-
$
355,345 130,955
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
486,300 56,145
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
54
$
542,445 22.7%
MAJOR STREET FUND Estimated Revenues EXPLANATORY INFORMATION The Major Street Fund budget for FY2016 is $2,450,010 which is consistent with the previous year budget. INCOME $
2,406,610 Intergovernmental Revenue – This amount is mostly made up of gas and weight tax revenue ($2,142,510) which is the estimated amount to be received from the State as East Lansing's share of the gas and weight tax receipts. In addition, it includes $142,100 of trunkline maintenance funding which is received from the State for providing maintenance on the State trunk lines within the City limits. The maintenance work is performed under a contract between the City and the State Highway Department. The trunklines consist of Michigan Avenue, Grand River Avenue, and Saginaw Highway. Finally, $122,000 is budgeted for Metro Act right of way funding. The State of Michigan passed the Metropolitan Extension Telecommunication Rightsof-Way Oversight Act, 2002 PA48. This Act, adopted by the City by Ordinance No. 1028, provides revenue to municipalities to maintain right-of-ways adjacent to City streets where telecommunication wires are housed. The revenue from the State is distributed in the same formula as the Gas & Weight taxes and must be spent on right-of-way expenditures.
$
43,000 Charges for Services – This amount includes miscellaneous billings on major street work. The increase in FY2016 is based on historical data as this is strictly determined by the actual work that is needed each year. FY2015 is expected to come in at $48,100 which is consistent with FY2014 and previous years.
$
400 Interest Income – This amount consists of investment income on idle cash balances and fund balances throughout the year. Due to this fund having negative cash balance during the previous years, as revenues come in on a two month lag and minimal fund balance was held, we experienced overall interest income as a negative amount. FY2016 expects a positive amount as fund balance is being replenished.
In prior years, the other financing sources represented a transfer from the Solid Waste Management System fund to defray the costs of street sweeping in the amount of $70,000. An additional $40,000 represented a transfer from the Sewage Disposal System fund to offset the costs of street sweeping. As this fund replenishes fund balance, these transfers are no longer needed to help assist in the costs and have been removed. The statement of fund balance shows an anticipated operating surplus in FY2015 of $130,955 along with a $56,145 surplus in FY2016 resulting in a 22.7% fund balance amount. Projects costs bid in the spring of 2015 greatly exceeded engineering estimates, therefore, this accumulated fund balance will be preserved until there is a better understanding of road funding following the May election. If there is an increase, additional projects will be developed to improve the Major Street network.
55
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Major Street Fund Public Works Scott House/Ron Lacasse
EXPLANATORY INFORMATION The Public Works administrative and engineering staff costs are recorded in the General Fund. The other Public Works staff are pooled and recorded in the Garage & DPW Services Fund. Charges are then billed, via internal service charges, for services provided to the other funds appropriately. The staff primarily assigned to street activities is reported in this fund. Personnel services are expected to decrease $112,515 or 13.5% due to a decrease in pension funding and a change in staff allocation. Operating costs are expected to see an increase of 22.1% or $169,595 due to increases in equipment rental as well as continued preventative maintenance to better maintain roads prior to having to complete major repairs. Capital outlay is consistent with prior years, funding the Surface Transportation Program “STP” match for the Harrison Road project from Lake Lansing to Saginaw. The FY2016 budget recommends a transfer of $535,000 or 25% of gas and weight taxes to the Local Street Fund.
56
LOCAL STREET FUND
57
LOCAL STREET FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
818,368 $ 9,452 1,336 700,000
FY2016 Budget Request
640,000 $ 20,000 1,000 1,171,695
734,170 25,000 1,300 553,595
1,529,156
1,832,695
1,314,065
419,252 279,808 651,383 139,263
478,490 317,140 900,000 137,065
365,770 419,655 390,000 138,640
1,489,705
1,832,695
1,314,065
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
39,451 $
- $
-
$
529,447 363,855
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
893,302 (18,595)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
58
$
874,707 66.6%
LOCAL STREET FUND Estimated Revenues EXPLANATORY INFORMATION The Local Street system budget is $1,314,065 which is $518,630 or 28.3% decrease from last year’s budget. FY2015 budget included a $600,000 transfer from the General Fund to support the Chesterfield project and is the reason fund balance is expected to increase in FY2015. INCOME $
$
734,170 Intergovernmental Revenue – This amount represents $673,200 of gas and weight tax revenues to be received from the State as East Lansing's share of the gas and weight tax receipts. FY 2016 expects a 2.0% increase in this funding. The remaining $60,970 relates to one time funding from the State for PA 252 of 2014. 25,000 Charges for Services – This amount includes miscellaneous billings on local street work.
$
1,300 Interest Income – This amount consists of investment income on idle cash balances and fund balances throughout the year. Local Street cash is combined with the other funds' cash so that larger investments at higher interest rates can be realized.
$
553,595 Other Financing Sources – This line item includes $535,000 of a transfer from the Major Street Fund as well as $18,595 of reappropriated equity, or planned use of fund balance.
As shown in the Statement of Fund Balance, the available fund balance at the end of FY2016 is expected to end with $874,707 providing the working capital for Chesterfield Hill neighborhood repairs.
59
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Local Street Public Works Scott House/Ron Lacasse
EXPLANATORY INFORMATION Public Works staff are pooled and recorded in the Garage & DPW Services Fund. Charges are then billed, via internal service charges, for services provided to the other funds. Personnel services are expected to decrease by 23.6% due to the smaller scope of work for Chesterfield in FY2016 designed in FY2015 as well as a decrease in required pension funding. Operating costs are seeing an increase of 32.3% or $102,515 due to increased equipment rental projections. The FY2016 capital outlay budget includes a request to begin comprehensive repairs of the infrastructure in the Chesterfield Hill neighborhood starting the spring of FY2016. If the road funding proposal does not pass in May of 2015, the project will require an alternative funding mechanism to sustain efforts in future years. Debt service of $138,640 is scheduled for FY2016 and relates to the 2009 Michigan Transportation Bonds. These bonds are scheduled to be paid in full in FY2024.
60
PARKS AND RECREATION FUND
61
PARKS AND RECREATION FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Community Support Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
49,036 $ 2,181,259 394,175 248,951 10,381 3,538 1,100,230
20,145 $ 2,530,520 407,945 185,795 3,010 1,237,185
44,600 1,924,745 381,560 191,700 1,800 1,342,430
3,987,570
4,384,600
3,886,835
2,291,884 2,078,417 111,694 7,000
2,409,150 1,885,450 25,000 65,000
2,011,065 1,823,250 35,520 17,000
4,488,995
4,384,600
3,886,835
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(501,425) $
-
$
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
37,842 -
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
62
390,924 (341,782)
$
37,842 1.0%
PARKS AND RECREATION FUND Estimated Revenues FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Parks & Recreation Divisions: Park Stewardship Softball Complex Soccer Complex Aquatic Center ELHCC - Guest Services ELHCC - Swim Pool ELHCC - Building Summer Solstice Jazz Festival Arts Planning and Administration Respite Center Agreement Community Events Scene Metrospace Bailey Building & Childcare School Age Childcare Recreation and Arts Athletic Leagues Interest & Miscellaneous Income Use of Fund Balance Transfer From General Fund Total Revenues
$
2,600 $ 53,617 48,481 413,219 487,373 74,528 111,461 49,933 (3,760) 42,909 8,875 460,529 611,766 338,560 172,716 14,533 501,425 1,100,230
3,000 $ 52,000 50,000 462,000 526,800 92,800 95,920 18,945 12,470 10,000 633,720 624,180 379,570 183,000 3,010 118,250 1,118,935
5,000 56,000 57,000 451,000 508,500 80,800 120,300 6,000 42,310 44,145 653,750 335,300 182,500 1,800 1,342,430
$
4,488,995 $
4,384,600 $
3,886,835
63
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Parks & Re cre ation Divisions: Park Stewardship Softball Complex Soccer Complex Aquatic Center ELHCC - Guest Services ELHCC - Swim Pool ELHCC - Building Summer Solstice Jazz Festival Arts Planning and Administration Respite Center Agreement Community Events Scene Metrospace Bailey Building & Childcare School Age Childcare Recreation and Arts Athletic Leagues Administration Transfer Out to Other Funds Total Expenditures
$
38,832 $ 33,532 159,998 528,996 512,467 139,606 537,409 111,117 79,019 27,205 175,041 27,525 561,381 506,061 371,558 149,054 523,195 7,000
40,845 $ 29,950 140,075 459,310 490,420 171,110 466,255 95,680 31,750 19,500 169,985 29,510 637,010 500,845 392,375 172,270 472,710 65,000
27,770 34,330 145,815 456,120 524,070 155,340 496,175 114,790 16,500 13,000 189,410 4,250 148,625 506,495 362,300 160,765 514,080 17,000
$
4,488,995 $
4,384,600 $
3,886,835
64
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
EXPLANATORY INFORMATION The proposed FY2016 Parks and Recreation Fund budget is $3,886,835 which represents a decrease of $497,765 or 11.4% from the FY2015 budget. Most of the decline represents the reduced budget for the Bailey Childcare Program in September 2015 and the closure of the Bailey Community Center around the same time. The General Fund Transfer of $1,342,430 is a 20.0% increase from FY2015. The General Fund transfer to the Parks and Recreation Fund peaked in FY2004 at $1,314,085, was reduced to $1,167,690 in FY2005, increased again to $1,249,185 in FY2006, again in FY2010 to $1,276,920 and then declined down to $1,118,935 in FY2015 as more charges for services were programmed. Despite the decline in General Fund support through the transfer of funds, the fund balance increased from $103,957 in FY2004 to $955,375 in FY2012. Beginning in FY2011 and FY2012, we added several non-revenue generating activities to the fund including but not limited to community events, arts planning and administration, Scene Metrospace, and the soccer complex turf maintenance contract. These activities, combined with the financial struggles in the Bailey Early Age Childcare Program in FY2014 and FY2015, have contributed to a dramatic reduction in the fund’s balance which can be seen in the Statement of Fund Balance on the budget schedule. The proposed general fund transfer of $1,342,430, which has been increased by an extra $200,000, will assist with re-establishing the stability of the fund. As suggested above, we have experienced a significant reduction in the fund’s balance. Our FY2015 estimated actual budget performance will result in a reduction ($341,782) to the fund balance as shown below (one at a functional classification and one at a department classification):
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Community Support Other Miscellaneous Revenue Interest Income Other Financing Sources Total Revenue & Financing Sources Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
FY2015 Estimated Amount $16,500 2,084,073 392,680 187,874 12,027 1,800 1,118,935 $3,813,889 FY2015 Estimated Amount $2,232,686 1,862,488 53,497 7,000 $4,155,671 ($341,782)
65
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
EXPLANATORY INFORMATION (Continued) FY2015 Estimated Revenue
FY2015 Estimated Expense
Park Stewardship
$1,500
$32,685
Softball Complex
54,000
32,602
Soccer Complex
50,000
133,320
Aquatic Center
416,595
441,493
ELHCC – Guest Services
515,000
489,995
76,800
161,372
0
477,000
109,775
106,803
21,346
35,750
3,760
19,500
Community Events
10,380
157,060
Scene Metrospace
4,900
26,125
Bailey Building & Childcare
323,015
573,517
School Age Childcare
624,651
460,199
Recreation and Arts
288,382
341,235
Athletic Leagues
180,870
158,963
13,980
0
0
508,052
1,118,935
0
$3,813,889
$4,155,671
Parks & Recreation Divisions:
ELHCC – Swim Pool ELHCC – Building Summer Solstice Jazz Festival Arts Planning & Administration Respite Care Agreement
Interest & Miscellaneous Income Administration Use of Fund Balance Transfer From General Fund Total
We had planned on using $118,250 of fund balance when the FY2015 budget was adopted and are now estimating we will use an additional $223,532 for a total of $341,782 of fund balance. The additional use of fund balance is due to the financial struggles in the Bailey Early Age Childcare Program. The fund balance entering FY2015 was $390,924 per the June 30, 2014 audited financial statements. Of that amount, $176,296 was designated as equipment replacement reserves and $11,300 is classified as nonspendable reserves as it represents FY2015 expenditures paid prior to July 1, 2014. Reducing fund balance by the estimated loss of $341,782 in FY2015 will deplete total fund balance down to $37,842 at the end of FY2015. We will be requesting the $176,296 of fund balance, designated as Aquatic Center Equipment Replacement Reserves in the FY2014 statements, to be reassigned to cover the fund’s operating expenditures.
66
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
EXPLANATORY INFORMATION (Continued) Capital outlay recommendations associated with the FY2016 budget request totals $35,520 and includes $20,000 for Aquatic Center equipment replacement reserve, $5,000 for fitness center equipment and $10,520 for exhaust fan replacement at the pool in the East Lansing Hannah Community Center. $10,000 is budgeted in FY2016 as a transfer to the Parks Capital Improvement Fund for the Patriarche Park Playground in the Park Re-Imagined Project and $7,000 is budgeted as a transfer to the Prime Time Senior Fund. There are some fee increases proposed in the FY2016 budget request. Modest fee adjustments are proposed for the Soccer Complex to begin in fall 2015, the Aquatic Center to begin in summer 2016, and Hannah Community Center which were started in January, 2015. ACTIVITIES The City of East Lansing’s Parks, Recreation and Arts Initiatives facilitate and encourage healthy, active and creative lifestyles. Activities that are offered to assist community members in achieving these lifestyles include but are not limited to the following; •
Park Stewardship - The Environmental Stewardship Program focuses on involving the community in the restoration of the biotic communities in the City’s parks by removing invasive plant species and replacing them with native species. The program also seeks to share information with the community about different aspects of park ecosystems and how best to sustain them. In FY2014, 175 unique volunteers donated 582.5 hours of work in the park system. This is down from FY2013 which saw 303 unique volunteers donating 772 hours of time. This was due to the cancellation of most of the winter work days because of the ice storm and inclement weather. The 2013 national value of volunteer time for Michigan was $22.55 per hour making the 582.5 donated hours equal to $13,135.
•
Softball Complex -The Adult Softball League included 28 men’s teams and 38 coed teams with a total of 945 players. The Fall Adult Softball League included 9 men’s teams and 24 coed teams with 358 players. These leagues are for men and women 18 years and older. Leagues run from mid-April to October each year. We experienced a slight decline in adult softball participation allowing us to pilot an adult kickball league in August of 2014. The kickball league was well received and consisted of 6 teams that played a 10 game season. The East Lansing Softball Complex is host to an average of 12 weekend tournaments throughout the spring/summer. This generates an average of $30,000 in rental income and additional revenue for area businesses whiles teams visit from outside the East Lansing area.
