OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

City of Taylor Budget Study Session - April 9, 2024

City Council — Tuesday, April 9, 2024
BodyTaylor, Michigan
SessionCity Council
DateTuesday, April 9, 2024
StatusFILED
Video Record
0:00 / 2:10:52

Transcript — Verbatim
0:00

One is the skinier document, which is the what we internally call the white pages or budget summary.

0:06

This document is located on the website as well, too, but to summarize version of the budget and appropriations.

0:18

The second document, which we'll be going over first just a little bit, is the budget overview detail.

0:24

And what this document does is gives uh a little bit more detail on the proposed budget.

0:30

Um similar to prior years when we do this budget amendment at the time of approval, we're looking to do yes.

0:40

Did everybody get the summaries?

0:42

I not you've got yours.

0:43

Did you print your own?

0:44

Well, I asked uh I asked here to print.

0:47

Can I run the key it maybe?

0:50

Money copy.

0:51

Well, why don't we I don't know did anybody look in the in the uh council area?

0:57

She printed this for me.

0:58

Okay.

0:59

Which one do you have?

1:00

We all have the the detail.

1:02

We'll start there, but maybe if somebody could you need this one?

1:05

Yeah.

1:06

We don't have it.

1:07

I don't have it either.

1:08

So we have to do that.

1:09

Can I just go through it in the machine or I can't do that?

1:11

Well, we can just have somebody give us a while.

1:13

We're going through the detail.

1:15

Okay, so we can circle back instead of us.

1:17

I mean, about this one or the actual little summary one.

1:21

The one that you think is better.

1:23

That one.

1:23

Okay.

1:23

Yeah.

1:24

This is all I have though.

1:26

You don't have this full thing.

1:28

Well, it's over here.

1:29

I got this today.

1:29

So that being said, uh, we'll get printouts.

1:34

I like I said I wasn't aware that they weren't printed out, so I do apologize.

1:38

Yeah.

1:38

And like I said, any questions we can always follow back, but and in order to keep to the schedule, I'll try to be um, you know, I'll try to I'll have it on the screen as well, too.

1:47

I know some people can't turn around, but I'll have it on the screen too as well.

1:51

Oh we didn't get the TV from last year's budget discussion.

1:57

Not yet.

1:58

Um, and then obviously the uh the last deliverable document was the big package that you all have in front of you, which is what we call the uh budget study sessions workbook, and it's in order of each department that's on the list.

2:10

So it's a nice uh document, so you can look at page numbers and it has everything backed up for it.

2:15

So um a couple items to note real quick.

2:18

Um a new change with the state of Michigan um budgeting act is that uh starting this fiscal year, fiscal year 25.

2:29

The budget, what they call the budget control authority, um has been changed to uh for the general fund that you have to approve the budget and appropriations at the activity level or department level and no longer at the functional level.

2:43

So what that means is a functional level is like public safety, an activity is police department, an activity is fire department.

2:51

So we typically do our budget amendments, everything based on the activity level already.

2:57

Uh the only change is when you're going to see the final appropriations document that you're gonna be approving for the budget, it'll be a little bit different where it's going to show at the activity level and not just at the functional level.

3:08

Um so that's the only really change with it, and again, that's because the uh state of Michigan mandates that for the general fund that the level of budget control has to be at the activity level now, not the functional level.

3:20

Um so again, department level is what an activity is.

3:23

Um now we do a good job of keeping that that as our part of our policy, but officially when we do appropriations approval, it will be at the activity level.

3:32

Okay.

3:32

Only change um with that respects to the budgeting act.

3:37

Um so with that being said, we'll move on to the budget detail and kind of go over some highlights of the proposed budget.

3:45

And as I mentioned before, just again, um when we do the 25 budget approval, we're all we're also asking for what we call an omnibus or uh all-encompassing budget amendment for the fiscal year 24, the current year that we're in, uh, because you know there's some line items and some items that need to be changed as we go through.

4:04

If you recall, we did do a pretty big budget amendment in February, but since then there's been a couple items that we are going to address on the amended budget, and I'm gonna highlight those items right now as well too for the fiscal year 24 budget, and then we'll go over some highlights for the fiscal year 25 budget, including taxes, millage rates, etc.

4:23

So I'm gonna just go down if you have it in front of you.

4:26

I'm gonna go down the page uh on page two, it talks about the fiscal you the fiscal year 24, the current year uh proposed I'm sorry.

4:38

We don't have any of that.

