A review of General Fund, Major/Local Street Funds, Water/Sewer - - PowerPoint PPT Presentation

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Feb 25, 2023 10 likes •533 views

A review of General Fund, Major/Local Street Funds, Water/Sewer Funds and Capital Improvement Funds BUDGET DEVELOPMENT Focus on 10 Year Comprehensive Infrastructure Plan Concentrating on first 3 years Coordinating Streets with Water &

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A review of General Fund, Major/Local Street Funds, Water/Sewer Funds and Capital Improvement Funds

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Focus on 10 Year Comprehensive Infrastructure Plan Concentrating on first 3 years Coordinating Streets with Water & Sewer Presented at 3 Public Work Sessions March 1 - SAW grant findings presentation by Prein Newhof Engineers and H.J. Umbaugh & Associates April 12 – Council workshop to review budget projections and policies. Streets study presented May 1 – Council work session to review the recommended 2017-18 Fiscal Year budget

BUDGET DEVELOPMENT

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Full implementation of Public Safety Consolidation in 2013 Reduction of staff by over 25% in last 5 years Cross training staff to compensate for reduced resources Staff sharing with NKSA Creative revenue streams – cell tower leases, Chamber partnership, D.A.R.E. partnership Continue to seek grant opportunities (SAW grant, smoke detector program, SCBA replacement) Changes to employee fringe benefits (health insurance, pension program) Implemented LED lights to significantly reduce electric expenses

COST SAVING MEASURES

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State started reducing revenue sharing payments in Fiscal Year 2001-2002 The City is still significantly below the $540,000 a year it received 17 years ago The unadjusted loss is over $1.8 million in lost revenue dollars

STATE REVENUE SHARING

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HISTORICAL TAXABLE VALUES

200,000,000 205,000,000 210,000,000 215,000,000 220,000,000 225,000,000 230,000,000 235,000,000 240,000,000

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2016 MILLAGE RATE BREAKDOWN

27% 40% 15% 18%

Principal Residence Millage Rates

City of Rockford County Wide Education Millages State Education Tax Kent County and Kent District Library Millages

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HISTORICAL MILLAGE RATES

2 4 6 8 10 12 14 Mils Admin Fee Library Bld City Millage - (12.90)

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SURROUNDING AREA MILLAGE RATES

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 Rockford Belding Greenville Sparta

E. Grand

Rapids Lowell Cedar Springs 10.90 15.95 12.97 10.00 14.85 15.70 15.44 1.73 2 1.5 1.96 0.5 Mils

Capital Imp Nash Creek Roads Projected Township Operating

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City of Rockford Charter authorizes 15 mills 14.0072 Maximum Allowable Millage Levy under MCL 211.34d “Headlee” Proposed Millage Rate - 12.9 mills City of Rockford average taxable value $91,528 (home value

f $183,056)

2 mill increase equals $183.06 per year or $15.25 per month

BUDGET PROJECTIONS

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General Fund Balance in targeted 35% to 40% range 2015- $1.93 million – 2016- $1.79 million 2017- $1.49 million – 2018- $1.55 million The General Fund budget is based on levying a 12.9

perating millage rate

Budget in focused on investment in capital and infrastructure Total debt issued for all funds - $2.30 million

BUDGET HIGHLIGHTS

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OUTSTANDING DEBT ISSUES

20 40 60 80 100 120 140 160 Thousands (Annual Payments) 2013 G.O. General Obligation Bonds Public Safety Cruisers Northland Pontiac DWRF Water Tower Bond 2008 Street Bond DPS Trucks 2014 CAT Backhoe CAT Skidsteer

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ANNUAL DEBT SERVICE REQUIREMENTS

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Interest Principle

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The General Fund is used to account for all financial resources of the local unit of government except those required to be accounted for in another fund The General Fund’s primary revenue sources are the general levy tax, local income tax, certain state and federal aid, and fees and charges of the general fund departments The City of Rockford’s General Fund revenues include: Property Taxes State Shared Revenue-projected to increase $13,000(3%) Local Unit Revenue Licenses and Permits Charges for services Interests and Rents

