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Roseville – Eastpointe Recreation Authority
Millage Presentation
Roseville – Eastpointe Recreation Authority November 8th Millage Proposal
• Why the need for a Recreation Authority?
• City of Roseville’s Current Financial Position
– Effects of declining state shared revenue
– Effects of decreased property tax revenue
• About the Roseville – Eastpointe Recreation Authority
– How the Recreation Authority will operate
– Benefits derived from Recreation Authorities
• How much will the proposal cost me?
• What will happen if the millage proposal fails?
Roseville – Eastpointe Recreation Authority Why the need for a Recreation Authority ?
• Due to severe decreases in property values & state funding, many cities have been forced to eliminate non-essential services such as:
– Park & Recreation Department
– Senior Programs & Activities
• The Cities of Roseville and Eastpointe are forecasted to close their Recreation facilities effective 2012 due to financial constraints.
• In July 2011, the Roseville – Eastpointe Recreation Authority was created in the hopes of continuing recreation programs and senior activities in these communities.
Roseville – Eastpointe Recreation Authority City of Roseville’s Financial Position
Effects of declining State Revenue Sharing
• Back in the early 2000’s the state began cutting our
revenue sharing to balance their own budget.
• After property taxes, revenue sharing is the City’s 2nd
largest revenue source.
• Cumulative effect of lost state shared revenue since cuts
began $19 Million!!!
City of Roseville Revenue Sharing Payment History and Estimates Fiscal Year Ended June 30
5
City Projected
In Thousands
City of Roseville General Fund Revenue Fiscal Year Ended June 30, 2010
6
State and Federal Revenue
$4,862,000 12.5%
Fines, Fees and Licenses $3,411,000
8.7%
Total $38,995,000
Roseville – Eastpointe Recreation Authority
City of Roseville’s Financial Position
Effects of decreasing property values
• Property tax revenue began plummeting in 2009
• Loss of property tax revenue
– $1 million (2009/2010)
– $3 million (2010/2011)
– $3 million (2011/2012)
• Cumulative tax lost revenue over $7 million annually
• Reductions in revenue at this rate is not sustainable
City of Roseville Tax Revenue Actual and Projected Fiscal Year Ended June 30
8
City Projected
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Tax After Millage Approval $29,273,715
Community Expected
$7.2 million decrease
Roseville – Eastpointe Recreation Authority City of Roseville’s Financial Position
Response to decreased revenue sharing & property values
• City implemented deficit reduction plan
• Eliminated $8.1 million in spending for fiscal year ending
2011
– Reduction of over 50 full-time positions city-wide
– Changes in healthcare benefits - active & retired employees
– Negotiated wages concessions with City employees
– Reduced recreation programs & library hours
Roseville – Eastpointe Recreation Authority City of Roseville’s Financial Position
• Balancing Act –
– Striving to match current & future expenditures
against declining property values & state revenue
• Cities are forced to reinvent what and how services are provided to citizens
• Future revenue sharing payments are contingent on consolidation efforts with other governmental entities
• Consolidation of services with other communities
– Police / Fire Dispatch (SERESA)
– Roseville – Eastpointe Recreation Authority
Roseville – Eastpointe Recreation Authority About the Recreation Authority
• In July 2011, the Roseville – Eastpointe Recreation Authority was created in the hopes of continuing recreation programs & senior activities.
• The Authority is a separate legal entity from cities
– Five member governing board, representing both communities
– Authorized to levy maximum 1 mill from member communities
– Dedicated millage – To support recreation facilities, programs & senior activities only.
• Funding to operate the Authority is dependent on the passage of the November 8th millage by residents of both Roseville and Eastpointe.
Roseville – Eastpointe Recreation Authority
About the Recreation Authority
• To maintain and/or improve recreation programs & senior activities
• To gain access to additional community programs & events
– Swimming & Summer Playground Programs
– Skate Park Facilities
– Summer Concert Series in the Park
• Supports needed building renovations & improvements to the existing Roseville Recreation & Senior Facility.
• Preserves funding to support essential City services.
• Communities that offer cultural & recreational services (i.e. Libraries & Recreation Departments) typically maintain higher property values in comparison to other communities.
