Title
Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for Fiscal Year 2011
Memorandum
Attached for your review and action is the proposed fiscal year FY 2011 City Budget that totals $359.9 million in revenues and $341.9 in expenditures, and is in compliance with the City Charter. This budget resolution reflects the recommended budget delivered to you on April 5, 2010.
General Fund Activities
This budget proposal holds expenditure levels in line with the projected revenue levels.
|
|
FY 2011 |
Recurring Revenues |
$ |
76,345,552 |
Recurring Expenditures |
|
74,862,375 |
Non-recurring Revenue |
|
0 |
Non-recurring Expenditures |
|
3,015,189 |
|
|
|
Net Surplus/(Deficit) |
$ |
(1,532,012) |
General Fund recurring expenditures decreased by $(6,357,682) (7.8%) compared to FY 2010, and recurring revenues decrease by $(8,157,310) (9.7%). Below is a summary of non-recurring expenditures:
|
|
FY 2011 |
General Fund Expenditures |
|
|
Non-recurring Items: |
|
|
Moving Costs for new building |
$ |
185,000 |
Loan payment for 1st and Washington |
|
150,000 |
A/V and security costs for new building |
|
975,000 |
A2D2 personnel costs |
|
43,529 |
Mortgage foreclosure prevention program |
|
100,000 |
Golf Operations Subsidy |
|
519,074 |
Housing Commission-employee compensation |
|
90,000 |
Planning & Dev. - master plan update |
|
95,000 |
Planning & Dev. - corridor design standards |
|
90,000 |
Planning & Dev. - zoning code revision |
|
65,000 |
Add'l Parks Funding - Parks & Rec |
|
95,766 |
Add'l Parks Funding - Park Ops |
|
191,820 |
Hydropower repairs to Barton Dam |
|
210,000 |
Larcom upper roof replacement |
|
165,000 |
A2D2 - Professional consulting |
|
40,000 |
Total General Fund Non-recurring Expenditures |
$ |
3,015,189 |
FTEs
The City's FTEs are proposed to decrease from 766 to 706 in FY 2011:
· 20 FTE's in Police Services
· 20 FTE's in Fire Services
· 10 FTE's in Public Services
· 6 FTE's in Community Services
· 2 FTE's in Fifteenth District Court
· 1 FTE in Attorney
· 1 FTE in Financial and Administrative Services
Millage Rates
The following millages are the maximum allowable levy after the Headlee rollback multiplier is applied (for FY 2011 the Headlee rollback multiplier is anticipated to be 1.00):
PROPOSED ACTUAL DIFFERENCE
FY 2011 FY 2010
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 0.5000 0.4806 0.0194
TOTAL 16.8164 16.7970 0.0194
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, City Council has reviewed the City Administrator's proposed budget for FY 2011 for the City of Ann Arbor;
Whereas, A public hearing and various public meetings have been held to obtain citizen input on the proposed budget;
Whereas, The Park Maintenance and Capital Improvements Millage is projected to recognize a decrease in annual revenue;
Whereas, The General Fund can no longer support the same level of trimming activity in the Park Systems; and
Whereas, This budget recommendation includes Parks Millage Support of some Parks trimming activity;
