City of Pleasant Ridge. Public Informational Meeting Millage Ballot Proposals

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Brian Boone
6 years ago
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1 City of Pleasant Ridge Public Informational Meeting Millage Ballot Proposals

2 City of Pleasant Ridge Headlee Override Information In May, 2013 the City Commission voted to ask the residents to consider a Headlee Override for the General Operating and Rubbish/Solid Waste millages. The election will be held November 5th. The City Commission felt that the residents should decide what to do about decreasing tax revenue, large decreases in state shared revenue, record low interest rates and its effect on services. Property values have dropped or remained stable since 2009 which has caused a decrease in property tax revenue. The stagnant property values, coupled with a rolled back millage rate has resulted in a decrease of $160,000 in general operating revenue since 2008.

3 Headlee Dilemma

4 What is a Headlee Override? In 1978, the voters of Michigan approved an amendment to the State Constitution referred to as the Headlee Amendment. Basically it requires that the property tax revenue increase by no more than the rate of inflation. When property values do increase more than the rate of inflation, governmental units are required to roll back their millage rates. The lowered millage rates times taxable value is equal to the previous years tax revenue increased only by the rate of inflation. A Headlee Override is an election by City of Pleasant Ridge voters asking to reinstate the millage rate to its original level (20.0 general operating and 3.0 rubbish/solid waste Stated increases to15.5 general operating and 3.0 rubbish/solid waste)

General Fund Revenues & Expenditures General Fund Revenues General Fund Expendures

$2,353,938 $2,408,625 Dollars $2,400,000 $2,300,000 $2,200,000 $2,100,000

has had a decrease in revenues of $160,000 since 2008-09.

5 General Fund Revenues & Expenditures General Fund Revenues General Fund Expendures $2,684,906 $2,625,361 $2,700,000 $2,253,402 $2,449,921 $2,600,000 $2,500,000 $2,353,938 $2,408,625 Dollars $2,400,000 $2,300,000 $2,200,000 $2,100,000 $2,000, Budget Years The City has had a decrease in revenues of $160,000 since Because of sound fiscal management a decrease in expenditures of $276,000. However, all cuts and reductions are at their max.

6 Does Pleasant Ridge Need a Headlee Override? No provision to roll up the millage rates when property values drop to raise the same amount of tax revenue The rolled back millage rates in conjunction with little or no property value increase means less revenue for the City. City expenditures keep rising and revenues remain stable or lower for instance the cost of fuel, insurance, building utilities, maintenance on aging facilities and infrastructure, police vehicles, water and sewer rates and capital improvement projects.

7 What Will the Ballot Language Say? Proposal A Shall a Headlee Override be adopted so that the current limitation on the amount of City taxes that may be levied against all taxable property in the City of Pleasant Ridge, Oakland County, Michigan be increased: Up to 20.0 mills from approximately mills ($20.00 from approximately $11.42 per $1,000 of taxable value) for general operating expenses, consisting of police, fire, public works, sidewalks, water and sewer, parks and recreation, pool operations, general government, capital projects and continuation of existing services, and Up to 3 mills from approximately mills ($3.00 from approximately $1.71 per $1,000 of taxable value) for solid waste/rubbish, and If approved and levied in its entirety, this millage would raise an estimated maximum amount of $1,266,420 for the City in 2014 by allowing the City to levy the maximum mills previously approved by the voters and authorized by the City Charter and State law which have been reduced as required by the Michigan Constitution of 1963?

8 What is the Proposed Increase in Millage Rate? Maximum allowable millage for the General Operation would go from to 15.5 mills or an increase of mills The ballot language states up to 20 mills, however the City Commission has pledged to go to 15.5 (additional will be available for future growth, if needed) Maximum allowable millage for Rubbish/Solid Waste would go from to 3.0 or an increase of mills. This amount will be deducted from the GU charge on your water bill. Quarterly charge will decrease from approximately $43.00 to $9.00, a decrease of $34.00 per quarter or $ per year. The Commission is not obligated to levy the maximum if the override is approved.

