Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for fiscal year 2012 (7 Votes Required)
Memorandum
Attached for your review and action is the proposed fiscal year FY 2012 City Budget that totals $331 million and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 11, 2011.
General Fund Activities
This budget proposal holds expenditure levels in line with the projected revenue levels.
|
|
FY 2012 |
Recurring Revenues |
$ |
77,987,857 |
Use of Fund Balance for Non-recurring items |
|
1,118,088 |
Total Revenues |
$ |
79,105,945 |
|
|
|
Recurring Expenditures |
$ |
78,321,015 |
Non-recurring Expenditures |
|
784,930 |
Total Expenditures |
$ |
79,105,945 |
General Fund recurring expenditures decreased by $(107,762) (0.14%) compared to FY 2011, and recurring revenues decrease by $(2,002,252) (2.5%). Non-recurring expenditures will be funded from use of undesignated fund balance. Below is a summary of non-recurring expenditures:
|
|
|
General Fund Non-recurring Items |
|
FY 2012 |
Expenditures: |
|
|
Golf Operations Subsidy |
|
382,526 |
Housing Commission Subsidy |
|
154,000 |
Court Facilities Fund transfer |
|
65,000 |
Additional Funding for Human Services (Amendment 1) |
|
85,600 |
Additional Funding for Parks (Amendment 2) |
|
90,804 |
Additional Funding for City Clerk (Amendment 3) |
|
7,000 |
Total Non-recurring Expenditures |
|
784,930 |
Revenues: |
|
|
DDA revenue shortfall |
|
333,158 |
Total General Fund Non-recurring Items |
$ |
1,118,088 |
FTEs
The City's FTEs are proposed to decrease from 736 to 706 in FY 2012:
· 13 FTE decrease in Police Services
· 7 FTE decrease in Fire Services
· 7 FTE decrease in Public Services
· 1 FTE increase in Community Services
· 1 FTE decrease in Fifteenth District Court
· 1 FTE increase in DDA
· 0.5 FTE decrease in Attorney
· 0.5 FTE decrease in City Administrator
· 3 FTE decrease in Financial and Administrative Services
Millage Rates
The following millages are the maximum allowable levy after the Headlee rollback multiplier is applied (for FY 2012 the Headlee rollback multiplier is anticipated to be 1.00):
|
PROPOSED FY 2012 |
ACTUAL FY 2011 |
DIFFERENCE |
GENERAL OPERATING |
6.1682 |
6.1682 |
0.0000 |
EMPLOYEE BENEFITS |
2.0560 |
2.0560 |
0.0000 |
REFUSE COLLECTION |
2.4670 |
2.4670 |
0.0000 |
AATA |
2.0560 |
2.0560 |
0.0000 |
STREET REPAIR |
1.9944 |
1.9944 |
0.0000 |
PARK MAINTENANCE & CAPITAL IMPROVEMENTS |
1.0969 |
1.0969 |
0.0000 |
OPEN SPACE & PARKLAND PRESERVATION |
0.4779 |
0.4779 |
0.0000 |
DEBT SERVICE |
0.1496 |
0.5000 |
0.3504 |
TOTAL |
16.4660 |
16.8164 |
0.3504 |
Staff
Prepared by: Tom Crawford, Chief Financial Officer and Interim City Administrator
Body
Whereas, City Council has reviewed the City Administrator's proposed budget for FY 2012 for the City of Ann Arbor; and
Whereas, A public hearing and various public meetings have been held to obtain citizen input on the proposed budget; and
Whereas, City Council, with the adoption of the FY2009 budget, Council directed staff to implement a five-year plan that provides supplemental funding from the General Fund fund balance to subsidize the golf courses in Fund 0047 while significant operational and capital investments are made to improve operations;
Whereas, City Council adopted a resolution in 2008 for annual supplemental Parks funding from General Fund fund balance in the amount of $287,520;
