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untanglingwebs
El Supremo
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I don't think so!
People need to read the first section of the 120 page report of Darnell Earley submitted on November 21, 2013. It can be located on the City of Flint Website under Emergency Manager reports.
While council is anticipating a return to self governance, I read it a bit differently. Only the first 24 or so pages are important as the rest is a rehash of previous documents and the current budget.
On Page 24:
"Further, I do not recommend beginning the transition back to the Mayor/Council management of the City at this time. The City still has critical budgeting issues; there is tremendous work necessary on evaluation of the governance model and potential charter revision. Also, a new City Council has just taken office.
I am considering assigning some city management responsibilities to the Mayor and City Council. This would be a step towards preparing the Mayor and Council to again manage the City's financial responsibility".
It has been said that Earley favors a City Manager, City Council form of government. Could the charter revision be a step in that direction. Also the projected deficits cannot be eliminated without an increase in the income tax. |
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Wed Dec 18, 2013 8:25 am |
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untanglingwebs
El Supremo
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Earley goes on to say that because the City has been in emergency management twice, there is a strong need to avoid a third failure. That is why he is establishing a 21 person Blue Ribbon Citizens Committee to evaluate various governance models and recommend a course of action for Charter amendment or revision.
With all of the praise he heaps o the partnership between the City and the Flint & Genesee Chamber of Commerce, expect their representatives to be prominent in the committee appointments. |
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Wed Dec 18, 2013 8:31 am |
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untanglingwebs
El Supremo
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Finally some Smith Village data!
According to this report dated November 21, 2013:
Phase I met the goal of constructing 29 homes. On May 18, 2012 the City entered into a third development agreement with Ginosko and Rohde Construction for Phase II of the project.* Their site plans were approved May 22, 2012
Phase I,
Earley shows 26 complete ( What happened to the 29 figure?) with 13 sold an 6 purchase agreements. There are 7 remaining for sale.
Phase II
There are 9 complete units with a purchase agreement on 1. There are 8 available for sale
No further homes will be built until all available units are sold.
Earley reports that 12 o the 20 units sold were o low income homeowners. The commitment to HUD was that 51 % o the homeowners were to meet the low to moderate income guidelines established by HUD
* Some have complained that Ginosko was a contributor to Snyder's election campaign. Also it has been alleged that section 3 of the HUD rules have not been complied with that required more local companies and employees to be hired. It has also been alleged that Rohde employees came from Grand Rapids and were housed in Grand Blanc, with little or no benefit to Flint businesses.
Last edited by untanglingwebs on Fri Dec 20, 2013 5:23 am; edited 3 times in total |
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Wed Dec 18, 2013 8:42 am |
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untanglingwebs
El Supremo
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Earley starts his report by comparing the $48 million cash on hand to the 2012 deficits. There was a $19.1 million accumulated deficit in the general fund and a water fund deficit of $8.8 million. These deficits necessitated significant unplanned reductions in services. The hits had to occur in primarily public safety in order to eliminate the deficit. The Economic Development Corporation had to develop their own deficit elimination plan to deal with their 2012 deficit of $119,439.
The fiscal year ending June 30,2013 had a projected gap of $25 million. This was dealt with by a 25% increase in water and sewer, a 6 mill public safety tax, a 20% cut in personnel and benefit and compensation cuts of approximately 20 %. The auditors report(which has had little publicity) reflected a surplus of about $4.2 million in the general fund. The report states a current deficit of $13.9 million. The previous deficit was $19.1 million. ( ?)
Earley further stated the deficit could be reduced by $11 million by documenting amounts owed to the water and sewer funds as a loan and budgeting repayment.
The remaining $2,9 million would come from appropriation from the general fund over 5 years.
The $8.8 million deficit in the water fund rom FY (fiscal year) 2012 has been reduced to $500,000 in FY 2013.
(?) Are they counting already the one million deficit reduction planned for this year?
Last edited by untanglingwebs on Fri Dec 20, 2013 5:25 am; edited 1 time in total |
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Wed Dec 18, 2013 9:02 am |
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untanglingwebs
El Supremo
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The fiscal year of July 1st 2013 to June 30th 2014 saw an addition staffing cut of 10%, but this time from non-public safety personnel.
The FY 2013 had budgeted $15.3 million from the collection of Income Taxes, but only realized an actual $12.3 million being collected.
Property taxes will continue to fall with property values until at least FY 2015, when it is anticipated they will stabilize. No growth is expected until FY 2018.
Meanwhile, legacy costs from retirements as well as compensation costs for current employees is projected to increase by 5% a year. Also many of the major grant sources expire soon.
The choice is whether to cut public safety or other cuts as service levels are now at minimal levels of service. With the low levels of service the City now provides, it is hard to reduce expenses any more. There is also an unmet capital needs that is estimated to be over $300 million. Earley states bankruptcy would be expensive, slow and with uncertain outcomes.
Earley states there needs to be an increase in the local income tax and a reduction in legacy costs in order to stabilize the City. This will generate a surplus in place of the deficit. Other revenue streams are stagnant.
