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
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Economic Environment
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
Economic Environment
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Challenges
Economic Environment
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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.