OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Taylor City Council FY 2023/2024 Budget Study Session — April 10, 2023

City Council — Monday, April 10, 2023
BodyTaylor, Michigan
SessionCity Council
DateMonday, April 10, 2023
StatusFILED
Video Record
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Transcript — Verbatim
2:14

All right.

2:17

Waiting for Granicus to come up, but they're probably waiting for us for me to start talking before they switch over to the live fee.

2:25

But this is being broadcast.

2:27

And welcome to the twenty twenty-three budget.

2:31

Actually, through a chair, it's actually twenty twenty-four now.

2:33

Twenty twenty-three, twenty twenty-four.

2:35

Um okay, so uh good evening, everybody, council members, uh, public at home and in the crowd.

2:41

Um, this is the first of three uh scheduled uh budget study sessions for the city of Taylor.

2:48

Um we have uh first up a 30-minute overview of the budget documents and just kind of recap of the documents that you see um in front of you and online is the first document that you guys received is a smaller summary version document of the budget.

3:05

Um I won't be going over this that much at all because it is summarized, it has the um items in there for the uh legislat you know the legislation, the state um budgeting act, all that stuff's covered in here, summarized.

3:17

The second document is what we'll be going over a little bit more, and then we're gonna have even more detail on the budgets for the departments, as you will see as we go through with the departments.

3:27

So um, the second item right now is the budget detail overview.

3:32

It's the thicker document.

3:33

Mine's a little bit longer, uh, because it was printed out on legal.

3:36

Uh, but this here gives you a little bit more of uh a detail and highlights of what's going on in the mayor's proposed 2024 budget as well as the 23 budget amendment.

3:47

Uh, for those of you who are familiar with it during this budget process, we do ask the council uh to approve an omnibus budget amendment for the current year that we're in.

3:56

And then what I'm gonna do is go over some highlights with those items right now, and then we'll get more details when we bring the departments up and discuss their budgets.

4:05

So I'm gonna go to this document here, which is on the screen as well.

4:09

Um, and first of all, we have the uh first page is really the letter from the mayor's office indicating um, you know, just kind of uh a uh cover letter on the budget.

4:22

Going to the next page.

4:24

You okay, Councilman Johnson?

4:26

Yeah.

4:26

Okay.

4:27

Going to the next page, uh, page two.

4:29

Um now we get into the top the the top section talks about our basis of budgeting.

4:34

And real quick, what that means is um we the the basis of accounting that we use for budgeting is really the modified accrual basis, which all our special revenue funds and our general fund use.

4:46

Our enterprise funds, uh, like the golf course, the water and sewer funds, their regular accounting is a full accrual, but we always budget them based on the modified accrual because it gives you a better idea of their cash in and out.

5:00

So I just want to make a note that is the basis that we use for budgeting.

5:04

And uh most communities use that basis for budgeting as well, too.

5:08

Um over the um on page two, we're going to go over the fiscal year 23, the current year changes that are presented in this budget.

5:16

Um we're gonna concentrate mostly on the general fund, but we'll make some comments on the other funds as well.

5:21

To uh the general fund, the the presented budget proposed is actually going to be uh revenues over expenditures of 1.2 million.

5:32

That is a change of that's a positive change of approximately 1.7 million from the current budget.

5:37

Um the estimated total unassigned fund balance at the end of fiscal year 23 is estimated to be 13.5 million, uh, which is approximately 28 percent of your revenues.

5:50

As you guys recall uh during our audit that um you know best practice standards is that you want between 15 and 30 percent fund balance.

5:57

Um so we're we're doing well there.

6:00

Uh obviously 1.7 million is uh you know is uh you know pretty decent uh discret you know discretion.

6:06

So uh we'll go over those highlights right now.

6:09

Um with the revenues in the general fund, the tax related revenue is increasing about 112,000, and that's simply related to updated uh taxable values from the assessing department.

6:20

Uh the the amount that's in our current budget was from the original estimated tax values that was back in March of 2022.

6:26

Since then, there's been um some border reviews, adjustments, things like that.

6:30

So all we're doing is that we're estimating that tax increase now that we have uh final numbers for tax year 2022.

6:38

Uh finance and forfeiture revenue is increasing by 625,000, and that's based on the um the last couple months with the traffic detail revenues, it has been significantly better than the previous six months.

6:51

Um, as you recall, our previous budget amendment, we actually lowered that original budget from 6.2 million to 3.5 based on those lower numbers for the first six months.

7:04

But January and February were significantly higher than what was being received over those six months.

7:08

So we are amending that estimate to uh finish the year at approximately uh uh four point four point two million some change.

7:18

Uh so we were comfortable moving that up by the six hundred and twenty-five thousand.