Earley cites legal challenges to changes in retiree healthcare as an obstacle. He note that if the City does not prevail, there will be increases in the structural deficit by $3 to $5 million annually.
Poverty exemptions can be found in EFM Orders # 8 and # 11.
Last edited by untanglingwebs on Fri Dec 20, 2013 5:26 am; edited 1 time in total |
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Wed Dec 18, 2013 9:28 am |
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untanglingwebs
El Supremo
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Earley discusses solutions starting on page 8.
He believes the increase in the local income tax coupled with significant changes to health care and pensions for both active employees and retirees will potentially overcome the $3 to $5 million structural deficit annually. Additionally h believes these changes will provide similar amounts of revenue that will serve to stabilize services in Flint and address the capital needs.
The City is reviewing departments and has initiated the process of potential mergers, consolidation, contractual services, shared services with other governmental agencies, as well as privatization and elimination of some activities. The key is what activities must be subsidized by general fund property taxes, what can be funded by users and what can be eliminated.
There is a continuing effort to reduce pension and other pension expense liabilities. There has been a transition of FERS (Flint Employee Retirement System) to MERS (Michigan Employee Retirement System) for retirees since October 18,2012. All administrative components or the transfer were completed July 1, 2013. In May of 2013 the URGE (retired government employees) filed a lawsuit in May of 2013 in Judge Yuille's Court.
The Income Tax process is now shared with Grand Raids and Lansing. The Mott Foundation financed a study to evaluate how Flint can share services for Flint and Genesee County.
This year the City will receive a full payment from the county on property tax collections. Shortfalls must be paid to the county. It is estimated that only 33 % of the property taxes are paid and there is about a 40% water and sewer delinquency. |
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Wed Dec 18, 2013 10:38 am |
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untanglingwebs
El Supremo
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Flint has purchased the state tax roles or 2010 and will aggressively begin pursuing those who have not paid their income taxes. Up to 8800 have not filed ta returns and the uncollected 2010 income tax could be in the range of $300,000 to $400,000. Other tax years are also being reviewed.
Flint currently shares a Level IV assessor with Lansing. A member of the department is also close to completing their Level IV certification. The Human Relations Department has partnered with GISD for job postings and initial hiring.
When Brown did not reach a tentative agreement with all six unions, the 19 K provision of PA 4 was invoked. (EM orders 18 and 26) EM Order 27 resulted when 1799 did not ratify a tentative agreement.
In January 2013 AFSME agreed to the privatization of Waste collection and demolition. Since the City auctioned off large quantities of City equipment, there were few options.
Two lawsuits were filed. The FPOA filed a lawsuit contracts prior to the EM contract. The lawsuit was dismissed in Circuit court. AFSCME Council 25 filed a lawsuit in late May. |
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Wed Dec 18, 2013 8:17 pm |
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untanglingwebs
El Supremo
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New employees will have no retiree health care. This will help reduce the total unfunded liability $900 million to $400 million. The total Annual Required Contribution has been reduced from $60 million to $22 million.
In June 25,2013, the Court denied the request to stay the order, and in fact, applied the injunctive order to all retirees as a class. The City states the Court never actually certified a class. Legal Counsel recommends the City comply with regard to the Court order for the 6 members of the lawsuit and apply for relief from the 6th Circuit Court.
The lawsuit Yurk et al versus City of Flint with Judge Hayman continues. The is an injunction against requiring generic rather than name brand drugs . This is based on a 2002 settlement agreement (EFM Kurtz) where the City agreed not to modify the prescription drug plan.
A Dependent Eligibility Audit conducted n FY 2012 removed 381 dependents from the City health plans. This saved $1.3 million in FY13. |
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Fri Dec 20, 2013 5:41 am |
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untanglingwebs
El Supremo
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Earley plans to move the business licensing department from the Clerk's Office to the newly formed Department of Planning and Development. This department will address lost revenue from unlicensed and uninspected businesses. There is a newly created General Business License which will remove obsolete forms of licenses.
A Criminal Justice System Advisory Council has been meeting since September 2012 and includes the State Police, the Governor's office and the MSU University Criminal Justice Study. There has been 8 workshops and the full council meets quarterly.
The move to consolidate the 67th and 68th District Courts is continuing. The Court cost $3.5 million in FY 14. In mid November o 2013 a consolidation bill passed the Michigan Senate and 2 versions are in second reading in the House.
The Karegondi (KWA) started in April 2014 and is expected to be fully operational in 36 months.
The water treatment plant needed upgrades as Detroit has notified the City of the ending of the water agreement with them. The City is working to control water loss (leakage) and has crews working on correcting small leaks on the curb boxes. All water meters will be replaced and $700,000 was allocated in FY 14 towards this goal.
The City water pumping stations are now all automated eliminating staffing 24-7. This saved $500,000 annually in overtime.
The process of eliminating sludge from the sewage process is being changed and the incinerator is being shut down. A new load out facility is nearing completion and will save $400,000 annually. With the shutdown of the incinerator, the sludge output will be sold to Swedish Biogas, which will produce electricity to be sold to the city at a rate lower than Consumers Energy.
