City of Milan Budget 2014/15 presentation

CITY OF MILAN BUDGET

2014/2015Note: This is not the exact power point that was presented at the Council Meeting, Monday, May 19, 2014. That presentation has been updated here with additional information and slides in an attempt to provide better understanding to the reader absent a live narration to accompany it.


2014/2015


2013/2014 Overviewgeneral fund

Revenue Projections

Budgeted original $3,476,852 Projected actual $3,477,741 Projected Net diff $ 889

more revenue



Expenditure projections

Budgeted original $3,476,851 Projected actual $3,603,672 Projected Net ($ 126,821)

more expenditures



Deficits

Final Revenue Projection $ 889 Final Expenditures Projection $126,821 Projected deficit $125,932

more expenditures


2013/2014 Revenue & Expense Summary

Real & Personal property tax revenue decreased

Drain assessments increased Tax Chargeback’s increased MERS/Retirement expenses increased

CITY OF MILAN BUDGETProject Summary 2013/2014 Server upgrade BS&A software upgrade Computer work stations Ice rink Liner Symons tornado pole replacement Wilson Park Lights Wilson park electric service upgrade Fire Alarm – Senior Center LED light upgrade Access Control/Alarms Established Grant Fund Increased contribution to Motor Pool

Total: $ 282,310


13/14 General Fund Original Proposed Budget: $3,476,851

13/14 General Fund Final Projected

Budget w/Increased Expenses: $3,603,672

3.6% increase from original proposal.


General fundSummary of revenue vs expensesExpenses exceeded revenue by

$125,932

This amount must be transferred from Reserve Fund Balance to General Fund to

offset the deficit.

2013/2014


Reserve Fund Balance Summary 12/13 Fund Balance $1,193,366.81 13/14 Transfer from Fund Balance to General

Fund $125,932 13/14 Fund Balance Estimate $1,067,436.81 Auditor recommends 20 percent in fund

Balance which is $720,734. We currently have $1,067,437 = 29.6%


2014/2015 General Fund Overview

Projected Revenues $3,584,677 Proposed Expenses $3,584,677 Net = balanced budget $ 0.00


13/14 General Fund Budget Final Projected Total $ 3,603,672

14/15 General Fund Proposed Budget Total $ 3,584,677

Approximate 1/2% Decrease


Unit Name School Name CVT Rate Total RateDundee Village Dundee 9.8110 27.8110

Plymouth TWP Plymouth-Canton 29.4074 29.4074

Canton TWP Plymouth-Canton 27.6073 35.6413Plymouth City Northville 41.6423 41.6423Tecumseh City Tecumseh 14.3966 42.3890Clinton TWP Clintondale 4.5685 44.7712Saline TWP Milan 0.9184 46.1454Pittsfield TWP Milan 6.5916 51.8186Dexter TWP Dexter 4.9944 52.3752Milan City Milan 14.4000 61.2375Chelsea City Chelsea 14.9555 62.0998Saline City Saline 16.2800 62.5252Ann Arbor City Ann Arbor 16.4501 63.0315

Ypsilanti City Ypsilanti 36.4947 83.5171

Millage Rates for some Municipalities in Monroe, Washtenaw, and Wayne in 2013


14/15 Revenue Highlights Taxable Values Expected to increase Revenue sharing Expected to increase Potential revenue from Fire Run Billing

Ordinance (included in proposed budget-York Twp Ord under review)


14/15 Expense Highlights

Health Insurance increased(Employees are Contributing)

MERS/Retirement slight increase Increased contribution to Motor Pool Decrease in energy cost due to led

project


Capital Improvement Fund

For Non Street/Non Utility Projects Allows for Long term Project Planning Transferred Approximately $76,000

from Health Benefit Fund into Capital Improvement Fund


Target projects from capital improvement fund

Roof Replacement on Preschool and Community House

Surge protection for Buildings Fire Department Siren upgrade Upgrade Security Camera @ Senior Center Tasers DPW Radios Police Radars Basket ball Hoop Backboards

