City of Grand Rapids
Preliminary Fiscal Plan
FY2018-FY2022
Presented April 25, 2017
FY2018 Preliminary Fiscal Plan Review:
General Operating Fund
Budget Stabilization Fund
Transformation Fund
Staffing
Guiding Principles
Racial Equity
Affordable Housing
Customer Service
Community Engagement
Youth employment
Financial Sustainability
Succession Staffing
2
FY2018 Preliminary Fiscal Plan Highlights
 The FY2017 Final Fiscal Plan provided $50,000 in seed money towards the
creation of an Affordable Housing Community Fund. The FY2018
Preliminary Fiscal Plan continues the investment in the Affordable Housing
Community Fund with recommended appropriations of more than $1
million.
 The FY2017 budget created a Neighborhood Match Fund with $50,000 of
initial funding. The first contract will be awarded this spring. These
contracts, ranging from $200 to $2,500 are designed to identify, develop and
network resident leaders and to build community in neighborhoods. The
FY2018 budget increases the investment to $75,000.
 The Special Events Office has been moved to the Parks Operating Fund from
3
the General Operating Fund, and will receive support from the General
Operating Fund in the amount of $105,000 in FY2018. The GOF investment
will support a new model designed to promote community events by
reducing average event fees.
FY2018 Preliminary Fiscal Plan Highlights

Our Community’s Children will be moving to the Parks and Recreation
Department. The FY2018 Preliminary Fiscal Plan recommends spending
$50,000 to support youth employment through the Our Community’s
Children’s LEAD program. A significant number of these jobs will likely be
in the Parks and Recreation Department.
 The budget includes significant new investment to support youth and young
adult employment (18-24 years old) throughout the organization. The
successful LEAD program will facilitate these increased opportunities and
will be supplemented by a $450,000 three-year grant from the W.K. Kellogg
Foundation. The FY2018 Preliminary Fiscal Plan continues a commitment to
youth employment by supporting:
•
•
•
•
4
TRAT Interns ($35,000)
Our Community’s Children ($75,000)
New City Youth Employment Program ($50,000).
Kellogg Foundation ($450,000)
FY2018 Preliminary Fiscal Plan Highlights
 The Mobile GR Department will assume responsibility for supervision and
oversight of the Parking Violations Checkers. The costs for the existing
positions will be moved to the Mobility Fund from the General Operating
Fund, and two positions will be added. The FY2018 budget also commits
$550,000 from the City’s General Operating Fund for the next three fiscal
years to allow the department to invest in alternative mobility programs.
Fine revenues will remain in the General Operating Fund.
 The Code Compliance Department will proactively seek compliance with the
support of a new Customer Advocate who will provide special assistance to
those having difficulty navigating City code and nuisance ordinances.
 The Customer Service Department (formerly 311) will have a new
Customer Advocate to provide special assistance to those having difficulty
navigating City systems, e.g., PRE exemptions, water and sewer bills.
5
FY2018 Preliminary Fiscal Plan Highlights
 With a new Human Resources Director position, the City can closely
examine our recruiting and hiring practices to widen the pool of eligible
candidates.
 The Customer Service Department (formerly 311) will begin to bring online
the City’s new transaction-based website, initially with about 70 applications.
 The City will continue our commitment to our parks and streets with $14.8
million of investment into over 47 miles of streets this year and remaking 11
of our parks over the next two summers.
 Phase III of the City’s Transformation Plan reflects new value streams (13-50)
designed to encourage Managing Directors with similar bodies of work to
explore opportunities for efficiencies by aligning departments within a
service group to optimize staff and resource utilization.
6
FY2018 Preliminary Fiscal Plan Staffing
City of Grand Rapids
AUTHORIZED POSITIONS BY DEPARTMENT
FY2018-FY2022 Fiscal Plan
FY 2017
FY 2018
Amended Budget Proposed Budget
DEPT
A110
Public Library
152.000
153.000
A120
Clerk's Office
10.000
10.000
-
A130
Executive
14.000
16.000
2.000
B210
Community Development
52.000
53.000
1.000
B220
Public Services
75.000
75.000
-
C310
Des ign and Development
68.000
72.000
4.000
C320
Engineering
38.000
38.000
C330
Enterpris e Services
307.000
308.000
D410
Human Res ources
21.000
21.000
-
D420
Adminis trative Services
17.000
18.000
1.000
E510
Police
367.000
370.000
3.000
E520
Fire
198.000
199.000
E530
Dis trict Court
92.000
91.000
E540
Attorney's Office
17.000
17.000
-
F610
Facilities and Fleet Management
48.000
47.000
(1.000)
F620
Fis cal Services
42.000
44.000
2.000
F630
Technology and Change Management
3.000
3.000
-
F640
Treas ury
17.000
17.000
-
17.000
15.000
(2.000)
4.000
4.000
F650
Comptroller's Office
G110
Retirement Activities - Retirement Office (Non Budgeted)
G210
Authorities (Non Budgeted)
Grand Total Pos itions (Full Time and Permanent Part-time)
7
Amended
Change
Note: 2 positions reclassified from Comptrollers to Fiscal Services
5.000
5.000
1,564.000
1,576.000
1.000
1.000
1.000
(1.000)
12.000
FY2018 Preliminary Fiscal Plan Staffing
FY2018 Requested Changes as Part of the Budget Process
ADDS:
Customer Advocate
Customer Advocate
Maintenance Assistant
Maintenance Assistant
Maintenance Assistant
Maintenance Assistant
Fire Captain - Prevention
Public Works Maintenance Worker I - Part Time
Arborist
Financial Assistant I
Parking Violations Checker
Parking Violations Checker
Administrative Analyst I
Crime Scene Technician
Police Sergeant
15
311 CUSTOMER SVC
CODE COMPLIANCE
CODE COMPLIANCE
CODE COMPLIANCE
CODE COMPLIANCE
CODE COMPLIANCE
FIRE
LIBRARY
PARKS
PARKS
PARKING
PARKING
POLICE
POLICE
POLICE
DELETES:
3
Admin Services Officer I
Deputy Clerk
Heavy Equipment Mechanic
8
COMM DEV
DISTRICT COURT
FLEET
NET REQUESTED ADDS:
12
FY2018 Preliminary Fiscal Plan Staffing
Strategic Staffing
 EMA Study—Public Services Organizational Competitive Assessment
Project
9