67
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
ACTIVITIES (Continued) •
Soccer Complex – Attendance at the Complex was up over 10,000 from 2013. Youth leagues including the C.A.S.L., TNT Dynamite Soccer Club, East Lansing Soccer Club filled the fields for training sessions weekday evenings and for games on weekends in both the spring and fall. The Complex is the home field for both the boys and girls East Lansing High School teams playing their home game schedules as well as some district and regional tournaments. Lansing United finished out their first season with the National Premier Soccer League as both the 2014 NPSL Midwest Region Champions and the 2014 Great Lakes Western Conference Champions. The Complex will again be the host venue for Lansing United in 2015.
•
Aquatic Center – The summer of 2014 saw another decrease in visits at the aquatic center due to an unseasonably cool summer. Visits were 40,045, which is below our average annual attendance of 50,000+. Even with an unseasonable cool summer, we did manage to have an all time record attendance day on Tuesday July 22nd with 1,695 visitors. The summer of 2014 also showcased the completion of the Staff/Concession building expansion. During the 2014 calendar year, the Aquatic Staff received an Exceeds in all 4 of their Jeff Ellis & Associates unannounced audits. These audits take place at the direction of our lifeguard service provider and are randomly done each quarter. The Guards are unknowingly videotaped while working and then put through a series of rescue scenarios. The intent of the audits is to show that the lifeguards are “rescue ready” and have the skills and training necessary to respond in an emergency and maintain a safe swimming environment. In September 2014, the minimum wage was increased from $7.40/hour to $8.15/hour and will have yearly increases through January 2018. The wage will increase again on January 1, 2016 to $8.50/hour. This hourly wage increase of $1.10/hour from pre-2014 to 2015 wages has us recommending admission rate increases beginning the summer of 2016. Proposed admission increase for summer 2016: All rates have increased over the years, except the East Lansing Resident rate. Proposed is an increase in Resident rates from $6/person to $7/person beginning summer 2016. Further proposed is an increase in 10 visit resident pass from $40 to $50.
•
ELHCC Guest Services – In 2016 the East Lansing Hannah Community Center will enter its 14th year of operation as a community recreation, events and enrichment center. Over the last decade the community center has made some adjustments in its business operations and has established itself as one of the premiere meeting and event places for value oriented meeting planners in our region. Moving forward close consideration must be given to the 2013 Technology and Interior Space Improvements Study that included several recommendations to improve the technology capabilities for meeting and event space along with recommendations for refreshing and upgrading the look of the existing interior spaces to address aging technology and space rental facilities. We hope to identify ways to implement these recommendations in future budget years.
68
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
ACTIVITIES (Continued) We continue to maintain strong sales for the fitness center passes even with increasing competition from 2 new facilities in the area. Trending stronger this year has been daily admissions as opposed to annual or ten visit sales. The Community Center still maintains its niche in the fitness market as one of our areas only boutique style fitness centers and attracts a wide cross section of users. In FY2014 the facility hosted nearly 3,000 reservations that ran the gamut from state and region wide conventions and meeting to private parties, and recreation and arts classes and programs. The Facility is open approximately 115 hours per week for regular operation with expanded hours for rental/reservations when necessary. Guest Services operates as the central point of contact for visitors and facility users. It also serves as the Department of Parks Recreation and Arts primary payment center for recreation & arts program registration, child care payment processing, reservation payments, pass sales and also serves as a pick up and payment location for the DPW trash and yard waste receptacles. •
ELHCC Swim Pool – Aquatic participation declined during the winter months. Staff continues to look at modified scheduling and other ideas to increase registration. Private swim lessons continue to be a very popular program for parents that want 1:1 instruction. Following the new trend for aquatic exercise, we implemented evening Aqua Zumba. This program replaced the traditional water aerobic classes that had been experiencing a decline in participation. In Summer 2014 we collaborated with the City’s Summer Camp Program and were able to add time at the Aquatic Center for the participants every week.
•
ELHCC Building – The ELHCC Building Budget covers the repairs, maintenance, custodial, grounds, and utilities expenses associated with ELHCC. Repairs and Maintenance are performed by the Government Buildings staff, custodial responsibilities are performed through a custodial services agreement with a private company, and grounds maintenance and snow removal are performed by Department of Public Works staff with labor/benefits and garage equipment charges billed to the fund as work order charges.
•
Summer Solstice Jazz Festival -Summer Solstice Jazz Festival- The Summer Solstice Jazz Festival is a free two day Jazz Festival in the heart of downtown East Lansing, featuring 14 hours of the best in local, regional and national talent. The SSJF features a performance area dedicated to young jazz performers, a traditional New Orleans-style Second Line Parade, an avant garde jazz picnic, and fun children’s activities. In FY2013, the Summer Solstice Jazz Festival was separated from the Community Events
•
Budget and a part-time Jazz Festival Coordinator was added. The City is responsible for a portion of the Coordinator’s salary over the next four (4) year period. The City will pay 50%in 2015, 40% in 2016, 25% in 2017 and 0% in 2018 and beyond. All other expenditures are recovered through grants, donations, and sponsorships. As the City’s portion of expense declines for the Jazz Festival Coordinator position, the Jazz Festival Advisory Board has requested that we consider a cash contribution toward Festival fundraising efforts. Suggested for future consideration, is a $2,000 cash contribution in FY2017, and a $5,000 cash contribution for FY2018 and beyond.
69
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
ACTIVITIES (Continued) •
Arts Planning and Administration - The East Lansing Arts Commission will continue supporting local arts and cultural organizations through $10,500 in grant support, providing artist exhibition space in the East Lansing Public Art Gallery.
•
Adult Day Services - In 2012 the A.L.F.A. (Active Living for Adults) program merged with LAP Respite Center (now known as Helping Hands Respite Care), a non-profit agency providing lifespan respite services to families who care for children or adults with disabilities, chronic illness, or age-related conditions. The fiduciary responsibilities associated with the operations of the ALFA program are held by Helping Hands Respite Care. Per the agreement the City is budgeted $20,000 per year for FY2013 and FY2014, $10,000 per year for FY2015 and FY2016 and a final payment of $5,000 for FY2017.
•
Community Events – The Community Events program produces more than 50 free community events a year, which provides rich arts and cultural events to more than 100,000 visitors to the downtown each year. The program includes the management and implementation of the East Lansing Farmer’s Market, Summer Concert Series, Moonlight Film Festival, Play in the Park, Winter Glow, Crystal Awards and Children’s Concert Series In addition, the budget includes the East Lansing Emerging Leaders Program, participation in the annual One Book, One Community program and a $25,000 contribution to the Great Lakes Folk Festival. The Great Lakes Folk Festival receives a $10,000 in cash and $15,000 of in-kind services. This is the fourth year that the entire Community Events program is funded through the Parks and Recreation Fund.
•
Scene Metrospace – has been the City’s alternative art and performance performance space located in downtown East Lansing. Scene was founded in 2004 and has maintained a diverse schedule of art exhibits, music performances, and etc. Proposed for FY2016 is the transfer of administration of Scene Metrospace to the MSU Department of Art, Art History and Design. Under the proposed agreement, AAHD would enter into a 5 year agreement to operate the space, rent free. This space has been provided rent free to the City of East Lansing so the proposed rent arrangement would be the same as existing. AAHD would be responsible for all operating cost associated with operating the space except utilities. We have included utility expense in the FY2016 proposed budget. It is estimated that this cooperative agreement with MSU/AAHD will result in an annual savings of $15,000.
•
Bailey Community Center and Early Age Childcare – The Bailey Community Center and Early Age Childcare Program are scheduled for discontinuation effective September 4, 2015. The FY2016 proposed budget includes estimated personnel and operating expenses for 2 months of operation plus childcare program close down. The FY2016 proposed budget also includes estimated facility related expenses for operating the facility for 2 months and 10 months of a closed facility.
70
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Parks and Recreation Culture and Recreation Tim McCaffrey
ACTIVITIES (Continued) •
School Age Childcare - The School Age Care offers care for children in Kindergarten through Eighth grades. Offerings for the 2014-2015 school year included Before & After School programs housed in each of the five East Lansing elementary schools which now serve K-5th graders, decreased by one site, Red Cedar, from the previous year. A site was opened at MacDonald Middle School to accommodate the sixth grade students and this site averaged 15-20 children each afternoon for the 2014-15 school year. We had break care programs held at Glencairn Elementary School and the Bailey Community Center. Approximately 310 families/390 children were provided services throughout the 2014-2015 school year in our Before & After School programs. Currently, we have an average of 205 children participating in our after school care programs and 125 children participating in our morning care programs daily. Summer camp programs were offered at the Bailey Community Center, Hannah Community Center and Spartan Village Community Center in 2014. Approximately 180 families/215 children were provided services within our 2014 summer camp programs. We will be opening another summer camp site in Summer 2015 at Whitehills Elementary School to replace the site that was formerly operated out of the Bailey Community Center.
•
Recreation and Arts - This division provides a variety of year-round recreation, art and enrichment classes, programs and services. In FY 2014, over 3,000 registrants participated in the various programs and services offered, including Ceramics, Adult Art, Fitness, Dance, Enrichment, Special Events (Princess Ball, Cowboy Cotillion), Specialty Camps and more. All-of-us Express Children's Theatre is a part of this division. In 2013-14, All-of-us Express entered its 25th season. The season included four main stage shows, several workshops and summer camps involving over 500 kids. The four main stage shows had a total audience over 4,500 attendees.
•
Sports and Athletics – The youth recreation athletic programs provide instruction, recreation, and low-key competition. The emphasis is on maximum participation by each youth. The primary focus is on individual development, team play, group cooperation and sportsmanship. In 2014 we had 25 recreation baseball teams, 31 recreation basketball teams and 12 participants in our youth volleyball clinic. In 2013/2014 we started a collaborative effort with Meridian Township and Okemos Community Education to work on increasing game competition for league play. This will continue to be developed in order to offer increased participation opportunities. In 2014 we had Meridian Township join East Lansing for U10 baseball. In 2015 we had 3 Meridian Township Teams play basketball in East Lansing and our 5/6 grade boys teams played in a combined recreation league with Okemos Community Education.
•
Interscholastic Programs - 7th/8th Grade offers girls/boys cross-country, girls’ volleyball, girls/boys basketball and Track and Field. In 2013/2014 school year we had 221 athletes with 30 participants receiving financial assistance. On January 1, 2015, we secured a $10,000 donation from the Let the Tradition Continue committee. This will help reduce the cost for middle school sports by $20/participant and offers increased scholarships through June 2016.
71
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 72
SOLID WASTE MANAGEMENT FUND
73
SOLID WASTE MANAGEMENT FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Intergovernmental Revenue Charges for Services Community Support Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
1,629,185 $ 257,086 13,239 -
1,525,500 $ 248,900 12,825 115,310
1,624,270 100,000 254,000 500 8,775 330,145
1,899,510
1,902,535
2,317,690
755,861 793,566 6,814 134,075
844,095 901,865 24,000 132,575
808,535 1,432,080 12,000 65,075
1,690,316
1,902,535
2,317,690
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
209,194 $
-
$
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
497,401 (330,145)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
74
636,251 (138,850)
$
167,256 7.2%
SOLID WASTE MANAGEMENT FUND Estimated Revenues EXPLANATORY INFORMATION The Solid Waste Management Fund accounts for landfill tipping fees, refuse and yard waste collection and recycling services. All solid waste related revenues are recorded here including yellow bag fees, special pickup fees, recycling and easy cart container fees, and yard waste fees. The fund totals $2,317,690 for FY2016, which is a 21.8% increase from FY2015. This increase is primarily due to the proposed changes to the recycling program, replacing the small blue bins with recycling carts and changing to bi-weekly collections. INCOME $
1,624,270 Property Taxes – It is recommended that 1.8250 mills be allocated to Solid Waste Management, which is an increase from last year’s 1.7680 mills. The millage will require an increase due to new monitoring requirements for Burcham Park costs and the deployment of new recycling carts.
$
100,000 Intergovernmental Revenue – This represents grant revenue anticipated to help offset the costs of the new recycling carts.
$
254,000 Charges for Services – This is made up of all items sold by the fund, such as residential containers, trash bags, yard waste bags, special stickers as well as the sale of recyclable materials. Approximately $150,000 is derived from residential containers, or easy carts, which has remained fairly consistent over the years. Trash bag fees are proposed to increase from $7.50 per package of five to $8.75 per package for FY 2016. No other fees are proposed to change.
$
500 Community Support – Recycle! East Lansing is a community event held each year to encourage waste reduction and give residents an opportunity to recycle items not collected curbside or donated for reuse. This small amount reflects contributions and donations received to help fund this program.
$
8,775 Interest Income – The amount represents investment income on idle cash balances and fund balances throughout the year. In addition, the interest on the land contract that we hold on one home adjacent to Burcham Park is accounted for here.
$
330,145 Other Financing Sources – This amount represents reappropriated equity, or the use of prior years' surplus to balance current year expenditures. FY2015 is estimating to use $138,850 of fund balance which is consistent with what was budgeted. In FY2016, with the purchase of the new recycling carts, $330,145 of fund balance is expected to be used. This will result in a fund balance percentage of approximately 7%, however, after factoring in nonspendable fund balance the actual unassigned fund balance is closer to 5%.
There are a few risks facing this fund and the amount of fund balance expected for the year ending June 30, 2016. First, as mentioned above, we hold a land contract on one Burcham Park home which is due in full in January 2016. If this land contract is not paid in full, this may adversely affect the unassigned fund balance amount. Second, if the grant revenue of $100,000 is not received as anticipated this would deplete fund balance and would most likely result in a delay of implementing the recycling cart program for the entire City. Last, as always, the Burcham Park remediation requirements have continued to change and increase as MDEQ monitoring and close out requirements evolve. This fund will be monitored closely as some of these key factors/risks become known.
