Washington Township 2018-2019 Budget Proposal March 21, 2018 Board - - PowerPoint PPT Presentation
Washington Township 2018-2019 Budget Proposal March 21, 2018 Board of Trustees Our Principles 1. Preserve the rural character of our community 2. Operate in an equitable manner 3. Manage in a fiscally responsible manner 4. Provide friendly,
– Financial Goals – Emergency Services Goals – Infrastructure Goals – Customer Service / Other Goals
Goal Outcome Collective bargaining with 4 UAW unions Commenced and continuing including IAFF one year early Sell non-strategic land after rezoning by the PC Offering pending on 43 acres and 5 acres; Rezoned Jewell to R1B 60 units Re-evaluate W/S rates after getting County/GLWA increases Done – 0% for water and 4.9% sewer due to sinkhole costs Evaluate the impact of the SINKHOLE Done – incorporated in rates Community Center Feasibility Teams formed; architect deployed Solid audit results Another solid year and clean opinion
– Continued focus on infrastructure and service over bureaucracy – Increased net position since 2009 despite taxable value remaining below 2009 levels – AA BOND RATING! – Washington compares favorably to neighbors in net position as a percent of expenses for governmental activities. – Continued aggressive cost management
Surplus Fund Balance Governmental Funds $ 239,174 $22,138,820 Enterprise Funds $1,855,052 $58,901,716 Total $2,094,226 $81,040,536
20 22 24 26 28 30 32 34 36 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Taxable Value 1,315 1,260 1,155 1,122 1,088 1,113 1,146 1,200 1,241 1,374 Net Position 25.523 26.202 29.634 30.827 31.438 32.087 32.624 34.062 34.968 35.000
Taxable value has rebounded from the real estate crash with the help of new construction. Despite the 10 year drought, our net position (health) has improved steadily.
0% 50% 100% 150% 200% 250% 300% 350% 400%
2010 2011 2012 2013 2014 2015 2016 2017 Washington (3/31) 270% 305% 317% 324% 330% 336% 351% 360% Shelby (12/31) 202% 202% 195% 193% 191% 144% 146% Bruce (3/31) 155% 148% 106% 91% 80% 64% 59% 38% Romeo (6/30) 89% 79% 65% 39% 16%
100,000 150,000 200,000 250,000 300,000
Washington Township Macomb Township Shelby Township Bruce Township Ray Township Armada Township Richmond Township New Baltimore Chesterfield Township Sterling Heights Macomb County Average Harrison Township Clinton Township Richmond Utica Lenox Township Fraser St Clair Shores Memphis Warren
Centerline Roseville Eastpointe
Source: 2017 Equalization Report Excludes 40 homes in the Lake Township portion of Grosse Pointe Shores on the very south end of Macomb County at $618,375; note that villages are combined with townships in this presentation.
Washington’s approach to development and building a great lifestyle has helped us maintain the highest property values in the County.
2008 Current Proposal General 20 FT 1 PT 16 FT 1 PT 16 FT 1 PT Fire/Ambulance 27 FT 15 POC 27 FT 9 POC 27 FT 13 POC Public Works 13 FT 1 PT 12 FT 1 PT 15 FT 1 PT Building Inspection 6 FT 2 POC 6 FT 7 POC/PT 6 FT 7 PT/POC Total 66 FT 19 PT/POC 61 FT 18 PT/POC 64 FT 22 PT/POC We continue at lower staffing vs 2008 despite the economic recovery and despite having 1/3 MORE residents to serve. The 2nd year of this budget will add 3 FT firemen for new station
Today assumes open accounting position (General) and engineer/inspector (PW) filled Engineer and Insp in PW as home in proposal column as well as 2 new utility (camera/meters); Today is just Engineer/Insp Floaters shown in their home dept. Elected shown in General
2008 Now Union CBA’s 7 6 Legacy $7mm unfunded; $1mm/yr after Permanently eliminated Retirement Out of market Reduced by 7%-46% Salary Some positions out of market Cut up to $10k – tier 2 Medical No responsibility; high cost Shared / mitigated cost Time Off Out of market Reduced (tier 2) COLA Auto Cola – no incentives Some incentivized Clerical Probation 3 months 2 years Flexibility to shift Limited Broad Other New hires get same benefits Tiered
We reduced the cost per employee, not just the number of employees. This budget assumes the same contracts plus COLA.