Shared Staffing Solutions—Working across departmental boundaries

Chief Equity Officer
 As a result of the City’s work with Inclusive Performance Strategies and
with the Government Alliance on Racial Equity, it is becoming clear that
one of many likely outcomes from this work will be to add a Chief
Equity Officer to the City Manager’s Cabinet.
 This Officer will be charged with leading the organization in ridding any
structural racism from the City’s services.
 We will closely review our organization to ensure that we can achieve
our equity goals and recommend any changes as mid-year adjustments
following this review.
FY2018 Preliminary Fiscal Plan Staffing
Strategic Staffing

To improve snowplowing on alleys, dead ends, and cul de sacs, we will
delete four part-time Trash Reduction Program employees and add four
permanent Maintenance Assistants to plow snow in the winter, work in the
Trash Reduction Program in the summer and sweep streets in the fall.
 Parks and Recreation



Additional financial support for parks, cemeteries, and golf course
Arborist
Maintain and expand the City’s tree canopy
 Customer Service

Two Customer Advocates (Customer Service and Code Compliance)
 Parking Violations


10
Two additional checkers to support expanded number of meters/zones
Removed from the GOF
FY2018 Preliminary Fiscal Plan Staffing
Strategic Staffing
 Public Safety Outcomes
11

Fire Prevention Captain
o Increased revenues and expanded risk-based inspections and improved
outcomes for the Residential Safety Program