RESOLVED, That Council adopts the General Fund Allocations as listed in the FY 2011 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 $333,616,399 are approved; and that $63,734,402 be appropriated in FY 2011 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 $1,114,722 be appropriated without regard to fiscal year;
RESOLVED, That a total 735.67 full-time equivalent positions be adopted in the FY 2011 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 park memorials without regard to fiscal year;
RESOLVED, That the City Council approve the proposed FY 2011 Ann Arbor-Ypsilanti SmartZone LDFA budget, as a component unit of the City of Ann Arbor in FY 2011 in a dedicated fund containing $1,444,750 in revenues and $1,444,750 in expenditures;
RESOLVED, That the following appropriations constitute the General Fund budget for FY 2011;
REVENUES |
CITY ATTORNEY |
$ 118,000 |
CITY ADMINISTRATOR |
|
Clerk Services |
142,650 |
COMMUNITY SERVICES |
|
Planning & Development Services |
1,130,150 |
Office of Community Development |
309,430 |
Parks and Recreation Services |
2,413,588 |
FINANCIAL SERVICES |
|
Financial and Budget Planning |
15,361,568 |
Procurement |
40,000 |
Treasury |
40,406,127 |
PUBLIC SERVICES |
|
Field Operations |
362,600 |
Public Services Administration |
65,427 |
Systems Planning |
5,200 |
Water Treatment |
325,000 |
SAFETY SERVICES |
|
Police |
4,524,417 |
Fire |
123,600 |
DISTRICT COURT |
2,075,000 |
NON-DEPARTMENTAL |
14,047,209 |
TOTAL GENERAL FUND REVENUES |
$81,449,966 |
|
|
EXPENDITURES |
MAYOR AND CITY COUNCIL |
$ 354,818 |
CITY ATTORNEY |
1,811,479 |
CITY ADMINISTRATOR |
|
City Administrator |
533,996 |
Human Resources |
1,296,487 |
Clerk Services |
987,299 |
COMMUNITY SERVICES |
|
Planning & Development Services |
2,742,602 |
Office of Community Development |
2,092,831 |
Parks and Recreation |
3,641,585 |
FINANCIAL SERVICES |
|
Accounting |
737,431 |
Assessor |
932,364 |
Financial and Budget Planning |
999,183 |
Procurement |
354,067 |
Treasury |
603,934 |
PUBLIC SERVICES |
|
Customer Services |
249,423 |
Field Operations |
5,179,341 |
Fleet & Facilities |
1,466,105 |
Public Services Administration |
313,752 |
Systems Planning |
114,106 |
Water Treatment Services |
433,370 |
SAFETY SERVICES |
|
Police |
26,066,215 |
Fire |
13,786,925 |
DISTRICT COURT |
3,776,080 |
NON-DEPARTMENTAL |
12,976,573 |
TOTAL GENERAL FUND EXPENDITURES |
$81,449,966 |
|
|
RESOLVED, That the following other funds revenue and expenditure appropriations are adopted for FY 2011 budget; and
REVENUES |
Fund |
Fund Name |
Amount |
0042 |
WATER SUPPLY SYSTEM |
$ 22,271,893 |
0043 |
SEWAGE DISPOSAL SYSTEM |
22,205,502 |
0048 |
AIRPORT |
808,140 |
0069 |
STORMWATER SEWER SYSTEM |
5,623,989 |
0011 |
CENTRAL STORES |
1,607,715 |
0012 |
FLEET SERVICES |
8,065,536 |
0014 |
INFORMATION TECHNOLOGY |
6,376,902 |
0056 |
ART IN PUBLIC PLACES |
451,213 |
0049 |
PROJECT MANAGEMENT |
3,676,238 |
0057 |
RISK |
27,303,683 |
0058 |
WHEELER CENTER |