Whereas, Housing Commission has requested additional funding for FY 2012 and 2013 in the amount of $154,000 for hiring additional staff to develop and implement a property maintenance program;
Whereas, the implementation of Governmental Accounting Standards Board Statement #54, Fund Balance Reporting and Governmental Fund Type Definitions, effective June 30, 2011, specifies new definitions for what funds are considered separate from the General Fund and some City funds need to be re-designated,
RESOLVED, That Council adopts the General Fund Allocations as listed in the FY 2012 Consolidated Plan, to be funded out of the Community Development Budget;
RESOLVED, That the unexpended grant entitlement for the Community Development Block Grant and the HOME Funds be re-appropriated at the end of the fiscal year until such time as all grant funds have been expended;
RESOLVED, That any Community Development Program Income be appropriated upon receipt of the funds for the purpose of Community Development Project Activities;
RESOLVED, That any contributions to the Special Assistance Fund and the Housing Trust fund in excess of the budgeted amount, shall be appropriated at the time of receipt and for the purpose of the Ann Arbor Assistance Fund and the Housing Trust Fund, respectively;
RESOLVED, That the proposed list of Capital Improvement projects in the amount of $144,344,734 are approved; and that $32,563,745 be appropriated in FY 2012 for these or similar projects, within the respective funds, as determined by the Service Area, and may be carried forward without regard to fiscal year;
RESOLVED, That Art in Public Places Fund budget be appropriated without regard to fiscal year;
RESOLVED, That the Technology Improvement projects in the amount of $710,000 be appropriated without regard to fiscal year;
RESOLVED, That a total 706 full-time equivalent positions be adopted in the FY 2012 budget;
RESOLVED, That the City Administrator be authorized to transfer funds between service units within the designated service areas;
RESOLVED, That any funds contributed to the Parks Memorials and Contributions fund in excess of the budgeted amount, shall be appropriated at the time of receipt for the purpose of that fund without regard to fiscal year;
RESOLVED, That the City Council approve the proposed FY 2012 Ann Arbor-Ypsilanti SmartZone LDFA budget, as a component unit of the City of Ann Arbor in Fiscal Year 2012 in a dedicated Fund containing $1,708,191 in revenues and $1,708,191 in expenditures;
RESOLVED, That the City Council continue two more years of providing a General fund subsidy to the Golf Courses in FY2012 and FY2013 to fulfill the original five year commitment discussed in 2009;
RESOLVED, That the City Council include the additional annual Parks funding of $287,520 as part of the General Fund ongoing operations rather than a use of fund balance starting in FY2012;
RESOLVED, That the City Council include the additional Housing Commission funding in the amount of $154,000 for FY2012 and FY2013 with the expectation that the Housing Commission will procure separate funding by FY2014;
RESOLVED, That the City Council direct the City Administrator to implement GASB #54 which closes the Economic Development Fund to the General Fund;