Total: $ 58,500


13/14 Capital Fund Balance $ 13,206.94

14/15 Transfer of $76,000 from health benefit fund into capital improvement fund

14/15 Project Cost $ 58,500

Capitol Fund Balance after projects $ 44,521.94


Created a dedicated, non allocated expense fund $31,893

Senior Millage Fund vote of the people .5 MIL is projected to generate

$ 84,973


Motor Pool Capital Outlay

FUND DESCRIPTION2011/2012 ACTUAL

2012/2013 ACTUAL

2013/2014 BUDGET

ACTUAL 02/28/2014

ESTIMATED 2013/2014

2014/2015 REQUESTED COMMENTS

661-900.000-

CAPITAL OUTLAY/FIXED ASSETS

970.661CAPITAL OUTLAY/MOTORPOOL 0 0 20,000 247,860 302,860 90,000

Police Cruiser-Sedan ($40,000); 4x4 Pickup with Plow ($30,000); Sweeper Lease/Purchase ($40,000/yr @ 7 yrs - start 1/2 in FY 12/13 & 1/2 in FY 13/14)

TOTAL CAPITAL OUTLAY/FIXED ASSETS 0 0 20,000 247,860 302,860 90,000


Motor Pool Fund Balance

Cash & Cash Equivalents 6/30/2009 = $150,331.36

Cash & Cash Equivalents 6/30/2010 = $120,223.98

Cash & Cash Equivalents 6/30/2011 = <$ 9,106.37>

Cash & Cash Equivalents 6/30/2012 = $ 25,397.47


Est. Cash & Cash Equivalents 6/30/2014 = $ 24,331.48

Est. Cash & Cash Equivalents 6/30/2015 = $ 29,011.48



2012/2013 ACTUAL

2013/2014 BUDGET

ACTUAL 02/28/2014

ESTIMATED 2013/2014


202-900.000-

MAJOR STREET Expenditures - CAPITAL OUTLAY/FIXED ASSETS

970.453CAPITAL OUTLAY/SURFACE CONST. 558 0 52,500 20,841 52,500 0

Redman/Platt Intersection Beginning June 2015 FY 14/15 approx. 0% (TTL $90,780 Const Engr included in $141,116 Grant Match = $141,116); FY 15/16 $141,116

970.453CAPITAL OUTLAY/SURFACE CONST. 0 0 0 0 55,000 0

North St from First St to Michigan Beginning June 2015 FY 14/15 approx. 0% construction (TTL EST. $55,000 Design Engr; $92,000 Const Engr; $91,200 Grant Match = $238,200); FY 15/16 $183,200

970.xxxCAPITAL OUTLAY/BRIDGE REPAIR 0 0 0 0 0 85,000

Platt Road Bridge; (Wabash Bridge FY 15/16 $25,000)

970.463CAPITAL OUTLAY/ROUTINE MTCE. 0 0 0 0 0 0

970.474CAPITAL OUTLAY/TRAFFIC SERVICES 0 0 0 0 0 0

970.479CAPITAL OUTLAY/WINTER MTCE. 4,864 0 0 0 0 0

TOTAL CAPITAL OUTLAY/FIXED ASSETS 5,422 0 52,500 20,841 107,500 85,000

Major Street Project Budget


MAJOR STREET FUND BALANCE AND FUTURE PROJECTS

Fund Balance 6/30/2010 = $ 412,716.73

Fund Balance 6/30/2011 = $ 412,716.73

Fund Balance 6/30/2012 = $ 515,074.45

Fund Balance 6/30/2013 = $ 541,496.83

Est. Fund Bal. 6/30/2014 = $469,821.83

Est. Fund Bal. 6/30/2015 = $369,120.83 FY 15/16 project balance

Est. Fund Bal. 6/30/2016 = $ 19,804.83 $ 349,316

$ 369,120.83 June 30, 2015 Estimated Fund Balance

$ (349,316.00) FY 2015/16 Road/Bridge Project Bal Due

$ 19,804.83 Estimated June 30, 2016 Fund Balance


Water / Sewer 13/14 Summary

Revenues budgeted $3,043,598 Revenues projected $2,825,460 Expenses budgeted $3,043,600 Expenses projected $2,889,221 Net difference ($63,761) shortfall


