Oak Park budget highlights

8/12/2019 Oak Park budget highlights

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CITY HALL 14000 Oak Park Boulevard, Oak Park, Michigan 48237

FY 2014-15

Budget Message

ERIK TUNGATE

CITY MANAGER


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BUDGET OVERVIEW

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Economic Environment

Budget Highlights

Give me six hours to chop down a tree and

I will spend the first four sharpening the axe.

- Abraham Lincoln

STABILIZE. GROW. BE STRATEGIC. CONTINUE TO PROSPER.


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Over the last seven years, the City of Oak Parksprimary sources of revenue steadily decreased:

Taxable value of residential was slightly up butcommercial/industrial still dragging the overall down

Michigan revenue-sharing payments fell from $5M in 2001to $3.1M in 2013

Other fee-based revenues have fallen as business activity

has decreased, i.e. permit fees, business licenseapplications, etc.

Challenges



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Challenges




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Challenges




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Summary

Budget Highlights

Stable undesignated general fund balance against expenditures of

12.2% (Rainy Day)

Hired four additional public safety officers

Focused on community & economic development initiatives

Investment and maintenance of public infrastructure and equipment

Significant healthcare savings

Enhanced building and code enforcement efforts

Expansion of recreation resources through an inter-local governmentagreement for shared services with the City of Ferndale

Completed first Two-Year Budget (includes FY 2015-16 Projected)



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Opportunities

Undesignated General Fund Balance

Reserve funds (rainy day) to guard against unforeseen

expenditures throughout the course of FY 2014-15

City policy requires at least 10% of Revenues and 8.33% of

Expenditures

Projected undesignated ending fund balance: $2,057,879

FY 2014-15 budget recommends a fund balance of 12.6% of Revenues and

12.2% of Expenditures

Budget Highlights



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Opportunities

Budget Highlights



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Opportunities

9,504,73210,063,366

9,641,655 9,432,6418,543,442

6,756,751

5,635,2846,237,083

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Est. 2014-15 Est.

PUBLIC SAFETY

EXPENDITURE SUMMARY

Hiring Four, Additional Public Safety Officers

8 of the 15 officers laid off in 2012 will have returned to the force

Includes expenditures for Motor Pool to upgrade police vehicles

Budget Highlights



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OpportunitiesInvestment and Maintenance of Public Infrastructure

and Equipment

Provides funding for mandatory repairs to the community pool

Investment in local roads and water infrastructure

602,751 569,042

424,977

704,820

1,023,655

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2010-11 2011-12 2012-13 2013-14 Est. 2014-15 Est.

LOCAL STREETS

EXPENDITURE SUMMARY

Budget Highlights



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OpportunitiesHealthcare Savings

Actual savings from plan changes in FY 2013-14 resulted in

approximately $800,000 carry forward Public Act 152 hard cap compliant

Budget Highlights



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Opportunities

Enhanced Building and Code Enforcement Efforts

Hired an additional building inspector and a rental codeinspector in the FY 2013-14 budget

FY 2014-15 budget adds to existing staff with a part-time codeofficer

Efforts to eradicate blight and register all rental propertythroughout the city are in full swing

Budget Highlights



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Opportunities

Expansion of Recreation Resources through an Inter-

Local Government Agreement for Shared Serviceswith the City of Ferndale

Residents will pay resident rates and have equal access to

facilities and programming in both communities

Budget Highlights



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OpportunitiesTwo-Year Budget (includes FY 2015-16 Projected)

Includes current COPS grant that expires in FY 2015-16

$227,121 negative impact on General Fund

Includes a 5% estimate of increased health care costs(decreases exhibited)More savings likely in FY 2015-16 Budget

Eliminates revenue derived from personal property taxes(approx. $118,000 annually)Voters will vote to decide if it is eliminated on the August primary ballot

Freezes potential taxable value increases

Budget Highlights



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THANK YOU

OAK PARKResidents, City Council, Employees,and Business Owners

For Your Continued Support!

16STABILIZE. GROW. BE STRATEGIC. CONTINUE TO PROSPER.

Oak Park budget highlights

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