RESOLVED, That the following appropriations constitute the General Fund budget for FY 2012;
REVENUES |
CITY ATTORNEY |
$ 118,000 |
CITY ADMINISTRATOR |
|
Clerk Services |
156,900 |
COMMUNITY SERVICES |
|
Planning & Development Services |
1,075,950 |
Planning |
167,250 |
Office of Community Development |
300,596 |
Parks and Recreation Services |
2,384,066 |
FINANCIAL SERVICES |
|
Financial and Budget Planning |
14,492,068 |
Treasury |
40,109,329 |
PUBLIC SERVICES |
|
Field Operations |
475,424 |
Public Services Administration |
60,000 |
Systems Planning |
5,200 |
Water Treatment |
325,000 |
SAFETY SERVICES |
|
Police |
4,155,256 |
Fire |
86,500 |
DISTRICT COURT |
2,090,175 |
NON-DEPARTMENTAL |
13,104,231 |
TOTAL GENERAL FUND REVENUES |
$79,105,945 |
|
|
EXPENDITURES |
MAYOR AND CITY COUNCIL |
$362,496 |
CITY ATTORNEY |
1,864,303 |
CITY ADMINISTRATOR |
|
City Administrator |
536,037 |
Human Resources |
1,295,999 |
Clerk Services |
896,335 |
COMMUNITY SERVICES |
|
Planning & Development Services |
1,536,513 |
Planning |
919,413 |
Office of Community Development |
1,943,653 |
Parks and Recreation |
3,586,528 |
FINANCIAL SERVICES |
|
Accounting |
798,089 |
Assessor |
923,567 |
Financial and Budget Planning |
994,077 |
Procurement |
119,391 |
Treasury |
587,644 |
PUBLIC SERVICES |
|
Customer Services |
265,206 |
Field Operations |
4,128,390 |
Fleet & Facilities |
1,701,076 |
Public Services Administration |
293,756 |
Systems Planning |
110,349 |
Water Treatment Services |
171,389 |
SAFETY SERVICES |
|
Police |
25,592,784 |
Fire |
13,381,132 |
DISTRICT COURT |
3,799,926 |
NON-DEPARTMENTAL |
13,297,892 |
TOTAL GENERAL FUND EXPENDITURES |
$79,105,945 |
|
|
RESOLVED, That the following other funds revenue and expenditure appropriations are adopted for FY 2012 budget; and
REVENUES
Fund # |
Fund Name |
Amount |
0001 |
DDA/HOUSING FUND |
502,000 |
0002 |
ENERGY PROJECTS |
158,462 |
0003 |
DOWNTOWN DEVELOPMENT AUTHORITY |
5,428,185 |
0009 |
SMART ZONE LOCAL DEVELOPMENT FINANCING AUTHORITY |
1,708,191 |
0010 |
GENERAL |
79,105,545 |
0011 |
CENTRAL STORES |
1,571,428 |
0012 |
FLEET SERVICES |
9,836,355 |
0014 |
INFORMATION TECHNOLOGY |
6,503,546 |
0016 |
COMMUNITY TELEVISION NETWORK |
1,843,116 |
0018 |
PARKS REHAB & DEVELOPMENT MILLAGE |
55,302 |
0021 |
MAJOR STREET |
6,808,905 |
0022 |
LOCAL STREET |
1,710,662 |
0023 |
COURT FACILITIES |
225,000 |
0024 |
OPEN SPACE & PARKLAND PRESERVATION |
2,336,586 |
0025 |
BANDEMER PROPERTY |
5,511 |
0026 |
CONSTRUCTION CODE FUND |
2,240,353 |
0027 |
DRUG ENFORCEMENT |
119,673 |
0028 |
FEDERAL EQUITABLE SHARING |
178,146 |
0033 |
DDA PARKING MAINTENANCE |
2,016,044 |
0034 |
PARKS MEMORIALS & CONTRIBUTIONS |
48,861 |
0035 |
GENERAL DEBT SERVICE |
10,050,538 |
0036 |
METRO EXPANSION |
360,422 |
0038 |
ANN ARBOR ASSISTANCE |
8,049 |
0041 |
OPEN SPACE ENDOWMENT |
1,541 |
0042 |
WATER SUPPLY SYSTEM |
22,315,038 |
0043 |
SEWAGE DISPOSAL SYSTEM |
21,979,785 |
0046 |
MARKET |
167,732 |
0047 |
GOLF ENTERPRISE |
1,686,220 |
0048 |
AIRPORT |
830,619 |
0049 |
PROJECT MANAGEMENT |
4,408,764 |
0052 |
VEBA TRUST |
2,269,524 |
0053 |
POLICE AND FIRE RELIEF |
10,000 |
0054 |
CEMETERY PERPETUAL CARE |
1,200 |
0055 |
ELIZABETH R DEAN TRUST |
85,000 |
0056 |
ART IN PUBLIC PLACES |
334,660 |
0057 |
RISK FUND |
27,543,953 |
0058 |
WHEELER CENTER |
510,460 |
0059 |