Water / Sewer 14/15 Summary

Revenues projected $2,815,362 Expenses projected $3,035,589 Net difference ($ 220,227)

shortfall


Summary of Water/Sewer Fund 13/14 & 14/15

Projected revenues decreased because of decreased usage

Expenditures decreased Meter replacement costs increased 30% North St. engineering Costs 13/14 Hydrant replacement costs Wastewater treatment plant replacement

pump


Summary of Water/Sewer Fund 13/14 & 14/15

Continued

Water Treatment Plant pump upgrade North St water line replacement 15/16 Variable Debt and Loan payment

CITY OF MILAN BUDGET Water/Sewer Fund Capital Outlay


2012/2013 ACTUAL

2013/2014 BUDGET

ACTUAL 02/28/2014

ESTIMATED 2013/2014


592-900.000-

Water / Sewer Fund Expenditures - CAPITAL OUTLAY/FIXED ASSETS

970.556CAPITAL OUTLAY/WATER DEPT. 0 0 4,417 0 4,417 25,000

Fire Hydrant Replacement ($6,250 * 4); Water Filter Project - Pd by RRI & tap fees

970.556CAPITAL OUTLAY/WATER DEPT. 0 0 0 0 25,000 0

Water Main - North St from First St to Michigan Beginning June 2015 FY 14/15 approx. 0% construction (TTL EST. $25,000 Design Engr; $92,000 Const Engr; $111,000 Grant Match = $228,000); FY 15/16 $203,000

970.567CAPITAL OUTLAY/SEWER DEPT. 0 0 4,417 0 4,417 15,000

Pump Station Pump ($5,000); Variable Frequency Drive (VFD) ($10,000)

TOTAL CAPITAL OUTLAY/FIXED ASSETS 0 18,240 8,834 0 33,834 40,000


Water/sewer projected deficit 13/14 ($63,761)

Water/sewer projected deficit 14/15 ($220,227)

(Before any rate increase.)

CITY OF MILAN BUDGET 13/14 deficit of $63,761 is covered

from Water Sewer Reserve Fund transfer leaving water/sewer Fund balance $442,800 after 13/14

14/15 deficit of $220,227 is covered from Water Sewer Reserve Fund transfer leaving water/sewer Fund balance $ 214,345 after 14/15 ($203,000 is dedicated to FY 15/16 North St. Project)


Water/Sewer Fund Balance and Future Projects with out Rate

increaseDESCRIPTION

2011/2012 ACTUAL

2012/2013 ACTUAL

2013/2014 BUDGET

ACTUAL 02/28/2014

ESTIMATED 2013/2014


(63,761) (220,227)difference





Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance 203,000



Est. Cash & Cash Equivalents 6/30/2014 = $ 442,800.21 214,345.21 June 30, 2015 Estimated Fund Balance

Est. Cash & Cash Equivalents 6/30/2015 = $ 214,345.21 (203,000,.000) FY 2015/16 Road Project (North St.) Bal Due


(Assuming All Else Status Quo)


Water/Sewer Fund Balance and Future Projects with rate increase





Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance $ 203,000



Est. Cash & Cash Equivalents 6/30/2014 = $ 450,300.21 $ 450,300.21 June 30, 2015 Estimated Fund Balance

Est. Cash & Cash Equivalents 6/30/2015 = $ 450,300.21 $ (203,000.00) FY 2015/16 Road Project (North St.) Bal Due


(Assuming All Else Status Quo)


Rate increase proposal

$11,345 Fund balance is insufficient14% rate increase is required to

address the projected 14/15 deficit of $220,227 and provide sufficient revenues to cover expenses

This fund must be self sustaining


Rate increase proposal

Auditors Reserve Fund Balance Recommendation is 50% which equals $1,511,000

Current Reserve Fund Balance is $247,300 which is 8.1%.