Police Sergeant
o Supports Central Service Area

Two non-sworn
o Crime Prevention Supervisor
o Crime Scene Technician
• Reduce overtime and quicker response times
FY2018 Preliminary Fiscal Plan Staffing
Strategic Staffing
 Human Resources Director
 Need to plan for succession in our Human Resources department.
 The FY2018 Preliminary Fiscal Plan includes a position substitution
intended for completion in FY2018.
 Allows for the recruitment of a Human Resources Director who will lead
operational performance, accelerate recruitment for open positions, help
implement succession planning counter measures, and lead retention
efforts.
 The Public Library budget request includes the addition of a part-time
Public Works Maintenance Worker to allow the Library to continue
providing expected levels of asset management.
12
FY2018 Preliminary Fiscal Plan Staffing
Strategic Staffing
• Position reductions include:
• Administrative Services Officer – Community Development Services
Reduction due to retirement and succession planning
• Deputy Clerk – District Court
Reduction in accordance with planned financial targets
• Heavy Equipment Mechanic – Fleet Management
Reduction in accordance with planned financial targets
13
FY2018 Budget Review Schedule
April 25
11am – 2pm
General Operating Fund, Budget Stabilization Fund,
Transformation Fund, Staffing
May 9
11am – 2pm
Parks and Recreation Fund, Forestry, Parks and
Recreation Capital Sub fund, Fire Department, Police
Department
May16
8am – Noon
Vital Streets Fund, Major Street Fund, Local Street Fund,
Streets Capital Fund, Sidewalk Repair Fund, Stormwater,
Refuse Collection and Disposal Fund
May 23
11am – 2pm
Commission Priorities, 61st District Court, Affordable
Housing, Customer Service, Operational Improvements,
Commission Questions
May 30
8am – Noon
Capital Reserve Fund, Capital Improvement Fund,
Facilities Management Fund Capital Subfund, Street
Lighting, Commission Questions
June 6
Committee of the Whole Commission Questions, Finalize Fiscal Plan
7pm
Public Hearings
June 13 7pm
14
Adoption of FY2018 Fiscal Plan
Set Property Tax Millage
FY2018 Preliminary Fiscal Plan Conclusions
 Much has been accomplished, however there is much to do.
 Our transformation must be persistent and on-going.
 Our strong financial foundation enables us to focus on
important quality of life services in our neighborhoods:
 Racial equity
 Affordable housing
 Customer Service
 Authentic community engagement
 Youth engagement and employment
 Proactive Code Compliance
 Employee recruiting
 Succession
 Continued financial discipline
15
FY2018 Preliminary Fiscal Plan Conclusions
Thank you
To the Mayor and City Commission for your leadership;
To every employee who has lifted this organization to make ours a great
city;
To the dozens of employees who have contributed to this FY2018
Preliminary Fiscal Plan;
To Molly Eastman, Keith Heyboer, Karen Mendez, and Scott Saindon of
the Budget Office, and Eric DeLong, Tom Almonte and Jeff Dood for
their extraordinary work;
To my management team for their continued contributions to lead this
organization to new heights; and
To Scott Buhrer, I recognize you on assembling your last budget. We
thank you for your visionary guidance, your gifted problem-solving, and
your unconditional friendship.
16
Fiscal Plan Layout
Manager’s
Overview
• Transmittal
Letter
Budget
Basics
The Funds
Budget
Themes
• Fund
Statements
Grants
Authority
Budgets
Appendices
17
Revenues
Personnel
Glossary
Fiscal Plan Overview
 Balancing the Budget





18
Law requires that authorized spending cannot exceed available resources
(revenues generated in the current period added to balances carried
forward from prior years)
One-time money or “gimmicks” should not be used to support on-going
operations
Five year projections
Appropriation lapse has been developed to recognize that the entire amount
of the approved spending is rarely fully spent. This year a lapse of $3.5
million (GOF) was employed for all forecasted years
Lapse in other funds ranges from 0% to 4%
Fiscal Plan Overview
 Guidelines
 Contingencies