7:23

Um the other significant items uh it's on a net value, it's not that significant, but I still want to make a note is uh rental income from Act 51 funds and work orders from um Act 51 funds.

7:36

There's a net increase of 37,000.

7:38

Um, what that is, and we'll have more explanation when we talk with the departments, but what that is is that the DBW department is a department in our general fund, and Act 51 for major local streets are different special revenue funds.

7:52

So, what we do is we charge the equipment that we use and also the labor that we use to our roads from our general fund to our Act 51 fund.

8:03

And the revenue in our general fund is through the rental income for the equipment, and then the work orders is for the labor charges.

8:10

So there is a uh a correlation between Act 51 and general fund DPW departments, which we'll go over more in detail when we talk about the DPW departments, I believe, is tomorrow on our schedule.

8:22

Um, on the expenditure side for this fiscal year budget, um, the employee fringe benefits department where we record most of our retirement expenses related to general fund is anticipated decreased by 387,000.

8:36

Um that decreases due to lower estimated share of the general employees' pension contribution for general fund employees.

8:43

Um and the reason for that is we make uh an annual contribution to the general pension plan.

8:48

We allocate that that contribution to the different funds based on active personnel.

8:53

So as some active personnel move to other funds, uh, for example, uh compost, water, um, so the allocation actually decreases from the general fund and increases on the other side.

9:05

So uh that's why the total the original estimate was based on so many FTEs in the general fund, and that actually changed, and some of the FDEs went to other funds uh during the year, so that's where that comes up.

9:18

Yes, am I allowed to ask questions in between?

Discussion Breakdown — Share of Meeting
Budget Equity Analysis█████████████████████21%
Community Engagement████████████12%
Veterans Affairs████████8%
Technology and Innovation███████7%
Government Operations██████6%
Parks and Recreation█████5%
Fire Department Operations█████5%
Political Atmosphere█████5%
Personnel Matters████4%
Summary of Proceedings

Taylor City Council FY 2023/2024 Budget Study Session — April 10, 2023

On April 10, 2023, the Taylor City Council and department heads held the first of three scheduled budget study sessions at the Taylor Municipal Building to review the mayor's proposed FY 2023/2024 budget and the FY 2023 omnibus budget amendment. Finance staff presented a revenue and expenditure overview, followed by department-level reviews of Community Development, Information Technology, Parks and Recreation, Senior Center, Building and Grounds, Human Resources, and Fire. The agenda planned a 6:00-6:30 p.m. revenue overview, with department presentations following through about 9:00 p.m. No formal votes were taken.

Budget Overview and Revenue Highlights

  • The city uses modified accrual budgeting for the general fund and special revenue funds; enterprise funds are also budgeted on that basis.
  • For FY 2023, the general fund is projected to finish with revenues over expenditures of $1.2 million, an improvement of about $1.7 million from the current budget.
  • Estimated unassigned general fund balance at FY 2023 year-end is $13.5 million, approximately 28% of revenues, within the 15-30% best-practice range.
  • Major FY 2023 changes: tax revenue +$112,000; fines and forfeitures +$625,000; rental income/work orders +$37,000; employee fringe benefits -$387,000; general administration -$256,000; police -$254,000; fire -$488,000; DPW +$615,000; motor vehicle -$111,000; and billing department fund revenues -$113,000.
  • The proposed FY 2024 general fund budget adds $134,000 to fund balance, with projected year-end fund balance of $13.6 million, about 28.3% of revenues.
  • FY 2024 general fund revenues are estimated at about $48 million, an increase of about $554,000 or 1.2%, including $2.6 million in ARPA revenue. Expenditures are about $48.175 million, up about 3.5%, including $2.6 million in ARPA-related expenditures.
  • The proposed city operating tax rate for FY 2024 is 25.7118 mills, down 0.0942 mills due to the Act 345 police/fire retirement millage. Final Headlee rollback figures were not yet available.
  • The 2023 taxable value is approximately $1.5 billion, up $107 million or 7.2% from 2022.
  • Other FY 2024 revenue changes cited: state grants -$400,000 because the one-time ambulance enhancement grant was not renewed; state shared revenue +$381,000 or 4.2%; local contributions -$1 million because TCDC returned to an estimated annual distribution of $1.5 million; fines and forfeitures +$850,000 or 19.6%; and other financing sources -$235,000 due to one-time church insurance proceeds.
  • FY 2024 expenditure highlights: IT +$147,000 or 19%; Human Resources +$57,000 or 7.8%; employee fringe benefits +$376,000; general administration -$228,000; police +$420,000 or 3.7%; fire -$1 million; DPW -$623,000; Senior Center +$66,000 or 24%; Planning +$72,000 or 31%; Parks and Recreation +$2 million or 236% for Lang Park offset by ARPA funds; and general debt service -42% as leases expire.
  • Special revenue funds reviewed included Act 51 major local streets, police/fire retirement ($11.3 million budget), building grounds/TBA fund, Act 179 rubbish fund, building department fund, and a new opioid settlement fund receiving about $120,000 initially and roughly $2 per resident annually thereafter.
  • Charts showed a median $50,000 taxable-value homeowner pays about $2,600 in total taxes, with just under half staying with the city; public safety is about 40% of general fund expenditures, and wages and benefits are about 56% of general fund spending.

