Nathan Henne, City Manager Ethan Moody, Finance Director

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1 2017 Submitted by: City Council: Nathan Henne, City Manager Ethan Moody, Finance Director Harry Burdett, Mayor Larry Eib Art Hollingsworth Jon Navarro Tom Riley Maxine Morgan Linda Hoover [SPRINGFIELD CITIZENS' GUIDE & PERFORMANCE DASHBOARD ] The Springfield City Council presents this 2017 Citizens' Guide, Performance Dashboard with additional information. Questions can be directed to the City Manager or Finance Director

2 TABLE OF CONTENTS Executive Summary... 1 City Organizational Chart... 2 Permanent Positions... 3 Employee Wages & Benefits... 4 Performance Dashboard... 5 Citizens' Guide to Local Unit Finances... 6 Revenues and Expenses Change in Fund Balance Pension and Other Post Employment Benefit Funding Long Term Debt Summary Debt Service Report Projected Budget Report... 16

3 EXECUTIVE SUMMARY As part of state government requirements to improve financial transparency throughout state and local governments, the City of Springfield has developed this report to our residents and businesses. Much of this information has been provided on our website for the past seven years, but we feel condensing the information into one document will help our residents better-understand our finances without reading hundreds of pages of budgets, financial statements and related reports. This document consists of two main components: Springfield s Performance Dashboard, which is designed to give a quick and easy snapshot of the City s performance over the last two years, and Springfield s Local Unit Finance Guide, which will provide an in-depth look at Springfield s revenues, expenses, cash reserves, and long-term liabilities. Each of these components is organized in a manner that is easy to navigate and understand. The City of Springfield expects you will find this document educational. If you have any questions about the content of this document, please feel free to contact the City Manager s office by visiting Springfield City Hall, via phone at , or via at nhenne@springfieldmich.com. Sincerely, Nathan Henne City Manager City of Springfield CVTRS

4 ORGANIZATIONAL CHART Legislative Mayor and City Council (7) Executive City Manager (1) Department Head Workforce Public Safety (1) Police/Fire (1) Finance and Administrative Services (1) Finance/Treasury Income Tax Clerk/Elections Human Resources Assessing Information Tech (6) Public Services (1) Public Works Property Maintenance and Building Code Planning/Zoning Parks/Recreation (6) Economic Development Community Development Special Events Public Relations Labor Relations FOIA External Auditors City Attorney Boards and Commissions Beginning October 1, 2013, Springfield contracted with the Calhoun County Sherriff s Department to provide police service. In addition to 1 regular part time and 16 regular full time employees, the City has 7 part time contractual positions that include Assessor, Attorney, Income Tax, Inspector, and Computer Network services. On call part time Fire Fighters total 21 and the City routinely utilizes 2 part time seasonal employees. City of Springfield CVTRS

5 PERMANENT POSITIONS The FY budget includes funding for the salaries and benefits of 16 full-time employees. The number of full-time funded positions decreased from 28 to 16 with the consolidation of police service October 1, 2013; a decrease of 43%. There was no job loss with the police consolidation. All of Springfield s public safety officers transferred to either the Calhoun County s Sheriff Department or were hired by the City of Battle Creek s Police Department. These numbers do not account for seasonal labor, part-time employees, contractual employees or paid on-call firefighters that assist the Fire Department as needed. FY will mark the ninth full budget cycle that excludes the City s full-time Assessor and one Public Works Laborer and the third full fiscal year that the Public Safety Department will be contracting with the Calhoun County Sheriff for law enforcement services. These reductions are shown in the table below. They were made as the City strives to provide adequate services within the confines of the revenue available; Springfield has reduced its full-time workforce by 54% since FY In addition, this budget year is the tenth in which fulltime non-union staff members work four 9.5-hour days per week. Limiting employees to 38 total hours per week will produce a net payroll savings equal to approximately $20,000. The table of positions below indicates the normal staffing level for each of the City s departments. Department Position FT Employees City Manager City Manager Finance and Admin Services Director City Clerk Finance/Admin Clerk Income Tax Auditor/Clerk Assessor Public Services Director Supervisor General Laborer Public Services Clerk Public Safety Director Fire Chief Office Manager PS Sergeant PS Officer Total *In addition to regular full-time employees, the City has a regular part-time Fire Chief, 7 part-time contractual employees; 21 part-time fighters and 2 seasonal part-time employees. City of Springfield CVTRS