Goals Outcome COMTEC Conversion Done – EMD recently in; reasonable priority guidance; reporting issues Fire station land and initial design Acquired 2 parcels; not yet designed Install 3-5 “dry hydrants” Still working through challenges; 1 new project going in with hydrant Re-deploy fire resources Done CAD Units in trucks Maps, building footprints, hydrants in Hose purchases This traunch is done Ambulance remount Done
Goals Outcome Garland parking lot (finalize) Lot complete; ticket station outstanding 3 Miles of limestone Done – Schoennher 26 to 29 Mile Township lot (punch list) Done Sewer plant construction Underway – complete in < 12 months Acquire a backhoe Postponed Election equipment Done Pursue strategies to generate economic activity in Van Dyke corridor (sewer) 2 SADs circulating (TWP may do one)
Goals Outcome GIS – incorporate storm sewer Postponed (potentially indefinitely) Continue sewer integrity efforts Asset mgt strategy devised - $1mm each year (Hayes Rd $1.8mm plus grouting and pipe repair) and new camera truck Pursue replacement of older water meters Replaced 315 meters this year Next phase of sidewalks Proposal before board for West; Octagon repair pending; meeting Breckinridge North side windows, vestibule improvements, board table, LED sign, sound system, and chairs Postponed Potentially internal road and water lines for community center Postponed – CC teams now meeting
Goals Outcome Issue Master Plan Hearings held, neighboring communities and agencies solicited, awaiting PC Invasive Species Efforts Grant assistance received and spent for Macomb Trail (4X), Campground Y, Meijer, Twp properties; AF Jonna; Willow Ridge and Trailside (they paid for cut) Conclude on monthly vs quarterly water bills Postponed Improved communications bi-annually with the public Issued 4 communications to date Planning and Zoning software Proposal before the board tonight Manage development Another challenging year – see list
Total Soccer Proline Asphalt Radio tower Go Ape/Baypoint/Boat launch TBD Industrial Bldg Romeo High Washington Landing PUD Vanessa Center Mods Gemelli Concrete Capital Pointe Office Trailside Ice cream Van Dyke Retail Newberry Commercial Mines (brownfield, etc) Orchard Ridge Church Cavataio Center Michaelangelo (Dinoto)
New Residential
Newbury On the Green 7 Lakes Expansion (3) Kirkway Expansion Washington Creek PUD Wood Duck Court Washington Landing PUD (residential) Township Acreage (43 acres) Powell Ridge Forest Brook White Oaks Meadowland Veridian
Ongoing Residential
Park Avenue Bradbury Glacier Club Greystone Estates Orchard Brook Orchards Hillcrest Franklin Park (including drainage issues) Stonecrest Accessory Structure Amendment CCN and Hidden Pond drainage issues
Goals Outcome Continue to recruit POC/PT Ongoing battle Hire engineer/inspector Postponed to this next budget WS Field Hires Done
Authorized new pumper GLWA amendment Drone DPW/Fire trailers Policy to finance utility expansions Comment policy Stretchers Water asset mgt plan authorized Managed dewatering issues and added 26 customers at Powell AT&T settlement Managed sinkhole comms and legal decisions Upgraded fire code Fire Chief contract WBRW anniversary and continued improvement Held emergency drill Waste events Fire grants (Gloves/Foam) Metropark relationship Parking lot light repair and sealcoating PC, ZBA, Library/BOR appts Updated Engineering Ordinance
Began sign ordinance review Commenced Community Center teams Partnered with Octagon on silo drill Federal Investigation
known to limited persons in Washington Township offices who had initiated some of the probe.
Investigation has so far netted 19 persons.
backlash against those who helped.
and infrastructure
sharing (assumed 2% increase) or cost pushdowns
and intellectual resource limitations
(200,000)
400,000 600,000 800,000 1,000,000 1,200,000 1,400,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
03/2017 is the last “actual” year available. 03/2018 is conservatively
budget due to the lack of a land sale but that is offset by less sidewalk and other capital spending than anticipated. 03/2019B assumes the 43 and 5 acre land sales. Without the land sales, the 03/2019 would be $102k loss due to significant capital investments (West Road sidewalk alone is $200k). 03/2020 is positive but bears a $300k investment in sidewalk near Hevel.