EMPLOYEES RETIREMENT SYSTEM |
41,440,262 |
0060 |
GENERAL DEBT /SPECIAL ASSESSMENTS |
105,443 |
0061 |
ALTERNATIVE TRANSPORTATION |
181,861 |
0062 |
STREET REPAIR MILLAGE |
14,914,060 |
0063 |
DDA PARKING SYSTEM |
16,481,806 |
0064 |
MICHIGAN JUSTICE TRAINING |
112,010 |
0069 |
STORMWATER SEWER SYSTEM |
5,803,497 |
0070 |
AFFORDABLE HOUSING |
213,617 |
0071 |
PARK MAINTENANCE & CAPITAL IMPROVEMENTS |
5,386,564 |
0072 |
SOLID WASTE FUND |
15,187,968 |
0073 |
LOCAL FORFEITURE |
26,538 |
0082 |
STORMWATER BOND |
1,925,000 |
0083 |
SENIOR CENTER ENDOWMENT |
37,500 |
0088 |
SEWER BOND |
9,733,000 |
0089 |
WATER BOND |
4,341,000 |
00MG |
MAJOR GRANT PROGRAMS FUND |
200,000 |
|
|
$331,055,902 |
EXPENDITURES
Fund # |
Fund Name |
Amount |
0001 |
DDA/HOUSING FUND |
502,000 |
0002 |
ENERGY PROJECTS |
158,462 |
0003 |
DOWNTOWN DEVELOPMENT AUTHORITY |
5,428,185 |
0009 |
SMART ZONE LOCAL DEVELOPMENT FINANCING AUTHORITY |
1,708,191 |
0010 |
GENERAL |
79,105,545 |
0011 |
CENTRAL STORES |
1,571,428 |
0012 |
FLEET SERVICES |
9,836,345 |
0014 |
INFORMATION TECHNOLOGY |
6,184,238 |
0016 |
COMMUNITY TELEVISION NETWORK |
1,843,116 |
0018 |
PARKS REHAB & DEVELOPMENT MILLAGE |
55,302 |
0021 |
MAJOR STREET |
6,808,905 |
0022 |
LOCAL STREET |
1,710,662 |
0023 |
COURT FACILITIES |
225,000 |
0024 |
OPEN SPACE & PARKLAND PRESERVATION |
2,330,461 |
0025 |
BANDEMER PROPERTY |
4,200 |
0026 |
CONSTRUCTION CODE FUND |
2,240,353 |
0027 |
DRUG ENFORCEMENT |
119,673 |
0028 |
FEDERAL EQUITABLE SHARING |
178,146 |
0033 |
DDA PARKING MAINTENANCE |
1,881,900 |
0034 |
PARKS MEMORIALS & CONTRIBUTIONS |
48,861 |
0035 |
GENERAL DEBT SERVICE |
10,044,133 |
0036 |
METRO EXPANSION |
360,422 |
0038 |
ANN ARBOR ASSISTANCE |
8,000 |
0042 |
WATER SUPPLY SYSTEM |
19,524,948 |
0043 |
SEWAGE DISPOSAL SYSTEM |
19,800,885 |
0046 |
MARKET |
165,118 |
0047 |
GOLF ENTERPRISE |
1,577,317 |
0048 |
AIRPORT |
817,900 |
0049 |
PROJECT MANAGEMENT |
4,408,764 |
0052 |
VEBA TRUST |
409,022 |
0055 |
ELIZABETH R DEAN TRUST |
84,715 |
0056 |
ART IN PUBLIC PLACES |
334,660 |
0057 |
RISK FUND |
27,543,953 |
0058 |
WHEELER CENTER |
503,344 |
0059 |
EMPLOYEES RETIREMENT SYSTEM |
32,135,473 |
0060 |
GENERAL DEBT/SPECIAL ASSESSMENTS |
105,443 |
0061 |
ALTERNATIVE TRANSPORTATION |
138,653 |
0062 |
STREET REPAIR MILLAGE |
14,914,060 |
0063 |
DDA PARKING SYSTEM |
16,481,806 |
0064 |
MICHIGAN JUSTICE TRAINING |
112,010 |
0069 |
STORMWATER SEWER SYSTEM |
5,659,428 |
0070 |
AFFORDABLE HOUSING |
213,617 |
0071 |
PARK MAINTENANCE & CAPITAL IMPROVEMENTS |
5,315,169 |
0072 |
SOLID WASTE FUND |
15,186,914 |
0073 |
LOCAL FORFEITURE |
26,538 |
0082 |
STORMWATER BOND |
1,925,000 |
0083 |
SENIOR CENTER ENDOWMENT |
37,500 |
0088 |
SEWER BOND |
9,733,000 |
0089 |
WATER BOND |
4,341,000 |
00MG |
MAJOR GRANT PROGRAMS FUND |
178,407 |
|
|
$314,028,572 |
RESOLVED, That the following millages shall be levied for the City of Ann Arbor for FY 2012:
|
PROPOSED |
GENERAL OPERATING |
6.1682 |
EMPLOYEE BENEFITS |
2.0560 |
REFUSE COLLECTION |
2.4670 |
AATA |
2.0560 |
STREET REPAIR |
1.9944 |
PARKS MAINTENANCE & CAPITAL IMPROVEMENTS |
1.0969 |
OPEN SPACE & PARKLAND PRESERVATION |
0.4779 |
DEBT SERVICE |
0.1496 |
TOTAL |
16.4660 |
Approved Amendments by City Council on May 31, 2011
Amendment 1-
Increase the General Fund Expenditure Budget for Human Services funding.
