Annual Goal Setting Retreat City of Ypsilanti Saturday, December 16, 2006

Sat 12/16/20062 Agenda Welcome & Introduction  Dr. Ohren State Revenue Sharing Update  Senator Liz Brater  Rep. Alma Wheeler Smith Solvency Plan Update  Ed Koryzno Budget Priority Exercise  Dr. Ohren

State Revenue Sharing Update Senator Liz Brater Representative Alma Wheeler Smith

Solvency Plan Update Edward B. Koryzno, Jr. City Manager

Sat 12/16/20065 Fiscal Year as Adopted Building Department  No changes City Attorney's Office  No changes City Clerk’s Office  Eliminated museum subsidy  Eliminated community promotions City Council  No changes Finance Department  Transferred 30% of Accounting Supervisor to HR  Eliminated full-time Property Appraiser  Eliminated full-time Accounting Technician  Created two part-time Finance Generalists Fire Department  No changes

Sat 12/16/20066 Fiscal Year as Adopted-cont. Human Resources Department  Combined HR Director and Assistant City Manager positions  Transferred 30% of Accounting Supervisor to HR Planning & Development Department  Eliminated Redevelopment Coordinator position Police Department  Eliminated one PSO position  Eliminated one Records Clerk position  Reduced special event subsidies (increased fees) Public Works Department  Reduced Parks budget  Reduced Administration  Reduced special event subsidies (increased fees)  Reduced Public Building Maintenance budget

Sat 12/16/20067 Fiscal Year as Adopted-cont. Recreation Department  Reduced special event subsidies (increased fees) Transfers & Contributions  Eliminated DDA subsidy  Reduced AATA fixed route payment Total Estimated Cost Cutting  Nearly $600,000

Sat 12/16/20068 Fiscal Year as Implemented Revenue  Expected to be $190,750 or 1.3% more than budgeted Reasons  Budgeted $230,000 in Fire Protection Funds Received $355,00 (more than budgeted)  Sale of City-owned properties expected to be $75,750 more than budgeted Not a net revenue gain, just a change in sale dates

Sat 12/16/20069 Fiscal Year as Implemented-cont. Expenditures  Expected to be $331,612 or 2.3% less than budgeted Reasons  Vacancies of budgeted positions in City Clerk’s Office, Finance and Police departments  Retirements in and reorganization of the Public Works Department  Decreases in contributions to retiree healthcare and the land revolving fund

Sat 12/16/ Fiscal Year as Implemented-cont. Overall  The City is expected to end the year approximately $600,000 in the black

Sat 12/16/ Current Services Budget Estimates Estimated cost to continue current service levels will exceed revenues for the foreseeable future  Fiscal Year : $250,000  Fiscal Year : $1,000,000  Fiscal Year : $1,500,000 Estimates do not include Solvency Plan proposals or Water Street debt payments

Sat 12/16/ Proposed FYE 2008 Solvency Plan Proposed Spending Increases: Strategic investments to decrease costs and increase effectiveness and efficiency  Professional Development - $25,000 Provide 50%/50% match for employees City has funded only mandatory training in recent years Outside funding only available to some departments Lack of training increases turnover and decreases effectiveness  Non-union Wage Adjustments - $75,000 Past wage freezes merely deferred costs Some non-union wages well below comparable communities Reinstitute pay for performance program Union wages to be examined during 2007 contract negotiations

Sat 12/16/ Proposed FYE 2008 Solvency Plan Building Department  No changes City Attorney's Office  No changes City Clerk’s Office  Eliminated vacant Secretary II position City Council  No changes Finance Department  No changes Fire Department  No changes Human Resources Department  No changes Planning & Development Department  No changes

Sat 12/16/ Proposed FYE 2008 Solvency Plan-cont. Police Department  Eliminated one vacant PSO position Public Works Department  Transfer administrative costs to other funds Recreation Department  Eliminate recreation subsidies Transfers & Contributions  Eliminate AATA fixed route payment Total Estimated Cost Cutting  Approximately $350,000

Sat 12/16/ Proposed FYE 2008 Solvency Plan FunctionProposed FYE 2008 Changes Estimated Savings Administrative Services ● Eliminate City Clerk's Office Secretary II $ 40,000 City Council ● No changes $ - Community Development ● No changes $ - Operational Overhead● No changes $ - Public Safety ● Eliminate one PSO position $ 50,000 Public Works● Transfer administrative costs to other funds $ 160,000 Recreation● Eliminate recreation subsidies $ 15,000 Transfers & Contributions● Eliminate AATA fixed route payment $ 85,000 Projected Deficit $(350,000) Total Estimated Savings $ 350,000 Excess Of Revenue Over (Under) Expenditures $ -