6 Employee Wages and Benefits The City of Springfield offers its full-time employees a reasonable wage and benefit package. Salaried employees are offered a flat salary as compensation, while hourly employees are paid on an hourly basis, including overtime as per state and federal laws and appropriate labor contracts. Below are lists of wages and fringe benefits in place for fiscal year The number of full-time employees in a given pay grade is shown in parentheses. Organized Labor Base Wage Schedule AFSCME Step 1 $36,566 Step 2 $38,418 Step 3 $44,970 (4) Non-Union Base Wage Schedule Administrative Finance/Income Tax Supervisory City Clerk DPW Supervisory Step 1 $29,640* $42,603* (2) $46,457 $54,205 (1) Step 2 $32,881* N/A $48,568 N/A Step 3 $35,114* N/A $50,679 N/A Step 4 $37,248* (3) N/A $52,800 N/A Step 5 $41,160* (2) N/A $58,350 (1) N/A *Represents four-day, 38-hour regular work week beginning July Department Head Salaries Position Base Salary City Manager $83,725 Public Services Director $63,300 Finance and Admin Services Director $63,300 Fire Chief (Part-time) $31,650 Fringe Benefit Current Fringe Benefits Provided Estimated Annual Cost Long-term Sick Leave $3,200 Based on 2% usage Longevity Pay $12,900 Payments to employees Life Insurance $2,800 Employer paid premium Health Insurance $196,800 Net cost after employee share Retirement $251,600 Employer contribution Total Estimated Cost $467,300 City of Springfield CVTRS

7 Performance Dashboard Local Unit Name: City of Springfield, Calhoun County Michigan Local Unit Code: fiscal year ending Trend Performance Fiscal Stability Annual General Fund expenditures per capita $448 $ % Neutral Fund Balance as % of annual General Fund expenditures 40.6% 46.6% 14.7% Positive Unfunded pension & OPEB liability, as a % of annual General Fund revenue 147% 161% 9.7% Negative Debt burden per capita $283 $ % Positive Percentage of road funding provided by the General Fund 0.0% 0.0% 0.0% Neutral Ratio of pensioners to employees % Positive Number of services delivered via cooperative venture % Neutral Economic Strength % of community with access to high speed broadband 100% 100% 0.0% Neutral % of community age 25+ with Bachelor's degree or higher 12% 10% -12.4% Negative Average age of critical infrastructure (years) % Negative Public Safety Violent crimes per thousand % Positive Property crimes per thousand % Positive Traffic injuries or fatalities % Positive Quality of Life Miles of sidewalks and non-motorized paths/trails as a factor of total miles of local/major roads % Neutral Percent of General Fund expenditures committed to arts, culture and recreation 3.7% 3.7% -0.6% Neutral Acres of parks per thousand residents % Neutral Percent of community being provided with curbside recycling 100% 100% 0.0% Neutral City of Springfield CVTRS