791 817 783 708 697 675 690 714 763 773 800 845 858 550 600 650 700 750 800 850 900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Property Tax Revenues Due to State law, the dramatic decline in property values is not reversed by subsequent dramatic increases for existing, unsold
are capped at inflation plus additions. We are finally drifting back to 2009 tax revenue levels due to market recovery PLUS significant development. During the downfall, we avoided tax increases through cost controls despite inflationary cost increases and additional clients to serve.
200 400 600 800
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Interest Revenues
200 400 600 800 1000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B 2020B
Other Revenues
500 1000 1500 2000 2500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B 2020B
Revenue Sharing Lower interest absorbed thru cost control measures. Interest rates, improved savings, and change in approach is improving interest.
The census will help SRS which helped mitigate some revenue losses since ‘08. However, we have more people to
conservative. Other revenues exclude the land sale and cable fees. They are lower due to lack of Romeo/Bruce fees, lower SADs, and grants.
2018B had a number of budget items that increased costs. We postponed the costs for another year, driving up 2019B costs. Key items included in 2019:
500 1000 1500 2000 2500 3000 3500 4000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Red line is 2008 inflation adjusted by 1.5% per year. All other than ‘09 expense would be >$300k more if OPEB not cut
West Road sidewalk ($200k) in 2019 and Hevel ($300k) in 2020 vs generic $100k (not spent ) in 2018.
2019 2020 Powell area road 2,750,000 1,650,000 3 miles of limestone 30,000 30,000 Planner & Architect 100,000 TIP or microsurfacing 50,000 200,000 Watershed Training 600 600 Engineer 5,000 5,000 NPDES permit 500 500 PEP assistance CRWC 1,800 1,800 Workshop 500 500 Mac Orch Trail 5,000 5,000 Dry Hydrants 28,000 28,000 Siren Main 4,500 4,500 Total Estimate 2,975,900 1,925,900
Figures assume no SAD for the road project and also do not consider our share of a sewer line SAD.
500 1000 1500 2000 2500 Rev Exp
Rev 1237 1259 1176 1177 1111 1081 1081 1133 2341 2084 2189 2183 2226 Exp 834 863 868 869 851 981 1005 1200 2017 2052 2094 2129 2213 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B 2020B
New Deputy added Nov 2011 Doubled to 14 Jan 2015 following millage increase
(2,000,000) (1,500,000) (1,000,000) (500,000)
1,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B 2020B
Income
Income history is driven by major capital expenditures
hose (3/18)
3/20)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 B 2019 B 2020 B Tax 4244 4297 4060 3650 3590 3490 3575 3696 3913 4273 4422 4888 4986 Amb Fee 315 388 452 498 445 529 589 521 538 538 520 500 500 Grants 13 44 1436 180 34 43 16 148 2 Int/Other 324 442 54 67 43 58 101 4 58 104 49 94 94
1000 2000 3000 4000 5000 6000
Taxes hurt by the market decline finally rebounding due to new
more people.
also is insignificant. Both were estimated conservatively. To maximize value to customers, we rebalance emergency millages each year based on where the capital spend needs are without increasing taxes.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B 2020B Exp 3574 4430 4273 6726 4443 3613 4009 4230 4159 4816 5162 7113 6579
1000 2000 3000 4000 5000 6000 7000 8000
10/12/14/15/16/17/18/19
(3/18)
OPEB was only in 2009; would be > $350k/yr if not cut)
living creates a need.
hires since ‘08.
thousand residents. Bruce/Romeo were at 1.8 per 1,000.
400k over time.
1000 2000 3000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Runs
Runs Manpower Factors: Only 28% hydranted
Metropark (2mm visitors/yr) We transport 36 square miles M53 split Home compostion –petrochem Age and existence of assisted living
positions between shifts
with cooperation from unions.
automatic mutual aid for fires to increase resources.
processing to reduce man hours.
– OPEB eliminated – Some COLA shifted to bonus – Reduced retirement – Increased staff medical cost – Restructured new hire pay
Assistant Fire Chief (till 2019)
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2008200920102011201220132014201520162017201820192020
Police
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2008200920102011201220132014201520162017201820192020
General and Other
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fire/Amb
Health is strong. Aggressive spend (for parking lots, roads, tanker, ambulances, station, etc) will reduce fund balances somewhat. We still have > 1 year in reserve for General 1.5 for Fire/Amb and 2 for Police. Note that you need 70% of budget to cover timing.