19
City must anticipate unforeseen conditions
City is restricted from increasing tax revenues without a vote of the people
Policy Guidelines:
o An allowance for unforeseen obligations in the GOF contingent account
-$1.5 million in FY2018
o 15% of GOF operating expenses in unassigned fund balance (16.3%
projected for FY2018)
o 10% of GOF operating expenses in budget stabilization fund (10%
projected for FY2018)
Enterprise and Internal Service funds focus on spendable cash
Fiscal Plan Overview
 Additional Guidelines
 Annual general fund appropriations in support of police services are required
in an amount equal to not less than 32% of the total annual general operating
fund appropriation
o FY2018 allocates $50,584,316 for police (37.14% of GOF
appropriations)
 Health Care
 Actuarially determined rates – 80% city 20% employee contributions
 Retiree Health Care
 Fully fund the actuarially determined Annual Required Contribution
(ARC)
 Capital Improvement Program
 A five-year capital improvement program is prepared and updated each
year
 The operating impact of each project should be identified and
incorporated into the annual operating budget
20
Fiscal Plan Overview
 FY2018 General Fund Highlights
 FY2017 year-end estimate projects income tax revenue will increase 6.0%
over FY2016 actual
 For FY2018 and FY2019, we project a 4.5% and 3.0% increase in income
tax revenues respectively and then 2.5% over the following three years
 Minimal ongoing increases in property tax revenues (due to Headlee and
Proposal A)
 No FY2018 Transformation Fund support required to meet 15% fund
balance policy
 Modest transfer from the General Operating Fund to the Budget Stabilization
Fund (BSF) projected in FY2018 to maintain 10% fund balance policy in BSF.
 General Operating Fund projection maintains revenues over expenditures for
each of the next five years while maintaining a General Operating Fund
balance at 15% and a Budget Stabilization Fund balance between 9% and
10% over the next five years.
 GOF support for Vital Streets and Parks Maintenance of Effort remain on
track to meet commitment.
21
Fiscal Plan Overview
 General Fund Forecasted Fund Balance: (page 88)
GOF 5 x 5
Beginning Fund Balance
Revenue
Expenditure
Surplus (Deficit)
Ending Fund Balance
Unassigned FB %
22
FY2018
FY2019
FY2020
21,231,378
22,141,226
22,398,190
22,562,900
22,795,149
137,098,606
141,499,998
144,985,604
147,581,271
149,205,135
136,188,758
141,243,034
144,820,894
147,349,022
149,010,445
909,848
256,964
164,710
232,249
194,690
22,141,226
22,398,190
22,562,900
22,795,149
22,989,839
16.3%
15.9%
15.6%
FY2021
15.5%
FY2022
15.4%
Fiscal Plan Overview
 Revenue Distribution
 Income Taxes - 3 way split
$90,000,000
$76,953,231
$80,416,126
$80,000,000
$70,000,000
$60,000,000
$50,000,000
FY2017 Estimate
$40,000,000
$30,000,000
FY2018 Requested Budget
$12,461,649
$20,000,000
$13,022,423
$4,049,826
$10,000,000
$4,232,068
$General Fund
23
Capital Reserve
Vital Streets
Fiscal Plan Overview
 General Fund Major Revenue Sources
General Fund Income Taxes
$100,000,000
$90,000,000
$76,953,231
$80,000,000
$70,000,000
$80,416,126
$82,828,610
$84,899,326
$87,021,809
$89,197,354
$72,474,550
$62,791,752
$64,612,270
$67,582,177
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
FY2013 Actual FY2014 Actual FY2015 Actual FY2016 Actual
24
FY2017
Estimate
FY2018 Budget
FY2019
Forecast
FY2020
Forecast
FY2021
Forecast
FY2022
Forecast
Fiscal Plan Overview
 Revenue Distribution
 Property Taxes (dedicated millages)
$16,000,000
$14,000,000
$13,441,075
$13,853,063
$12,000,000
$10,112,346
$10,294,447
$10,000,000
$8,000,000
$6,506,678
FY2017 Adopted Budget
$6,633,814
$5,113,414
$6,000,000
$5,165,162
$3,980,015
$3,922,200
$4,000,000
$2,000,000
$General Fund
25
Capital Reserve
Library
Refuse
Parks Millage
FY2018 Requested Budget
Fiscal Plan Overview
 General Fund Major Revenue Sources
General Fund Property Taxes
$14,400,000
$14,230,371
$14,200,000
$14,106,307
$14,023,496
$13,944,982
$14,000,000
$13,853,063
$13,800,000
$13,600,000
$13,510,981
$13,400,000
$13,200,000
$13,000,000
$12,800,000
$12,600,000
$12,400,000
$12,200,000
26
$13,109,877
$12,979,447
$13,027,220
$13,436,960
Fiscal Plan Overview
 Revenue Distribution
 Revenue Sharing - 2 way split
Revenue Sharing Distribution
$20,000,000
$18,000,000
$17,519,755
$17,368,296
$16,000,000
$14,000,000
$12,000,000
FY2017 Revenue
Sharing
$10,000,000
FY2018 Revenue
Sharing
$8,000,000
$6,000,000
$4,000,000
$2,644,539
$2,644,539
$2,000,000
$General Fund (Includes 1/2 CVTRS)
27
Capital Reserve (1/2 CVTRS)
Fiscal Plan Overview
 Other Revenue Sources
General Fund Other Revenue
$2,905,809
$8,272,780
Licenses & Permits
($2,905,809)
State Grants ($18,054,110)
$1,059,970
Charges for Services
($9,762,032)
$617,716
Fines & Forfeitures
($2,157,000)
$2,157,000
$18,054,110
Interest & Rents ($617,716)
Other Revenues
($1,059,970)
Other Financing Sources
($8,272,780)
$9,762,032
28
Fiscal Plan Overview
 General Fund Expenses
General Fund Expenses
$20,424,647
$58,318
$754,273
Personal Services
Supplies
$23,924,471
Other Services & Charges
Capital
Debt Service
Other Financing
$2,081,659
29
$88,945,390
Fiscal Plan Overview
 Major General Fund Expense Changes
$20,424,647
$18,948,360
$16,975,135
Other Financing
Debt Service
Capital Outlays
$58,318
$112,662
$322,983
$754,273
$919,328
$491,616
FY2018 Requested Budget
$23,924,471
$23,475,292
$21,856,192
Other Services and Charges
Supplies
Personal Services
30
FY2017 Adopted Budget
FY2016 Adopted Budget
$2,081,659
$2,019,133
$1,916,202
$88,945,390
$87,383,966
$83,812,107
Fiscal Plan Overview
 Select General Fund Subsidy Trends
31
Fiscal Plan Overview
Budget Stabilization Fund: (Page 87)
 The purpose of this fund is to serve as the City’s "savings" account and to