Whereas, the FY12 General Fund Community Development budget reduced funding for human services;
Whereas, Council desires to provide one-time additional funding in FY12 to give human service recipients an additional year to make operational adjustments with the understanding this funding will not be available in subsequent fiscal years;
Whereas, Council desires to restore funding to levels for human services consistent with the reductions made by other General Fund service units;
RESOLVED, the FY12 General Fund Community Development budget be increased by $85,600 funded by a one-time use of fund balance from the General Fund.
Sponsored by: Briere, Higgins, Teall
Amendment 2-
Increase the General Fund Expenditure Budget for park field mowing and maintenance.
Whereas, the Council has received recommendations from PAC through its budget subcommittee and PAC membership as stewards of the parks;
Whereas, gained efficiencies and changes in the equipment and staffing model within Park Operations has resulted in reduction in activity costs without any effect on the current level of service in the amount of $90,804;
Whereas, Council desires to restore this funding to the General Fund Park Operations budget for field mowing or maintenance at sites that host programmed and scheduled active recreation;
Whereas, Council desires to fund this through a one-time use of fund balance for FY12 incorporating future funding of this cost into ongoing operations in future years' target development;
RESOLVED, the FY12 General Fund Park Operations budget be increased by $90,804 to fund the field mowing and maintenance at sites that host programmed and scheduled active recreation funded by a one-time use of fund balance from the General Fund.
Sponsored by: Anglin, Taylor
Amendment 3-
Increase the General Fund Expenditure Budget for additional ward for the primary election.
Whereas, the FY12 General Fund City Clerk budget includes funding for two wards in the August, 2011 primary election;
Whereas, the City Clerk has been notified of a third ward that will need a primary election;
RESOLVED, the FY12 General Fund City Clerk budget be increased by $7,000 to fund the additional ward for primary election funded by a one-time use of fund balance from the General Fund.
Sponsored by: Higgins
Amendment 5-
Increase DDA budget for new parking agreement and decrease use of General Fund fund balance related to the parking agreement.
Whereas, the DDA and the City have negotiated a new parking agreement effective for FY12;
Whereas, the DDA voted to amend their budget for this new agreement on May 20, 2011;
Whereas, the DDA budget currently includes $1,010,930 of expenditures related to the DDA/City Parking Agreement for Parking Facility Rent and Street Transfers;
Whereas, the DDA Parking fund budget currently includes an excess of revenues over expenditures in the amount of $1,343,509;
Whereas, the anticipated revenue for FY12 is expected to be $87,452 more than budgeted in the General Fund;
RESOLVED, the City increase the DDA Parking Fund expenditure budget by $1,662,563 funded by a use of fund balance from the DDA Parking Fund of $319,054;
RESOLVED, the City increase the General Fund revenue from the DDA by $87,452 and decrease the amount of use of prior year fund balance.
Sponsored by: Taylor
As Amended by City Council on May 31, 2011 during the continued May 16, 2011 Regular Session.