Enterprise funds are government run businesses: – deliver services not done best by private enterprise – no taxing authority or use of taxes – generate revenues from fees for the services – recover their cost of capital expenditures over time – Cannot be supported by tax $.
building plans and inspecting construction.
– Plan review fees – Bldg. inspection fees – Electric inspection fees – Plumbing inspection fees – Mechanical inspection fees
personnel
– Use of paid on call – Pay freezes – Staff reductions at key times – Elimination of Opeb ($1mm liability and $114k per year) – Absorbing other activities – Significant CBA concessions.
72 187 160 237 293 425 385 270 254 247
500 1000 1500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Revenue Expense Net Income
Had OPEB not been cut out, profits would be reduced by $100k/yr or more. Note that, due to market uncertainty, we typical budget this fund
almost $200k higher than plan as is net income. The next two years are planned based on 175 housing units.
100 200 300 400 500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Com Res
Peak residential building was 422 in
YE 3/31/2010. 2018P was budgeted at 175 homes and we have 167 with 2 weeks left. 2019B and 2020B assumes 175 residential each. Profitability is largely maintained by cost flexibiilty down to 100 residential permits.
1000 2000 3000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018P 2019B 2020B
Fund Balance was $1mm worse than shown here prior to eliminating unfunded OPEB. Note that in addition to having negative equity AND a $1mm unfunded liability, this fund owed several hundred thousand to the General
legacy, debt or negative equity – a > $3mm swing!
Low point was $100k negative equity plus $1mm OPEB liability plus several hundred thousand of debt to the General Fund in 2010
sewerage for 6,045 “accounts” or approximately 20,000 “People” by DEQ standards.
– per unit charges – fixed meter charges – contributed pipe – tap and capacity fees – interest – Permits/Inspection fees – Grants
– Pass-through cost of GLWA for water (fixed and variable) – Pass-through cost of GLWA, Macomb County, and Macomb Township for downstream sewer transport – Infrastructure, mostly within the township (lines, pump stations, meters, trucks, remote readers, etc.) – Field personnel – Administration
main (74 Miles)
district assets
(97.6 Miles)
2000 4000 6000 8000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Accounts
Customers
Water Only 588 Water & Sewer 5,237 Sewer Only 220 Total Accounts 6,045
R N
*excludes
96% 4%
Residential Non Residential
Accounts
and 7.5%).
– Assumes we buy 73,800 MCF based on GLWA projections for Yr 1. The 5 year average is 72,200. – The purchase commodity and fixed rates for Yr 1 are based
published rates for the year from GLWA – The purchase commodity and fixed expense for Yr 2 are inflated at 3%
– Assumes we sell 73,800 MCF based on GLWA projections for Yr 1. The 5 year average is 72,200. – The sales rate assumes no change in volumetric rate for either year. – We assume a 3% growth on fixed charges due to new customers each year.
Sewer Purchases
flows vs total, we pay 2.807% of the County costs
increase for the last 9 months of Yr 1 over current charges.
increase. Sewer Sales
are assumed to be increased in Yr 1 by 8% over the projected year end 3/31/18.
assumption of 3% and rate increase of 5%.
and variable by 5% (higher than water because we assume water RATE increases are frozen and they only experience growth).
2019 through end of year 2.
Why Are Water Rates Higher Here? GLWA sets rates based on 3 factors –
bedroom community). Washington prefers lower density development so has a higher infrastructure cost PER CUSTOMER because a mile of water main in another community might be borne by many more homes than it is in our
lifestyle choice. 2 4 6 8 10
5 Year Average Increase Pre- Storage 2016 2017
% Increases Passed to Customers Before Vs After Building a Water Storage Facility
Zero
The Water Storage Facility Is Benefiting Customers
Overall income of $3mm for YE 2019 and $2.3mm for 2020. The net income includes contributed pipe (not cash) which, for each of the two years, is less than the total
bond principal of $811k per year over 20 years. Note that Opeb would have hurt by $200k per year if not cut.