Community Development

  • Projected expenditures are $333,000 for FY 2023 and $342,000 for FY 2024, an increase of about 2.7%.
  • Much of the department is funded through CDBG; the CDBG fund will be presented separately with a public hearing and must be approved by June 30.
  • The community development manager answered council questions; FTE allocation information is shown on the back pages of the department packet.

Information Technology

  • IT projected expenditures are $769,661 for FY 2023 and $917,400 for FY 2024, an increase of about $147,000 or 19%.
  • The budget proposes a new deputy IT director position. No internal candidates applied, so outside candidates are expected to be interviewed.
  • The increase includes contractual services, including a new $27,000 SIEM security monitoring line item, and the shift of some services from one-time hardware/ARPA funding to ongoing operating costs.
  • IT charges other funds for overhead costs. Council members asked how split positions appear across departments, and finance agreed to provide a split-FTE report showing where shared staff are allocated.
  • Administration noted future needs not reflected in this budget, including replacement field laptops for the building department, will likely come forward later.

Parks, Recreation, Senior Center, and Building and Grounds

  • Senior Center: projected FY 2023 expenditures are $268,000; FY 2024 proposed is $334,000. The increase is largely SMART grant-funded contractual services for busing and senior trips. A new part-time position is proposed, and the center is seeking a replacement bus and CDL-certified driver.
  • Parks Department: projected FY 2023 expenditures are $885,000; FY 2024 proposed is nearly $3 million, a $2.1 million increase driven by Lang Park capital outlay offset by ARPA and park bond funds. Two new positions are proposed. Lang Park bids are being reviewed for playscape, disc golf, pavilions, skate park, and BMX pump track work; grading could begin soon, with completion hoped for spring/summer 2025.
  • Events program: projected FY 2023 expenditures are $518,000 and FY 2024 $503,000. Petting farm: FY 2023 projected at $362,453 and FY 2024 at $369,570. Recreation center: FY 2023 projected at $312,670 and FY 2024 at $384,000, about a 23% increase. Staffing, including lifeguards, remains a challenge; a new track installation was scheduled to begin the following Monday, with weight and cardio areas closed about five days.
  • Building and Grounds/TBA fund: the FY 2024 plan uses $523,140 of fund balance and projects an ending fund balance of about $900,000, approximately 19.9% of revenues. Priorities include roofs, HVAC controls and upgrades, boiler inspections, elevator maintenance, police department roof work, fire suppression controls, and city hall exterior wall repair.
  • Communications and media department: proposed FY 2024 budget is $99,660, up $160 from the FY 2023 budget of $99,500.

Human Resources and Fringe Benefits

  • Human Resources projected expenditures are $732,765 for FY 2023 and $790,000 for FY 2024, an increase of about $57,000 or 7.8%.
  • The budget includes a new part-time administrative assistant position at 0.50 FTE, roughly $20,000, at $15-$17 per hour. HR said this is offset by reductions in professional services and background investigation spending.
  • A Paycom system upgrade is included at $225,000, up from about $190,000. HR stated the system may not operate beyond the year without the upgrade; it adds payroll, accrual, and direct deposit-to-457 features.
  • Insurance/risk management projected expenditures are $2.8 million for FY 2023 and $2.932 million for FY 2024, about a 5% increase, reflecting higher premiums and, in some cases, less coverage.
  • Employee fringe benefits/retirement projected expenditures are $5.1 million for FY 2023 and $5.5 million for FY 2024, an increase of about $376,000 or 15%, due to retiree health care and general pension costs.

Fire Department

  • Fire projected expenditures are $8.3 million for FY 2023 and $7.3 million for FY 2024, about a $1 million decrease, mainly because one-time ambulance and vehicle purchases are not repeated. Fire vehicle and equipment repair/maintenance increases by $113,000.
  • Three ambulances are currently on order; delivery is delayed by chassis shortages. The fire chief and administration are discussing ordering new fire engines and ladder trucks because lead times are about two and a half to three years, and they are pursuing state and federal funding, with ARPA funds as a possible source.
  • The budget includes a foam trailer and new foam supplies. The state disposed of the city's old PFOS-containing firefighting foam.
  • Staffing: the budget document shows 52 authorized FTEs, with 42 in suppression, but the fire chief reported actual suppression staffing at 39. The goal is to fill current vacancies and reach 48 suppression personnel plus four administrative staff.

