9/29/2011

City of Allen Park

September 27, 2011 Council Meeting

Overview
General Fund Annual Operating Deficit Cost breakdown by Department Summary of Operating Costs Police Personnel Costs Fire Personnel Costs Personnel Costs for all other General Fund departments Summary of Proposed Expenditure Reductions/ Revenue Increases

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General Fund Operating Deficit

Actual 6/30/2010 Revenue and transfers Expenditures and transfers Net expenditures over expenditures Beginning fund balance Ending fund balance 22,453,589 Unaudited 6/30/2011 20,474,000 Projected 6/30/2012 19,518,300

(24,282,665) (23,493,000) (24,280,400) (1,829,076) 5,543,557 3,714,481 (3,019,000) 3,714,481 695,481 (4,762,100) 695,481 (4,066,619)

Studio transfer included in annual shortfall

1,600,000

2,025,000

Department Budget Breakdown

Salaries/ Fringes (excluding pension) 86,600 129,100 150,850 84,200

Dept. Mayor and Council Community Dev. Clerk Assessor Finance

Total Cost 92,100 10,000 264,500 233,150 271,200

Pension 2,700 75,000 56,000 42,000

Other 2,800 10,000 60,400 26,300 145,000

FTEs 8 3 2 1

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Department Budget Breakdown (continued)

Dept. Treasurer City Hall Police Fire Solid Waste Parks & Rec. Total Cost 181,700 282,350 6,508,300 4,250,600 1,890,300 1,232,100 Salaries/ Fringes (excluding pension) 113,100 84,500 5,019,100 3,388,000 154,200 631,300 Pension 33,000 59,500 1,070,000 599,000 158,000 Other 35,600 138,350 419,200 263,600 1,736,100 442,800 FTEs 1 1 41 25 4

Department Budget Breakdown (continued)

Dept. Dist. Court Admin. DPS Total Cost 2,025,900 5,939,900 1,098,300 Salaries/ Fringes (excluding pension) 387,000 210,500 Pension 6,300 230,000 Transfer Property & Southfield Transfer Street Liability Lease Retiree Transfer Lighting Insurance Property Healthcare Dist. Court 400,000 345,000 2,025,000 2,722,000 2,025,900 Other 454,600 257,800 FTEs 12

Totals

24,280,400

10,438,450

2,331,500

400,000

345,000

2,025,000

2,722,000

2,025,900 3,992,550

98

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General Fund Operating Costs

Police Fire All other departments Transfer to studio Transfer to retiree health Rubbish expenditures Street lighting District court contribution Property and liability insurance $ 6,508,300 4,250,600 4,113,300 2,025,000 2,722,000 1,890,300 400,000 2,025,900 345,000 Mandatory contribution 43.8% 28.5% 27.7% Mandatory contribution Mandatory contribution All covered by property tax levy

Total projected operating expenditures

24,280,400

Need annual reduction in expenditures of $4,700,000

General Fund Operating Costs (continued)

Across the board reductions based on percentages in previous slide: Police Fire All other departments 2,058,600 1,339,500 1,301,900 43.8% 28.5% 27.7%

Total reductions to operating budget

4,700,000

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Police Personnel Costs

Personnel Summary - Full-Time Detective Bureau (including 1 Narcotics officer) Records Bureau Patrol Administrative Sargent (dept. chief) Chief of police Administrative assistant 6 1 30 1 1 1

Total employees City currently patrols with 4 officers per shift Proposed reductions in police Detective Bureau (including Narcotics officer) Records Bureau Patrol Total employees @ 9/8/11

40(actual count 38 @ 9/8/11)

3 1/2Move to part-time 15 18

Police Personnel Costs (continued)

Estimated cost savings (Note - City does not save the pension contribution for employee fringes): Detective Bureau (including Narcotics officer) Records Bureau Patrol Estimated annual savings Estimated savings for fiscal year 6/30/12 $ 360,000 Approximate annual cost of $120,000 26 hrs. per week, no 31,500 benefits Approximate annual cost of $105,000

1,575,000 $ 1,966,500 $ 1,229,063

(7.5 months)

Estimated one time expenditures for unemployment and accrued benefit payouts $ The reduction in staffing will only allow the City to patrol with 2 officers per shift.

600,000

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Fire Personnel Costs

Personnel Summary - Full-Time Chief Deputy Chief Firefighters 1 1 23

Total employees

25

Contract currently calls for 27 firefighters City currently staffs the station with 7 firefighters per shift City would reduce manning to the minimal staffing level per the State which is 4 per shift (2 in and 2 out for a fire) and eliminate ambulance transport.

Fire Personnel Costs (continued)

Savings from layoff of approximately 10 full-time firefighters

1,130,000

Estimated savings from eliminate of ambulance transport including billing fees, overtime, training and insurance costs Estimated annual savings

450,000 $ 1,580,000

Estimated savings for fiscal year 6/30/12 Estimated one time expenditures for unemployment and accrued benefit payouts

987,500 (7.5 mos.)

600,000

- City must obtain the above savings from the fire department and will continue to explore other options including the formation of an authority, service sharing, complete outsourcing or volunteer department.

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All Other Personnel Costs

Note: City Hall hours will be reduced to 26 hours per week. All fulltime employees will reduced to part-time, no benefits. Annual Savings FY 11-12 Savings General Fund: Mayor and Council 1 FT to PT Clerk 1 FT to PT Assessor 1 FT to PT Finance 1 FT to PT

$13,414

8,943

19,341

12,894

24,966

16,644

21,931

14,621

All Other Personnel Costs

Annual Savings FY 11-12 Savings Treasurer 1 FT to PT City Hall 1 FT to PT DPS 1 FT to PT 3 eliminations $21,501 14,334

40,147

26,765

14,742 177,198 191,940

9,828 118,132 127,960

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All Other Personnel Costs

Annual Savings FY 11-12 Savings Parks & Rec. 2 FT to PT 2 eliminations $88,801 160,961 249,761 583,002 59,200 57,919 117,119 339,280

General Fund Total Building Fund 1 FT to PT

29,565

19,710

One-time unemployment/ accrued benefit payouts: 200,000

200,000

Summary Personnel Reductions

Annual Savings Police personnel (salary and fringes) Fire personnel (salary and fringes) All other departments (salary and fringes) Total personnel cost savings $ FY 11/12 Savings 1,229,063 987,500 339,280 2,555,842

1,966,500 $ 1,580,000 583,002 4,129,502

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Summary of Other Reductions/ Revenue Increases

Other expenditure reductions/revenue increases: Reduction in outside legal fees Increase in administrative fee reimbursement - streets Increase in administrative fee reimbursement - water and sewer Increase in utilization of equipment on street funds Elimination of additional part-time employees Loss of recreation fees Closing of community center and elimination of most recreation programs Reduction of transfer (subsidy) to the Building Fund Compensated absences pay out and unemployment costs Eliminate annual pension contribution for General Fund for remaining 9 months Total savings

Annual Savings

FY 11/12 Savings

40,000 100,000 250,000 200,000 175,000 (780,000) 852,041 30,000 -

40,000 100,000 250,000 200,000 44,000 (300,000) 200,000 18,750 (1,400,000) 1,749,000

4,996,543

3,457,592