ANNUAL BUDGET

Transcription

1 ANNUAL BUDGET

2 ANNUAL BUDGET

3 TABLE OF CONTENTS Page No. INTRODUCTORY SECTION City Officials & Department Heads... 1 Letter of Submittal... 2 Vision Statement and Goals... 8 Notice of Public Hearing Budget Adoption Resolution Appropriations Resolution General Fund Graphs Truth-In-Assessment Truth-In-Taxation Headlee Tax Limitation DDA Truth-In-Assessment DDA Truth-In-Taxation DDA Headlee Tax Limitation Taxable Valuation By Year City Millage Rates Graph Taxable Value History City Population Graph Summary of Tax Levy and Taxable Valuation History of Poverty Exemptions History of Foreclosures Water and Sewer Disposal System City Organizational Chart Administrative Salaries City Council Compensation Employee Wages by Department FUNDS General Fund Budget Summary General Fund General Government Information Technology Department Building Authority Cemetery Police Fire Ambulance Public Works Light Department Parks and Recreation Major Street Fund Local Street Fund Marina Fund Tree/Park Improvement Fund Downtown Development Authority Authority for Brownfield Redevelopment Building Official Budget Stabilization Fund

4 Page No. Building Authority Debt Fund Capital Improvement Fund Brownfield Capital Projects Sewage Fund Water Fund Brownfield Remediation Revolving Fund Equipment Fund DPW Construction Fund Public Safety Facility Construction Fund GRANTS Grants Summary Grants Grants Grants Grants Grants Grants Grants Grants Grants Grants FEES Comprehensive Fee Schedule CAPITAL IMPROVEMENT PLAN

5 CITY OFFICIALS Legislative Mayor... Matthew J. Waligora Mayor Pro Tem... Shawn S. Sexton Member... Susan R. Nielsen Member... Michael T. Nowak Member... Cindy L. Johnson Council Appointees City Manager... Greg E. Sundin City Clerk/Treasurer/Finance Director... Karen L. Hebert City Attorney... William A. Pfeifer City Assessor... Jeff A. Shea DEPARTMENT HEADS City Engineer... Rich O. Sullenger Police Chief... Joel W. Jett Fire Chief... William J. Forbush City Clerk/Treasurer/Finance Director... Karen L. Hebert Planning and Development Director... Adam E. Poll City Assessor... Jeff A. Shea City Building Official... Donald H. Gilmet 1

6 May 2, 2016 To the Honorable Mayor and Members of the Municipal Council Council Members: Under the provisions of Chapter 10 of the Charter of the City of Alpena, the City Budget for the fiscal year is hereby submitted to the Municipal Council. The budget proposes an unassigned fund balance of $2,348,593 at the end of the budget year (June 30, 2017). The fund balance represents approximately 22.39% of total General Fund Expenses and other uses. This percentage provides the City with a reasonable surplus in the event of unforeseen expenses or reductions in revenues. This is consistent with adopted Council policy requiring a 10% minimum fund balance and a 20% maximum fund balance. The City depends largely on its three major sources of revenues; state revenue sharing, emergency medical services and property taxes. We have experienced over 4.8 million dollars cumulative loss of state revenue sharing from Part of the program has been revised into what is now known as the City, Village, and Township Revenue Sharing (CVTRS). The budget stabilization fund will have a balance of $20,000 at the end of While not significant, it is an effort to build the fund back up with annual contributions. Taxable value decreased from $254,592,050 in 2015 to $235,934,419 for This 7.33% decrease is due to the Industrial Personal Property Tax Exemptions. During the poor economic times beginning in 2008, capital items and maintenance projects had to be eliminated, delayed or reduced in scope. Our infrastructure and building maintenance cannot continue to be delayed. Due to deteriorating conditions, building maintenance has become a higher priority. We prioritized projects so that the most needed capital projects could be done. The Budget proposes a tax rate for General Fund operations of mills which is the same as last year and a tax rate for DART of mills, the same as last year. The City currently has no debt millages. The Budget is proposed to fund some but not all of the projects from the Capital Improvement Plan listed for The following CIP projects were reviewed and revised where necessary from the CIP process to the budget process: Final CIP Annual Budget CITY HALL Election Accuvote Machines 10,000 0 City Hall Rehabilitation 10,000 0 Economic Development Marketing Program 25,000 9,000 City Recreation Plan Update 0 3,000 Reappraisal of City Residential Class 90,000 90,000 TOTAL 135, ,000 2