8 Revenues Expenditures Taxes 1,940,213 1,972,734 2,062,440 2,080, Licenses & Permits 63,382 72,635 76,090 71, Intergovernmental Sources 1,239,962 1,202,223 1,503,408 1,327, Charges for Services 25,369 24,962 34,951 27, Fines & Forfeitures 40,032 35,994 29,824 21, Interest & Rents 63,113 21,395 31,190 37, Other Revenues 201, , , , Total Revenues 3,574,008 3,467,006 3,943,425 3,809, General Government 793, , , , Public Safety 1,640,116 1,389,506 1,339,106 1,263, Public Works - Other 140, , , , Roads (Construction & Maintenance) 675, , , , Community & Economic Development 25,991 36, , , Recreation & Culture 89,678 77,249 88,054 88, Debt service 59,196 57,745 56,235 61, Post Employment Benefits 104, , , , Total Expenditures 3,529,337 3,117,772 3,502,631 3,719, Surplus (shortfall) 44, , ,794 89, Other Financing Sources -Net Transfers In/Out 7,500 (28,300) 150, , Net Change in Fund Balance 52, , , , Fund Balance beginning of year 2,338,345 2,390,516 2,711,450 3,302, Fund Balance end of year 2,390,516 2,711,450 3,302,244 3,647, Financial Position Non-spendable 22,274 6,173 4,841 23, Fund Balance Summary Statement of Revenues & Expenditures Governmental Funds fiscal year ending CITIZENS' GUIDE TO LOCAL UNIT FINANCES - City of Springfield, Calhoun County Michigan Per capita value Restricted 832, ,253 1,010,007 1,114, Committed 655, ,514 1,436,159 1,418, Assigned - 122,800-68, Unassigned 880, , ,237 1,022, Total Fund Balance 2,390,516 2,711,450 3,302,244 3,647, City of Springfield CVTRS

9 CITIZENS' GUIDE TO LOCAL UNIT FINANCES - City of Springfield, Calhoun County Michigan Pensions, Other Post Employment Benefits & Debt Long Term Obligations Pensions date of actuarial valuation: 12/31/ /31/ /31/ /31/ Assets 7,450,638 7,423,783 7,226,672 6,940,505 1,374 1,319 Actuarial Liability 9,396,726 9,557,827 10,312,956 10,375,683 1,961 1,973 Amount Unfunded 1,946,088 2,134,044 3,086,284 3,435, Percent funded 79.3% 77.7% 70.1% 66.9% Per capita value OPEB (Other Post Employment Benefits) date of actuarial valuation 6/30/2014 6/30/2015 6/30/2016 6/30/ Assets 269, , , , Actuarial Liability 902, , ,086 1,066, Amount Unfunded 632, , , , Percent funded 29.8% 33.6% 41.0% 36.6% Total Pension & OPEB Liability Assets 7,719,873 7,726,503 7,596,785 7,331,240 1,444 1,394 Actuarial Liability 10,298,812 10,459,913 11,215,042 11,442,373 2,132 2,175 Amount Unfunded 2,578,939 2,733,410 3,618,257 4,111, Percent funded 75.0% 73.9% 67.7% 64.1% fiscal year ending Long Term Debt (Governmental Funds) Capital Improvement Bonds 523, , , , Leases and Rental Agreements Accrued Paid Time Off 76,425 67,562 53,965 74, Total Long Term Debt 599, , , , Population (2010 Census) 5,260 5,260 5,260 5,260 Contact information: For more information about Springfield's finances, please contact our Finance Director at City of Springfield CVTRS

Rents 2016 2017 % change Taxes 2,062,440 2,080,307 1% Licenses & permits 76,090 71,013-7% Intergovernmental Sources 1,503,408 1,327,093-12% Charges for Services 34,951 27,149-22% Fines & Forfeitures

10 Revenues - Governmental Funds 1. Where our money comes from 2. Revenues compared to the prior year 1% 0% 1% 35% Revenue Sources as a Percent for % 55% Taxes Licenses & Permits Intergovernmental Sources Charges for Services Fines & Forfeitures Interest & Rents % change Taxes 2,062,440 2,080,307 1% Licenses & permits 76,090 71,013-7% Intergovernmental Sources 1,503,408 1,327,093-12% Charges for Services 34,951 27,149-22% Fines & Forfeitures 29,824 21,491-28% Interest & Rents 31,190 37,953 22% Other Revenues 205, ,167 19% Total $ 3,943,425 $ 3,809,173-3% 2% Other Revenues 3. Revenue sources per capita compared to the prior year 4. Historical trends of individual sources Per capita Revenues ,400, ,100,000 1,800,000 1,500, ,200, , , ,000 - Governmental Funds Revenues Taxes Intergovernmental Sources Other Revenues Licenses & Permits Fines & Forfeitures Interest & Rents Charges for Services Commentary: For more information about Springfield's finances, please contact our Finance Director at City of Springfield CVTRS