Key Outcomes and Next Steps

  • This was an informational study session; no resolutions or formal votes were taken.
  • Council requested a split-FTE report showing how staff positions are allocated among departments and funds.
  • The next budget study session was scheduled for the following day, with a public hearing the following Monday. Final budget adoption was expected to be placed on the next regular council agenda.
  • Source note: The agenda header reads "April 10, 2022," but per the supplied meeting date, this summary uses April 10, 2023. The supplied transcript also contains unrelated interview content after the budget session; that content is not included in this summary.

Meeting Transcript

All right. Waiting for Granicus to come up, but they're probably waiting for us for me to start talking before they switch over to the live fee. But this is being broadcast. And welcome to the twenty twenty-three budget. Actually, through a chair, it's actually twenty twenty-four now. Twenty twenty-three, twenty twenty-four. Um okay, so uh good evening, everybody, council members, uh, public at home and in the crowd. Um, this is the first of three uh scheduled uh budget study sessions for the city of Taylor. Um we have uh first up a 30-minute overview of the budget documents and just kind of recap of the documents that you see um in front of you and online is the first document that you guys received is a smaller summary version document of the budget. Um I won't be going over this that much at all because it is summarized, it has the um items in there for the uh legislat you know the legislation, the state um budgeting act, all that stuff's covered in here, summarized. The second document is what we'll be going over a little bit more, and then we're gonna have even more detail on the budgets for the departments, as you will see as we go through with the departments. So um, the second item right now is the budget detail overview. It's the thicker document. Mine's a little bit longer, uh, because it was printed out on legal. Uh, but this here gives you a little bit more of uh a detail and highlights of what's going on in the mayor's proposed 2024 budget as well as the 23 budget amendment. Uh, for those of you who are familiar with it during this budget process, we do ask the council uh to approve an omnibus budget amendment for the current year that we're in. And then what I'm gonna do is go over some highlights with those items right now, and then we'll get more details when we bring the departments up and discuss their budgets. So I'm gonna go to this document here, which is on the screen as well. Um, and first of all, we have the uh first page is really the letter from the mayor's office indicating um, you know, just kind of uh a uh cover letter on the budget. Going to the next page. You okay, Councilman Johnson? Yeah. Okay. Going to the next page, uh, page two. Um now we get into the top the the top section talks about our basis of budgeting. And real quick, what that means is um we the the basis of accounting that we use for budgeting is really the modified accrual basis, which all our special revenue funds and our general fund use. Our enterprise funds, uh, like the golf course, the water and sewer funds, their regular accounting is a full accrual, but we always budget them based on the modified accrual because it gives you a better idea of their cash in and out. So I just want to make a note that is the basis that we use for budgeting. And uh most communities use that basis for budgeting as well, too. Um over the um on page two, we're going to go over the fiscal year 23, the current year changes that are presented in this budget. Um we're gonna concentrate mostly on the general fund, but we'll make some comments on the other funds as well. To uh the general fund, the the presented budget proposed is actually going to be uh revenues over expenditures of 1.2 million. That is a change of that's a positive change of approximately 1.7 million from the current budget. Um the estimated total unassigned fund balance at the end of fiscal year 23 is estimated to be 13.5 million, uh, which is approximately 28 percent of your revenues. As you guys recall uh during our audit that um you know best practice standards is that you want between 15 and 30 percent fund balance. Um so we're we're doing well there. Uh obviously 1.7 million is uh you know is uh you know pretty decent uh discret you know discretion. So uh we'll go over those highlights right now. Um with the revenues in the general fund, the tax related revenue is increasing about 112,000, and that's simply related to updated uh taxable values from the assessing department. Uh the the amount that's in our current budget was from the original estimated tax values that was back in March of 2022. Since then, there's been um some border reviews, adjustments, things like that. So all we're doing is that we're estimating that tax increase now that we have uh final numbers for tax year 2022. Uh finance and forfeiture revenue is increasing by 625,000, and that's based on the um the last couple months with the traffic detail revenues, it has been significantly better than the previous six months. Um, as you recall, our previous budget amendment, we actually lowered that original budget from 6.2 million to 3.5 based on those lower numbers for the first six months. But January and February were significantly higher than what was being received over those six months. So we are amending that estimate to uh finish the year at approximately uh uh four point four point two million some change. Uh so we were comfortable moving that up by the six hundred and twenty-five thousand. Um the other significant items uh it's on a net value, it's not that significant, but I still want to make a note is uh rental income from Act 51 funds and work orders from um Act 51 funds. There's a net increase of 37,000. Um, what that is, and we'll have more explanation when we talk with the departments, but what that is is that the DBW department is a department in our general fund, and Act 51 for major local streets are different special revenue funds.

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