The seasonal road paving and engineering is decreasing. The City is looking to service sharing and has met with the Genesee County Road Commission. There has been no repaving this season and only crack sealing and pothole repair.
Last edited by untanglingwebs on Fri Dec 20, 2013 7:09 pm; edited 3 times in total |
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Fri Dec 20, 2013 6:05 am |
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untanglingwebs
El Supremo
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| The Pierce Community Center was closed in April 30,2012. United Senior Network is under contract for the operation and sale of the Hasselbring Senior Center and the Brennan Elm Park Senior Community Corporation is operating Brennan Center. The announcement of a third senior center downtown in the former International Institute has already occurred. |
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Fri Dec 20, 2013 6:11 am |
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untanglingwebs
El Supremo
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Under the Department of Planning and Development, a reorganization is underway. In November 2013, Megan Hunter was established as he Chief Planner.
Since the Neighborhood Stabilization Program (NSP) funding is officially over, the City is looking at what functions of the Community and Economic Development Department can be outsourced and what can be shared.
The RACER Trust for Brownfield Developments, such as Buick City, is in a partnership with the Flint and Genesee County Chamber of Commerce.
All demolition is now through the Genesee County Land Bank Authority.
The Department of Community and Economic Development had $400,000 in CDBG funding which was combined with $800,000 in Land Bank funding which financed a one time mowing and trash removal in the City during the summer of 2013.
A Cities of Service grant funded 20 projects and removed 10,000 ties throughout the city. |
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Fri Dec 20, 2013 6:25 am |
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untanglingwebs
El Supremo
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A Flint Police Sgt. exam was held in October 2013 and interviews will proceed in December.
With the ending of the current Safer grant, cuts will occur unless new grants are approved. It is anticipated that 2 fire stations will close and only 20 firefighters would remain. The County has take over all paramedic millage funding since July 1st,2012 and they handle all paramedic calls. |
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Fri Dec 20, 2013 6:33 am |
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untanglingwebs
El Supremo
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For 1 year, the goal of controlling overspending has been achieved.
The City must:
*Continue a balanced budget;
*Eliminate the accumulated deficit;
*Further reduce legacy and pension costs.
Projected revenue and expenses reveal a continuing gap of $2million to $4 million annually.
* A six mill Police and Fire Tax has been imposed.
* A street light assessment placed on the tax rolls.
* A waste collection fee placed on the tax rolls.
* Tremendous water and sewer rate increases.
There has been no increased services.
There has been no increase in property values.
There have been no increased employment opportunities.
There are few additional revenue options and the City is reaching the limit of the City's borrowing capacity.
The property Tax millage rate is within.1 mill of maximum.
State Revenue Sharing is now tied to EVIP and C-Gap competition granting.
The City is asking to allow the voter to increase the income tax. This move will generate $7 million annually and will eliminate the structural deficit. |
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Fri Dec 20, 2013 6:47 am |
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untanglingwebs
El Supremo
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Struggles:
The GM/Delphi closure with the loss of 300jobs;
The unknown impact of the state removing the personal property taxes;
The $120,000 to hold the State Senate primary election;
An anticipate $575,000 match to M-Dot anticipated in FY 14. |
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Fri Dec 20, 2013 6:54 am |
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untanglingwebs
El Supremo
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Could 68th district court in Genesee County could be dissolved?
Posted: Dec 20, 2013 6:32 PM EST
Updated: Dec 20, 2013 6:40 PM EST
By Siobhan Riley - email
GENESEE COUNTY (WJRT) -
(12/20/13) - If a proposed legislation wins approval in the state legislature, Genesee County's 68th District Court could be dissolved.
That could also mean layoffs.
ABC12 News has learned this could mean six or more layoffs if this bill is passed. It's not clear exactly who would be impacted.
This bill has already been approved by the House and now it has to be approved by the Senate.
If it's passed, it means there's a possibility that the 68th court could be merged into a division of the 67th, meaning that the 67th could have five divisions instead of four.
"Because some of the personnel would not be necessary. Some of the judges would come over with their clerks," said Joseph Graves, State Rep. for the 51st district.
Some believe it will save the county money.
"It cost $5 million a year right now to operate them because the revenue is not coming in, they don't write the tickets in the City of Flint to pay for them, the 67th district court does generate funds," Graves said.
"It's all in the spirit of trying to be more efficient delivery of services in the court system," said Genesee County Commissioner Jamie Curtis.
Currently, the 68th district has five judges. Part of the bill is calling for four judges in the 5th division when someone retires.
Everyone isn't so sure about merging the two.
"The flaw in that it looks like the case load for 68th district court is dropping and the reason that it's dropping is that we don't have the required number of police officers on the street who would be generating cases, and so if you don't have police officers on the streets, you're not going to get the cases," said State Rep. Woodrow Stanley.
If this bill is approved by the Senate, it's expected to go to Gov. Snyder's office next month.
It would require two-thirds of votes from Genesee County commissioners in order to go forward.
It takes two years under this bill to implement. |
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Fri Dec 20, 2013 7:02 pm |
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