525,584 |
0055 |
ELIZABETH R DEAN TRUST |
95,063 |
0071 |
PARKS MAINT. & CAPITAL IMPROV. MILLAGE |
5,206,991 |
0006 |
PARKS REPAIR AND RESTORATION MILLAGE |
83,803 |
0017 |
HOMELAND SECURITY GRANT |
500 |
0021 |
MAJOR STREET |
6,904,884 |
0022 |
LOCAL STREET |
1,751,741 |
0036 |
METRO EXPANSION |
635,000 |
0054 |
CEMETERY PERPETUAL CARE |
6,200 |
0062 |
STREET REPAIR MILLAGE |
13,798,281 |
0072 |
SOLID WASTE FUND |
15,491,887 |
0002 |
ENERGY PROJECTS |
620,614 |
0070 |
AFFORDABLE HOUSING |
200,811 |
0024 |
OPEN SPACE & PARKLAND PRESERVATION |
2,434,267 |
0025 |
BANDEMER PROPERTY |
22,500 |
0026 |
CONSTRUCTION CODE FUND |
2,170,977 |
0029 |
OPEN SPACE AND PARKLAND PRESERVATION |
264,873 |
0041 |
OPEN SPACE ENDOWMENT |
2,932 |
0046 |
MARKET |
172,923 |
0038 |
ANN ARBOR ASSISTANCE |
8,000 |
0045 |
ECONOMIC DEVELOPMENT |
750,000 |
0047 |
GOLF ENTERPRISE |
1,685,037 |
0016 |
COMMUNITY TELEVISION NETWORK |
1,607,051 |
0018 |
PARKS REHAB & DEVELOPMENT MILLAGE |
64,086 |
0034 |
PARKS MEMORIALS & CONTRIBUTIONS |
41,400 |
0083 |
SENIOR CENTER ENDOWMENT |
45,245 |
0027 |
DRUG ENFORCEMENT |
61,200 |
0028 |
FEDERAL EQUITABLE SHARING FORFEITURE |
106,000 |
0053 |
POLICE AND FIRE RELIEF |
25,000 |
0064 |
MICHIGAN JUSTICE TRAINING |
53,000 |
0073 |
LOCAL FORFEITURE |
21,200 |
0023 |
COURT FACILITIES |
302,800 |
0035 |
GENERAL DEBT SERVICE |
10,393,592 |
0060 |
GENERAL DEBT /SPECIAL ASSESSMENTS |
140,685 |
0061 |
ALTERNATIVE TRANSPORTATION |
616,173 |
0082 |
STORMWATER BOND |
4,506,299 |
0088 |
SEWER BOND |
38,334,103 |
0089 |
WATER BOND |
5,223,000 |
0091 |
SIDEWALK IMPROVEMENT FUND |
22,225 |
00MG |
MAJOR GRANTS PROGRAMS FUND |
292,372 |
0052 |
VEBA TRUST |
4,760,778 |
0059 |
EMPLOYEES RETIREMENT SYSTEM |
34,760,858 |
0009 |
SMARTZONE LDFA |
1,444,750 |
0001 |
DDA/HOUSING FUND |
212,000 |
0003 |
DOWNTOWN DEVELOPMENT AUTHORITY |
5,262,610 |
0033 |
DDA PARKING MAINTENANCE |
2,666,180 |
0063 |
DDA PARKING SYSTEM |
19,842,549 |
|
TOTAL ALL OTHER FUNDS |
$ 282,028,835 |
|
GENERAL (PAGE 4) |
81,449,966 |
|
TOTAL ALL FUNDS' REVENUES |
$ 363,478,801 |
|
|
|
|
EXPENDITURES |
Fund |
Fund Name |
Amount |
0042 |
WATER SUPPLY SYSTEM |
$ 19,752,622 |
0043 |
SEWAGE DISPOSAL SYSTEM |
19,297,651 |
0048 |
AIRPORT |
797,196 |
0069 |
STORMWATER SEWER SYSTEM |
5,246,785 |
0011 |
CENTRAL STORES |
1,607,225 |
0012 |
FLEET SERVICES |
8,061,805 |
0014 |
INFORMATION TECHNOLOGY |
6,299,188 |
0056 |
ART IN PUBLIC PLACES |
451,213 |
0049 |
PROJECT MANAGEMENT |
3,643,786 |
0057 |
RISK |
27,142,951 |
0058 |
WHEELER CENTER |
525,584 |
0055 |
ELIZABETH R DEAN TRUST |
95,033 |
0071 |
PARKS MAINT. & CAPITAL IMPROV. MILLAGE |
5,173,604 |
0006 |
PARKS REPAIR AND RESTORATION MILLAGE |
83,803 |
0021 |
MAJOR STREET |
6,891,127 |
0022 |
LOCAL STREET |
1,751,596 |
0036 |
METRO EXPANSION |
635,000 |
0054 |
CEMETERY PERPETUAL CARE |
5,000 |
0062 |
STREET REPAIR MILLAGE |
13,798,281 |
0072 |
SOLID WASTE FUND |
15,442,219 |
0002 |
ENERGY PROJECTS |
180,614 |
0070 |
AFFORDABLE HOUSING |
190,000 |
0024 |