75
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Solid Waste Management Public Works Scott House/Cathy DeShambo
EXPLANATORY INFORMATION Personnel services are expected to decrease $35,560 or 4.2% due to a decrease in pension costs and efficiencies from automated cart recycling collections. Operating costs have increased $530,215 or 58.8% primarily due to $382,250 of new recycling carts proposed to be purchased for the automated recycling collection program. The new recycling carts will transform curbside recycling; the proposed carts are six times the size of the current bins, with a lid and wheels, similar to the existing trash carts. Carts will make it easier for residents to recycle and will help keep neighborhoods clean, preventing recycling from blowing out of bins. In addition, the recycling carts will enable the City to collect more material curbside, to include cardboard. Further, the larger cart will allow us to transition to bi-weekly collection, reducing emissions and traffic in neighborhoods while collecting more material, more efficiently, while reducing potential lifting injuries to our workforce. The remaining increase is due to increased monitoring requirements at Burcham Park and increases in equipment rental rates from the Garage fund. Capital outlay in FY2016 is minimal and includes $12,000 for the purchase of refuse and recycling drop off containers. Transfers out consist of a transfer to cover debt related payments on the Burcham Park Methane Extraction System bonds issued in FY2009. This debt will be paid in full in FY2019.
76
PRIME TIME SENIORS FUND
77
PRIME TIME SENIORS FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Community Support Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
5,115 $ 84,215 1,758 33,684 537 142,440
8,500 $ 73,700 1,850 36,500 305 180,835
7,000 76,700 2,100 32,200 500 197,970
267,748
301,690
316,470
175,144 97,167
199,665 102,025
204,335 112,135
272,311
301,690
316,470
Expenditures & Financing Sources: Personnel Services Operating Costs Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(4,562) $
- $
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
93,316 (50,340)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
78
113,221 (19,905)
$
42,976 13.6%
PRIME TIME SENIORS FUND Estimated Revenues EXPLANATORY INFORMATION The FY2016 revenue budget is higher than the FY2015 budget by $14,780 (4.9%) and is based on increases in membership fees, program activity fees and budgeting a higher amount of use of fund balance ($50,340 in FY2016 budget compared to $36,095 in the FY2015 budget). The operating transfer from the City’s General Fund is increasing from $137,740 in FY2015 to $140,630 in the FY2016 budget. INCOME $
7,000 Intergovernmental Revenue – This category of revenue includes a $7,000 grant from the TriCounty Office on Aging for their Annual Fit for Life program. We did not receive the Kiwanis Intergenerational Grant this year so the FY2016 budget is $1,500 less than FY2015’s budget.
$
76,700 Charges for Services – Included here are fees collected for various programs and activities, Foot Care Clinic, and annual membership fees. We have increased this figure primarily due to increased revenue from our Foot Care Clinic.
$
2,100 Rental Income – Outside organizations and individuals access our piano and lounge for a small fee. With the renovation of our activity room into a dance studio we will begin using our lounge for some of our classes and therefore outside groups will no longer have access to it, reducing our income in this area. However, this line now includes $1,500 from booth rentals at our annual Health Fair which offsets the decrease and results in a small increase.
$
32,200 Community Support – Included here is revenue from the Art Studio donors of $3,000; $15,000 endowment from the Friends of Prime Time; $2,500 from the Friends for speaker honorariums; $2,000 from the Friends for scholarships; $4,000 from the Friends for sponsorship of one quarterly newsletter; fund raising of $2,700; and $3,000 in general contributions and memorials. We no longer have room for our annual rummage sale which has reduced our income in this category by $4,300.
$
500 Interest Income – Interest income on idle cash balances and fund balances throughout the year.
$
197,970 Other Financing Sources – The City’s General Fund transfer of $140,630 is to help fund operations for Senior’s programs for FY2016. Additional operating funds in the amount of $7,000 come from the Parks and Recreation Fund to offset the cost of renting rooms at Hannah for classes. FY2016 will also require use of fund balance in the amount of $50,340 to help fund operating expenditures.
79
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Prime Time Seniors Culture and Recreation Kelly Arndt
EXPLANATORY INFORMATION The 2.3% increase in the FY2016 personnel service budget request is due to a modest 1.0% cost-of-living increase for full and part-time staff, an increase in staffing costs for contingent staff, and an increase in defined benefit pension costs. Operating costs are increasing in the FY2016 budget over prior year budget by $10,110, or 9.9%, due to the increase in programming costs, contract services (for educational and fitness instructors), and higher computer rental charges from the Information Systems fund.
PROGRAM HIGHLIGHTS Last year (FY2014) we offered 225 programs, 37 of which (14.5%) were free of charge. This exceeds our 13.5% goal laid out in our strategic priorities. We offered 31 more programs this year, an increase of 13%, with 866 people attending Prime Time activities annually, a total of 13,411 times. The goal of Prime Time is to help facilitate this growth in a thoughtful and participatory way. Currently we have twenty-five community partnerships which help us provide a multitude of services, from income tax e-filing to foot care. Last year, 738 individuals accessed the following Supportive Services: 133 people took part in the annual tax clinic 237 retirees took part in our annual health fair, of which 141 received flu shots 39 people had their blood pressure checked – high blood pressure is the leading cause of death in older adults 20 individuals accessed our Gold Card Transportation Service, and received 204 rides to places such as the doctor, pharmacy, or grocery store. 142 individuals took part in our monthly foot care clinic 26 took part in our Medicare Enrollment Program 41 individuals participated in the technology lab 7 attended AARP’s Driver’s Safety Classes 19 took part in free estate planning 74 individuals received free Recycle East Lansing curb-side pick-ups. The Friends of Prime Time (501C3) covered the $15 fee, for a total of $1,110.
80
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Prime Time Seniors Culture and Recreation Kelly Arndt
PROGRAM HIGHLIGHTS (Continued) Our Fitness Programs offer an avenue for older adults to maintain an active, healthy lifestyle. In 2014 there were 6,541 registrations for programs such as: Fit for Life, Stretch Flex and Balance, Zumba Gold, Water Aerobics, Active Senior Exercise, Ballroom Dance, Yoga, and Tai Ji Quon. Our Social Programs provide opportunities to promote positive socialization through card games, sing-a-longs, conversation groups, and much more. Last year 3,123 members attended social related programs. Our Education classes are offered to encourage older adults to stay up-to-date and engaged. One of the more popular offerings is our technology lab utilizing the help of the Community Relations Coalition (MSU Students), who facilitate the lab on Fridays throughout the academic school year. A total of 3,747 people participated in educational classes last year. Our Volunteer Program allows us to do more with less, and we have utilized their knowledge and expertise. Seeking out, coordinating, and training of volunteers’ takes considerable time and effort of our staff. To appropriately engage local retirees, staff must identify and prepare projects that can be achieved. This year, 67 volunteers contributed nearly 3,000 hours of service to the program, valued at $30,000, and generated over $6,000 in revenue from the programs they facilitated. Note Worthy: Connectedness is the antidote for isolation. We flourish when we belong – when we are part of a vital community. Prime Time is committed to fostering this sense of community through inclusive intergenerational programming, which was greatly expanded this year with the addition of numerous offerings, most notable: a free eight week art education program pairing local retirees with high school students with developmental disabilities; and an intergenerational Spartan tailgate; and the first offering of our successful Grandparent Day Camp, which brought together area grandparents with their elementary-aged grandchildren in a week filled with new and lasting memories. Our services also benefited from intergenerational partnerships. Prime Time continued to offer our weekly technology lab staffed by students from MSU’s Community Relations Coalition, also the LCC College of Nursing’s monthly foot care clinic served more seniors than ever before! This year was a year of new partnerships. We worked with the Tri-County Office on Aging to receive grant funding that allowed the expansion of our annual Fit for Life program, and Prime Time was a first-time site for the Michigan Medicare/Medicaid Assistance Program’s open enrollment event. Emergency preparedness was a topic we addressed throughout the year. With encouragement from the Senior Commission and assistance from the police and fire departments, and the East Lansing Kiwanis Club we were able to produce a magnetic emergency alert file to be placed on a refrigerator for emergency personnel to use when called to a resident’s home. In addition, we have established an emergency call list for those whose abilities and social contacts are limited and who could use a call or wellness check in cases of emergencies in our area. The list will be maintained by the Prime Time Senior Program and will be updated every three months. The Friends of Prime Time was established in 1998 and is comprised of nine board members who manage a charitable trust fund that supplements our annual budget. The FY2015 contribution covered 8% of our budget. Prime Time is fortunate to have such generous community support. Overall, FY2015 contributions make up 12% of our budget and the City’s General Fund subsidy covers 46%.
81
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Prime Time Seniors Culture and Recreation Kelly Arndt
PROGRAM HIGHLIGHTS (Continued) Age Related Trends:
Advances in medicine coupled with trends in exercise and healthy lifestyles suggest that people will not only live longer – but the numbers of Americans who live up to and beyond 85 years of age will continue to grow.
Retirees have a strong desire to make contributions and remain engaged.
The older adult population will be more racially and ethnically diverse.
70% of citizens 65 and older reported casting a ballot in the 2008 presidential elections. Along with those, 45 to 74 (69%), of people 65 and older had the highest turnout rate of any age group.
82
DRUG FORFEITURE FUND
83
DRUG FORFEITURE FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Fines and Forfeitures Interest Income
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
8,650 $ 28
2,000 $ 15
2,000 25
8,678
2,015
2,025
19,522
2,015
2,025
19,522
2,015
2,025
Expenditures & Financing Sources: Operating Costs Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(10,844) $
- $
-
$
8,486 10
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
8,496 -
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
$
8,496 419.6%
EXPLANATORY INFORMATION The Drug Forfeiture Fund includes all money that is seized by the police department in accordance with MCL 333.7521 of the Public Health Code. Funds that are collected through drug forfeiture must be used to: 1) pay the proper expenses of the proceedings for forfeiture and sale; and 2) to enhance law enforcement efforts pertaining to drug law enforcement. Yearly revenue collection can vary from year to year; therefore, it is difficult to estimate yearly forfeitures.
84
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Drug Forfeiture Public Safety Juli Liebler
ACTIVITIES • •
Enforce illegal narcotic laws of Michigan Use forfeited funds to offset costs of enforcing these laws
EXPLANATORY INFORMATION The East Lansing Police Department actively enforces the illegal narcotic laws of this State. Money used directly by individuals who are engaged in illegal drug activities can be forfeited until final disposition of the criminal case. Once the criminal case has been adjudicated in the court of jurisdiction, the monies that had been forfeited at the time of the illegal activities can be released to the City to purchase equipment and supplies that are directly related to the future suppression of illegal drug activities within the City of East Lansing.
85
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 86
LIBRARY FUND
87
LIBRARY FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Intergovernmental Revenue Fines and Forfeitures Charges for Services Rental Income Community Support Other Miscellaneous Revenue Interest Income
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
1,707,474 $ 143,460 42,093 29,782 1,451 154,004 1,893 4,892
1,725,385 $ 133,795 36,270 20,800 540 41,000 1,700 2,175
1,760,000 138,800 36,000 24,000 1,500 55,000 1,700 4,500
2,085,049
1,961,665
2,021,500
1,091,113 449,836 231,026 -
1,143,360 466,460 265,400 86,445
1,144,385 586,620 220,775 69,720
1,771,975
1,961,665
2,021,500
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
313,074 $
- $
-
$
626,316 97,680
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
723,996 69,720
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
88
$
793,716 40.7%
LIBRARY FUND Estimated Revenues EXPLANATORY INFORMATION INCOME $
1,760,000 Property Taxes – The City levies a dedicated millage of two mills as authorized under Public Act 164 and voted on by East Lansing citizens in November 2012.
$
138,800 Intergovernmental Revenue – This is comprised of state operating grants received from the State on a per capita basis in the amount of $14,400 and state-aid co-op service also received from the State on a per capita basis in the amount of $14,400. The state aid co-op portion is to be contributed in total to Woodlands Library Cooperative, which provides interlibrary loan delivery and e-book resources on Overdrive. There is also $110,000 of penal fines budgeted in this revenue category. This money is received by the Library from Ingham County and a small amount from Clinton County as a share of traffic fines collected for state law violations. This source decreased significantly from FY2009 to FY2012: $133,025 in FY2009, $123,695 in FY2010, $108,745 in FY2011, $108,745 in FY2012, however it was on an uptick in FY2013, at $121,483 due to new census data from Clinton County. Penal fines dropped in FY2015 to $117,765 (actual amount). In FY2016, we have budgeted a 6.6% decrease from both Ingham and Clinton counties. This reflects a statewide trend.
$
36,000 Fines and Forfeitures – The Library charges a $1.50 per day fine on overdue DVDs and a $0.25 per day fine on all other overdue materials. The amount of fines collected is trending downward since there are not late fines on digital materials.
$
24,000 Charges for Services – Annual membership fees of $18,000 where the Library charges an annual non-resident borrowers fee of $30 per person and $40 per family, are found in this revenue category. Educator Card status fee is $10. All current Michigan State University students may have a free library card, regardless of their resident status. Additionally, the Library charges $0.10 per black and white copy/print and $0.50 per color copy/print; $6,000 is budgeted for the service. The Library also charges $0.10 per gram for 3D printing.
$
1,500 Rental Income – The Library charges meeting room rental to those using the space for meetings or events.
$
55,000 Community Support – Includes donations from the Friends of the East Lansing Library for programming and library materials, donations to support the One Book, One Community program and donations from library patrons.
$
1,700 Other Miscellaneous Revenue – Replacement charges for lost or damaged materials are included in this revenue source.
$
4,500 Interest Income – Amount of interest income on idle cash balances and fund balances throughout the year.
89
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Library Culture and Recreation Kristin Shelley
ACTIVITIES •
• •
•
The East Lansing Public Library (ELPL) offers books; e-books; DVDs; CDs; digital materials and Maker Studios with 3D printers; a midi keyboard; podcasting; Arduino lab; sewing machines and a full Adobe Suite. It provides a diverse selection of programming; five book groups; homework help; summer reading programs; outreach to schools; a children’s garden; babytimes; storytimes; international storytimes; Practice Your English conversation group; English to speakers of other languages classes; computer access; free WI-FI; e-book clinics; technology workshops; job/resume help tools; career building tools; Friends of the Library book sale; teen drop-in after-school program (Monday through Friday); access to materials from all over the state via MeLCAT; reference help; readers’ advisory; interactive picture books for children; electronic resources databases (Mango Languages, Chilton’s Automotive, Business Decision, ValueLine, Gale Legal Forms, Ancestry Plus, Novelist and more); streaming music; streaming movies/TV shows (Hoopla); digital magazines (Zinio); homebound delivery service; a friendly, helpful staff and many more services. During a typical month, ELPL offers 40 children’s programs and outreach efforts, over 3,000 free computer sessions and 50 hours of one-on-one technology training. Through press releases to local news media, a monthly radio slot on WLNZ Coffee Hour, elpl.org and social media outlets, we promote the library’s services, programs, databases and collections to the community. In addition, the staff provides outreach services to schools, Headstarts, daycares, PrimeTime Seniors, Burcham Hills residents, The Willows residents and East Glen residents. Library staff give presentations and are members of various civic organizations. The library is the information hub for much of the community. We offer free public computers and free WI-FI, as well as technology literacy for all ages.