11 Expenditures - Governmental Funds 1. Where we spend our money 2. Expenses compared to the prior year Expenses as a percent for % 2% 2% 5% 6% 20% General Government Public Safety Public Works - Other Roads (Construction & Maintenance) Community & Economic Development Recreation & Culture % change General Government 690, ,586 6% Public Safety 1,339,106 1,263,911-6% Public Works - Other 235, ,956 15% Roads (Construction & Maintenance) 309, , % Community & Economic Development 598, ,844-63% Recreation & Culture 88,054 88,792 1% Debt Service 56,235 61,375 9% Post Employment Benefits 185, ,112 5% Total $ 3,502,631 $ 3,719,796 6% 7% 34% 3. Spending per capita - compared to the prior year Debt service Post Employment Benefits 3. Expenditures per capita compared to the prior year 4. Historical trends of individual departments: Per capita Expenses ,800,000 Governmental Funds Expenses ,600,000 1,400,000 Public Safety 1,200,000 General Government ,000, , ,000 Public Works - Other Post Employment Benefits 400, ,000 Community & Economic Development Commentary: For more information about Springfield's finances, please contact our Finance Director at City of Springfield CVTRS

12 Financial Position - Fund Balance 1. How have we managed our governmental fund resources (fund balance)? 2. Compared to the prior year 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 - Fund Balance History Total Revenues Total Expenditures % change Revenue 3,943,425 3,809,173-3% Expenditures 3,502,631 3,719,796 6% Surplus (shortfall) 440,794 89,377-80% Fund Balance Summary: Non-spendable 4,841 23, % Restricted 1,010,007 1,114,935 10% Committed 1,436,159 1,418,388-1% Assigned - 68,100 0% Unassigned 851,237 1,022,533 20% Total 3,302,244 3,647,276 10% 3. Fund balance per capita compared to the prior year 4. Historical trends of Unassigned Fund Balance Per capita Unassigned Fund Balance Unassigned Fund Balance ,200, ,000, , , , ,000 - Per capita value - Unassigned Commentary: For more information about Springfield's finances, please contact our Finance Director at City of Springfield CVTRS

13 Long Term Obligations 1. Pension funding status 2. Retiree Health Care funding status 3. Percent funded compared to the prior year 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Pension Assets vs Liabilities Actuarial Liability Assets 1,200,000 1,000, , , , ,000 OPEB Assets vs Liabilities Actuarial Liability Assets 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Pension and OPEB Funding % 6/30/2015 6/30/2016 6/30/ Long Term Debt Obligations 5. Debt & Other Long Term Obligations Per capita compared to the prior year Long Term Debt Obligations Per capita Debt Obligations , , , , , ,000 Total Long Term Debt Capital Improvement Bonds Accrued Paid Time Off Total Long Term Debt Capital Improvement Bonds Accrued Paid Time Off 100, Commentary: For more information about Springfield's finances, please contact our Finance Director at City of Springfield CVTRS

14 Debt Service Report - page 1 of 4 Local Unit Name: Local Unit Code: Current Fiscal Year End Date: City of Springfield /30/2018 Project Description Debt Name: Issuance Date: Issuance Amount: Debt Instrument (or Type): Repayment Source(s): Orchard Hills-Roads & Utility Infrastructure Capital Improvement Bonds 9/29/2016 $620,000 Refunding Bond Major & Local Street Revenue Sewer & Water Revenue Years Ending Principal Interest Total ,000 11,244 71, ,000 10,050 70, ,000 8,856 68, ,000 7,662 72, ,000 6,368 71, ,000 5,074 65, ,000 3,880 68, ,000 2,587 67, ,000 1,294 66,294 Totals $565,000 $57,015 $622,015 City of Springfield CVTRS

