roseville â€“ eastpointe recreation authority

Roseville – Eastpointe Recreation Authority

Millage Presentation

Roseville – Eastpointe Recreation Authority November 8th Millage Proposal

• Why the need for a Recreation Authority?

• City of Roseville’s Current Financial Position

– Effects of declining state shared revenue

– Effects of decreased property tax revenue

• About the Roseville – Eastpointe Recreation Authority

– How the Recreation Authority will operate

– Benefits derived from Recreation Authorities

• How much will the proposal cost me?

• What will happen if the millage proposal fails?

Roseville – Eastpointe Recreation Authority Why the need for a Recreation Authority ?

• Due to severe decreases in property values & state funding, many cities have been forced to eliminate non-essential services such as:

– Park & Recreation Department

– Senior Programs & Activities

• The Cities of Roseville and Eastpointe are forecasted to close their Recreation facilities effective 2012 due to financial constraints.

• In July 2011, the Roseville – Eastpointe Recreation Authority was created in the hopes of continuing recreation programs and senior activities in these communities.

Roseville – Eastpointe Recreation Authority City of Roseville’s Financial Position

Effects of declining State Revenue Sharing

• Back in the early 2000’s the state began cutting our

revenue sharing to balance their own budget.

• After property taxes, revenue sharing is the City’s 2nd

largest revenue source.

• Cumulative effect of lost state shared revenue since cuts

began $19 Million!!!

City of Roseville Revenue Sharing Payment History and Estimates Fiscal Year Ended June 30

5

City Projected

In Thousands

City of Roseville General Fund Revenue Fiscal Year Ended June 30, 2010

6

State and Federal Revenue

$4,862,000 12.5%

Fines, Fees and Licenses $3,411,000

8.7%

Total $38,995,000


City of Roseville’s Financial Position

Effects of decreasing property values

• Property tax revenue began plummeting in 2009

• Loss of property tax revenue

– $1 million (2009/2010)

– $3 million (2010/2011)

– $3 million (2011/2012)

• Cumulative tax lost revenue over $7 million annually

• Reductions in revenue at this rate is not sustainable

City of Roseville Tax Revenue Actual and Projected Fiscal Year Ended June 30

8

City Projected

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Tax After Millage Approval $29,273,715

Community Expected

$7.2 million decrease


Response to decreased revenue sharing & property values

• City implemented deficit reduction plan

• Eliminated $8.1 million in spending for fiscal year ending

2011

– Reduction of over 50 full-time positions city-wide

– Changes in healthcare benefits - active & retired employees

– Negotiated wages concessions with City employees

– Reduced recreation programs & library hours


• Balancing Act –

– Striving to match current & future expenditures

against declining property values & state revenue

• Cities are forced to reinvent what and how services are provided to citizens

• Future revenue sharing payments are contingent on consolidation efforts with other governmental entities

• Consolidation of services with other communities

– Police / Fire Dispatch (SERESA)

– Roseville – Eastpointe Recreation Authority

Roseville – Eastpointe Recreation Authority About the Recreation Authority

• In July 2011, the Roseville – Eastpointe Recreation Authority was created in the hopes of continuing recreation programs & senior activities.

• The Authority is a separate legal entity from cities

– Five member governing board, representing both communities

– Authorized to levy maximum 1 mill from member communities

– Dedicated millage – To support recreation facilities, programs & senior activities only.

• Funding to operate the Authority is dependent on the passage of the November 8th millage by residents of both Roseville and Eastpointe.


About the Recreation Authority

• To maintain and/or improve recreation programs & senior activities

• To gain access to additional community programs & events

– Swimming & Summer Playground Programs

– Skate Park Facilities

– Summer Concert Series in the Park

• Supports needed building renovations & improvements to the existing Roseville Recreation & Senior Facility.

• Preserves funding to support essential City services.

• Communities that offer cultural & recreational services (i.e. Libraries & Recreation Departments) typically maintain higher property values in comparison to other communities.


