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untanglingwebs
El Supremo
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The Overview of the Adopted FY 15 and FY 16 Budget and future financial projections discusses the impact of the legacy costs and the loss of the Safer Grant ($3.4 million) which funds 39 of the City's 65 firefighters.
The overview also discussed the impact of the harsh winter that caused damage to trees, roads, sidewalks and city buildings.
Earley had authorized a study of the water and sewer system finances which was said to demonstrate inadequate revenue to operate the system and provide proper maintenance. While acknowledging high rates for water and sewer services the overview stresses the need for the maintenance costs.
There is extensive discussion of the disruptive impact of cuts from departments other than public safety (police, fire, 911). What is not discussed is the loss of many Flint 911 jobs as the city consolidates their 911 with that of the county. It also does not address the declining number of Flint Police officers. The force has been reduced to only 98 offices. |
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Fri Jun 19, 2015 10:04 pm |
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untanglingwebs
El Supremo
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Highlights of the Adopted Budget:
Costs to taxpayers are increased
* Property tax levies remain unchanged
* Street lighting assessment increased to $57 in FY 15 and $74 in FY16
* Solid waste fee increased to $168 in FY15 and $169 in FY16
* Water and sewer rates increased by a total of 6.5& in FY15 and 6% in FY16
Costs to City Employees are increased
* 20% premium share for health insurance implemented
* Premium contribution for non-Medicare eligible employees retiring after
July 1, 2014 (note: this includes police and fire)
* 50% premium share for dental and vision insurance implemented
* Vacation and sick leave replaced with PTO, new accumulation caps established
* All new employees enrolled in hybrid pension plan |
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Sat Jun 20, 2015 7:45 am |
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untanglingwebs
El Supremo
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continued:
Legacy costs are increased significantly
* General fund costs for retiree health costs are increased 25%, from $8 million
$10 million in FY15, increasing on an annual basis thereafter
* General fund costs for retiree health care and pension in total are projected to
increase from $16.4 million (31% of total revenues) in FY14 to $21.5 million
(34 % of total revenue) by FY 18
* For all funds, total costs for retiree health care and pension are projected to
increase from $30.4 million (or 17% of total revenues) in FY 14 to $43.5
million (23% of total revenues) by FY 19 |
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Sat Jun 20, 2015 8:03 am |
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untanglingwebs
El Supremo
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During the Stanley administration and before, the City willingly gave these pension and healthcare concessions. n conversations with retired officers who participated in these negotiations, often pay increases and other benefits were delayed with promises of rewards in pensions. Stock markets were reaping rewards and there was little though given to future legacy costs.
As an incentive to eliminate the higher senority and higher pay scale employees there were multiple early retirement incentives. Veterans and others were allowed to purchase time earned in other employment venues. Employees were offered "free years" in order to retire early. Some employees retired very young. Those negotiating the new benefits (city and county) were criticized for quickly taking advantage of these new packages.
Loopholes allowed some retirees to take advantage of little known computations, such as the 27 pay year, and pad their retirement. Council members were accused by Williamson of allowing favored clerk staff to retire under questionable circumstances.
The Journal and other media reported when high ranking police officials retired with retirements higher than their previous salaries. I have spoken to pensioners with retirements of $60,000 and much higher.
Obviously, past city leaders never thought the sock market and housing market would continue to crest. Employees went many years without pay raises with the promises of a good pension. The city does not pay into social security for the police and fire staff, so their pension is all they receive unless they retire and seek other employment. |
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Sat Jun 20, 2015 8:25 am |
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untanglingwebs
El Supremo
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Budget highlights continued:
* City staffing is maintained in District Court, 911, Finance, Assessing,
Transportation, IT, and Fleet
(note- Both the District Court and the 911 are being consolidated into the county systems. Flint will still elect their judges, however, employees will be county in FY16)
* Police Department- Total department staffing will be 115, with 7 vacant
positions and 29 additional positions eliminated through attrition by end of
FY15. Additionally, a recently offered COPS Hiring grant for six School
Resource Officers will not be accepted. The next several months will be
focused on mitigating the impact of this through reorganization with the
assistance of consultants specializing in police and fire service; seeking
additional funds; and obtaining assistance from law enforcement partners
in order to achieve the best possible level of police respone.
