Subject:Fiscal Year 2017-2018 Budget Summary
C I T Y O F F L U S H I N G
Date:April 4, 2017
To:Mayor Keane and City Council
From:Brad Barrett, city manager
Subject:Fiscal Year 2017-2018 Budget Summary
General Fund Revenue
101.000.401.000Property taxable values are estimated at 179,204,660. (1.36% increase) ($26,498 additional funds)
(Calculation is completed by removing property taxable values captured by the two TIFs)
101.000.576.000Revenue sharing is budgeted at FY2017 projected amounts provided by the State of Michigan. ($704,305)
101.000.660.000The curbside service assessment (garage collection, leaf pick up and chipping) is presentedat the same amount as last year. ($204 annually per residential unit)
101.000.676.102Transfer of PEG Funds received per the cable franchise agreements. Funds will be used for one time improvements. ($20,369)
101.000.676.590Sewer Administration equals projected healthcare costs associated with retired WWTP employees. ($51,100)
101.000.676.591Water Administration equals 50% of projected healthcare costs associated with retired DPW employees.($41,000)
101.000.676.711Interest earned on the Cemetery Perpetual Care Fund will be received as revenue to subsidize costs associated with the cemetery.($6,035)
General Fund Expenses
101.191.981.000Expense associated with the purchase of new voting machines for the city will be carried over to the new fiscal year. ($12,000)(Capital Improvement Plan)
101.289.718.000This budgeted amount does not equal an additional payment to the city’s defined benefit plan to MERS. This amount is needed to meet the estimated ARC payment provided by MERS in the city’s 2015 actuary. The city anticipates receiving 2016 actuary from MERS in April/May 2017.
101.289.718.100A contribution to the OPEB Trust is not budgeted at this time.
101.289.719.000Expense associated with retiree health benefits for nonunion employees and DPW (50%) employees. ($199,610)
101.289.818.000Expense line includes the installation of video screens in the Council Chambers and Conference Room. PEG funds would be used to pay for the improvements. ($20,369) (Capital Improvement Plan)
101.301.718.000Expense associated with retiree benefits for police department personnel.($114,786)
101.301.854.000Half the funds to replace the recording system in the interview room. Remaining funds will need to be requested from the township. ($2,500) (Capital Improvement Plan)
101.301.947.000Expense for a new police cruiser and fleet maintenance expenses.
($53,100) (Capital Improvement Plan)
101.301.982.000Expense for new tasers. ($3,000)
101.336.992.000Expense for turn out gear for9 firefighters ($22,000) and 10self contained breathing apparatus (SCBA) tank replacement ($7,000).
(Capital Improvement Plan)
101.400.958.000Half the cost to update the City of Flushing’s Master Plan. ($15,000) (Capital Improvement Plan)
101.441.818.000Expense to retro fit high pressure sodium streetlights with LEDs. Phase II of the plan provided by Consumers Energy. ($53,178) (Capital Improvement Plan)
Note: At this time, this project is slated to use fund balance.
101.528.818.000Expense per Waste Management Service contract ($466,769)
The city’s service agreement with Waste Management has an agreed monthly increase of $1,085.
At this time, there is a projected deficit of $50,799 in the General Fund.
Major Street Fund
202.000.510.000Estimated revenues using MDOT’s worksheet for the time period of 10/2016-9/2017.($517,514)
202.463.963.000Street Improvements - Main Street – Warren Street to Frances Street. ($360,000) (Capital Improvement Plan)
202.479.818.000Expense line includes funds to retro fit traffic lights at Maple and Main and Cherry and Main with LEDs per the request of the road commission. ($9,659) (Capital Improvement Plan)
202.483.808.000New expense per MDOTs requirement of Act 51 agencies to complete annual performance audits per PA 298 of 2012. The entire cost will be split between both street funds.
At this time, there is a projected deficit of $213,246 in the Major Street Fund due to a street improvement project.
Local Street Fund Expenses
203.000.579.000Estimated revenues using MDOT’s worksheet for the time period of 10/2016-9/2017. ($201,534)
203.483.808.000New expense per MDOTs requirement of Act 51 agencies to complete annual performance audits per PA 298 of 2012. The entire cost will be split between both street funds.