EXPLANATORY INFORMATION The personnel service budget has remained essentially flat from the prior year. Overall operating costs increased from the FY2015 budget by 25.8% largely because of account classification changes (e.g. $20,000 is now being budgeted under minor equipment instead of capital outlay), an increase in the user rental charge from the City’s internal service fund, Computer Information Systems, and increases in utility costs. The FY2016 capital outlay budget has decreased over the FY2015 budgeted costs by 16.8% predominately because of reclassifying materials processing costs and the costs of digital resources. The FY2016 capital outlay budget contains $139,000 for printed materials and $66,775 for electronic/digital resources. Overall, the entire Library FY2016 budget is increasing 3.1% and we are planning on being able to replenish fund balance in both fiscal years.
90
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
91
COMMUNITY DEVELOPMENT BLOCK GRANT FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
423,935 $ 60,567
424,230 $ -
410,830 -
484,502
424,230
410,830
66,351 408,798
65,550 358,680
65,550 345,280
475,149
424,230
410,830
Expenditures & Financing Sources: Personnel Services Operating Costs Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
9,353 $
- $
-
Statement of Fund Balance: The Community Development Block Grant Fund generally does not have a fund balance. All grant monies are for specific projects and are not available until the resources are ready to be, or have been, expended.
92
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Community Development Block Grant Health and Welfare Tim Dempsey/Amy Schlusler FY2015 Amended Budget
FY2016 Budget Request
CDBG: Housing Programs Public Facilities Improvements Social Services Administration Total Expenditures
Agency
$
88,760 $ 186,990 63,635 84,845
54,525 212,515 61,625 82,165
$
424,230
$
410,830
Activity
Amount
Housing Programs: Capital Area Housing Partnership Capital Area Housing Partnership
Home Owner Rehabilitation Program Home Owner Assistance
$
Total Housing Programs Public Facilities Improvements: City of East Lansing City of East Lansing
54,525 Section 108 Repayment Neighborhood Sidewalk & Drain Improvements
122,515 90,000
Total Public Facilities Improvements
212,515
Total Housing Programs & Public Facilities Improvements Social Services: Child & Family Charities (CAPS) EVE, Inc. Haven House MSU Safe Place Legal Services of South Central MI MSU HEP/CAMP
29,525 25,000
Respite Childcare & Parent Education Domestic Violence Shelter and Support Homeless Shelter Domestic Violence Shelter and Support Legal Services Support Services for Low Income
Total Social Services
93
$
267,040
$
6,400 7,375 31,025 7,375 2,300 7,150
$
61,625
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Community Development Block Grant Health and Welfare Tim Dempsey/Amy Schlusler
EXPLANATORY INFORMATION For FY2016, the Community Development Block Grant (CDBG) program will fund several public service and human service programs throughout the East Lansing community. Grant funds will be allocated to Capital Area Housing Partnership to provide financial assistance towards the purchase or rehabilitation of homes located within the City limits. The Department of Public Works has received a grant allocation for continued installation of new sidewalk and curb cuts for City-maintained sidewalks within the Bailey Street Neighborhood. In addition, the Department of Public Works will administer the installation of a storm drainage unit within the Red Cedar Neighborhood. All proposed work will be conducted in CDBG eligible census tract areas. Finally, CDBG funding will be used to support community outreach activities for six non-profit agencies which service East Lansing residents. All income eligible residents receive services for free from these non-profit organizations. Funded human service activities include respite childcare programs, domestic abuse support and shelter, migrant student services, homeless and legal services.
94
PUBLIC ART FUND
95
PUBLIC ART FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
- $ -
- $ -
11,525
-
-
11,525
-
-
11,525
-
-
11,525
- $
- $
-
$
-
Expenditures & Financing Sources: Operating Costs Capital Outlay Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
-
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
96
$
-
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Public Art Culture and Recreation Tim McCaffrey
ACTIVITIES •
•
Under the Percent for Art ordinance, (Ordinance No. 1339 – FY2015), 1% of the cost of private construction projects (up to $25,000) and 1% of the City’s general fund’s capital spending for designated public facilities will be allocated for the purchase of new art and maintenance of all public art owned by the City. Appoints the City’s Arts Commission to advise the City Council on matters pertaining to art programs within the City; to implement a program so as to provide for the acquisition, placement and display of works of art within the City; and to review the proposed public art accompanying a developer’s site plan application for compliance, all subject to approval by City Council.
EXPLANATORY INFORMATION In FY2016, $11,525 will be transferred from the General Fund and is budgeted for the purchase of public art.
97
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ART FESTIVAL FUND
99
ART FESTIVAL FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Community Support Other Miscellaneous Revenue Interest Income
$
Total Revenues & Financing Sources
FY2015 Amended Budget
16,695 $ 6,456 64,381 52,425 9,209 74
FY2016 Budget Request
19,925 $ 9,300 61,750 60,000 13,000 10
29,500 9,500 65,000 61,000 15,000 50
149,240
163,985
180,050
51,922 81,687
50,975 113,010
61,640 118,410
133,610
163,985
180,050
Expenditures & Financing Sources: Personnel Services Operating Costs Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
15,630 $
- $
-
$
21,645 6,360
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
28,005 -
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
100
$
28,005 15.6%
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Art Festival Culture and Recreation Michelle Carlson/Tim McCaffrey
ACTIVITIES The East Lansing Art Festival is an annual two-day outdoor celebration of the arts in downtown East Lansing featuring nearly 200 juried fine art exhibitors, free live music performances and hands-on arts activities area for children of all ages. EXPLANATORY INFORMATION The festival is a nationally renowned non-profit arts and cultural event which is recognized by art festival industry publication Sunshine Artist Magazine as 54th in their top 100 list out of over 4,000 fine art festivals across the nation. The festival draws an estimated 60,000-70,000 annual visitors to our City and is produced with revenue from artist fees and generous donations from community members, businesses and grants. Sponsor contributions and grant revenue have been more difficult to obtain over the last few years so we have introduced higher booth rental rates in the FY2016 budget. The City employs a part-time festival director to manage the event annually and also a part-time employee to assist in administrative and operating work. The 20.9% increase is attributable to wage increases for both employees. Operating costs are budgeted 4.8% higher in FY2016 when compared to FY2015’s budget. Most of the increase is due to higher user rental fees from the City’s Information and Technology Fund and more money budgeted for performers. Several City departments provide some in-kind city services, while other city services are provided to the festival for a fee such as parking and weekend staffing by the department of Public Works for site needs and trash removal. Since the Art Festival has been struggling to achieve the minimum fund balance desired by City Council policy resolution (8% - 15%), many of these internal fees have not been charged to or paid for by the Art Festival Fund. If both FY2015 and FY2016 budgets goals materialize, the Art Festival Fund should be able to make the internal service charge payments budgeted in both fiscal years ($11,000) and still meet council’s policy resolution target ranges.
101
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DEBT SERVICE FUND
103
DEBT SERVICE FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Special Assessments Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
1,189,970 $ 386,085 3,458 566,100
1,181,845 $ 370,105 3,000 637,780
1,201,240 347,330 3,000 607,130
2,145,613
2,192,730
2,158,700
2,216,345
2,192,730
2,158,700
Expenditures & Financing Sources: Debt Service Operating Surplus (Deficit)
$
(70,732) $
-
$
-
$
437,835 454,070
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
891,905 (185,775)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures EXPLANATORY INFORMATION
$
706,130 32.7%
In FY2016, the millage rate is decreasing slightly (.0258 mills) from the prior year. Total property tax revenue is still expected to increase though as taxable values are growing and debt payments also are increasing as we near the end of the bonds (scheduled to be paid in full in FY2019). Special assessment revenue continues to decline each year as interest amounts due decrease each year. Other financing sources are made up of transfers from various funds to cover their associated debt payments as well as reappropriated equity. The transfer from the General Fund of $60,795 relates to the debt issued in 2008 for various capital improvements. The transfer from the Solid Waste Fund of $65,075 relates to the debt issue for the methane extraction system installed at Burcham Park. The contribution from the DDA of $295,485 is for the debt issue relating to the City Center I project. The debt related to the SmartZone (Technology Innovation Center) buildout was defeased in FY2015. This resulted in approximately $600,000 of cash being deposited into a restricted escrow account which will pay off the related bonds as they become due and callable. FY2016 includes reappropriating $103,200 of this escrowed balance as well as $82,575 planned use of fund balance accumulated from prepaid special assessments. The increase in fund balance is a direct reflection of the new escrow account discussed above offset by the current year payments on the related bonds as well as a small use of fund balance for prepaid special assessments. Use of fund balance for prepaid special assessments will subside after FY2017. The escrow account for the SmartZone defeased bonds will be fully exhausted in FY2019.
104
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Debt Service Debt Service Jill Feldpausch FY2014 Actual
Debt Service: Principal Payment Interest Payment Other Services & Charges
FY2015 Amended Budget
FY2016 Budget Request
$
1,745,000 $ 466,983 4,362
1,785,000 $ 400,130 7,600
1,905,000 250,300 3,400
$
2,216,345
2,192,730
$
2,158,700
$
ACTIVITIES •
Central paying fund for non-proprietary fund debt payments
EXPLANATORY INFORMATION This fund will pay the debt service on the following: • • • • • • • •
•
Parks Improvement Bond Library Bond Aquatics Center Bond Hannah Community Center Bond City Center I Taxable Bonds (funded by the DDA) Special Assessment #71 Bonds for roadway amenities along Coleman and West Roads Capital Improvements Bonds for various projects (funded by the General Fund) Technology Innovation Center build out (in-substance defeasance completed in FY2015) Burcham Park methane extraction system (funded by the Solid Waste Fund)
105
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CAPITAL IMPROVEMENT FUND
107
CAPITAL IMPROVEMENT FUND Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Avondale Square CDBG Grant Avondale Square Brownfield Reimbursement St. Anne Plaza Brownfield Reimbursement Community Support - St. Anne Plaza Other Misc Revenue - Avondale Square Lot Sales Interest Income Other Financing Sources Avondale Square Transfer from General Fund St. Anne Plaza Transfer from General Fund Facility Improvements Transfer from General Fund Facility Improvements Reappropriated Equity
$
Total Revenues & Financing Sources
FY2015 Amended Budget
130,121 $ 19,914 38,428 55,992 65,050 399
FY2016 Budget Request
126,325 $ 35,010 56,390 130,800 200
122,520 51,205 44,875 110,850 -
120,000 124,710 -
51,980 47,675
35,920 245,000 -
554,614
448,380
610,370
6,313
-
-
80,694 31,764
23,500 -
2,250 -
161,625 3,082 321,716 -
47,875 320,615 56,390
245,000 318,245 44,875
605,194
448,380
610,370
Expenditures & Financing Sources: Personnel Services - St. Anne Plaza Operating Costs Avondale Square St. Anne Plaza Capital Outlay St. Anne Plaza Facility Improvements Debt Service - Avondale Square Transfers Out - St. Anne Plaza to General Fund Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(50,580) $
- $
Statement of Fund Balance: The fund balance at June 30, 2014 was $593,560, per audited financial statements, of which $385,000 were assets available for sale at Avondale Square. The remaining $208,560 was the balance available in the various projects housed in this fund.
108
-
CAPITAL IMPROVEMENT FUND Revenues & Expenditures EXPLANATORY INFORMATION The Avondale Square project, similar to recent years, continues to make slow but steady progress. In FY2015, a transfer of $51,980 is expected to offset a deficit in this project. Based on the expected activity for the current year end and next year, approximately $35,920 in further General Fund support is scheduled for FY2016. This support could increase or decrease depending on the pace of lot sales. In FY2015 to-date activity has included three lot sales with another projected, compared to just two in FY2014 and three estimated in FY2016. In FY2014 the City entered into a new development agreement with Hometown Housing Partnership to sell and construct the remaining income-qualified units. The remaining work on the project includes the final course of asphalt and minor curb repair, both of which have been delayed until this coming construction season. The project will also see an increase in TIF revenue for FY2015, up nearly $16,000 to $51,205. Debt on the project includes the Section 108 loan being repaid with CDBG revenue and the City bond being repaid with TIF and lot revenue as well as the aforementioned General Fund subsidy. St. Anne Plaza was partially reconstructed and then the City took over and completed in FY2014. The total construction costs for the portion the City completed were just under $198,450. The developer contributed $55,992 and the General Fund covered the balance of approximately $142,500. The General Fund is being reimbursed from Brownfield capture over three fiscal years (FY2014-2016). The actual reimbursement amount for FY2015 is $56,705 and it is budgeted at $44,875 in FY2016. Facility improvement projects for FY2016 in this fund include $220,000 for the City Hall Security Project and $25,000 for courtroom, court lobby, secured corridor, jury room and offices painting as well as carpet in the secured corridor. FY2015, although not budgeted, will see $235,000 of City Hall Security improvements. These costs will be fully funded by a General Fund transfer.
109
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PARKS CAPITAL IMPROVEMENT FUND
111
PARKS CAPITAL IMPROVEMENT FUND Re ve nues, Expenditures, & Change s in Fund Balance FY2014 Actual
Re ve nue s & Financing Source s: Intergovernmental Revenue Community Support Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
55,000 123,035 1,311 565,870
FY2015 Amended Budget
$
300,000 120,000 50 79,950
FY2016 Budget Request
$
20,000 20,000
745,216
500,000
40,000
502,361 -
500,000
20,000 20,000
502,361
500,000
40,000
Expenditures & Financing Source s: Capital Outlay Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
242,855
$
-
$
State me nt of Fund Balance: The fund balance at June 30, 2014 was $291,677 per audited financial statements, and is fully designated for project activities. The estimated fund balance at June 30, 2015 is $10,761.