(Note- What about the claims of potential hiring the Police Chief keeps talking about? The FY15 ends on June 30th, and the goal Earley set has not been reached. Perhaps more retirements are expected soon. Instead the Governor keeps sending in more State Police, but that has had little impact on the rising Flint violence.
Some politicians are advocating a Metropolitan Police department. Maybe we will end up like Pontiac with no City Police department at all
There is also a large discrimination suit in the Police department alleging mproper promotions along racial lines among other complaints. With 16 Plaintiffs, a potential settlement could rival that of the Williamson administrations loss in a similar case.)
* Fire Department- Total department will be 75, with 19 positions eliminated as
the SAFER grant expires. There are several vacant positions to be eliminated
as part of this, with a goal of needed reduction no later than December 2014.
......
(Note- The City recently reached a settlement with two Fire department feamales over harassment issues, but kept the settlement amount secret. Residents should demand that all settlements be transparent as this is taxpayer money footing the bill.) |
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Sat Jun 20, 2015 6:19 pm |
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untanglingwebs
El Supremo
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| Council asked the administration to maintain the police and fire staff levels at the maximum level feasible. The City response stated that "due to revenue shortfall, increased retiree health care, and lack of other options, staffing is reduced. The police and Fire millage funds will be used to fund 20 firefighters and 26 police through FY15 and FY16. However the accumulated millage funds will be fully used by the end of FY16." |
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Sat Jun 20, 2015 6:27 pm |
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untanglingwebs
El Supremo
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Planning and Development Department will have one position added to the existing 25 staff in order to implement the Master Plan.
A total of six positions were added to the Public Works Department in the Utilities division for Water Treatment.
Three positions were added to to the Treasurer's Office for delinquent collections. |
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Sun Jun 21, 2015 8:13 am |
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untanglingwebs
El Supremo
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Proposed changes to FY15 budget ending June 30, 2015:
Council proposed $1,824,510 to be added to the Police Budget
$1 million fro the State funded lock up
freeing up additional funds for the Police, $763,000 from the general fund and $61,510 from Finance.
Changes in light of the council recommendations:
"The Proposed Budget anticipates a reduction in public safety staffing of 36 officers and 19 firefighters, However it does not anticipate these reductions (other than vacancies occurring through attrition) until the comprehensive study of the police and fire departments are completed."
Earley stated the state would not agree to transferring jail funds for officers. |
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Sun Jun 21, 2015 8:27 am |
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untanglingwebs
El Supremo
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Sun Jun 21, 2015 8:32 am |
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untanglingwebs
El Supremo
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According to the September 12, 2011 preliminary review by then State Treasurer Andy Dillon, the City of flint incurred deficits in many funds during the years 2007 thru 2011. Williamson left office beginning in February of 2009 (7 months into the fiscal year). Mike Brown was the Acting Mayor until Walling was elected Mayor.
Preliminary findings:
The deficit grew from $1,353,276 in 2007 to $25, 707,407 I 2011 (unaudited). Of the 2011 deficit, $11,149,907 was in the general fund and $9,009,825 was in the water fund.
*"The City relies on transfers from the water supply fund and the sewage disposal fund for general city operations. In 2009, the City increased its overhead charges from the water supply fund and the sewage disposal fund from $1 million to $2.4 million. Also in 2009, the City started charging a return on investments against the water supply and sewage disposal funds of $2.9 million. Combined the City uses $5.3 million of water supply and sewage disposal money for general fund operations annually. This amount of annual appropriation is not a loan and is not expected to be paid back to these funds.