GENERAL FUND

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Taxable Values (Ad Valorem and IFT’s) increased 3.13% this year

2015 Taxable Values: (AV) $223,595,878 2016 Taxable Values: (AV) $219,044,737 2017 Taxable Values: (AV) $225,285,037 2015 IFT Roll: $1,510,700 2016 IFT Roll: $454,400 2017 IFT Roll: $1,091,327

Total revenues

2015-16Revenues: $3,186,878 (Actual) 2016-17 Revenues: $3,377,624 (Estimated) 2017-18 Revenues: $3,770,525 (Budgeted)

GENERAL FUND REVENUES

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GENERAL FUND REVENUES

76% 3% 14% 2% 1%3%1%

2017 Projected

Taxes Licenses & Permits State Revenue Local Units Charges for Svcs Interest & Rents Other

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GENERAL FUND EXPENDITURES

1% 9% 0% 1% 39% 0% 6% 4% 21% 2% 17%

Budget

City Council General Administration Elections Assessing Public Safety Planning Parks Cemetery Public Services General Govt. Ops Transfers

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HISTORICAL FUND BALANCES

500,000 700,000 900,000 1,100,000 1,300,000 1,500,000 1,700,000 1,900,000 2,100,000 1,486,348 1,435,406 1,449,442 1,746,990 1,603,197 1,737,084 1,926,317 1,860,921 1,740,197 1,555,307 Dollars

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CITY OFFICE GENERATOR

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PUBLIC SAFETY DEPARTMENT

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FY 2016-17 Budget - $1,507,400

FY 2016-17 Estimate - $1,487,711 FY 2017-18 Proposed - $1,537,695 Current staff has absorbed the duties of the Fire Marshall after his retirement. CIP includes solar powered speed sign and matching funds for a SCBA grant. 2010 Combined Police/Fire Budget - $1,712,000

PUBLIC SAFETY DEPARTMENT

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SCBA GRANT

Match grant for new self contained breathing apparatus

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Department of Public Services

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FY 2016-17 Budget - $669,800 FY 2016-17 Estimate - $696,590 FY 2017-18 Proposed - $829,575 Proposed $211,525 capital transfer includes parking lot maintenance and a new dumpster enclosure for the DPS building, a plow blade and shared cost with the DDA on a sidewalk

machine. Current truck, Track steer and

backhoe leases. Replace 2002 and 2004 work trucks

DEPARTMENT OF PUBLIC SERVICES

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Water System Sanitary Sewer System Storm Water System Major and Local Streets Parks Cemetery New development and construction Facility Maintenance Fleet/Equipment Maintenance Public Safety Department

DEPARTMENT OF PUBLIC SERVICES RESPONSIBILITIES

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Parks Responsibilities

Grounds maintenance (119.8 acres) Weekly mowing (parks, city facilities) Maintenance/operations of the Rockford Dam Landscape construction and maintenance White Pine Trail maintenance and mowing Irrigation maintenance Boardwalk maintenance Playground equipment maintenance Restroom facility maintenance

GENERAL FUND - PARKS DEPARTMENT

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The Major and Local Street Funds are Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes Major and Local Street Funds are used to account for the receipt and expenditure of State motor fuel taxes which are earmarked by law (Act 51 PA 1951, as amended) for street and highway purposes, Federal aid, and General Fund appropriations Major and Local Street Funds are used for maintenance and construction of a city or village street system.