15 Debt Service Report - page 2 of 4 Local Unit Name: Local Unit Code: Current Fiscal Year End Date: City of Springfield /30/2018 Project Description: Debt Name: Issuance Date: Issuance Amount: Debt Instrument (or Type): Repayment Source(s): Public Safety Building-Upgrade/Expansion and East Airport Project-Roads & Utility Infrastructure Tax Increment Bonds 9/29/2016 $685,000 Refunding Bond Property Tax Capture - TIFA B and TIFA D Years Ending Principal Interest Total ,000 13, , ,000 10, , ,000 8,288 43, ,000 7,504 47, ,000 6,608 51, ,000 5,600 50, ,000 4,592 49, ,000 3,584 53, ,000 2,464 57, ,000 1,232 56,232 Totals $605,000 $64,400 $669,400 City of Springfield CVTRS

Debt Service Report - page 3 of 4 Local Unit Name: Local Unit Code: Current Fiscal Year End Date: City of Springfield 13-2040 6/30/2018 Project Description: Debt Name: Issuance Date: Issuance Amount:

16 Debt Service Report - page 3 of 4 Local Unit Name: Local Unit Code: Current Fiscal Year End Date: City of Springfield /30/2018 Project Description: Debt Name: Issuance Date: Issuance Amount: Debt Instrument (or Type): Repayment Source(s): Public Services Equipment Public Services Equipment Loan 7/15/2015 $158,000 Loan Vehicle Fund Revenue Years Ending Principal Interest Total ,600 1,849 33, ,600 1,232 32, , ,216 Totals $94,800 $3,697 $98,497 City of Springfield CVTRS

17 Debt Service Report - page 4 of 4 Local Unit Name: Local Unit Code: Current Fiscal Year End Date: City of Springfield /30/2018 Project Description Debt Name: Issuance Date: (see note 1) Issuance Amount: (see note 2) Debt Instrument (or Type): Repayment Source(s): Site Clean-up of former Baker Oil Property State DEQ Loan 3/18/2005 $300,000 Loan Property Tax Capture - Brownfield Years Ending Principal Interest Total ,811 1,335 23, , , , ,146 Totals $66,751 $2,688 $69,439 Per terms of loan agreement, 1st payment deferred until DEQ revised the original loan from $300,000 to $245,031 based on actual project cost. City of Springfield CVTRS

18 GENERAL FUND BUDGET PROJECTIONS AMENDED ADOPTED PROJECTED Property Taxes 1,040,900 1,036,300 1,036,300 Revenue Sharing 701, , ,900 Transfers In 433, , ,600 Other Revenue 269, , ,200 TOTAL REVENUES 2,446,000 2,972,600 2,594,000 City Council 56,500 56,000 57,100 City Manager 128, , ,100 Finance and Administrative Services Department 823, , ,100 Police Department 1,066,700 1,087,400 1,109,100 Fire Department 204, , ,300 Public Services Department 742, , ,300 Post-Employment Benefits 199, , ,500 Admin Allocations to Other Funds/Activities -619, , ,000 Labor Allocations to Other Funds/Activities -283, , ,600 Appropriations to Other Funds 167,100 87,600 67,000 TOTAL APPROPRIATIONS 2,485,000 3,040,700 2,634,900 NET OF REVENUES/APPROPRIATIONS -39,000-68,100-40,900 Budget Projection Criteria Used: REVENUES 1. Property tax growth rate: 0% due to personal property tax loss 2. Revenue sharing growth rate: 5% for increased personal property tax loss reimbursement 3. Other revenue growth rate: 1% 4. Transfers in growth rate: 2% from FY 2016/17 plus $100,000 additional from Income Tax Fund for voluntary contribution to pension trust EXPENSES 1. General expense growth rate: 2% 2. Appropriations to other funds decreased due to lower transfer to Farmers Market Fund 3. Post-employment Benefits: 4% increase from FY 2016/17 plus $100,000 voluntary contribution to pension trust City of Springfield CVTRS

Performance Dashboard

Local Unit Name: Charter Township of Oshtemo Local Unit Code: 398 Performance Dashboard 23 24 Trend Performance Fiscal Stability Annual General Fund expenditures per capita $86 $2 8.9% Positive Fund Balance