Roseville – Eastpointe Recreation Authority About the Recreation Authority
• Each city would contribute real & personal property to
the Recreation Authority limited to:
– City of Roseville – Recreation Center (18185 Sycamore)
– City of Eastpointe – Community Center (16435 Eight Mile Rd)
• The authority is required to prepare and adopt an operating and capital budget annually
• Authorized to levy & collect taxes under Act 321
• Authorized to borrow money & issue bonds on behalf of the Recreation Authority
– To finance the acquisition, construction and/or improvements of recreation facilities
– Not to exceed 2 mills of total taxable property within the Authority
– Issued Debt – Becomes the debt of Authority and not debt of member cities
Roseville – Eastpointe Recreation Authority About the Recreation Authority
• What if – Dissolution of the Recreation Authority
– Requires council resolution from governing board of participating member cities
– Any outstanding debt of the Authority, including any bonds issued, must be paid in full prior to dissolution.
– Any remaining assets of the Authority to be evenly distributed to member communities at time of dissolution.
Roseville – Eastpointe Recreation Authority Example of Proposed Ballot Language
• Ballot Proposition No. __
• Recreational Authority Proposal
• This proposal will allow the Recreational Authority of Roseville and Eastpointe to maintain and
provide for recreational facilities, services, and programs for all residents. This proposal will
only be effective if approved by the voters in both the City of Roseville and the City of
Eastpointe. Shall the limitation on the amount of taxes which may be imposed on taxable
property in the City of Roseville and the City of Eastpointe, members of the Recreational
Authority of Roseville and Eastpointe, be increased by up to 1 mill ($1.00 per $1,000 of
taxable value) for a period of twenty (20) years, as a new millage for the purpose of
maintaining recreational facilities, services and programs?
• It is estimated that 1 mill will raise a combined total of approximately $1,572,021.00 when first
levied in 2011.
• [ ] Yes [ ] No
Roseville – Eastpointe Recreation Authority
How much will the proposal cost me? (Cost To The Average Resident)
If your home’s Taxable Value is:
Your cost for the Recreational Authority
$20,000 divided by 1,000 = $20.00 / year
$25,000 divided by 1,000 = $25.00 / year
$30,000 divided by 1,000 = $30.00 / year
$35,000 divided by 1,000 = $35.00 / year
$40,000 divided by 1,000 = $40.00 / year
$45,000 divided by 1,000 = $45.00 / year
$50,000 divided by 1,000 = $50.00 / year
$55,000 divided by 1,000 = $55.00 / year
$60,000 divided by 1,000 = $60.00 / year
Roseville – Eastpointe Recreation Authority How much will the proposal cost me?
Residential property tax example #1
After 5 mill increase Taxable value = $ 50,779 Tax Rate = 21.38 mills Total City Tax = $ 1,086
After 5 mill increase
Taxable value = $ 35,708 Tax Rate = 21.38 mills Total City Tax = $ 763 After additional millages Library Authority = $ 36 Recreation Authority = $ 36 Total Combined Tax = $ 835
2011
2007
Roseville – Eastpointe Recreation Authority How much will the proposal cost me?
Residential property tax example #2
After 5 mill increase Taxable value = $ 60,280 Tax Rate = 21.38 mills Total City Tax = $ 1,289
After 5 mill increase
Taxable value = $ 44,123 Tax Rate = 21.38 mills Total City Tax = $ 943 After additional millages Library Authority = $ 44 Recreation Authority = $ 44 Total Combined Tax = $ 1,031
2011
2007
Roseville – Eastpointe Recreation Authority What will happen if millage proposal fails?
• A Recreation Authority is required to have minimum of two members.
• The millage proposal requires voter approval in BOTH Roseville and Eastpointe for passage.
• If the proposal is NOT approved by voters of BOTH communities – Each City has forecasted to eliminate recreation programs & senior activities during 2012.
Roseville – Eastpointe Recreation Authority November 8th Millage Proposal
• We encourage all citizens to learn what the millage will cost them and weigh that cost against the value of maintaining recreation programs & senior activities.
• For more information on how the proposal will effect you and your family call –
– Recreation Department @ 445-5480
– City Manager’s Office @ 445-5410
– City Treasurer @ 445-5420
Roseville – Eastpointe Recreation Authority Informational Sessions
• Monday, October 3, 2011 7:00 – 9:00 p.m.
• Monday, October 17, 2011 7:00 – 9:00 p.m.
• Wednesday, November 2, 2011 7:00 – 9:00 p.m.
Roseville Recreation Center, Activities Center 18185 Sycamore, Roseville, MI 48066
Please consult the City’s website @ www.roseville-mi.gov for schedule changes or additional information prior to attendance.
Roseville – Eastpointe Recreation Authority
Millage Presentation