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CITY OF WALKER 2013-2014 BUDGET OVERVIEW

PRESENTED BY: CATHY VANDER MEULEN, CITY MANAGER

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GENERAL FUND REVENUES – $14,379,601 PROPOSED FOR 2013/14

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GENERAL FUND EXPENDITURES – $14,379,601 2013/2014 PROPOSED

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2013/2014 BUDGET SUMMARY We continue to track positive trends in our income tax collections. We will

continue to monitor the revenue stream and remain conservative in estimating income tax revenues.

City’s taxable values declined an average of 0.72% in 2013, however our assessing staff is tracking encouraging trends in the number and sales prices of all types of properties. Foreclosures are down.

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

Building permit numbers and values are up in all classes of property. General fund budget expenditures projected to increase 3.5% over

2012/13 expenditures. Estimate use of$258,555 of reserve funds to balance the budget. Fund

balance as of June 30, 2014 is projected at $3,692,727 or 30.55% of general fund expenses.

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2013/2014 BUDGET SUMMARY, CONTINUED…• Committing an additional set aside of $200,000 to fund long term liabilities,

and an additional $100,000 set aside to continue building a facilities sinking fund. Total set aside in sinking fund of $300,000 and $400,000 in LTL fund as of June 30, 2014.

• An additional $100,000 is set aside in the capital equipment budget to fund a replacement fire pumper. Total set aside as of June 30, 2014 is $300,000.

• Major and local roads maintenance budget remains at $800,000, and total investment in roads maintenance and road projects is $1,275,000. The City’s general fund will contribute $1,273,987 to the major and local street fund.

• Staffing changes include new full time positions in the HR/ Finance department, and a laborer’s position in the DPW. Staff time will be reallocated in the income tax , police records and fire departments.

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HISTORICAL TAXABLE VALUE CHANGES FOR REAL AND PERSONAL PROPERTY

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HISTORICAL INCOME TAX REVENUE

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HISTORICAL BUDGET COMPARISON –GENERAL FUND REVENUES

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HISTORICAL BUDGET COMPARISON –OPERATING BUDGET EXPENDITURES

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FACTORS IMPACTING 2014 BUDGET AND BEYOND:• Healthcare costs expected to rise. Employee share of healthcare premiums

remain at 15%. Impacts of Affordable Healthcare Act are evolving. A 20%-40% increase in premiums for 2014 is anticipated based on preliminary reports.

• The first phase of the personal property tax elimination takes effect January 1, 2014. The budget reflects the estimated loss of approximately $14,000 in personal property tax revenue as a result of this legislation. Further phase outs planned to take place beginning January 1, 2016. Legislature is working on a local unit reimbursement plan for lost revenue.

• City continues to submit the required State reports to qualify for EVIP payments. ($29,404 estimated for FY 2014).

• Standard and Poor’s has reaffirmed the City’s AA- rating.• Moody’s has improved the City’s rating to AA2-stable outlook.• City will continue to commit to prefunding OPEB obligations as budgets

allow and the Commission directs.

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CITY INITIATIVES GOING FORWARD• COPS grant funding for additional community policing officers to work

with school related matters. City has filed a grant requesting two full time positions for 2014.

• Construct public improvements in targeted areas using CDBG funds. Alpine Ave. sidewalk extension from 3 Mile north to just north of I-96 planned for 2014. ($120,000 project)

• Utilize police forfeiture funds to finance qualifying police projects and purchases. Proposed for 2013/14: Replacement vice vehicle ($30,000), and in-car computer upgrades and mounts ($50,000)

• Municipal service sharing continues in many different areas. New partnerships to be explored: A shared DDA events/promotion position with the City of Grandville, and partnering in a Kent County Ambulance Consortium.

• 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.

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CITY INITIATIVES, CONTINUED….

• Begin planning for 3rd phase of city technology upgrades including a new VOIP phone system in 2015.

• Continue to identify areas for energy saving investment.• Continue with efforts to improve greater resource utilization through

efficiencies in equipment and vehicle functions, i.e. hook loader systems for DPW, retrofit dump trucks. The city has been a leader in this area, and we regularly receive inquiries from communities requesting additional information.

• Complete Parks and Rec Master Plan, evaluate next steps with the Commission.

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SELECTED INVESTMENTS FY 2014

Bond Debt Series 1998A (Ice & Fitness Center) (2018) $686,725

Bond Debt Series 1999 (City Hall/DPW) (2020) $651,375

Fiber and technology projects (Phase 2) $125,000

Remembrance Road/3 Mile Road Design $120,000

Storm Sewer maintenance projects $65,000

Overlays (Major and local) $800,000 Police/Fire/DPW vehicle and equipment replacements $543,000Elmridge construction grant match and administration $355,000

Additional OPEB and pension contributions $200,000

Sinking fund and Long term liability set asides $300,000

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THANKS TO THE WALKER CITY COMMISSION, THE WALKER FINANCE COMMITTEE AND TO THE WALKER STAFF FOR THE SUPPORT AND ASSISTANCE THROUGHOUT THE BUDGET PROCESS!!!! QUESTIONS?