SPECIAL REVENUE FUNDS

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MAJOR AND LOCAL STREET FUNDS

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Street Responsibilities

Maintenance and repair of (37) lane miles of road Snow plowing and salting of (37) lane miles of road Maintenance and repair of (30) linear miles of the Storm Water System

Soil erosion program, catch basin cleaning, record keeping

Record keeping

Major and Local Street Funds

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NORTHLAND CT OVERLAY

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GAYLORD, GAY CT, GAYLORD CT OVERLAY

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HIGHLAND VIEW CT OVERLAY

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NORTH MONROE FROM COURTLAND TO LEWIS CAPE SEAL

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ASHRIDGE, BRADMAN, KARA CT CAPESEAL

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OAK ST MILL AND FILL

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TOWERS DR / S. SQUIRES MILL AND FILL

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The Water and Sewer Funds are Enterprise Funds Enterprise Funds are used to report activity for which a fee is charged to external users for goods or services Laws require that the activity’s costs of providing services, including capital costs, be recovered with fees and charges, rather than with taxes or similar revenues

ENTERPRISE FUNDS

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Water Department

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Supplying a quarter billion gallons of safe drinking water annually to the City of Rockford, Cannon, and Algoma Townships Operating and maintaining 30 linear miles of water main, (4) water towers, booster station, and (400) hydrants Supplying over 6,000 consumers with safe drinking water Meter change out program (approximately 2,500 water meters)

Water Department

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FY 2016-17 Budget - $1,202,052 FY 2016-17 Estimated -$1,184,224 FY 2017-18 Budget - $1,449,595 FY 2016-17 - “Working Capital” - $922,263 (estimated) FY 2017-18 - “Working Capital” - $903,468 (budgeted) Complete meter replacement program Glen Eagle water tower interior maintenance $170,000 Overhaul Well #3 $23,200 Chlorine feed system at Booster Station $15,000 Replace 2 furnaces at the Water Plant $9,000

WATER FUND

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HISTORICAL WATER USAGE

50,000

100,000 150,000 200,000 250,000

Gallons Billed Budgeted Gallons Actual Gallons

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PULL AND OVERHAUL WELL #3

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GLEN EAGLE WATER TOWER WORK

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REPLACE HIGH SERVICE PUMP # 1

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BOOSTER STATION CHLORINE FEED SYSTEM

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SANITARY SEWER

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Maintenance and repair to (30) linear miles of sewer pipe Maintenance of (5) Lift Stations

Pumps, electronic components, alarm systems, weekly maintenance and inspections

Peachtree Lift Station Shaw Creek Lift Station Heritage Park Lift Station Rockview Lift Station 2 W. Division (main lift station)

SANITARY SEWER FUND

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FY 2016-17 Budget - $2,265,735 FY 2016-17 Estimated - $2,188,799 FY 2017-18 Budget - $1,944,850 FY 2016-17 “Working Capital” - $808,308 (estimated) FY 2017-18 “Working Capital” - $947,393 (budgeted) Proposed budget reflects Rockford’s share of the NKSA bond payments and capital improvement projects Increased costs to address issues discovered in the SAW grant process and manhole maintenance and repairs. Increase working capital spent down on projects in previous years.

SANITARY SEWER FUND

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DEFECTS FOUND

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HISTORICAL WATER/SEWER RATES

5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00 Dollars

Water RTS Water Commodity Sewer RTS Sewer Commodity

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Consultant Recommendations

Water Fund Current

Recommended Commodity per 1,000 gallons $3.35 $4.06 Readiness to Serve per month $10.47 $12.69

Per month increase based on average user of 4,500 gallons per month. $5.43

BUDGET PROJECTIONS

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Consultant Recommendations

Sewer Fund Current

Recommended Commodity per 1,000 gallons $3.11 $3.58 Readiness to Serve per month $13.20 $15.18 WWTP Readiness to Serve per mo $17.50 $20.13

Per month increase based on average user of 4,500 gallons per month. $6.70

BUDGET PROJECTIONS

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General Fund - $1,555,307 Sewer Fund - $947,393 Water Fund - $903,468 Major Street Fund - $184,829 Local Street Fund - $137,285 DDA Fund - $67,075 Capital Improvement Fund - $725,607 SUMMARY OF BALANCES BY FUND