112
-
PARKS CAPITAL IMPROVEMENT FUND Revenues & Expenditures EXPLANATORY INFORMATION The FY2015 amended budget, when prepared, anticipated $300,000 in revenue from a Michigan Department of Natural Resources Natural Resources Trust Fund Grant for the Patriarche Park renovation project. The budget also anticipated $120,000 in revenue from community support for the Patriarche Park project from the East Lansing Rotary Foundation. Included in the total from other financing sources was a $58,000 transfer from the Parks and Recreation Fund and $21,950 in re-appropriated equity. Expenditures anticipated in the FY2015 amended budget included a $500,000 transfer out to the General Fund to reimburse the $500,000 transferred in to the fund in FY2014 for advance funding of the Patriarche Park playground project. The FY2015 estimated year-end revenue anticipates $300,000 in revenue from a Michigan Department of Natural Resources Trust Fund Grant for the Patriarche Park playground renovation. The year-end estimate also anticipates $107,800 in revenue from community support ($97,800 from Patriarche Park playground project donations and a $10,000 donation from the East Lansing Rotary Foundation to be used for improvements to the baseball fields in Patriarche Park). Estimated FY2015 year end expenditures include $260,000 for the Patriarche Park playground project, $28,216 for the Farmer’s Market improvements in Valley Court Park, $1,000 in attorney fees, and $400,000 to be transferred out to the General Fund to reimburse the General Fund for the advance funding in FY2014 project expenses. It is anticipated that the additional $100,000 in reimbursement to the General Fund will come from continued fund-raising efforts recorded in this fund over the next several fiscal years, and $50,000 in transfers from the Parks and Recreation fund ($10,000 per fiscal year for FY2016-2020). The FY2016 budget request contains revenue of $20,000 in community support from continued fund-raising for the Patriarche Park project and $20,000 in other financing sources ($10,000 in transfer from the Parks and Recreation Fund and $10,000 in reappropriated equity, both financing the Patriarche Park baseball field project). Expenditures include a $20,000 transfer back to the General Fund of the Patriarche Park fund-raising dollars and $20,000 in capital outlay for the improvements to the Patriarche Park baseball fields. Not identified in the budget request is the possibility that fund-raising will begin for the East Lansing Veteran’s Memorial Project to be installed at the East Lansing Hannah Community Center front landscaped area, immediately adjacent to the Medal of Honor Monument. If fund-raising is successful, then the project will start. In this event, a budget amendment will be requested before any money is spent.
113
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Enterprise Funds
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 116
AUTOMOBILE PARKING SYSTEM FUND
117
AUTOMOBILE PARKING SYSTEM FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
133,160 $ 3,733,544 22,251 949 4,478 613,520
138,285 $ 3,684,940 22,330 2,000 1,044,360
133,530 3,940,605 22,700 2,600 355,755
4,507,902
4,891,915
4,455,190
1,017,746 1,092,724 355,296 259,179 1,852,305 -
1,036,860 849,280 698,000 396,235 1,911,540 -
1,003,690 933,720 281,565 392,610 1,828,060 15,545
4,577,250
4,891,915
4,455,190
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Transfers Out Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
118
(69,348) $
-
$
-
AUTOMOBILE PARKING SYSTEM FUND Estimated Revenues EXPLANATORY INFORMATION The Automobile Parking System Fund budget is $4,455,190 for FY2016 and is 8.9% less than last year. The primary reason for the decrease is the amount of bond proceeds (from FY2011 bonds issued) being used to fund the final phase Capital Repair Program for the parking garages. The intergovernmental revenue received from the Stonehouse Village III Brownfield capture is used to offset the debt service costs for the Albert Place Garage (Lot 7) and Bailey Lot (Lot 11) expansion. This amount has decreased 3.4% or $4,755 over last year as taxable values decreased. The parking system is continuing to see some revenue growth from the recent housing and restaurant developments downtown. For FY2016, it is projected that parking lot revenue (charges for services) will increase by $255,665 of which $168,000 of this is from a proposed rate increase in the attended lots. Rental income reflects the revenue received from leasing out advertising space to Adams Outdoor Advertising, space in Lot 12 for Marriott Laundry, and space in Lots 1 and 11 to MSUFCU for ATM’s. This amount remains consistent with previous years. Other financing sources are made up of a contribution of $248,000 from the DDA and a contribution of $107,755 from the General Fund. This amount is significantly less than FY2015 budget amount as reappropriated equity of $539,105 was included in FY2015 as the remaining bond proceeds were being used. The contribution from the DDA is funds used to offset the debt service costs for the Marriott Garage (Lot 12). Beginning in FY2015, the DDA no longer captured any of the school related taxes as the State capture had sunset. The local taxes will continue to be captured and FY2016 is seeing a 5.9% ($13,725) increase over FY2015 as taxable values increase. The contribution from the General Fund is $107,755. This is the allocation from 54B District Court for the ticket revenue of unpaid night notices issued in the parking garages. This amount was decreased by $150,000 from previous years as the allocation from parking meter tickets has been discontinued. The decrease has been offset by a proposed five cent per half hour rate increase in the attended parking lots. While the Parking System covers its expenses and is projecting some growth, the establishment of an unrestricted net asset reserve fund continues to be an ongoing challenge. The Parking Task force will be updating its FiveYear Master Plan with an emphasis on generating adequate revenue to cover expenses and build a fund reserve.
119
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Automobile Parking System Parking System Dan O’Connor/Tim Dempsey
ACTIVITIES • Provides a safe, convenient parking system so Downtown residents and customers of the commercial district can park close to their destination at a reasonable fee • Oversees the collection and processing of revenues from parking meters and six attended facilities • Administers the monthly and semester parking permit system • Administers the merchant validation program • Maintains parking lots, garages, parking gate equipment, parking meters and pay stations EXPLANATORY INFORMATION Personnel services have been reduced by $33,170 for FY2016. This is a result of the retirement of the department administrator and a reduction in Department of Public Works (DPW) work order charges. Operating costs have increased by $84,440 as we plan to pursue design of the Marriot reconstruction as well as perform an engineering condition appraisal on the garages. In addition, the equipment rental charges from DPW are expected to increase due to underfunding in prior years and we also expect an increase in credit card fees as more and more people use this form of payment. Because of the success of the L.E.D lighting project in the Grove street garage, it is being proposed to be extended to the Charles Street Garage and the Division Street garage for FY2016. This project, at $281,565 was originally expected to be funded by the FY2011 capital repairs bond issue, but because of cost over run on other items, was not completed. It is being proposed to be completed in FY2016 with funding coming from the proposed rate increase and expected revenue growth. The transfer out amount represents the contribution to the Building Authority which is decreasing 4.4% or $83,480. This amount is based on the needs of the Building Authority fund to pay the applicable debt payments and is offset by a small amount of revenue from space rental and cell tower leases.
120
BUILDING AUTHORITY
121
BUILDING AUTHORITY Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Rental Income Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
68,153 $ 2,213 1,852,305
66,395 $ 900 1,979,800
206,620 1,000 1,843,615
1,922,671
2,047,095
2,051,235
544,789 576,080
9,410 2,037,685
9,535 2,041,700
1,120,869
2,047,095
2,051,235
Expenditures & Financing Sources: Operating Costs Debt Service Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
801,802 $
- $
-
EXPLANATORY INFORMATION The Building Authority served as a financing mechanism to construct parking facilities. Beginning in FY2007, any new debt associated with parking facilities is accounted for in the Automobile Parking System Fund with the debt in the City of East Lansing’s name rather than in the name of the Building Authority. The Building Authority’s first bonds, issued in 1967 and 1968, are now fully paid off. In 1985 and 1987, bonds were issued to construct the ramp underneath University Place. In 1988 and 1989, bonds were issued to construct a 600 space ramp in the 400 block of Albert Street. In August 1991, the Building Authority issued $14,040,000 in new bonds to refinance the 1985, 1987, 1988 and 1989 bonds. These have a lower interest rate and longer maturity than the four refinanced issues. Proceeds of the newer bonds were escrowed and invested and will pay off the principal and interest on the four refinanced issues. In 1996, a portion of the 1991 issue pertaining to the 1985 issue was refinanced again saving $15,000 per year. In 1999, the Building Authority refinanced again a portion of the 1991 debt. In FY2008, a portion of the 1991 Building Authority bonds were refinanced which constituted a savings of approximately $14,050 a year. In FY2009, the remaining balances of the 1999 bonds were refinanced with an average savings of approximately $48,900 a year. In FY1997, the Building Authority issued $975,000 in bonds to renovate Lots 1 & 7. In FY2000, the Building Authority issued $12,500,000 in debt for the City Center I Garage. In FY2005, these bonds were refinanced resulting in a $16,000 savings. In FY2015, a refunding of the 2005 City Center I bonds resulted in a net present value savings of $472,000 over the remaining ten years.
122
BUILDING AUTHORITY Estimated Revenues INCOME $
$ $
206,620 Rental Income – The Division Street Garage has commercial retail space for rent. Part of the space is rented to Georgio's Pizza while Scene Metro Space occupies the other space. This line item also includes the lessees’ share of real property taxes as well as fees for commercial trash collection for Georgio’s Pizza and Six Lounge. The total income derived from these items is $39,620 while the remaining $167,000 relates to the cell tower lease revenue that can be recognized in the current fiscal year. The cell tower leases were sold in FY2011 to AP Wireless and cash was received up front, however the revenue stream is being recognized over a 30 year period. FY2016 is allowed to recognize additional revenue stream as one of the remaining leases has decided to end its contract allowing us to recognize the full value. 1,000 Interest Income – This represents income from investments held by the Building Authority. 1,843,615 Other Financing Sources – This is made up of two line items; reappropriated equity and a transfer from the Parking Fund. Reappropriated equity is the amount of net assets planned to be used to cover current year expenses. $15,555 is the amount of debt due on Lot 7 which was sold in prior years and which proceeds have been kept on hand to make that payment. The Building Authority leases the City Center/Charles Street Garage, the Division Street Garage, the MAC Avenue Garage (under University Place), as well as the Albert Avenue Lot and the Bailey Street Lot to the Parking Fund. The contribution from the Parking Fund of $1,828,060 is based on the monies needed to cover the debt paid by the Building Authority.
123
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Building Authority Parking System Mary Haskell/Jill Feldpausch
ACTIVITIES •
Sell bonds and build parking ramps for the City Parking System (pre-FY2007)
EXPLANATORY INFORMATION The Authority is responsible for the debt service on the bonds which financed the MAC Avenue Garage, the City Center/Charles Street Garage, the Division Street Garage, and renovations to the Albert Avenue Lot and Bailey Street Lot. The full debt service on the bond issues is included here. Total outstanding debt including interest as of June 30, 2014 is $12,999,249 with final principal and interest payments ending in fiscal year 2025. The actual debt service cost in FY2014 appears significantly lower as this is the interest piece only and we budget both principal and interest amounts. The minimal operating costs primarily relate to expenditures for the taxes and trash collection at the commercial space of the Division Street Garage. The actual operating cost in FY2014 includes depreciation expense of the Authority’s assets and we do not budget for this non-cash expenditure.
124
SEWAGE DISPOSAL SYSTEM FUND
125
SEWAGE DISPOSAL SYSTEM FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Intergovernmental Revenue Charges for Services Rental Income Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
343,894 $ 8,854,930 16,723 10,041 -
FY2016 Budget Request
348,780 $ 9,071,000 15,200 11,325 1,500,000
1,818,275 9,734,000 13,820 11,825 10,000,000
9,225,589
10,946,305
21,577,920
2,723,536 4,876,789 2,121,481 353,090 40,000 -
2,809,930 3,816,565 1,746,000 2,485,900 40,000 47,910
2,920,925 4,176,285 11,388,000 2,893,555 199,155
10,114,897
10,946,305
21,577,920
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Transfers Out Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
126
(889,308) $
-
$
-
SEWAGE DISPOSAL SYSTEM FUND Estimated Revenues EXPLANATORY INFORMATION The Sewage Disposal System budget is $21,577,920, an increase of 97.1% from last year. The increase is attributed to the first of a series of waste water treatment plant upgrades, starting first with the construction of an ultra-violet disinfection system and enhancements of the tertiary filter system. A utility rate model was developed in FY2008 which calculates utility rates based on the estimated cost to provide water and sewage services while maintaining adequate fund balances. New rates are divided into three components; billing, readiness to serve, and commodity charges. Rates now more accurately cover administrative costs, such as customer billing, that do not vary with yearly fluctuations in weather. This rate study recommends an overall increase of 8.4% in sewage billing rates for FY2016, and this sets the stage for a series of increases to fund infrastructure renewal. The rate increase for a typical sewer bill of 8.4% is an increase of $8.87 per quarter. INCOME
$
1,818,275 Intergovernmental Revenue – The City was able to secure a Stormwater, Asset Management & Waste Water (SAW) grant in FY2015. $1.2 million of this is expected to be received in FY2016 to cover system televising, the development of an asset management system, and design. This line item also includes the portion of debt paid by MSU and Meridian Township for the optimization improvements at the Plant. MSU and Meridian Township’s contributions are increasing in FY2016 as they are sharing the costs of the new debt associated with the system enhancements.
$
9,734,000 Charges for Services – Charges to customers for sewage services makes up more than half of this line item with $5,895,000. MSU and Meridian Township share the expected operating costs of the Wastewater Treatment Plant with $1,780,000 and $1,760,000, respectively. Eastwood Towne Center properties produce revenue of $158,000 with the remaining $141,000 generated from connection charges and penalties on delinquent utility bills.
$
13,820 Rental Income – Represents cell tower lease revenue that can be recognized in the current fiscal year. The cell tower leases were sold in FY2011 to AP Wireless and cash was received up front, however the revenue stream is being recognized over a 30 year period.
$
11,825 Interest Income – Income earned on fund reserves.
$ 10,000,000 Other Financing Sources – In April 2015, the City issued debt to finance the first of a series of upgrades to the Waste Water Treatment Plant, using low interest loans from the State Revolving Fund (SRF). The first project is a $15,000,000 project to replace the tertiary filters, replace a chemical disinfection process with ultra-violet light disinfection and construct a new effluent discharge line. It is expected that $2,000,000 will be executed in FY 2015 and $10,000,000 in FY 2016, with the balance in FY 2017.