Sat 12/16/ Proposed FYE 2009 Solvency Plan FunctionProposed FYE 2009 Changes Estimated Savings Administrative Services ● Eliminate City prosecution (linked to Ordinance Enforcement) $ 20,000 City Council ● Eliminate Lobbyist $ 40,000 Community Development ● Eliminate Ordinance Enforcement ● Eliminate Planning & Development interns $ 205,000 Operational Overhead● No changes $ - Public Safety ● Eliminate one PSO position ● Eliminate three firefighter position & EMS service $ 220,000 Public Works● Reduce Parks Maintenance by 50% $ 140,000 Recreation● No changes $ - Transfers & Contributions● No changes $ - Projected Deficit $(639,500) Total Cuts $ 625,000 Excess Of Revenue Over (Under) Expenditures $ (14,500)

Sat 12/16/ Proposed FYE 2010 Solvency Plan FunctionProposed FYE 2010 Changes Estimated Savings Administrative Services ● No changes $ - City Council ● No changes $ - Community Development● Eliminate Planner I (HDC) position $ 60,000 Operational Overhead● No changes $ - Public Safety ● Eliminate three firefighter positions ● Eliminate five police officer positions $ 530,000 Public Works ● Eliminate Administration ● Eliminate Parks Maintenance $ 265,000 Recreation● No changes $ - Transfers & Contributions● No changes $ - Projected Deficit $(856,250) Total Cuts $ 855,000 Excess Of Revenue Over (Under) Expenditures $ (1,250)

Budget Priority Exercise Presented by Dr. Joe Ohren Eastern Michigan University

Sat 12/16/ Budget Priority Exercise SolvencySustainabilityVisibilityAverageServices 1 Public Safety § Fire Prevention § Fire Suppression § Police Administration § Police Investigation § Police Road Patrol 2 Community Development § Building Inspection § Economic Development § Historic Preservation § Ordinance Enforcement § Planning & Zoning 3 Public Works § Administration § Parks Maintenance 4 Recreation § Parkridge Community Center § Recreation Park Ice Rink § Rutherford Municipal Pool § Senior Center 5 City Council § GCS Inc. Lobbying Services § Memberships & Dues § Office Supplies, Printing & Publishing § Wages & Fringe Benefits

Sat 12/16/ Budget Priority Exercise Solvency  Each discretionary service group has been ranked 1 to 5  1 - Service group with largest % of expenses  5 - Service group with smallest % of expenses

Sat 12/16/ Budget Priority Exercise Sustainability  Rank each discretionary service group 1 to 5 in terms of how easily they may be increased or decreased as resources permit without long- lasting negative affects on the community’s physical condition  1 - Service group most easily increased or decreased  5 - Service group least easily increased or decreased

Sat 12/16/ Budget Priority Exercise Sustainability  Examples: 1 - Long-term and irreversible affects Reducing or eliminating Historic Preservation, Ordinance, or Planning & Zoning enforcement 3 - Long-term but reversible affects Reducing or eliminating Parks Maintenance 5 - Short-term and reversible affects Reducing or eliminating bus service

Sat 12/16/ Budget Priority Exercise Visibility  Rank each discretionary service group 1 to 5 in terms of how visible its reduction will be to residents, employees, local, state, and other officials  1 - Most visible service group  5 - Least visible service group

Sat 12/16/ Budget Priority Exercise Visibility  Examples: 1 - Reducing Public Safety staffing levels would be highly visible 3 - Reducing or eliminating Community Development or Parks Maintenance becomes more visible as the community’s physical condition deteriorates 5 - Further reducing or eliminating Recreation is least visible except to friends groups and users

Sat 12/16/ Budget Priority Exercise Services Adopted % of FYE 2007 Expenses Solvency Plan % of FYE 2008 Expenses% Change Your Proposed % of FYE 2008 Expenses Public Safety § Fire Prevention § Fire Suppression § Police Administration § Police Investigation § Police Road Patrol 50.64%56.26%11.10% Community Development § Building Inspection § Economic Development § Historic Preservation § Ordinance Enforcement § Planning & Zoning 5.76%6.10%5.92% Public Works § Administration § Parks Maintenance 4.36%3.77%-13.51% Recreation § Parkridge Community Center § Recreation Park Ice Rink § Rutherford Municipal Pool § Senior Center 1.75%1.74%-0.21% City Council § GCS Inc. Lobbying Services § Memberships & Dues § Office Supplies, Printing & Publishing § Wages & Fringe Benefits 0.71%0.74%3.44%