City of Hamtramck 2019-2020 Budget Presentation General Fund - PowerPoint PPT Presentation

City of Hamtramck 2019-2020 Budget Presentation General Fund Revenue February 12, 2019

Current Fiscal Year Budget Revenues vs. Future Projected Funding Sources 7,000,000.00 6,000,000.00 5,000,000.00 4,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 0.00 Property Tax Federal and State Sources Income Taxes Licenses and Permits Other Revenues Budgeted Projected

Detail of Funding Sources 2018/2019 Future Projected Budget Sources Property Taxes $ 6,572,000.00 $ 5,891,810.00 Federal Grants - SAFER 575,000.00 - State-Shared Revenues and Grants 3,523,800.00 3,559,038.00 $ 4,098,800.00 $ 3,559,038.00 Income Taxes 2,289,600.00 2,289,600.00 Licenses and Permits 1,292,000.00 1,292,000.00 Charges for Services 157,600.00 157,600.00 Fines and Forfeitures - District Court 1,200,000.00 1,200,000.00 Other Revenues 408,500.00 408,500.00 CDBG Reimbursement 103,264.00 1,869,364.00 1,766,100.00 Draw from Fund Balance 1,834,906.37 - $ 17,956,670.37 $ 14,798,548.00

2018/19 Use of Fund Balance • Primary use of Fund Balance (as of 2/12/2019) • Capital Improvements - Alley reconstruction $1,148,660.00 • Lawsuit Settlements - $148,117.00 • Contract Negotiations - $346,900.00 • Emergency Loan Board loan payment (1 of 3) - $183,500.00 • Contract negotiations • Total use of Fund Balance 2018/19 to be determined

General Fund Historical Fund Balance as of June 30 9,000,000.00 8,254,644.42 8,000,000.00 7,000,000.00 6,539,363.47 6,419,738.05 6,000,000.00 5,803,554.75 5,000,000.00 4,000,000.00 4,011,797.25 3,000,000.00 2,805,319.93 2,721,000.09 2,000,000.00 1,121,310.84 1,062,236.40 1,000,000.00 - (582,364.38) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1,000,000.00) (2,000,000.00) Fund Balance 15% of Revenue

Revenue Assumptions in Projected Budget • Property taxes increase 1%, annually – due to the pop up as homes sell post property re-appraisal • State Share revenue increase 1% annually • Commercial Industrial Park Project (CIPP) distribution eliminated (2 year average - $760,000.00) • Pilot payment from Wayne County for Dickerson Jail eliminated in 2022 (2 year average - $1,157,797.00) • SAFER Grant eliminated (2018/19 budget $575,000.00) • CDBG funding of code enforcement and administrative wages eliminated (2018/19 budget approximately $103,000.00) • Remaining revenues stable

Expenditure Assumptions in Projected Budget FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 Payroll 4% 1% 1% 1% 1% Employee Insurance 3% 3% 3% 3% 3% MERS contribution 10% 10% 10% 10% 10% Alley program 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00 All other 0.5% 0.5% 0.5% 0.5% 0.5% Loan Payments 420,689.37 420,214.37 232,439.37 232,439.37 232,439.37

Projected Fund Balance Maintaining Current Expenditure Levels 10,000,000.00 8,254,644.42 6,419,738.05 5,000,000.00 3,244,558.00 - (476,051.00) 2018 2019 2020 2021 2022 2023 (5,000,000.00) (5,764,908.00) (10,000,000.00) (11,704,801.00) (15,000,000.00) Fund Balance 15 % of Revenue

Statutory Requirements • P.A. 2 of 1968, as amended requires a “balanced budget”. • “the legislative body shall not adopt a general appropriations act…which causes estimated total expenditures,…, to exceed total estimated revenues, including an available surplus…” • City of Hamtramck Charter, Sec. 13-17, Budget procedure • “…No deficit budget shall be approved…”

Next Steps • Elected Officials and administration continue to explore options to reduce future expenditures and/or increase future revenues • Next budget workshop with City Council, March 7, 2019 at 6:30 p.m. in Council Chambers