127
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Sewage Disposal System Public Works Scott House/Paul Stokes/Bob Scheuerman
ACTIVITIES • • • • • • • • • •
Prepare combined water & sewage billings and process customer payments Maintain customer account information and resolve billing questions Coordinate account changeover process with rental property owners during peak turnover times Generate delinquency notices to inform customers and third parties of past due accounts Maintain sanitary and combined sewer collection system including: sewer main repairs; catch basin and manhole repairs and replacement; jetting; sewer main replacement; and customer complaints Fund sanitary and combined sewer line replacements and system expansions Treat wastewater flows for the City, MSU, Meridian Township, and Eastwood Towne Center to comply with state and federal water quality standards Maintain the physical components of the wastewater plant Operate and maintain the City's separated sewer pump station Operate and maintain the City's Combined Sewer Overflow pump station
EXPLANATORY INFORMATION Personnel services have increased by $110,995, or 4.0%, which can be attributed to the filling of key positions at the waste water treatment plant as well as increased Engineer staff time allocated here for managing projects. Operating and capital outlay costs have increased dramatically due to the $10 million expenditure for the waste water treatment plant upgrades and over $1.2 million in Stormwater, Asset Management & Waste Water (SAW) grant expenditures. In addition, costs for safety services are budgeted to include training, policy review and process refinement. In FY 2016, outside of the above noted $10 million, $440,000 of the capital outlay budget is for sewer system repairs which will be completed in Chesterfield Hills neighborhood as part of a four year comprehensive infrastructure program. Other capital outlay includes additional replacement projects at the wastewater treatment plant and contingency sewer and manhole lining projects. Replenishment of fund equity of $199,155 is expected in FY2016 as we establish funds to complete future system upgrades and build fund equity.
128
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Sewage Disposal System Debt Service Scott House/Paul Stokes/Bob Scheuerman FY2014 Actual
Debt Service: Principal Payment Interest Payment Other Services & Charges
FY2015 Amended Budget
FY2016 Budget Request
$
- $ 351,977 1,114
2,179,850 $ 303,900 2,150
2,229,850 662,555 1,150
$
353,090
2,485,900
$
2,893,555
$
EXPLANATORY INFORMATION The City borrowed $660,000 in FY2000 which completed the last portion of Phase 1 of the Combined Sewer Overflow Project which represents sewer separation in the Wilmarth Drain area. In FY2002, the City borrowed $5,125,000 to implement the Optimization Plan at the Wastewater Treatment Plant. In accordance with their sewage treatment contracts, MSU and Meridian Township pay for 40% and 33% of the Optimization Plan debt, respectively. In FY2004, the City borrowed $9,073,648 to implement the final phase of the Combined Sewer Overflow abatement project which consisted of constructing a large retention basin near Kalamazoo St and Harrison Rd. This basin collects sewage and storm water during very heavy storms where it is held until it can be treated by the plant. In FY2007, debt relating to the deferred connection fees for the installation of utilities on West Rd and Coleman Rd was issued. FY2013 resulted in bonding for the Kalamazoo St SRF project and in FY2015 the SRF loan began drawdowns with a maximum allowed of $15 million. MSU and Meridian Township will share their applicable percentages of this FY2015 SRF loan. FY2016 is seeing an increase in interest payments related to debt as the SRF loan will be an interest only payment. This loan will see its first principal payment in FY2017. There are two bond issues that will be paid in full in FY2016 and another two fully retired in FY2017. This will result in $473,000 and $1,617,000 of less debt payments in FY2016 and FY2017, respectively. FY2017 will see total debt service of approximately $3 million with it dropping back down to $1.8 million in FY2018, assuming no additional debt is issued.
129
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WATER SUPPLY SYSTEM FUND
131
WATER SUPPLY SYSTEM FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Charges for Services Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
3,392,363 $ 2,069 171,049
3,783,000 $ 930 1,620
4,013,700 1,500 -
3,565,480
3,785,550
4,015,200
950,111 2,317,639 496,901 76,441 -
1,147,720 2,184,875 320,000 132,955 -
1,059,700 2,191,500 435,000 132,860 196,140
3,841,092
3,785,550
4,015,200
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
132
(275,612) $
-
$
-
WATER SUPPLY SYSTEM FUND Estimated Revenues EXPLANATORY INFORMATION The Water Supply System budget is $4,015,200, an increase from last year of $229,650 or 6.1%. A utility rate model was developed prior to establishing rates for FY2008. The model calculates rates based on the estimated cost to provide water and sewage services while maintaining adequate fund balances. Rates are divided into three components; billing, readiness to serve, and commodity charges. These rates more accurately recover administrative costs, such as customer billing, that do not vary with yearly fluctuations in weather. Based on expenses and projected revenues, the rate model calculated an overall increase of 15.8% increase in water billing rates for typical residential users. The rate increase for a typical water user is $10.26 per quarter. The increase reflects the cost for adjusting rates for system renewal. INCOME $
$ $
4,013,700 Charges for Services – Metered utility billings of $3,808,200 makes up the majority of this line item and reflects charges to customers for water and irrigation services. A water rate increase of 15.8% is recommended for FY2016, as noted above. The prior year's rate model was not fully burdened at 3.6%, without rate smoothing the actual FY2015 rate increase should have been 12.7%. No increase in consumption is anticipated. The remaining $205,500 relates to water connection fees, cross connection inspections, tap in fees, and penalties on past due utility accounts. 1,500 Interest Income – Income earned on fund reserves. -0- Other Financing Sources – FY2014 actual amount reflects the net change in the City’s investment of the East Lansing Meridian Water Sewer Authority (ELMWSA) which is an accounting transaction and does not affect cash, therefore, is not a budgeted item. The small balance of $1,620 in FY2015 reflects budgeted reappropriated equity, or use of fund balance.
133
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Water Supply System Public Works Scott House/Bob Scheuerman/Ron Lacasse
ACTIVITIES • • • • • • • • •
Purchase treated water from the East Lansing Meridian Water Sewer Authority Read meters for water and irrigation services to track consumption Install meters and remote readers for new accounts, as well as inspect and replace existing meters Turn on and shut off water services as needed Prepare combined water & sewage billings Maintain customer account information Maintain the water main distribution system including water main infrastructure replacements, system expansions, and service connections to private property Maintain one ground surface and three elevated water storage tanks Maintain the raw water mains within the City for East Lansing Meridian Water Sewer Authority
EXPLANATORY INFORMATION Public Works administrative, treasury, and engineering staff costs are recorded in the General Fund. The other Public Works staff are pooled and recorded in the Garage & Public Works Services Fund. Charges are then billed appropriately, via internal service charges, for services provided to the other funds. The staff primarily assigned to administrative, water distribution system activities, and water purchase activities are included here. Personnel services for FY2016 decreased $88,020 or 7.7%, which is attributable to a decrease in pension costs and no anticipated retirement payouts, which were included in FY2015. Operating costs are remaining consistent with a slight increase of $6,625 in FY2016. Garage equipment rental amounts are expected to increase due to underfunding in prior years, however, that is offset by a lower budgeted amount for the purchase of water from ELMWSA. The FY2015 amount was inflated due to some unknown circumstances of ELMWSA at the time the City’s budget was approved. Capital outlay for FY2016 increased $115,000, or 35.9%. This includes funding for Chesterfield water line replacement in late FY2016, as part of a multi-year project, and the painting of the Alton Water Tower. FY2016 is expected to produce $196,140 of a surplus which will be used to fund future year projects.
134
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Water Supply System Debt Service Scott House/Bob Scheuerman/Ron Lacasse FY2014 Actual
Debt Service: Principal Payment Interest Payment Other Services & Charges
FY2015 Amended Budget
$
- $ 76,227 214
$
76,441
$
FY2016 Budget Request
63,010 $ 69,515 430
65,155 67,490 215
$
132,860
132,955
EXPLANATORY INFORMATION The debt service is on the capital replacement and upgrade of the existing water mains along Harrison Rd between Kalamazoo St and Trowbridge Rd, and along Harvard Rd between Coolidge Rd and Touraine Ave. The debt service also includes new installations of water utilities along Coleman Rd and West Rd. Debt service is $132,860 for FY2016 which is similar to FY2015.
135
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Internal Service Funds
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 138
GARAGE AND PUBLIC WORKS SERVICES POOL FUND
139
GARAGE AND PUBLIC WORKS SERVICES POOL FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Charges for Services Rental Income Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
174,861 $ 2,633,922 978 6,318 -
205,495 $ 2,872,245 2,000 4,500 1,297,570
185,290 3,375,960 1,000 4,500 599,415
2,816,079
4,381,810
4,166,165
743,340 1,810,931 250,237 184,924
654,810 1,967,735 1,174,000 585,265
733,675 1,881,875 976,090 574,525
2,989,432
4,381,810
4,166,165
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
140
(173,353) $
-
$
-
GARAGE AND PUBLIC WORKS SERVICES POOL FUND Estimated Revenues EXPLANATORY INFORMATION The Garage & Public Works Services Fund FY2016 budget is $4,166,165, which is a decrease of $215,645 (4.9%) from the current fiscal year’s budget. This is due to the decrease in the amount budgeted for the replacement of vehicles in the City’s fleet. The Garage Fund’s net assets have been established to have monies available to replace vehicles and equipment when they have reached the end of their useful life. INCOME $
$
185,290 Charges for Services – Income derived from services performed for external customers such as the maintenance on Bath Community School buses ($55,100) and internal customers for Geographic Information System user charges ($130,190). 3,375,960 Rental Income includes budgeted revenue from the following sources. •
• •
$2,660,290 for Equipment Rental - This income derived from renting equipment to all departments, as well as services performed on state trunklines for the State Highway Department. $704,680 for Building Rental - The building-related expenses are charged to the various departments using the Garage based upon the size of the area used. $10,990 for Recognition of Sale of Cell Tower Leases - The cell tower lease revenue stream was sold to AP Wireless in FY2011 and the Garage Fund received $189,720 up front; however, this amount has to be recognized over the life of the revenue stream sold, 30 years.
$
1,000 Miscellaneous Revenue – Represents miscellaneous revenues received.
$
4,500 Interest Income - Consists of interest income on idle cash balances.
$
599,415 Other Financing Sources - The Garage Fund establishes rental rates to departments which pay for City mechanics, parts, insurance and fuel as well as an allowance to replace the vehicles as they wear out. The amount of $549,415 of net assets is being reappropriated in the FY2016 budget and will be used to purchase fleet replacements. There is also $50,000 of revenue derived from the proceeds of sales when the city sells its vehicles and equipment, usually at a State of Michigan auction.
141
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Garage and Public Works Services Pool General Government Scott House/Cathy DeShambo FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Garage and DPW Services Pool Divisions: DPW Services Pool Geographic Information System Garage Equipment Debt Service Total Expenditures
$
338,544 $ 108,147 2,357,817 184,924
267,765 $ 127,925 3,400,855 585,265
335,385 134,665 3,121,590 574,525
$
2,989,432
4,381,810
$
4,166,165
$
ACTIVITIES • • • • • • •
Provide preventative maintenance and major repairs to public works vehicles and equipment, police vehicles, fire vehicles and equipment, and two school districts' buses Maintain and operate the City's fuel dispersing system Plan and arrange for the purchase of city equipment and vehicles Construct and/or modify equipment to improve the efficiency of City operations Administer the Garage revolving fund Operate and maintain the Public Works facility and grounds on State Road Serve as the public service labor pool
EXPLANATORY INFORMATION The Garage and Public Works Fund owns all City vehicles including the Police and Fire Department’s equipment. It leases all of the vehicles and equipment back to each of the departments and is in turn responsible for the repairs and maintenance. The garage maintenance facility is also contracted to provide the repairs and maintenance for the buses of the Bath School District. The majority of public works employees are centrally accounted in this Internal Service Fund and then billed to other funds as services are provided. The intent is to charge out 100% of these employees' hourly pay, including benefits, to the activity that the employee is providing service for. As with other City departments, the Service Pool has been reduced, through attrition, to achieve operational efficiencies and cost-savings. Since 2005, 13 positions have been eliminated. That being said, the total FY2016 personnel service budget is increasing by 12.0% over that of FY2015 largely due to the replacement of a full-time mechanic position in the Garage Division. The FY2016 budget for operating costs is actually decreasing by $85,860 or 4.4% from FY2015 budget primarily due to adjusting the FY2016 budget for depreciation to be more consistent with the actual expense.
142
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Garage and Public Works Services Pool General Government Scott House/Cathy DeShambo
EXPLANATORY INFORMATION (Continued) Previous fiscal year vehicle purchases are capitalized (and removed from the expense line item), while in current and future fiscal years, we have to budget for the cash outlay. Capital outlay in the FY2016 budget ($976,090) is predominately for the replacement of vehicles in the City’s fleet at $946,090 and is budgeted in the garage equipment division of the fund. It can, of course, fluctuate based on the number of vehicles scheduled to be replaced in the fiscal year as well as the size/cost of the vehicles. Other capital outlay purchases budgeted in FY2016 are $25,000 for parking lot cameras, a proxy card system for the gates and $5,000 for replacement photos in the Geographic Information System division. Debt service expenditures relate to the bonds issued to build the DPW building. There are two outstanding issues with the first one being paid in full in FY2025 and the other in FY2028. The FY2016 amount is consistent with that of FY2015.