Discussion Breakdown — Share of Meeting
Budget Equity Analysis███████████████████████23%
Personnel Matters█████████████████17%
Facilities Management███████████████15%
Technology and Innovation█████████9%
Government Operations█████████9%
Fiscal Sustainability███████7%
Risk Management███3%
Economic Development██2%
Sports Hall Of Fame██2%
Summary of Proceedings

City of Taylor Budget Study Session - April 9, 2024

The City Council of Taylor held a budget study session on April 9, 2024, from 6:00 PM to approximately 8:50 PM, to review the proposed 2024/2025 fiscal year budget. The meeting began with a general overview by the Budget & Finance Director, followed by presentations from several department heads. The council discussed revenue projections, expenditure changes, departmental staffing, and capital needs. No votes were taken; the session was part of a series of budget reviews leading to a public hearing and adoption on April 16, 2024.

Discussion Items

  • Budget Overview (Finance Director Jason):

    • The state of Michigan now requires budget appropriations at the activity (department) level rather than the functional level.
    • For FY24, revenues are projected to increase by $656,000 (due to higher taxes, rental income, and Act 51 funds) and expenditures to decrease by $712,000 (due to unfilled IT positions and lower pension contributions). The general fund balance is expected to end at $20 million (40% of expenditures).
    • For FY25, the proposed general fund budget is $50.2 million in revenues (a decrease of $2.6 million, mainly due to one-time revenue from a TCDC parcel sale) and $50.0 million in expenditures (an increase of $833,000 or 1.7%). The fund balance is projected at $20.3 million (40.7% of expenditures).
    • Tax revenues are expected to increase by 4.9%, but a Headlee rollback will reduce the millage rate by 2.36%. State shared revenue is estimated to increase by 2.4%.
    • The city's total millage rate is decreasing, and the city's tax burden compared to neighboring municipalities increased slightly due to a school debt millage.

  • Planning Department (Laura):

    • The department budget for FY25 is $365,000, up from a projected $297,000 in FY24. The increase is due to a new Deputy Director position (replacing a previously budgeted clerk position that was not filled). The mayor stated the change was made to handle increased development activity (20 site plans in April). Council members questioned the need for a deputy director over a clerk, but the mayor emphasized the workload and the difficulty of filling lower-level positions.

  • Call Center (Brenda):

    • The FY25 budget is $539,930, down from a projected $576,000 in FY24. The reduction is due to one headcount being moved to the Building Department in June. The call center is currently fully staffed, though four of six employees are new. Average wait time is under one minute. The call center coordinates apartment inspections and handles scheduling for multiple departments.

  • Treasurer's Office (Michelle):

    • The FY25 budget is $370,000, down from a projected $382,681 in FY24. A new postage machine was obtained for the city, and a machine for the court is in process. The online tax system currently shows bills but not payments; updates are expected with new software (BSNA) approved previously.

  • Community Development (Chris):

    • The FY25 budget is $339,000, up from a projected $334,000. The department is primarily funded through CDBG and HOME grants. The coordinator position is split 50/50 with Economic Development.

  • Economic Development:

    • The FY25 budget is $242,000, up from a projected $142,000, reflecting the addition of a director position (currently vacant, interviews upcoming). The position has been difficult to fill.

  • Golf Department (Alan):

    • The combined golf course fund (Taylor Meadows and Lakes of Taylor) is projected to add $444,000 to reserves in FY24 and $280,000 in FY25. The department is performing well, with full tee times. Capital needs include a bunker renovation, irrigation updates, and new tees. The restaurant is improving but not yet at desired levels; staffing (especially cooks) remains a challenge. The council praised the turnaround.

  • Sportsplex (Tom):

    • The sportsplex is projected to have net revenue over expenditures of $106,000 in FY24 and $67,000 in FY25. The conservative budgeting approach was noted. Major capital items include a new Zamboni and potential HVAC work, often funded through TIFA. The facility is well-regarded, hosting tournaments that draw national visitors.

  • Human Resources (Mr. Hopper):

    • The FY25 budget is $795,000, up from a projected $770,000. A new Paycom module for benefits was discussed. The department experienced staff turnover (loss of 15 years of experience) and is improving communication with applicants. The council requested a list of employee names and codes. Discussions included the feasibility of shopping for alternative HR software and the need to automate applicant follow-ups.

  • Employee Benefits / Risk Management:

    • Pension contributions for FY24 are reduced by $679,000 due to actuaries' calculations. The pension plan is about 60% funded for general employees and 60% for police/fire; the retiree health care (OPEB) is about 3-4% funded. The council discussed the trade-off between funding pension liabilities and maintaining a strong fund balance.
    • Risk Management budget for FY25 is $3.2 million, up from $2.9 million, covering legal and insurance costs.