At this time, there is a projected deficit of $14,448 in the Local Street Fund.
Corridor Improvement Authority
The authority will meet in May 2017 to discuss and approve a budget for submission to the Flushing City Council.
Neighborhood Improvement Authority
The authority met in March 2017 and approved the presented budget for submission to the Flushing City Council.
Revenues and expenses for this fund are per the community development block grant allocation the City of Flushing will receive from Genesee County. The Flushing City Council has already approved the funds to be used towards the demolition of a structure in Water Works Park and the purchase of two ADA picnic tables.
401.000.676.101Estimated rebate premium received from the MML Liability and Property Pool.
401.999.982.000Expense to replace the roof on the Tucker Pool Building.
(Capital Improvement Plan) ($10,000)
Capital Improvement Expenses
402.999.818.000Estimated remaining expense to complete the non-motorized trail extension, minus the $300,000 DNR Trust Fund grant and funds already paid out for design work by ROWE. ($190,000)
(Capital Improvement Plan)
402.999.820.000Street Improvements - Expense to mill and resurface multiple residential streets, dependent on a MDEQ Scrap Tire grant.
($187,500) (Capital Improvement Plan)
402.999.820.100Engineering expense associated with multiple street projects budgeted in the city. ($131,400) (Capital Improvement Plan)
The Capital Improvement Fund is projected to have a deficit of $245,864, however due to the construction season, project expenses may spread across two fiscal years. In addition, the fund balance includes monies that have been designated by the Flushing City Council for specific projects, such as the trail extension.
Sewer Fund Revenues
590.000.650.000Revenues determined by adopted rate.
(Revenues will need to equal $1,350,000)
Sewer Fund Expenses
590.548.818.000Expense to line sewer mains. ($25,000) (Capital Improvement Plan)
590.548.965.101Projected healthcare costs associated with retired WWTP employees. ($51,100)
590.555.933.000Expense to repair the sequencing batch reactor (SBR) East Motive Pump. ($25,000) (Capital Improvement Plan)
590.555.945.000Expense to reconfiguration flow distribution in the waste water treatment plant. ($150,000)(Capital Improvement Plan)
Water Fund Revenues
591.000.650.000Revenues determined by adopted rate.
Water rates are estimated with a projected increase of 17.5% from the Great Lakes Water Authority (GLWA) for treated water.
(Revenues need to equal $2,350,000)
Water Fund Expenses
591.556.927.000Estimated cost of water from the Genesee County Drain Commissioner with an additional 17.5% increase from GLWA. ($6.54 per 748 gallons)($1,665,446)
591.556.965.10150% of projected healthcare costs associated with retired DPW employees. ($41,000)
591.556.983.000Interest and principle payment forDWRLF debt.
(Two different loans) ($220,522)
Professional expenses associated with the USDA Rural Development bond have been carried over, equaling one half of actual known expenses.
Motor Vehicle Equipment Expenses
661.932.818.000Expense to complete a debris tank rehabilitation on the vactor truck
($18,000) (Capital Improvement Plan)
661.932.983.000Police patrol car purchase ($31,000)(Capital Improvement Plan)
Percentages used for across the board increases
5% increase to liability and property insurance premium
13% increase to workers compensation insurance premium
3% increase to utilities (includes gas, electricity, water and sewer)
Increase to healthcare costs (fringe benefit line items)
Healthcare and prescription coverage at 10%
Dental coverage at 10%
Optical coverage at 0%
3% increase to equipment rental charge back
3% increase to fuel (Motor Pool Fund)
Personnel costs for unionized police officers reflect their current collective bargaining contract.
Personnel costs for unionized DPW/WWTP employees reflect no changes due to their collective bargaining contract expiring June 2017.
Funds have been budgeted to replace/hire two DPW/WWTP employees.
Wages for two temporary/seasonal DPW workers budgeted.
In lieu of a wage raise, an additional 2% employer contribution fornon-union employees in the define contribution retirement plan has been budgeted.
Fees and Charges
Fees and charges associated with the cemetery are recommended to be increased.
Building permits are recommended to reflect the 2015 International Building Code. Information on these rates has been requested of the city’s contracted building code official.
Three new fees/charges have been added for consideration:
zoning permit (no construction involved)
preliminary breath test