32
assist in stabilizing revenues during periods of economic recession.
The fund provides a safeguard to protect critical programs for the citizens
of Grand Rapids when the City experiences an economic downturn.
Per State law: money in the Budget Stabilization Fund may only be
appropriated by an ordinance or resolution adopted by a 2/3 vote of the
City Commission. Further, the amount of money in the fund shall not
exceed either 20% of the municipality's most recent general fund budget,
as originally adopted, or 20% of the average of the municipality's 5 most
recent general fund budgets, as amended, whichever is less.
City policy states that the amount of money in the fund be equal to 10%
of the City’s most recent General Fund expenditure budget, as originally
adopted.
Fully funded to City policy guidelines
Fiscal Plan Overview
Budget Stabilization Fund Continued:
 This fund may be used for the following purposes:
 To cover a general fund deficit, when the City’s annual audit reveals such a
deficit.
 To prevent a reduction in the level of public services or in the number of
employees at any time in a fiscal year when the City’s budgeted revenue is not
being collected in an amount sufficient to cover budgeted expenses.
 To prevent a reduction in the level of public services or in the number of
employees when in preparing the budget for the next fiscal year the City’s
estimated revenue does not appear sufficient to cover estimated expenses.
 To cover expenses arising because of a natural disaster, including a flood, fire,
or tornado. However, if federal or state funds are received to offset the
appropriations from the fund, that money shall be returned to the fund.
33
Fiscal Plan Overview
 Budget Stabilization Fund Forecasted Fund Balance: (page 87)
Budget Stabilization Fund 5 x 5
Beginning Fund Balance
Revenue
Expenditure
Surplus (Deficit)
GOF Expenditures
Ending Fund Balance
Unassigned FB %
34
FY2018
FY2019
FY2020
12,948,835
13,548,835
13,548,835
600,000
FY2021
13,548,835
FY2022
13,548,835
-
-
-
-
-
-
-
-
600,000
135,588,758
141,243,034
144,820,894
147,349,022
149,010,445
13,548,835
13,548,835
13,548,835
13,548,835
13,548,835
10.0%
9.6%
9.4%
9.2%
9.1%
Fiscal Plan Overview
Transformation Fund (page 104)
 Established in 2010 to account for five year temporary income tax
 Significant driving force for transformation