OPEN SPACE & PARKLAND PRESERVATION |
2,148,312 |
0025 |
BANDEMER PROPERTY |
22,500 |
0026 |
CONSTRUCTION CODE FUND |
2,169,140 |
0046 |
MARKET |
154,355 |
0038 |
ANN ARBOR ASSISTANCE |
8,000 |
0045 |
ECONOMIC DEVELOPMENT |
750,000 |
0047 |
GOLF ENTERPRISE |
1,662,855 |
0016 |
COMMUNITY TELEVISION NETWORK |
1,607,051 |
0018 |
PARKS REHAB & DEVELOPMENT MILLAGE |
56,806 |
0034 |
PARKS MEMORIALS & CONTRIBUTIONS |
36,864 |
0083 |
SENIOR CENTER ENDOWMENT |
37,500 |
0027 |
DRUG ENFORCEMENT |
60,000 |
0028 |
FEDERAL EQUITABLE SHARING FORFEITURE |
100,000 |
0064 |
MICHIGAN JUSTICE TRAINING |
50,000 |
0073 |
LOCAL FORFEITURE |
20,000 |
0023 |
COURT FACILITIES |
292,960 |
0035 |
GENERAL DEBT SERVICE |
10,335,901 |
0060 |
GENERAL DEBT /SPECIAL ASSESSMENTS |
140,685 |
0061 |
ALTERNATIVE TRANSPORTATION |
616,173 |
0082 |
STORMWATER BOND |
4,506,299 |
0088 |
SEWER BOND |
38,334,103 |
0089 |
WATER BOND |
5,223,000 |
0091 |
SIDEWALK IMPROVEMENT FUND |
19,666 |
00MG |
Major Grant Programs Fund |
292,372 |
0052 |
VEBA TRUST |
212,533 |
0059 |
EMPLOYEES RETIREMENT SYSTEM |
28,641,438 |
0009 |
SMARTZONE LDFA |
1,444,750 |
0001 |
DDA/HOUSING FUND |
212,000 |
0003 |
DOWNTOWN DEVELOPMENT AUTHORITY |
5,262,610 |
0033 |
DDA PARKING MAINTENANCE |
2,666,180 |
0063 |
DDA PARKING SYSTEM |
19,842,549 |
|
TOTAL ALL OTHER FUNDS |
$ 263,998,885 |
0010 |
GENERAL (PAGE 5) |
81,449,966 |
|
TOTAL ALL FUNDS' EXPENDITURES |
$ 345,448,851 |
|
|
|
RESOLVED, That the following millages shall be levied for the City of Ann Arbor for FY 2011:
|
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 |
0.5000 |
TOTAL |
16.8164 |
Approved Amendments by City Council on May 17, 2010
Amendment 1 -
Increase the General Fund Revenue Budget and Expenditure Budgets for Police and Fire, and reauthorize 15 Police and 15 Fire FTEs.
Whereas, The DDA Board has authorized a transfer of $2,000,000 to the City's General Fund for FY 2011 with the understanding a more definitive agreement on the allocation of parking activities will be completed with the City to be effective July 1, 2011; and
Whereas, The Michigan State Treasurer presently projects State Shared Revenue for municipalities will remain at existing levels, which is $952,000 greater than what the City Administrator's recommended budget has included; and
Whereas, City Council has approved changes in parking fine rates, which is estimated to generate an additional $625,000 in FY 2011; and
Whereas, Fire Services has revised its capital equipment plan, which would generate an annual savings of $62,000; and
Whereas, The City Administrator's recommended budget included a reduction in Police Services of 15 FTEs totaling $1,585,783 that Council desires not to reduce; and
Whereas, The City Administrator's recommended budget included a reduction of 20 FTEs in Fire Services totaling $1,946,815, and Council desires 15 of those FTEs totaling $1,509,620 be authorized; and
Whereas, The above changes would result in a net recurring surplus of $543,597.
