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File #: 11-0451    Version: Name: 5/2/11 Resolution to Adopt FY2012 Ann Arbor City Budget
Type: Resolution Status: Passed
File created: 5/2/2011 In control: City Council
On agenda: 5/23/2011 Final action: 5/31/2011
Enactment date: 5/31/2011 Enactment #: R-11-209
Title: Resolution to Adopt Ann Arbor City Budget and Related Property Tax Millage Rates for fiscal year 2012 (7 Votes Required)
Related files: 11-0523, 12-0800
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.