143
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INSURANCE AND BENEFITS FUND
145
INSURANCE AND BENEFITS FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Charges for Services Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
7,486,549 $ 11,293 700,960
7,179,670 $ 7,000 648,445
7,326,045 9,000 -
8,198,802
7,835,115
7,335,045
7,984,657 -
7,669,375 165,740
7,335,045 -
7,984,657
7,835,115
7,335,045
Expenditures & Financing Sources: Operating Costs Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
Statement of Net Assets:
$
214,145 $
Worker Compensation
Health Reserve
-
$
General Liability
-
Total
Net Assets as of June 30, 2014 $ Anticipated Surplus (Deficit) for year end June 30, 2015 Estimated Net Assets as of June 30, 2015 Anticipated Surplus (Deficit) for year end June 30, 2016
486,369 $ 558,517 $ 108,135 $ 1,153,021 298,773 (98,457) 362,220 35,010 1,451,794 387,912 920,737 143,145 -
Estimated Net Assets as of June 30, 2016
387,912 $ 920,737 $ 143,145 $ 1,451,794
$
146
INSURANCE AND BENEFITS FUND Estimated Revenues EXPLANATORY INFORMATION A Workers' Compensation Fund was established in FY1992 when the City went self-insured for workers' compensation. In FY1998, unemployment compensation and retirees health insurance reserves were added to this fund. The employee fringe benefits are now charged to the various departments and are recorded here as revenue to the fund. The premiums and any self-insured costs are charged as expenses to the fund. The fund name was changed to Insurance & Benefits Fund to reflect the expanded activities. In FY2014, we began budgeting general liability claims out of this fund for the first time. This fund is an internal service fund which means it derives its revenues from other funds. The FY2016 budget is $7,335,045, which is $500,070 or 6.4% lower than FY2015 amended budget. One major factor contributes to this change. The FY2015 budget was amended in December 2014 to transfer the balance of our FY2014 other post employment benefits (OPEB) pre-funding contribution ($648,445) to the Retiree Healthcare Funding Vehicle at MERS so the FY2015 budget is higher by that amount. Nothing is budgeted for a pre-funding OPEB contribution in FY2016 at this time so if we subtract the OPEB payment ($648,445) from the FY2015 budget we get a better comparison between the budget years. This results in an increase of $148,375 from the adjusted FY2015 budget or 2.1%. It is the City’s intent to accumulate reserves in this fund since our self insurance retention amounts have increased in the past several years. Included in the charges for services in FY2016 budget request is $260,900 in user charges for workers’ compensation claims. Since we had accumulated adequate reserves in fund equity, we kept our worker’s compensation manual premium charges flat when we prepared the FY2016 budget. But we are now experiencing several significant claims in FY2015 and are estimating our workers’ compensation reserves will decrease by $98,457 by the end of the fiscal year, as identified in the Statement of Net Assets presented. In response to the challenge of controlling ever increasing healthcare costs, a Health Insurance Task Force, comprised of administrative staff and bargaining unit representatives, was formed in the early 2000’s. The Task Force has had continued success in creating health insurance cost savings by changing health care providers in response to competitive bids. In FY2014, the budget had already been adopted by City Council before our renewal date, when we awarded the City’s medical insurance book of business to McLaren Health Plan and we renewed with McLaren again in FY2015. We are estimating a surplus will result in the healthcare budget performance at the end of FY2015 in the amount of $362,220. However, our preliminary response from McLaren indicates if we renew with them for FY2016, we will be facing a double digit increase in our premium rate. The Task force is waiting for bid responses from several other insurers, but the City’s healthcare consultant is telling us, with the year of high claims activity we have experienced, other bids will undoubtedly contain double-digit increases to our premium amounts as well. Since we only budgeted an increase of 3.5% in manual premium rate increases for active employees, we may well need our health reserves to help pay for higher claim costs in FY2016.
147
INSURANCE AND BENEFITS FUND Estimated Revenues (Continued) INCOME $
6,072,305 Health Insurance Charges - Charges to other funds for health and prescription coverage for employees, dependants and retirees. An increase of 3.5% is budgeted for active employees health and prescription rates charged to other funds.
$
260,900 Workers' Compensation Charges - Charges to other funds to participate in the worker's compensation self insurance pool.
$
448,950 Other Benefit Charges - Internal charges for other benefits such as dental, long-term disability and life insurance.
$
543,890 General Liability Insurance Charges – Charges to other funds for General, Property, Commercial, Crime, Excess Liability premiums, third party administration fees and actual claims paid out that fall below the self-insured retention amounts.
$ $
9,000 Interest Income - Interest earnings on invested cash reserves. -0- Other Financing Sources - The FY2014 actual income and amended FY2015 budget include funding from the General Fund to make transfers in each of these years to the MERS Healthcare Funding Vehicle for our OPEB required contribution.
148
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Insurance and Benefits General Government Mary Haskell FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
Insurance and Benefits Divisions: Medical Benefits Other Fringe Benefits Workers Compensation General Liability Total Expenditures
$
6,715,037 $ 630,666 215,314 423,640
6,565,385 $ 500,540 256,485 512,705
6,070,215 460,040 260,900 543,890
$
7,984,657
7,835,115
$
7,335,045
$
ACTIVITIES • • • • • • •
Administration of employee benefits Operation of self insurance pool for employee high deductible medical, dental and workers’ comp claims Obtain general liability insurance policies and administer general liability insurance claims below the self-insured retention amounts Establish reserves for retiree health insurance, workers' comp claims and general liability insurance Provide data to actuaries for bi-annual OPEB valuation report Process payments for claims, administration fees, and reinsurance premiums Record contributions from employees and payments to a third party administrator for the 125 flex plans
EXPLANATORY INFORMATION Medical benefits are budgeted in FY2016 at a rate of 2.6% over that of FY2015 (after decreasing the FY2015 amended budget by the OPEB pre-funding payment). We see a 8.1% decrease in other fringe benefits due to a correction in the long-term disability rate upon conversion to the new financial software in October 2014. Worker’s compensation claims are budgeted relatively flat in FY2016, when compared to the current year, but increases in this budget are not ruled out in future years if reserve levels decrease significantly. General liability claims are budgeted 6.1% higher in FY2016 to accommodate higher premium cost increases, due to an increased amount of claims activity in the current fiscal year. Every two years, the City has its other post employment benefits (OPEB) calculation performed to determine the value of employer financed retiree health benefits provided by the City. This actuarial calculation ensures compliance with Statements No. 43 and No. 45 of the Governmental Accounting Standard Board (GASB). These standards calculate an annual required contribution (ARC) which includes a pay as you go component as well as funding a reserve for retiree health care. Our most recent valuation, based on data as of December 31, 2010, calculated not only our present value of future benefits ($51,571,170) and actuarial accrued liability ($48,015,152) but our annual required contribution for FY2013 and FY2014. We are waiting for the completion of our next valuation by the actuaries, based on data as of December 31, 2012, which will tell us our annual required contributions for both FY2015 and FY2016. In FY2015, as mentioned earlier, the City paid the balance of our FY2014 annual required contribution in the amount of $648,445. This payment was approved by City Council and transferred to the trust in December 2014. As of our last statement, the City has accumulated over $12 million in the trust for the funding of our post employment (retiree) healthcare obligations. No contribution is being budgeted at this time in the FY2016 budget.
149
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COMPUTER SERVICES FUND
151
COMPUTER SERVICES FUND Revenues & Expenditures FY2014 Actual
Revenues & Financing Sources: Rental Income Interest Income Other Miscellaneous Revenue
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
826,425 $ 870 351
1,035,170 $ 500 -
1,127,250 500 -
827,646
1,035,670
1,127,750
307,725 465,474 142,330 7,043 -
306,015 376,865 197,500 115,545 39,745
308,410 385,635 173,900 228,695 31,110
922,572
1,035,670
1,127,750
Expenditures & Financing Sources: Personnel Services Operating Costs Capital Outlay Debt Service Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(94,926) $
- $
-
EXPLANATORY INFORMATION This is an internal service fund used as the cost center for the City's computer and other related technology operations. Departments are charged a fee which then pays for the computer services staff, licenses, software and hardware maintenance, equipment maintenance and equipment replacements. The FY2016 budget is $1,127,750, which is $92,080 (8.9%) higher than the FY2015 amended budget. INCOME $
1,127,250 Rental Income - This revenue is derived from renting equipment to the City's various departments. This charge includes recovering personnel service, operating, and capital outlay costs, as well as money set aside for future replacement of equipment. User charges are estimated to increase by $92,080 when compared to the current fiscal year. We are budgeting for additional rental income in FY2016 (we missed charging users for debt service from the financing of the New World software in the prior fiscal year so we are charging users an additional payment in FY2016) and also for the replenishment of replacement reserves as these have become depleted in prior fiscal years. We have also worked hard to streamline equipment within departments by eliminating and consolidating equipment as well as containing recurring maintenance costs.
$
500 Interest Income - This amount consists of interest income on idle cash balances and fund balances throughout the year.
152
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Computer Services General Government Alan McCarrick/George Lahanas
ACTIVITIES • • • • • • • •
Coordinate and develop activities including system installation, configuration, system design, and application programming, and insure fault tolerance of all network hardware and software Coordinate the acquisition, installation, and testing of hardware and software Evaluate the efficiency and effectiveness of the core systems and all other enterprise applications Manage all hardware and software inventory and insure compliance with software licenses Manage, administer, and support all electronic data systems and infrastructure across the City Provide effective oral, written and visual presentation that assist in educating City employees on assigned information systems and services Create and enforce standard computer policies in achieving City goals and objectives Attend and participate in professional group meetings, teleconferences and seminars for up-to-date trends in information technology
EXPLANATORY INFORMATION The FY2016 budget is higher, in total, from FY2015 by $92,080 as stated earlier. Personnel services have increased by 0.8% due to a scheduled employee cost of living increase. Operating costs are showing an increase of 2.3% due to some changes in where we budget certain expenses that were previously budgeted in capital outlay. Capital outlay spending is 11.9% lower for FY2016 when compared to the current fiscal year. This is due to the fact that we have fewer projects planned as well as the previously mentioned budgeting change. The debt service of $228,695, reflected in the FY2016 budget, represents the annual debt payment from acquiring the new financial management system. Finally, we hope to increase our equipment replacement reserves and have placed a small amount ($31,110) in the FY2016 budget to replenish fund balance in order to meet future equipment replacement schedules.
153
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Component Units
NOTES:_______________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ ______________________________________ 156
BROWNFIELD REDEVELOPMENT AUTHORITY
157
BROWNFIELD REDEVELOPMENT AUTHORITY Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
624,453 $ 1,134 -
881,935 $ 300 -
956,725 1,000 2,225
625,587
882,235
959,950
59,495 499,350 -
69,750 812,185 300
69,750 886,975 3,225 -
558,845
882,235
959,950
Expenditures & Financing Sources: Personnel Services Operating Costs Transfers Out Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
66,742 $
- $
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
2,944 (2,225)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
158
196,289 (193,345)
$
719 0.1%
BROWNFIELD REDEVELOPMENT AUTHORITY Estimated Revenues EXPLANATORY INFORMATION The East Lansing Brownfield Redevelopment Authority (BRA) was established in 2003 as a tool to facilitate the development and/or redevelopment of properties within the City that are either environmentally contaminated, blighted or functionally obsolete. Through the use of Tax Increment Financing (TIF) as an incentive, the Authority has been successful in supporting over $137 million in new development and redevelopment projects. The BRA makes available incentives for difficult to develop properties by reimbursing the developer for site clean-up and infrastructure costs. This revenue is derived from the capture of the increase in taxable value resulting from the project. For some projects, the State of Michigan also provides financial incentives by increasing the reimbursement amounts to the project through the capture of State and local school millages. At the conclusion of the reimbursement, each taxing jurisdiction will then receive their pro rata share of taxes at the new taxable value. For FY2016, the Authority will capture property taxes for the following projects:
• • • • • • •
The Pointe (1427 W. Saginaw) 1226 Michigan Ave. Stonehouse Village I M-78 Project Avondale Square Campus Village II West Village
• • • • • • •
Albert Place Condominiums Louis Street 2000 Merritt A&G Residences St. Anne Interstate Partners Project 514 Michigan Avenue
Most of the projects are expected to see an increase in TIF revenue, reflecting the improving condition of property values after several years of decline. Trowbridge Village TIF capture will begin in FY2017. FY2016 includes $2,225 of reappropriated equity (shown as other financing sources) to repay the General Fund for expenses related to the St Anne Plaza that are not allowed to be reimbursed through the TIF plan. This planned use of fund balance will leave the fund with a very small fund balance, however, that is the nature of this fund. Monies captured each year should be reimbursed and there should be minimal, if any, fund balance remaining.
159
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Brownfield Redevelopment Authority Community and Economic Development Tim Dempsey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
The Pointe 15,000 $
15,000
138,400
71,525
78,655
4,574
4,600
4,985
Administrative Fee
15,000
15,000
15,000
Reimbursable Costs
56,215
56,625
58,150
Administrative Fee
$
15,000 $
Reimbursable Costs 1226 Michigan Avenue Reimbursable Costs West Village
Stonehouse Village 1 Administrative Fee
1,000
1,000
1,000
Reimbursable Costs
44,014
45,075
46,400
Administrative Fee
7,500
7,500
7,500
Reimbursable Costs
-
93,555
96,170
133,160
138,285
133,530
Administrative Fee
7,500
7,500
7,500
Reimbursable Costs
-
16,080
18,830
19,914
35,010
51,205
Administrative Fee
2,500
2,500
2,500
Reimbursable Costs
-
21,915
22,635
Campus Village II
Albert Place Condominiums Reimbursable Costs M-78 Project
Avondale Square Reimbursable Costs Louis Street
A&G Residences Administrative Fee
4,745
10,000
10,000
Reimbursable Costs
-
115,785
118,645
St. Anne Administrative Fee
5,000
5,000
5,000
Reimbursable Costs
54,897
80,555
84,500
Administrative Fee
1,000
1,000
1,000
Reimbursable Costs
12,926
14,315
12,620
2000 Merritt Road
Interstate Partners Project Administrative Fee
250
250
250
Reimbursable Costs
35,251
53,525
93,720
-
5,000
5,000
514 Michigan Avenue Administrative Fee Reimbursable Costs
558,845
$
160
$
65,335 881,935
$
66,930 956,725
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Brownfield Redevelopment Authority Community and Economic Development Tim Dempsey
ACTIVITIES • • •
Provides financial incentives for the development and/or redevelopment of sites that are either environmentally contaminated, blighted or functionally obsolete. Assists property owners in the determination of site contamination. Seeks state and federal grant funding for assessment and remediation activities.
EXPLANATORY INFORMATION The BRA receives staff support from the Department of Planning and Community Development and the Finance Department. During the reimbursement phase of each project, an annual administrative fee is returned to the City which is collected from a portion of the captured property tax revenues. The City is allowed by statute to collect up to $15,000 each year for administrative fees from its active Brownfield projects. Total admin fees for FY2016 will be $69,750. The balance, and largest portion of expenditures, is for the reimbursement to individual projects for eligible Brownfield expenses. Each project is supported through a tax capture plan of varying duration and receives a payment from the City out of captured taxes to reimburse the project until the eligible program costs have been fully paid. Projects are only reimbursed to the extent TIF revenue is available. Developers are not reimbursed when property taxes are in arrears. FY2016 includes $3,225 of a transfer back to the General Fund for repayment of St Anne Plaza expenses which exceeded the allowable reimbursable costs through the plan. The projected operating deficit for FY2015 is due to the payout of capture from prior years that was not distributed in the tax year collected. The delayed payments are covered by the surplus in the fund as project reimbursements can only be derived from their own capture and never in an amount that exceeds actual capture.