500 1000 1500 2000 2500 3000 3500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018B 2019B
Income Pipe TRUE
2019 2020 Waste Water Treatment Plant 11,163,565 Water Main Extension on West Side 1,000,000 1,000,000 Hayes Road Pump Station Rehab (1976) 900,000 900,000 Sewer Line to 31 Mile 875,100 30.5 Booster Station Rehab (1995) 300,000 Transit Truck for Sewer Televising 250,000 Contracted Sewer and Manhole Replacement 100,000 Meter Change Out Program 86,000 90,000 Worksite Pro 45 Incompact Track Loader (Skid Stee 79,000 Scada System Upgrade (60/40 W/S) 50,000 Upgrade to Mega Net Collection System (MTU Towe 49,850 F150 4x4 with Plow/wo Plow 34,252 22,000 Temporary Pressure Monitoring Stations 12,240 Rain Guage 10,000 Tapping Machine 8,500 Backhoe and Dump Truck 235,000 PRV Pits/Booster Station VD/26 and Jewell/27 100,000 Vactor Truck Replacement (1994) 300,000 29 / VD Booster / Meter Pit (another water access point) 400,000 14,918,507 3,047,000 Funded from Bond 7,525,722
7,392,785 3,047,000
2019 2020 Net Income 2,979,000 2,347,000 Subtract Contributed Capital (2,162,000) (2,084,000) Add Back Depreciation 1,680,000 1,976,000 Net Available for Capital and Debt 2,497,000 2,239,000 Capital Not From Bond (7,393,000) (3,047,000) Principal on Bond (811,000) (811,000) Cash from Reserves (5,707,000) (1,619,000)
The capital investment program results in a decrease in cash in the short term in return for future cash flows going forward. These cash needs are funded from earmarked cash of $10mm of our $20mm of working capital that was set aside for exactly these purposes years ago.
costs for local governments
2008
YE 2019 Full time staff
66 FT
64 FT at a lower cost per person Unfunded Legacy $7mm Eliminated Police 6 14 ISO ratings 5 and 9/10 3 and 4/10 Infrastructure dilapidated Lined and repaired sewers Added water main Built a water storage facility Built a new fire HQ New sewer plant 5 miles paved road 24 miles limestone New water tanker New ambulance fleet Public parking 180 acres added land Fund bal. (net of $7mm legacy) Governmental (5 legacy) Enterprise (2 legacy) $14.4mm $46.9mm $18.6mm $64.5mm
100,000 150,000 200,000 250,000 300,000
Washington Township Macomb Township Shelby Township Bruce Township Ray Township Armada Township Richmond Township New Baltimore Chesterfield Township Sterling Heights Macomb County Average Harrison Township Clinton Township Richmond Utica Lenox Township Fraser St Clair Shores Memphis Warren
Centerline Roseville Eastpointe
Source: 2017 Equalization Report Excludes 40 homes in the Lake Township portion of Grosse Pointe Shores on the very south end of Macomb County at $618,375; note that villages are combined with townships in this presentation.
Washington’s approach to development and building a great lifestyle has helped us maintain the highest property values in the County.
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2008200920102011201220132014201520162017201820192020
Police
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2008200920102011201220132014201520162017201820192020
General and Other
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fire/Amb
Health is strong. Aggressive spend (for parking lots, roads, tanker, ambulances, station, etc) will reduce fund balances somewhat. We still have > 1 year in reserve for General 1.5 for Fire/Amb and 2 for Police. Note that you need 70% of budget to cover timing.
Jake O’Malley’s Brown Iron Brewery Art and Jakes Pizza Nostalgia Bangkok Cuisine Sapori’s Taco Bell Pamela’s Catering Jimmy Johns Michigan Planners Angelica’s Place Pure Sleep Powerhouse Gym Salon V Total Health Systems Miracle Ear AAA Anytime Fitness Sylvan Learning Movement Project Yoga Salvation Army Advanced Auto Rite Aid Brush Salon Momentum Church All State Crittendon Medical Katy’s Corner Autozone Serra Kia ReCycle Fitness Verizon Total Soccer Sally’s Beauty Orielly’s Auto Parts Basement Salon Diversified Financial Escape Room Randazzo Call Center United Framing Gemelli Concrete
3 local orchards 20 dine-in 12 fast-food restaurants Several golf courses Sports facilities Amazing emergency services Clean water and waste services Park’s and Recreation activities AA bond rating Washington Historical Society Museum Octagon House Art Guild Macomb Orchard Trail. Washington Lions Sportsman’s Club, Boys and Girls Club Library and Schools WBRW TV 16 religious congregations. Stony Creek Metropark
More to come…