• Each city would contribute real & personal property to

the Recreation Authority limited to:

– City of Roseville – Recreation Center (18185 Sycamore)

– City of Eastpointe – Community Center (16435 Eight Mile Rd)

• The authority is required to prepare and adopt an operating and capital budget annually

• Authorized to levy & collect taxes under Act 321

• Authorized to borrow money & issue bonds on behalf of the Recreation Authority

– To finance the acquisition, construction and/or improvements of recreation facilities

– Not to exceed 2 mills of total taxable property within the Authority

– Issued Debt – Becomes the debt of Authority and not debt of member cities


• What if – Dissolution of the Recreation Authority

– Requires council resolution from governing board of participating member cities

– Any outstanding debt of the Authority, including any bonds issued, must be paid in full prior to dissolution.

– Any remaining assets of the Authority to be evenly distributed to member communities at time of dissolution.

Roseville – Eastpointe Recreation Authority Example of Proposed Ballot Language

• Ballot Proposition No. __

• Recreational Authority Proposal

• This proposal will allow the Recreational Authority of Roseville and Eastpointe to maintain and

provide for recreational facilities, services, and programs for all residents. This proposal will

only be effective if approved by the voters in both the City of Roseville and the City of

Eastpointe. Shall the limitation on the amount of taxes which may be imposed on taxable

property in the City of Roseville and the City of Eastpointe, members of the Recreational

Authority of Roseville and Eastpointe, be increased by up to 1 mill ($1.00 per $1,000 of

taxable value) for a period of twenty (20) years, as a new millage for the purpose of

maintaining recreational facilities, services and programs?

• It is estimated that 1 mill will raise a combined total of approximately $1,572,021.00 when first

levied in 2011.

• [ ] Yes [ ] No


How much will the proposal cost me? (Cost To The Average Resident)

If your home’s Taxable Value is:

Your cost for the Recreational Authority

$20,000 divided by 1,000 = $20.00 / year

$25,000 divided by 1,000 = $25.00 / year

$30,000 divided by 1,000 = $30.00 / year

$35,000 divided by 1,000 = $35.00 / year

$40,000 divided by 1,000 = $40.00 / year

$45,000 divided by 1,000 = $45.00 / year

$50,000 divided by 1,000 = $50.00 / year

$55,000 divided by 1,000 = $55.00 / year

$60,000 divided by 1,000 = $60.00 / year

Roseville – Eastpointe Recreation Authority How much will the proposal cost me?

Residential property tax example #1

After 5 mill increase Taxable value = $ 50,779 Tax Rate = 21.38 mills Total City Tax = $ 1,086

After 5 mill increase

Taxable value = $ 35,708 Tax Rate = 21.38 mills Total City Tax = $ 763 After additional millages Library Authority = $ 36 Recreation Authority = $ 36 Total Combined Tax = $ 835

2011

2007

Roseville – Eastpointe Recreation Authority How much will the proposal cost me?

Residential property tax example #2

After 5 mill increase Taxable value = $ 60,280 Tax Rate = 21.38 mills Total City Tax = $ 1,289

After 5 mill increase

Taxable value = $ 44,123 Tax Rate = 21.38 mills Total City Tax = $ 943 After additional millages Library Authority = $ 44 Recreation Authority = $ 44 Total Combined Tax = $ 1,031

2011

2007

Roseville – Eastpointe Recreation Authority What will happen if millage proposal fails?

• A Recreation Authority is required to have minimum of two members.

• The millage proposal requires voter approval in BOTH Roseville and Eastpointe for passage.

• If the proposal is NOT approved by voters of BOTH communities – Each City has forecasted to eliminate recreation programs & senior activities during 2012.

Roseville – Eastpointe Recreation Authority November 8th Millage Proposal

• We encourage all citizens to learn what the millage will cost them and weigh that cost against the value of maintaining recreation programs & senior activities.

• For more information on how the proposal will effect you and your family call –

– Recreation Department @ 445-5480

– City Manager’s Office @ 445-5410

– City Treasurer @ 445-5420

Roseville – Eastpointe Recreation Authority Informational Sessions

• Monday, October 3, 2011 7:00 – 9:00 p.m.

• Monday, October 17, 2011 7:00 – 9:00 p.m.

• Wednesday, November 2, 2011 7:00 – 9:00 p.m.

Roseville Recreation Center, Activities Center 18185 Sycamore, Roseville, MI 48066

Please consult the City’s website @ www.roseville-mi.gov for schedule changes or additional information prior to attendance.

http://www.roseville-mi.gov/




Millage Presentation

roseville â€“ eastpointe recreation authority

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