CITY OF WALKER 2014-2015
BUDGET OVERVIEW
PRESENTED BY: CATHY VANDER MEULEN, CITY MANAGER
WALKER CITY BUDGET
1|SLIDE
GENERAL FUND REVENUES – $16,276,072
2014/15 PROPOSED
Income Tax
Property Tax
Other
Revenue Sharing
Service Fees
Business Lic/Permits
Fines & Forfeitures
2.7% 2%
12%
4.4%
3.3%
8.6%
67%
*Includes fund balance transfer of $873,019
WALKER CITY BUDGET
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GENERAL FUND EXPENDITURES – $16,276,072
2014/15 PROPOSED
Public Safety
Other
Parks, Building, Grounds
59th District Court
5.5%
4%
4.5%
Transfers to Streets & WIFC
City Hall Functions
Debt Service
Comm Devel./Inspections
3%
38%
14.3%
12.4%
18.3%
*Includes use of fund equity of $873,019 to balance the budget
WALKER CITY BUDGET
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OPERATING BUDGET EXPENDITURES– $24,014,261
2014/15 PROPOSED
General Fund
Major and Local Streets
Ice and Fitness Center
DDA/Improvement revolving
Capital Equipment
2%
8.5%
5%
16.5%
68%
WALKER CITY BUDGET
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2014/2015 BUDGET SUMMARY
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We continue to track positive trends in our income tax collections. We are
on track to exceed historical collections in the current year and have
slightly increased our estimate for FY 2015.
The City’s taxable values increased for the first time since 2009. The 3.56%
increase is a positive sign that the housing and construction industries are
improving in West Michigan.
The budget assumes no change in the property tax millage rate of 1.336.
This rate is unchanged since 2000.
General fund budget expenditures are projected to increase 9% over
2013/14, mainly due to the increased general fund support for the major
and local streets funds.
We estimate the use of $873,619 in fund equity to balance the budget.
Fund balance as of June 30, 2015 is projected at $4,597,521 or 28% of
general fund expenses.
WALKER CITY BUDGET
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2014/2015 BUDGET SUMMARY, CONTINUED…
• We are committing an additional $100,000 to continue building a facilities
sinking fund. New City Hall floor covering and Public Safety roof replacement
are scheduled for FY 2015.
• An additional $297,999 is budgeted the for capital equipment fund to replace
the fire pumper.
• Total investment in road maintenance/projects, trails, and project planning is
$1,860,00. The City’s general fund will contribute $2,080,618 to the major
and local street fund.
• Staffing changes include:
– Full time Battalion Chief Position in the Fire Department
– Promotions and Event Coordinator position that will be jointly funded by the City and the
DDA.
WALKER CITY BUDGET
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FACTORS IMPACTING 2015 BUDGET AND BEYOND:
• Healthcare costs are expected to rise. Employee share of healthcare
premiums remain at 15%. Impacts of Affordable Healthcare Act are evolving.
Anticipate costs to rise at least 10% in January 2015, and we have budgeted
as such.
• City continues to submit and comply with State requirements to qualify for
EVIP payments. ($31,542 estimated for FY 2015).
• The City will continue to commit to prefunding OPEB obligations as budgets
allow and the Commission directs. We will continue evaluating options for
retiree healthcare. The budget includes a prefunding payment of $150,000
towards OPEB and $60,000 additional contribution towards the required
yearly pension payment.
WALKER CITY BUDGET
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CITY INITIATIVES GOING FORWARD
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COPS grant for one additional officer.
Utilize police forfeiture funds to finance qualifying police projects and purchases.
Proposed for 2014/15:
– Replacement vice vehicle ($30,000)
– Crowd control equipment replacement ($15,200)
Continued use of road asset management plan to guide roads maintenance decisions and
level of funding needed. Our goal is to maintain current road conditions and to apply the
right fix at the right time.
Complete strategic plan and move forward with implementation.
Third phase of city technology upgrades have been completed. Begin planning for new VOIP
phone system.
Continue with efforts to improve greater resource utilization through efficiencies in
equipment and vehicle functions, i.e. refurbishing old dump trucks. The city has been a
leader in this area, and we regularly receive inquiries from communities requesting
additional information.
WALKER CITY BUDGET
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SELECTED INVESTMENTS FY 2015
Community Park playground replacement
$130,000
Phone system purchase
$120,000
Remembrance Road design and construction
$705,000
Three Mile center turn lane design and construction
$175,000
Major and local street maintenance
$800,000
Fire pumper, police cruisers, DPW Equipment
$631,400
Building and facilities improvements
$200,000
Additional OPEB and pension contributions
$215,000
WIFC improvements
$65,000
Total Investment Cost
WALKER CITY BUDGET
9|SLIDE
$3,041,400
THANK YOU:
WALKER CITY COMMISSION
WALKER FINANCE COMMITTEE
WALKER STAFF
WALKER CITY BUDGET
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