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CITY OF WALKER 2014-2015 BUDGET OVERVIEWPRESENTED BY: CATHY VANDER MEULEN, CITY MANAGER

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GENERAL FUND REVENUES – $16,276,072 2014/15 PROPOSED

*Includes fund balance transfer of $873,019

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GENERAL FUND EXPENDITURES – $16,276,072 2014/15 PROPOSED

*Includes use of fund equity of $873,019 to balance the budget

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OPERATING BUDGET EXPENDITURES– $24,014,261 2014/15 PROPOSED

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2014/2015 BUDGET SUMMARY We continue to track positive trends in our income tax collections. We are

on track to exceed historical collections in the current year and have slightly increased our estimate for FY 2015.

The City’s taxable values increased for the first time since 2009. The 3.56% increase is a positive sign that the housing and construction industries are improving in West Michigan.

The budget assumes no change in the property tax millage rate of 1.336. This rate is unchanged since 2000.

General fund budget expenditures are projected to increase 9% over 2013/14, mainly due to the increased general fund support for the major and local streets funds.

We estimate the use of $873,619 in fund equity to balance the budget. Fund balance as of June 30, 2015 is projected at $4,597,521 or 28% of general fund expenses.

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2014/2015 BUDGET SUMMARY, CONTINUED…• We are committing an additional $100,000 to continue building a facilities

sinking fund. New City Hall floor covering and Public Safety roof replacement are scheduled for FY 2015.

• An additional $297,999 is budgeted the for capital equipment fund to replace the fire pumper.

• Total investment in road maintenance/projects, trails, and project planning is $1,860,00. The City’s general fund will contribute $2,080,618 to the major and local street fund.

• Staffing changes include:– Full time Battalion Chief Position in the Fire Department– Promotions and Event Coordinator position that will be jointly funded by the City and the

DDA.

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FACTORS IMPACTING 2015 BUDGET AND BEYOND:• Healthcare costs are expected to rise. Employee share of healthcare

premiums remain at 15%. Impacts of Affordable Healthcare Act are evolving. Anticipate costs to rise at least 10% in January 2015, and we have budgeted as such.

• City continues to submit and comply with State requirements to qualify for EVIP payments. ($31,542 estimated for FY 2015).

• The City will continue to commit to prefunding OPEB obligations as budgets allow and the Commission directs. We will continue evaluating options for retiree healthcare. The budget includes a prefunding payment of $150,000 towards OPEB and $60,000 additional contribution towards the required yearly pension payment.

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CITY INITIATIVES GOING FORWARD• COPS grant for one additional officer.• Utilize police forfeiture funds to finance qualifying police projects and purchases.

Proposed for 2014/15: – Replacement vice vehicle ($30,000) – Crowd control equipment replacement ($15,200)

• Continued use of road asset management plan to guide roads maintenance decisions and level of funding needed. Our goal is to maintain current road conditions and to apply the right fix at the right time.

• Complete strategic plan and move forward with implementation. • Third phase of city technology upgrades have been completed. Begin planning for new VOIP

phone system.• Continue with efforts to improve greater resource utilization through efficiencies in

equipment and vehicle functions, i.e. refurbishing old dump trucks. The city has been a leader in this area, and we regularly receive inquiries from communities requesting additional information.

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SELECTED INVESTMENTS FY 2015

Community Park playground replacement $130,000

Phone system purchase $120,000

Remembrance Road design and construction $705,000

Three Mile center turn lane design and construction $175,000

Major and local street maintenance $800,000

Fire pumper, police cruisers, DPW Equipment $631,400

Building and facilities improvements $200,000

Additional OPEB and pension contributions $215,000

WIFC improvements $65,000

Total Investment Cost $3,041,400

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THANK YOU:WALKER CITY COMMISSIONWALKER FINANCE COMMITTEE WALKER STAFF