The water supply fund has an unrestricted deficit, yet the City continues to transfer money from the fund. The unrestricted deficit was $5, 795,973 in 2010 and is estimated to be 49,009,825 for 2011. In addition to the transfers out, both the water supply and the sewage disposal funds have lot money in their operations. The sewage disposal fund has lost $61 million sine 2001 and the water supply fund has lost almost $10 million since 2009. The City has implemented a 35% increase in water and seer rates" |
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Thu Jun 25, 2015 7:37 am |
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untanglingwebs
El Supremo
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*"Deficit Elimination Plans submitted by the City of Flint have not been followed. Starting with a deficit in 2008 of $7,046,820, the City submitted a five year deficit elimination plan that projected a 2010 general fund deficit of $9, 124,74. However, the 2010 actual deficit was $14, 621,546 or $5,496,800 higher than projected and the 2011 deficit s estimated to be almost $11 million. The plan projected the deficit to be eliminated by 2014, but the updated deficit elimination plan for 2010 does not eliminate the debt until the year 2030 relying heavily on issuing additional debt of $12 million in 2013.
* The general fund has had operating losses sine 2007 and fund deficits since 2008.
...It appears the City is a year behind in matching expenditures to revenues. For example, the expenditures for 2009 match the revenues for 2008 and he expenditures for 2010 match the revenue for 2009." |
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Thu Jun 25, 2015 8:10 am |
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untanglingwebs
El Supremo
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| "The City has borrowed from other funds to compensate for its cash shortfalls. For example at June 30, 2010, the general fund owed other funds a total of $18,002,907 of which $11,698,376 was due to the sewage disposal fund. Another part of general fund borrowing was from the restricted local streets fund in the amount of $1,059,914. Local street funds may only be spent on local streets in the City since they derive from Federal and State grants. Other uses for these funds is contrary to State statute. Another significant balance includes $1,683.733 that is due to the public improvement fund. Once money is put into the public improvement fund, it may not be used for any other purposes. lastly, a major part of this interfund borrowing is from the self insurance fund for $2, 139,590. ..." |
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Thu Jun 25, 2015 8:29 am |
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untanglingwebs
El Supremo
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"The City continues to experience a cash shortage. The City recently borrowed $8,000,0000 in fiscal stabilization bonds, authorized under Public At 80 of 1981, to assist with cash flow shortfalls, However, there remains many negative cash balances in the June 30, 2011 City records. For example, the general fund is over $9.5 million negative. The rubbish collection fund is almost $1.5 million negative and the drinking water revolving loan fund is over $3 million negative.
These and other negative cash balances represent interfund borrowing that is not booked as such in the City records. As stated in the 2010 audit report, "[t]he majority of the City funds does not have their own cash accounts, but participate in a 'pooled cash account' where each fund's cash reserves are pooled with the ash balances of other City funds. Pooling individual fund cash resources provides flexibility in investment options and allows for consolidated and more efficient accounting"
The audit report continues "[h]owever, pooling cash resources also allows individual funds to spend more money than they receive, creating a lending relationship between funds with a negative balance and those with a positive balance, making the funds financial dependent on each other." |
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Thu Jun 25, 2015 8:49 am |
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untanglingwebs
El Supremo
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*"The City's pension is under 60% funded. Benefits are based on a factor ranging fro. 1.7 to 2.6 of the final average compensation. As of June 30,2008, the last actuarial report for the 2010 audit period, there were1,676 active members compared to 2,820 retirees. The unfunded accrued pension liability was over $39 million with a one year increase in the net pension obligation of $1,202,047.
* The City has failed to make staff reductions in accordance with it's Deficit Elimination Plan. According to the 2010 audit report between 2001 and 2010, the City reduced staffing from a total full time equivalent positions of 1,525.8 to 767. many of these reductions came from Police (336 to 122) and Fire (216 to 110). The city continues to reduce staff. However, of their planned 40 layoffs b July 2011, only 18 were made. Of the planned 25 layoffs after July, only seven were made." |
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Thu Jun 25, 2015 9:06 am |
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untanglingwebs
El Supremo
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Reports ca be located here by each city under an Emergency manager:
TREASURY - Emergency Manager Information - State of Michigan
TREASURY - MI Dept of Treasury ... Forms / Instructions · Accounting Information
· Local Unit Audit Reports · Municipal Finance ... Status: Emergency Manager.
http://www.michigan.gov/treasury/0,1607,7-121-1751_51556-201116--,00.html - 37k - Cached - Similar Pages |
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Thu Jun 25, 2015 9:09 am |
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