Annual Goal Setting Retreat

1. Annual GoalSetting Retreat City of Ypsilanti Saturday, December 16, 2006

2. Agenda • Welcome & Introduction • Dr. Ohren • State Revenue Sharing Update • Senator Liz Brater • Rep. Alma Wheeler Smith • Solvency Plan Update • Ed Koryzno • Budget Priority Exercise • Dr. Ohren

3. State RevenueSharing Update Senator Liz Brater Representative Alma Wheeler Smith

4. Solvency Plan Update Edward B. Koryzno, Jr. City Manager

5. Building Department No changes City Attorney's Office No changes City Clerk’s Office Eliminated museum subsidy Eliminated community promotions City Council No changes Finance Department Transferred 30% of Accounting Supervisor to HR Eliminated full-time Property Appraiser Eliminated full-time Accounting Technician Created two part-time Finance Generalists Fire Department No changes Fiscal Year 2006-2007 as Adopted

6. Human Resources Department Combined HR Director and Assistant City Manager positions Transferred 30% of Accounting Supervisor to HR Planning & Development Department Eliminated Redevelopment Coordinator position Police Department Eliminated one PSO position Eliminated one Records Clerk position Reduced special event subsidies (increased fees) Public Works Department Reduced Parks budget Reduced Administration Reduced special event subsidies (increased fees) Reduced Public Building Maintenance budget Fiscal Year 2006-2007 as Adopted-cont.

7. Recreation Department Reduced special event subsidies (increased fees) Transfers & Contributions Eliminated DDA subsidy Reduced AATA fixed route payment Total Estimated Cost Cutting Nearly $600,000 Fiscal Year 2006-2007 as Adopted-cont.

8. Fiscal Year 2006-2007 as Implemented • Revenue • Expected to be $190,750 or 1.3% more than budgeted • Reasons • Budgeted $230,000 in Fire Protection Funds • Received $355,00 (more than budgeted) • Sale of City-owned properties expected to be $75,750 more than budgeted • Not a net revenue gain, just a change in sale dates

9. Fiscal Year 2006-2007 as Implemented-cont. • Expenditures • Expected to be $331,612 or 2.3% less than budgeted • Reasons • Vacancies of budgeted positions in City Clerk’s Office, Finance and Police departments • Retirements in and reorganization of the Public Works Department • Decreases in contributions to retiree healthcare and the land revolving fund

10. Fiscal Year 2006-2007 as Implemented-cont. • Overall • The City is expected to end the year approximately $600,000 in the black

11. Current Services Budget Estimates • Estimated cost to continue current service levels will exceed revenues for the foreseeable future • Fiscal Year 2007-2008: $250,000 • Fiscal Year 2008-2009: $1,000,000 • Fiscal Year 2009-2010: $1,500,000 • Estimates do not include Solvency Plan proposals or Water Street debt payments

12. Proposed FYE 2008 Solvency Plan • Proposed Spending Increases: Strategic investments to decrease costs and increase effectiveness and efficiency • Professional Development - $25,000 • Provide 50%/50% match for employees • City has funded only mandatory training in recent years • Outside funding only available to some departments • Lack of training increases turnover and decreases effectiveness • Non-union Wage Adjustments - $75,000 • Past wage freezes merely deferred costs • Some non-union wages well below comparable communities • Reinstitute pay for performance program • Union wages to be examined during 2007 contract negotiations

13. Building Department No changes City Attorney's Office No changes City Clerk’s Office Eliminated vacant Secretary II position City Council No changes Finance Department No changes Fire Department No changes Human Resources Department No changes Planning & Development Department No changes Proposed FYE 2008 Solvency Plan

14. Police Department Eliminated one vacant PSO position Public Works Department Transfer administrative costs to other funds Recreation Department Eliminate recreation subsidies Transfers & Contributions Eliminate AATA fixed route payment Total Estimated Cost Cutting Approximately $350,000 Proposed FYE 2008 Solvency Plan-cont.

15. Proposed FYE 2008 Solvency Plan

16. Proposed FYE 2009 Solvency Plan

17. Proposed FYE 2010 Solvency Plan

18. Budget Priority Exercise Presented by Dr. Joe Ohren Eastern Michigan University

19. Budget Priority Exercise

20. Budget Priority Exercise • Solvency • Each discretionary service group has been ranked 1 to 5 • 1 - Service group with largest % of expenses • 5 - Service group with smallest % of expenses

21. Budget Priority Exercise • Sustainability • Rank each discretionary service group 1 to 5 in terms of how easily they may be increased or decreased as resources permit without long-lasting negative affects on the community’s physical condition • 1 - Service group most easily increased or decreased • 5 - Service group least easily increased or decreased

22. Budget Priority Exercise • Sustainability • Examples: • 1 - Long-term and irreversible affects • Reducing or eliminating Historic Preservation, Ordinance, or Planning & Zoning enforcement • 3 - Long-term but reversible affects • Reducing or eliminating Parks Maintenance • 5 - Short-term and reversible affects • Reducing or eliminating bus service

23. Budget Priority Exercise • Visibility • Rank each discretionary service group 1 to 5 in terms of how visible its reduction will be to residents, employees, local, state, and other officials • 1 - Most visible service group • 5 - Least visible service group

24. Budget Priority Exercise • Visibility • Examples: • 1 - Reducing Public Safety staffing levels would be highly visible • 3 - Reducing or eliminating Community Development or Parks Maintenance becomes more visible as the community’s physical condition deteriorates • 5 - Further reducing or eliminating Recreation is least visible except to friends groups and users

25. Budget Priority Exercise