  • Building Department (Jesse):

    • The fund balance is $281,000 projected for FY24 and $283,000 for FY25 (10% of expenses). The department is seeking a new building inspector (difficult to fill) and a clerk (to be transferred from the call center). The council discussed the need for rental inspectors and the challenges of scheduling inspections. The city is in negotiations with the union to improve competitiveness.

  • Information Technology (Ryan):

    • The FY25 budget is $1.1 million, up from a projected $915,000 in FY24. The increase is due to an MSP (Managed Service Provider) contract, funded 90% by ARPA. Two unfilled positions were not replaced due to the MSP plan. The council stressed the need to avoid a fiscal cliff when ARPA funds expire; the intent is to evaluate the MSP model after three years.

  • Clerk's Office (Cindy):

    • The FY25 budget is $718,000, up from a projected $531,000. The increase is due to a new position and higher election costs (two elections, including early voting, vs. one in FY24). The state reimburses the presidential primary (about $112,000 for the recent primary). Council discussed the difference between franchise fees and PEG fees, and the timing of revenues.

  • City Council and Mayor's Office:

    • Council budget for FY25 is $189,000 (up from $186,000). Mayor's office budget is $423,000 (up from $395,000), including an increase for the chief of staff. The chief of staff is allocated 80% to the mayor's office and 20% elsewhere.

  • Budget & Finance / Purchasing (Jason):

    • The FY25 budget for Budget & Finance is $636,000 (up from $600,000), including an anticipated increase in audit costs. Purchasing is requesting a new Buyer position (classified as TGM) to handle increased workload from grants and projects. The current purchasing manager is retiring, and applications are being reviewed.

Key Outcomes

  • No formal votes were taken during the study session; the presentations and discussions will inform the council's decisions.
  • The council will continue budget review on April 10 and 11, 2024, with a public hearing and adoption scheduled for the council meeting on April 16, 2024.
  • The council requested additional information: a list of employee names and codes from HR, and clarification on the split of personnel costs across departments.
  • The administration noted that the FY24 budget amendment and FY25 budget will be presented for approval at the April 16 meeting, incorporating the changes discussed.
  • The council expressed support for the general direction of the budget and raised questions about specific positions, capital investments, and long-term financial planning.

Meeting Transcript

One is the skinier document, which is the what we internally call the white pages or budget summary. This document is located on the website as well, too, but to summarize version of the budget and appropriations. The second document, which we'll be going over first just a little bit, is the budget overview detail. And what this document does is gives uh a little bit more detail on the proposed budget. Um similar to prior years when we do this budget amendment at the time of approval, we're looking to do yes. Did everybody get the summaries? I not you've got yours. Did you print your own? Well, I asked uh I asked here to print. Can I run the key it maybe? Money copy. Well, why don't we I don't know did anybody look in the in the uh council area? She printed this for me. Okay. Which one do you have? We all have the the detail. We'll start there, but maybe if somebody could you need this one? Yeah. We don't have it. I don't have it either. So we have to do that. Can I just go through it in the machine or I can't do that? Well, we can just have somebody give us a while. We're going through the detail. Okay, so we can circle back instead of us. I mean, about this one or the actual little summary one. The one that you think is better. That one. Okay. Yeah. This is all I have though. You don't have this full thing. Well, it's over here. I got this today. So that being said, uh, we'll get printouts. I like I said I wasn't aware that they weren't printed out, so I do apologize. Yeah. And like I said, any questions we can always follow back, but and in order to keep to the schedule, I'll try to be um, you know, I'll try to I'll have it on the screen as well, too. I know some people can't turn around, but I'll have it on the screen too as well. Oh we didn't get the TV from last year's budget discussion. Not yet. Um, and then obviously the uh the last deliverable document was the big package that you all have in front of you, which is what we call the uh budget study sessions workbook, and it's in order of each department that's on the list. So it's a nice uh document, so you can look at page numbers and it has everything backed up for it. So um a couple items to note real quick. Um a new change with the state of Michigan um budgeting act is that uh starting this fiscal year, fiscal year 25. The budget, what they call the budget control authority, um has been changed to uh for the general fund that you have to approve the budget and appropriations at the activity level or department level and no longer at the functional level. So what that means is a functional level is like public safety, an activity is police department, an activity is fire department. So we typically do our budget amendments, everything based on the activity level already. Uh the only change is when you're going to see the final appropriations document that you're gonna be approving for the budget, it'll be a little bit different where it's going to show at the activity level and not just at the functional level. Um so that's the only really change with it, and again, that's because the uh state of Michigan mandates that for the general fund that the level of budget control has to be at the activity level now, not the functional level.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com