9 Why Not Raise Other Sources of Revenue? July 1, 2013 budget year projects $2.4 million in General Fund revenue. The biggest sources of revenue are: Property taxes - $1.4 million Administrative Services Charges from other Funds - $377,000 State shared revenue - $232,,000 Balance of revenue is $300,000 (spread over 35 categories) which is mostly fees (i.e. building permits, cable franchise fee, tax admin), fines and misc. revenue. No opportunities to realistically increase these sources of revenues because they are either fixed (i.e. property tax revenue), directly offset by expenditures such as cable TV revenue & permit fees or are insignificant amounts under $10,000.

10 Where Will the money be applied? The headlee override contains a total of additional mills mills will be applied to water/sewer & solid waste 0.5 mills will be applied to Parks and Recreation programs and projects 0.5 mills will be applied to Pool/Wellness Operation 0.5 mills will be applied to General Operations.5752 will be applied to Sidewalk Improvements The next few slides will focus on water & sewer, solid waste & pool/wellness operations

11 Where Will the money be applied?

12 How will Proposal A effect my water bill? If passed the City Commission has pledged to apply 2.0 mills toward the Water and Sewer fund to help control rates and pay down fixed costs that are part of the water rate, including the GWK Drain Debt. This will have an impact on the water & sewer rate starting July 1, 2014 of approximately $20.00 per 1 MCF unit or 7,480 gallons. The garbage surcharge (GU) on the water bill will also decrease by approximately $32.00 per quarter (currently per quarter, proposed approx. $8.65 per quarter.) This amount will be deducted from the GU charge on your water bill. Quarterly charge will decrease from approximately $43.00 to $9.00, a decrease of $34.00 per quarter or $ per year. The average yearly household water consumption in Pleasant Ridge is approximately 9.5 mcf or 71,000 gallons. A average decrease of $ per year

13 Historical Water & Sewer Rates in Pleasant Ridge

14 Pool and Wellness Operations Since 2012 the general fund has had to supplement the Pool/Wellness Center fund to the tune of over $50,000 The complex is in need of costly repair on a yearly basis Pump replacement - $6,000+ Filter Sand Replacement - $5,000+ Umbrella Replacement - $3,000+ Lounge Chair Repair - $3,000+ annually Future Marcite Repair - $40,000+

15 Pool & Wellness Historical Maintenance Cost The cost to operate the Pool and Wellness center will increase dramatically over the next 5-10 years. As the facility ages maintenance cost increase exponentially.

16 Pool/Wellness Revenue & Expenditures $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Pool/Wellness Revenue Pool/Expenditures

17 What Will the Ballot Language Say? Proposal B Shall the City of Pleasant Ridge be authorized to continue to levy up to three (3) mills per year, for years 2015 through 2035, inclusive in excess of its Charter authorized tax rate as reduced by Section 314, Article IX of the 1963 State Constitution, such additional millage to be used to finance street, sewer & water system repairs, sidewalks, alleys, parking lots, parks and general infrastructure improvements within the City of Pleasant Ridge?

18 What is Proposal B? Proposal B is a renewal of the current Infrastructure millage that is set to expire in (last levy is July 2014) If the millage is renewed it will revert back to the 3.0 mills from in July, YTD the City has completely reconstructed 20 of the 26 Roads throughout the City. The original plan did not include all of the streets in the City (Ridge Rd., Indiana, Hanover.) When interest rates were at their highest, the City was able to reconstruct 2 streets per year. SCAF interest helps fund the infrastructure millage.

19 One Page Plus Pick up your One Page Plus sheet before you leave tonight or at City Hall that show how the millages will directly effect your property. This page shows your H 2 O usage from July 2012-June 2013 and your 2013 Taxable Value, the reduction to your water bill, the increase to your tax bill, and the total net change. Just find your address in the book, tear out the page and take it with you. A full list by street address will be available on-line.

20 Want more information? The next Public Informational Meeting is scheduled for October 10 at 7:00 p.m. Go to the website for more information and documents. Remember to pick up your One Page Plus sheet before you leave tonight or at City Hall.

Revenue Options. February 22, *Some slides taken from the Michigan Department of Treasury

Revenue Options. February 22, *Some slides taken from the Michigan Department of Treasury Revenue Options February 22, 2018 *Some slides taken from the Michigan Department of Treasury All of the reductions we are recommending are difficult choices and reflect many of the services and amenities