Transformation Fund Key Investments
• Police Investments- $7.9 million Police Officers, $674k
body cameras, $94k auto license plate
recognition, 52k AED’s
• Fire Investments- $7.8 million Firefighters, $.93 million QRV, $75K fuel efficiency, $4.4 million reset
plan,
• PAYT refuse collection and curbside recycling-$2.4 million
• Pension Conversion-$1.77 million
• 311 Customer Service-$400K
• Indian Trails Golf Course-$2.8 million
• Financial Management System (FMS)-$4.6 million
• River restoration-$5 million
• Public Library Sustainability-$1.8 million
Totaling over $60 million
35
Fiscal Plan Overview
Transformation Fund Continued
 FY2018 Fiscal Plan Focus
 Fully fund policy required reserves in the GOF (15%) and Budget Stabilization
Fund (10%) in FY2017
 $1.3 million (current fiscal year)
 No GOF support in FY2018. However, $1.32 million projected in FY2019 to
maintain unassigned fund balance at policy target of 15%
 Continued Investments:
 Ten Cops Grant Police Officers - $1.03 million
 Library Sustainability - $633k
 River Corridor Activation - $5 million ($2.5 million from FY17)
 Recommend continuing the Transformation Fund at least through FY2019
 Several anticipated projects remain active in the fund and the need for
innovation and a way to support it has not ended.
 Future Innovation Fund would provide critical seed funding to help launch and
scale projects that will increase productivity, lower costs and improve
outcomes.
36
Fiscal Plan Overview
Transformation Fund Continued (page 104)
Transformation Fund Projected Spend-Down
FY2016 Actual
Beginning Fund Balance
Revenue
Income Tax
Investment Interest
Return of Funding-Police ALPR
Return of Funding-Joint Police & Fire Study
Refuse Fund Loan Interest Payment
Total Revenue
Expenditures
Firefighter Support
Public Library Sustainability
Ten COPS Grant Police Officers
Evaluation of City-Owned Properties (201 Market)
Parks Master Plan
Automated External Defibrilators (AED's)
Indian Trails Golf Course
Classification Study
Transfer to Budget Stabilization Fund
Transfer to General Operating Fund
River Corridor Activation
Operational Transformation & Sustainable Asset Mgmt.
Total Expenditures
Surplus (Deficit)
Ending Fund Balance
37
24,042,691
821,414
219,500
161
FY2017
Projected
10,440,321
194,488
10,600
-
57,600
55,950
1,098,675
261,038
824,722
-
FY2018
Requested
5,464,114
20,200
FY2019
Projected
1,322,437
-
-
-
-
-
-
-
20,200
-
-
477,493
592,823
632,809
-
444,830
583,822
1,029,068
-
350,000
-
-
-
350,000
-
-
-
52,000
-
-
-
2,752,000
-
-
-
250,000
-
-
-
4,000,000
-
-
-
5,200,000
1,300,000
-
2,500,000
-
260,600
2,500,000
-
1,322,437
-
14,701,045
5,237,245
4,161,877
1,322,437
(13,602,370)
(4,976,207)
(4,141,677)
(1,322,437)
10,440,321
5,464,114
1,322,437
-
Questions?
38