CITY OF MILAN BUDGETRate increase proposal

Continued

Average increase per household with a 14% increase is $27.48/qtr

Billing Code

Effective Feb 1, 2013

(Current Rates)

Proposed Effective April 1, 2014 (w/ 14%

increase)Billing Charge, (Per Bill) $1.15 $1.32Water & Sewer Readiness-to-Serve Charges, (Per Qtr) $91.68 $104.52Water & Sewer Commodity Charges (Per 1000 Gallons) $5.75 $6.55Typical Residential Usage (in 1000 Gallons) 18 18Quarterly Water/Sewer Bill without Rubbish $196.26 $223.73Percent Change 12.00% 14.00%Average Annual Increase $84.11 $109.90Average Quarterly Increase $21.03 $27.48

CITY OF MILAN BUDGETRate increase proposal Continued

Current Comparables

Canto

n

Clinto

n

Tecum

seh

Saline

Mila

n

Dunde

e

Plymou

th

Dexte

r

Chelse

a0

50

100

150

200

250

300

350

Total Fees for Water, Sewer, and Readiness to Serve

3/4"meter/bill

Total Fees for Water, Sewer, and Readiness to Serve 3/4"meter/bill

Municipality Total Fees for Water, Sewer and Readiness to Serve ¾” meter/bill

Canton N/A

Clinton N/A

Tecumseh $122.11

Saline $176.63

Milan $195.18

Dundee $219.73

Plymouth $222.02

Dexter $243.00

Chelsea $321.42

CITY OF MILAN BUDGETRate increase proposal Continued

Average increase per household with a 14% increase is $27.48/qtr

Municipality Total Fees for Water, Sewer and Readiness to Serve ¾” meter/bill

Canton N/A

Clinton N/A

Tecumseh $122.11

Saline $176.63

Dundee $219.73

Plymouth $222.02

Milan $222.41

Dexter $243.00

Chelsea $321.42

0

50

100

150

200

250

300

350

Total Fees for Water, Sewer, and Readiness to Serve 3/4"

meter/bill

Total Fees for Water, Sewer, and Readiness to Serve 3/4" meter/bill

CITY OF MILAN BUDGETIRON FILTERS

W

CITY OF MILAN BUDGETWater Filter Project

why we’re doing it?

The treatment plant has been in production since 1988. In this 25 year span it has pumped nearly 8 Billion gallons

of water. It removes almost 2 tons of Iron per year from the water

(or nearly 50 tons in 25 years) The last filter inspection showed that the media needed

replacement. Water production only competes with taxes as the income

generator for the City. The City must remove Iron from the water as a State

regulation.

CITY OF MILAN BUDGETWater Filter Project

why we’re doing it?

Allowing breakthrough of Iron, through the filters, could result in fines.

Allowing Iron to even some iron could result in staining white clothes.

Proactively approaching this problem means we will have some choices.

This brings us to the subject of those choices: Do the Minimum of filter refurbishment (approximately

$250,000 see attached) Address all the known issues of 25 years of service (not

suggested) Some compromise in-between (approximately $350,000 see

attached)

CITY OF MILAN BUDGETWATER FILTER PROJECT FINANCING PLAN

Project Cost iron filter project $ 250,000

automated back washing system 105,000

$ 355,000

Financial PlanWater RRI through June 30, 2014 $ 95,014.43 Sewer RRI through June 30, 2014 68,293.69

$ 163,308.12 Water RRI July 1, 2014 thru Dec, 31, 2014 15,740.00 Sewer RRI July 1, 2014 thru Dec, 31, 2014 26,180.00

$ 205,228.12 $ 205,228.12 Water RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00 Sewer RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00

$ 205,228.12 50,000.00 FY 2014/2015 W/S capital transfer (tap fees) 50,000.00 284,628.12 12/31/14

$ 255,228.12 YTD 3/31/14 FY 2013/2014 Wtr NO TAPS BUDGETED 14,700.00 YTD 3/31/14 FY 2013/2014 Swr NO TAPS BUDGETED 14,700.00

$ 284,628.12 12/31/14


Closing Comments……….

For the first time in several years we will be able to use a portion of the annual County 911 fees to offset Dispatch Center wage costs. (911 Center upgraded is funded)

Maintaining reduced Residential water sewer taps fees. Reduced from 10K to 5K in 13/14.

There is no change to the 14.4 City Millage Tax Rate. Milan still has the lowest city tax rate in Washtenaw County


Thank you !!

Business

City of Milan Budget 2014/15 presentation