161
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DOWNTOWN DEVELOPMENT AUTHORITY
163
DOWNTOWN DEVELOPMENT AUTHORITY Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Rental Income Community Support Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
942,275 $ 359,350 20 1,165 6,286,400
1,014,400 360,455 1,535 -
2,023,952
7,589,210
1,376,390
80,000 644,533 449,462 771,530 -
93,300 652,440 6,104,965 685,730 52,775
98,300 478,405 112,150 573,485 114,050
1,945,525
7,589,210
1,376,390
967,198 $ 663,263 1,695 5,020 1,776 385,000
Expenditures & Financing Sources: Personnel Services Operating Costs Debt Service Transfers Out Replenish Fund Equity Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
78,427 $
- $
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
236,286 114,050
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
164
249,081 (12,795)
$
350,336 27.8%
DOWNTOWN DEVELOPMENT AUTHORITY Estimated Revenues EXPLANATORY INFORMATION The Downtown Development Authority (DDA) operates with a Board of Directors consisting of 11 members, the majority of whom own property and/or businesses in the Downtown. A primary mission of the Authority is to attract new business investment in the Downtown, and to enhance the overall business climate through marketing and promotion. Since its formation in 1985 the DDA has been responsible for over $68 million in new development and redevelopment in the Downtown. This was leveraged by a DDA capital investment of over $22 million for new infrastructure including new parking facilities, streetscape improvements and amenities. Examples of supported projects include University Place (the Marriott Hotel); City Center; Stonehouse Village; Albert Place, St. Anne and the Residences; and the $6 million streetscape project which improved the pedestrian alleys, rebuilt various parking lots and spearheaded a $700,000 campaign of privately donated funds through Envision East Lansing which resulted in numerous fountains, the Clock Tower and other attractive amenities. The Authority has successfully leveraged $3 of private investment for every $1 in invested public capital. The most recent projects that have been supported by the DDA are the St. Anne Project and The Residences projects which added 81 new residential apartments downtown and two new restaurants. These projects were supported through the addition of necessary public infrastructure, including, water, sewer and streetscape improvements which were completed in 2012. The Authority’s revenues are derived primarily from three operating sources: the incremental tax revenues that result from increased development and redevelopment in the Downtown, a separate real property operating millage tax levy of 2 mills (reduced to 1.7319 mills due to Headlee restrictions), and rental income from the Technology Innovation Center (only through FY14) and Evergreen properties. Property tax revenue is expected to increase as we see taxable values rise due to an improving economy and new developments in the downtown area. FY2016 budget includes $128,000 from the DDA millage, $248,000 from the TIF1 plan capture, and the remaining $638,400 from the TIF2 plan capture. Rental income in FY2014 was significantly higher as this included rent from the Technology Innovation Center which was transferred to the Lansing Economic Area Partnership (LEAP) in July 2014. LEAP has taken over all of the operations of the TIC, therefore, no revenue or expense will be shown in the DDA’s records after July 2014. The $360,455 budgeted in FY16 relates to the Evergreen properties. The recommended budget for FY2016 for the Downtown Development Authority is $1,376,390. This number is much less than the previous fiscal year’s budget because in FY2015 the budget included refinancing the debt associated with the Evergreen properties with limited operations as we expected the development to move forward. In addition, FY2015 budget included operations of the Technology Innovation Center which will end the year with only one month of activity. In FY2016, the overall fund balance is expected to increase by $114,050 primarily because of a decrease in debt service costs and because of the desire to increase the fund balance in order to accommodate future costs associated with the Evergreen properties.
165
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Downtown Development Authority Community and Economic Development Lori Mullins/Tim Dempsey FY2014 Actual
FY2015 Amended Budget
FY2016 Budget Request
DDA Divisions: Downtown Development 303 Abbot Road SmartZone Evergreen Properties
$
Total Expenditures
$
908,696 $ 350,560 400,003 286,265 1,945,525
$
948,990 $ 350,465 423,815 5,865,940
1,091,175 550 284,665
$
1,376,390
7,589,210
ACTIVITIES • • • • • •
Promote business investment and development in the Downtown Recruit new businesses and help retain existing ones Facilitate the growth and development of high tech businesses Advise the City Council on downtown opportunities and issues Support diversification of the downtown housing market Make available economic incentives to encourage Downtown development projects Support bikeability and walkability in the Downtown
EXPLANATORY INFORMATION Personnel services are provided to the DDA primarily from the Department of Planning, Building and Development and the Finance Department. This year’s budget includes a total of $98,300, which is $5,000 more than FY2015. The increase can be attributed to the requirement for increasing staff time allocated to downtown projects such as the Park District, Gateway and 565 E. Grand River. Operating costs have decreased when compared to previous years, and this can be attributed to the elimination of all operating costs associated with the SmartZone. In FY2016, the Authority will be moving forward with additional investments and development support. In particular, the DDA anticipates that it will have expenses related to the Park District project analysis, other redevelopment projects, pathway and streetscape planning and minor streetscape improvements. The Authority also intends to continue to support recruiting efforts, wayfinding signage and other infrastructure improvements. The debt service line relates to the 303 Abbot property and the Evergreen property. The DDA debt associated with a Core Communities loan for 303 Abbot was forgiven in totality by the State near the end of FY2014. For the Evergreen properties, the Bond Anticipation Notes issued in 2009 and again in 2012 were refinanced in FY2015, reflecting the significant jump in FY2015 budget. The annual debt service payment of the new issuance is included in the FY2016 budget.
166
DEPARTMENT APPROPRIATION (Continued) FUND FUNCTION STAFF RESPONSIBLE
Downtown Development Authority Community and Economic Development Lori Mullins/Tim Dempsey
EXPLANATORY INFORMATION (Continued) There is additional debt service budgeted in the transfers out line as the City actually issued the debt and the DDA transfers the required monies to cover the debt for the City Center I project and the SmartZone/Technology Innovation Center related bonds. In FY 2015, the DDA transferred its interest in the SmartZone to the LDFA in exchange for the LDFA paying the DDA’s debt associated with the SmartZone buildout as well as other conditions detailed in the SmartZone and Technology Innovation Center Transfer Agreement, which was executed in July of 2014. This line is reduced further in the FY2016 budget because of refinancing of debt associated with the City Center I project which was closed in FY2015. Also included in transfers out is the contribution to the Parking Fund equal to the TIF1 capture of $248,000 and the continued funding for a portion of the non-motorized improvements on East Grand River Avenue in the amount of $30,000.
167
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DOWNTOWN MANAGEMENT BOARD
169
DOWNTOWN MANAGEMENT BOARD Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Special Assessments Charges for Services Community Support Other Miscellaneous Revenue Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
FY2016 Budget Request
44,514 $ 2,000 5,000 211 -
43,315 $ 2,000 5,000 125 10,460
43,315 2,000 1,150 5,100 200 1,850
51,725
60,900
53,615
12,000 41,608
12,000 48,900
14,000 39,615
53,608
60,900
53,615
Expenditures & Financing Sources: Personnel Services Operating Costs Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(1,883) $
- $
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
18,823 (1,850)
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
170
34,828 (16,005)
$
16,973 31.7%
DOWNTOWN MANAGEMENT BOARD Estimated Revenues EXPLANATORY INFORMATION The Downtown Management Board (DMB) was established by the East Lansing City Council in FY1998 to serve as the managing and marketing entity for the Downtown. The DMB has a Board of Directors that is comprised almost exclusively of Downtown business owners. As authorized by State law, the DMB is able to levy a special assessment on all commercial properties located within the Downtown and use those funds specifically for such activities as marketing, promotion, security, maintenance and parking operations. The special assessment is evaluated every five years by the DMB and City Council to determine its continuance as a levy. The current special assessment expires in FY2018. The charges for services relate to the annual purchase of an advertisement in the Greater Lansing Convention & Visitor’s Bureau’s Greater Lansing magazine that is distributed throughout the State of Michigan. The Downtown Management Board places an advertisement in the magazine, and then charges businesses that wish to be listed in the advertisement $250 each for the publication. Community support is provided by private donations given to the Downtown Management Board for future marketing purposes. In FY2015, the Downtown Management Board received a donation from the East Lansing Merchants Group. The City’s Parking Fund provides $5,000 to the DMB each year to help support the Holiday Shopping campaign. The $5,000 is placed towards radio and television advertising campaigns. Fund balance at June 30, 2016 is expected to be $16,973 or 31.7% of expenditures even with an expectation of using $16,005 in FY2015 and $1,850 in FY2016.
171
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Downtown Management Board Community and Economic Development Tim Dempsey/Amy Schlusler
ACTIVITIES • • •
Marketing and promotion of Downtown businesses Sponsoring downtown events Serving as liaison between the City and the Downtown businesses
EXPLANATORY INFORMATION Staffing for the DMB is provided by the Planning, Building, and Development Department. FY2016 includes a new staffing charge of $2,000 for the Communications Department’s assistance with design, advertising, and the creation of promotional materials for events hosted by the Downtown Management Board. All other support services are provided by the City. The DMB uses the proceeds from the tax levy to undertake marketing programs aimed at attracting customers to the Downtown businesses. The DMB develops and oversees a year round marketing campaign program which includes generic advertising for downtown East Lansing through television and radio advertisements, as well as providing co-op advertising opportunities for businesses through the production of online, print, and television marketing. The DMB is currently working on implementing a new Downtown Gift Card program, in which persons will be able to purchase gift cards to use at all participating DMB retail and restaurant locations. Customers will be able to purchase the gift cards online and have them mailed to their home or office locations. The Downtown Management Board solely hosts an average of three community engagement events each year. In FY2015, the Downtown Management Board hosted/will host the Girls Day Out in October, Downtown Chili Cook Off in March, and activities for the regional Be A Tourist In Your Own Town event in June. In addition, the DMB provides financial sponsorship to more than six community engagement events and festivals in the downtown. While specific events have not yet been planned by the DMB Business Relations Committee in FY2016, the budget does assume a minimum of three key events in the downtown between July 1, 2015-June 30, 2016. Those events will include Girls Day Out, Be A Tourist, and another “food-driven” venue such as the Downtown Chili Cook-Off.
172
LOCAL DEVELOPMENT FINANCE AUTHORITY
173
LOCAL DEVELOPMENT FINANCE AUTHORITY Revenues, Expenditures, & Changes in Fund Balance FY2014 Actual
Revenues & Financing Sources: Property Taxes Intergovernmental Revenue Charges for Services Interest Income Other Financing Sources
$
Total Revenues & Financing Sources
FY2015 Amended Budget
14,834 $ 70,000 23,231 160 -
FY2016 Budget Request
42,890 $ 70,000 16,000 200 38,245
48,900 -
108,225
167,335
48,900
9,965 71,946 35,000
52,520 114,815
4,890 44,010 -
116,911
167,335
48,900
Expenditures & Financing Sources: Personnel Services Operating Costs Transfers Out Total Expenditures & Financing Sources Operating Surplus (Deficit)
$
(8,686) $
- $
-
Statement of Fund Balance: Fund Balance as of June 30, 2014 (per audited financial statements) Anticipated Operating Surplus (Deficit) for year ended June 30, 2015
$
150 -
Estimated Available Fund Balance as of June 30, 2015 Anticipated Operating Surplus (Deficit) for year ended June 30, 2016 Estimated Available Fund Balance as of June 30, 2016 FY2016 Estimated Fund Balance as a Percentage of Operating Expenditures
174
53,690 (53,540)
$
150 0.3%
LOCAL DEVELOPMENT FINANCE AUTHORITY Estimated Revenues EXPLANATORY INFORMATION The Local Development Finance Authority (LDFA) fund was put into place in FY2008. A joint LDFA was created in 2005 between the City of East Lansing, the City of Lansing and Ingham County to foster development of the Lansing Regional SmartZone. The board changed in 2014 from a seven member entity consisting of three members from the City of East Lansing, three members from the City of Lansing, and one Ingham County member to a nine member Board with East Lansing and Lansing each appointing one representative from MSU to serve on the Board. The LDFA is authorized under Public Act 281 of 1986. Under the LDFA Act, communities are allowed to utilize tax increment financing for the purpose of developing certified technology parks, or SmartZones. SmartZones are intended to foster the partnership between municipalities, universities, and the public sector to advance technology commercialization and create high tech jobs. Under the leadership of the Downtown Development Authority, the East Lansing Technology Innovation Center, a high tech business incubator, was started in October of 2008. Tax increment revenue can be utilized to support the activities of the Technology Innovation Center. The Hatch, a business incubator for student entrepreneurs, was created through a partnership between, the LDFA, MSU and the DDA in January of 2011 and has been funded primarily through contributions from MSU (received in FY2011) and student memberships. During FY2014, Spartan Innovations assumed the lease for the Hatch space from the DDA and expanded that space. In 2012, the LDFA entered into a management agreement with the Lansing Economic Area Partnership (LEAP) for SmartZone management services to be provided by LEAP. As part of a larger sustainability plan for the SmartZone, LEAP was successful in obtaining funding to pay off the DDA’s debt associated with the Technology Innovation Center buildout. The City, DDA, LDFA and LEAP entered into a SmartZone and TIC Transfer Agreement in July of 2014, which eliminated the DDA’s debt and the City’s responsibilities toward management of the Technology Innovation Center. The recommended budget for FY2016 is $48,900. This figure represents only the East Lansing portion of the estimated tax increment revenue. TIF revenue is projected to increase again in 2016 due to high occupancy within the LDFA boundaries and related increasing property values. The TIF is derived from 50% of the school millages (State Education Tax, Intermediate School District, and local schools) in the Downtown and East Village. No City or other local taxes are included in the tax capture for the East Lansing portion of the LDFA. The State is obligated to reimburse the schools for the foregone school revenue resulting from this TIF capture. In FY2015, the LDFA transferred its small fund balance to the SmartZone in accordance with the SmartZone and Technology Transfer Agreement.
175
DEPARTMENT APPROPRIATION FUND FUNCTION STAFF RESPONSIBLE
Local Development Finance Authority Community and Economic Development Tim Dempsey/Lori Mullins
ACTIVITIES • • •
Collect TIF revenue and distribute to the LDFA for the operation of the Technology Innovation Center through a contract with the Lansing Economic Area Partnership (LEAP) Provide staff support to the City’s LDFA members Support networking activities and special events that foster the “culture of entrepreneurship” in the Mid Michigan area
EXPLANATORY INFORMATION The Local Development Finance Authority receives support from the Department of Planning, Building, and Development and the Finance Department. The City will retain 10% of the TIF for administrative expenses and will transfer the remaining funds to LEAP for management and operation of the SmartZone, including the Technology Innovation Center.
176