RESOLVED, That the DDA budget reflect a transfer of $2,000,000 to the City's General Fund, and the General Fund increase its revenue budget to include the DDA transfer;
RESOLVED, That the General Fund revenue budget reflect an increase of $952,000 in State Shared Revenue;
RESOLVED, That the General Fund revenue budget reflect an increase of $625,000 in parking fines;
RESOLVED, That Fire Services reduce its expenditure budget for capital purchases by $62,000, in the General Fund;
RESOLVED, That 15 FTEs are added to the City Administrator's recommended budget for Police Services, increasing the General Fund expenditure budget for Police totaling $1,585,783;
RESOLVED, That 15 FTEs are added to the City Administrator's recommended budget for Fire Services, increasing the General Fund expenditure budget for Fire totaling $1,509,620;
RESOLVED, That the General Fund's revenue budget line, Use of Fund Balance, be decreased by $543,597 to balance this amendment, reflecting the recurring surplus created by this amendment.
Amendment 2 -
Increase the General Fund Expenditure Budget for Human Services funding.
Whereas, a recurring surplus was approved in Amendment 1; and
Whereas, The City Administrator's recommended budget included a reduction of $260,000 for Human Services.
RESOLVED, That the $260,000 for Human Services funding in the General Fund be restored increasing the expenditure budget, with a funding source of Prior Year Fund Balance increasing the revenue budget, and thereby reducing the recurring surplus.
Sponsored by: Mayor Hieftje, Council Members Teall, Rapundalo, Briere and Smith
Amendment 3 -
Increase the General Fund Expenditure Budget for park mowing and trimming and eliminate football parking at Allmendinger and Frisinger parks.
Whereas, a recurring surplus was approved in Amendment 1; and
Whereas, The City Administrator's recommended budget included a reduction for park mowing cycle changes and park trimming cycle changes, and the cost of restoring those to the 19 day cycle would be $138,000 for mowing and $120,000 for trimming;
Whereas, The City Administrator's recommended budget included revenues of $25,000 for parking at Allmendinger Park and Frisinger Park during U of M football games.
RESOLVED, That the park mowing and trimming cycles be restored to the 19 day cycle, to be funded by an increase of $138,000 for mowing and $120,000 for trimming in the General Fund Public Services Field Operations expenditure budget;
RESOLVED, That the parking at Allmendinger Park and Frisinger Park during U of M football games be eliminated, and reflected in the General Fund budget as a revenue reduction of $25,000.
RESOLVED, That the General Fund Prior Years Fund Balance revenue budget be increased by $283,000 to balance this amendment, thereby reducing the recurring surplus.
Sponsored by: Council Members Teall, Higgins, Rapundalo, and Mayor Hieftje
Amendment 4 - (Motion Failed)
Amendment 5 - (Motion Failed)
Amendment 6 - (Motion Failed)
Amendment 7 -
Eliminate Loading Zone Permit Fees and increase Fines for parking in loading zones.
Whereas, The Loading Zone Permit program was established in FY 2010 to restrict the use of loading zones for commercial purposes; and
Whereas, The requirement for permits and permit fees resulted in complaints to the DDA and Council related to permit fees; and
Whereas, The City and DDA have a vested interest in encouraging downtown business activity; and
Whereas, The Council desires to eliminate the Loading Zone Permit requirement and associated fees; and
Whereas, $20,000 was budgeted for Loading Zone Permit Fees in the General Fund revenue budget; and
Whereas, An approved increase to the fine for parking in a loading zone from $25 to $45 would raise an estimated additional revenue of $25,700; and
Whereas, There is a one-time cost of $21,000 to remove the existing loading zone permit signs and install replacement signs designating commercial loading zones,
RESOLVED, That Council directs the Administration to pursue the elimination of the Loading Zone Permit requirement, associated fees, and refunding of amounts paid for permits sold in FY2010;
RESOLVED, That the General Fund revenue budget be amended to reflect the elimination of the $20,000 Loading Zone Permit Fees, and the Parking Fines revenue budget line be increased by the $25,700 reflecting the increased parking fines;
RESOVED, That the General Fund Public Services expenditure budget be increased by $21,000 for the removal of the loading zone permit signs, and the source of funds for this change be an increase in the revenue budget of the General Fund Use of Fund Balance.
Sponsored by: Council Members Smith and Hohnke
Amendment 8 - (Motion Failed)
As Amended and Approved by City Council on May 17, 2010