7 Final CIP Annual Budget I.T. Wired City Infrastructure Upgrades 5,000 5,000 Wireless City Infrastructure Upgrades 5,000 5,000 Police In-Car Video Systems 4,000 4,000 Police-Mobile Data Terminals 6,000 0 Security Cameras 3,000 3,000 Upgrade the Phone System 20,000 20,000 Fire-Mobile Data Terminals 4,000 4,000 Multi-Function Color Copier/Printer-PSF 15,000 15,000 Electronic Poll Book 5,000 5,000 Website Software Upgrade 5,000 7,000 Police Body-Worn Cameras 2,000 2,000 Network Infrastructure Upgrades 3,000 3,000 New Technology/Complimentary Systems 5,000 5,000 TOTAL 82,000 78,000 POLICE Police Vehicle Replacement 41,000 41,000 Body Armor Replacement 14,000 13,000 Flat Roof Replacement 13,400 20,000 Soffit Replacement 6,000 0 Radar Unit 0 1,100 Variable Air Valve (VAV) Box Replacement 6,500 24,000 TOTAL 80,900 99,100 FIRE Radio Remotes 2,500 0 Flat Roof Replacement 13,400 10,000 Hose and Nozzle Replacement 5,000 4,000 Variable Air Valve (VAV) Box Replacement 6,500 12,000 Soffit Replacement 6,000 0 Light Fixture Replacement 7,000 0 SCBA Cylinders 6,000 0 TOTAL 46,400 26,000 AMBULANCE *MICU Ambulance 200,000 52,500 Ambulance Loading Safety Systems 40,000 20,000 Heart Monitors/Defibrillators 30,000 0 Flat Roof Replacement 13,400 10,000 Variable Air Valve (VAV) Box Replacement 6,500 12,000 Soffit Replacement 6,000 0 Light Fixture Replacement 7,000 0 TOTAL 302,900 94,500 *will be financed 3

8 Final CIP Annual Budget LIGHTS M-32 Roadside Park Lighting 60,000 0 Pedestrian Post Light Replacement 15,000 15,000 Marina Light Pole Replacement 15,000 0 Duck Park Bi-Path Lighting 48,000 0 Long Rapids Road Lighting 48,000 0 TOTAL 186,000 15,000 CAPITAL IMPROVEMENT FUND City Hall Window Replacement 125,000 0 City Hall Seal/Caulk/Tuck Exterior 0 75,000 Front End HVAC Control Replacement 87,500 35,000 HVAC Upgrade/Repair/Replacement 87,500 50,000 Replace VAV Boxes and Valves 0 35,500 Clean Duct Work 0 5,000 TOTAL 300, ,500 PUBLIC WORKS New Sidewalk Construction 0 1,000 Sidewalk Replacement 0 25,000 Downtown Bike Parking Facility 30,000 0 Farmer s Market Parking Lot #1 85,000 0 TOTAL 115,000 26,000 CEMETERY Evergreen Cemetery Irrigation Pump Replacement 15,000 0 Road Resurfacing 10,000 10,000 TOTAL 25,000 10,000 PARKS AND RECREATION Woodward Avenue Trailhead Pavilion 80,000 80,000 North Riverfront Park Railing 10,000 0 Bandshell Sound System 35,000 0 Public Restroom Improvements 20,000 60,000 Adopt-A Park Improvements 5,000 0 Tree Planting Program 8,000 0 Riverscape Implementation 10,000 0 Starlite Beach Lawn Restoration 10,000 0 Public Art 20,000 0 Bi-Path Resurfacing 15,000 80,000 *River Center 50,000 30,000 TOTAL 263, ,000 DOWNTOWN DEVELOPMENT AUTHORITY Downtown Façade Grants 20,000 20,000 Economic Development Fund 10,000 10,000 *assigned 4

9 Final CIP Annual Budget Placemaking 10,000 10,000 Parking Management/Wayfinding 5,000 5,000 Street Amenities & Parks 14,000 14,000 TOTAL 59,000 59,000 MAJOR STREET Capital Preventative Maintenance 55,000 55,000 Tree Planting 15,000 0 Traffic Signal Controller Replacement 3,500 0 Second Avenue Bridge Rehabilitation 300,000 2,772,000 US-23 North Property Road Development 60,000 60,000 Street Modifications within DDA 75,000 75,000 Bike Path Sign Replacement/Upgrade 3,000 0 TOTAL 511,500 2,962,000 LOCAL STREET Capital Preventative Maintenance 35,000 35,000 Thin Overlay and Resurfacing Project 75,000 75,000 High-Use Alley Paving 35,000 35,000 Tree Planting Program 10,000 0 Bike Path Sign Replacement/Upgrade 3,000 0 Maple Street Resurfacing 48,000 48,000 Lewis Street Resurfacing 18,000 18,000 Johnson Street-Long Lake Avenue Bypass Phase I 50,000 0 TOTAL 274, ,000 MARINA Marina Safety Ladders 9,600 0 Dock Maintenance 5,000 5,000 Marina Energy Efficiency Improvements 18,000 0 TOTAL 32,600 5,000 SEWER Johnson Street to Long Lake Avenue Sanitary Sewer Main 90,000 90,000 CRTC Lift Station Telemetry 20,000 20,000 Sanitary Sewer Spot Repairs 15,000 15,000 Sanitary Sewer Main Rehabilitation 50,000 50,000 Campbell Street Sanitary Sewer Replacement 225, ,000 Complete Second Avenue 0 110,000 Complete Third Avenue 0 110,000 Sewer Bypass Pump Discharge Piping 20,000 20,000 Eleventh Avenue-Park Street to M , ,000 Back-up Boiler 90,000 90,000 Electric Control Valve for W.A.S. 15,000 15,000 Asbestos Removal 5,000 15,000 Methane Gas Lifter Enclosure 20,000 20,000 Safety Hazard Abatement 10,000 0 Replacement Services 0 35,000 Upgrade Pump at Lift Stations 15,500 15,500 5

10 Final CIP Annual Budget New Services 0 10,000 TOTAL 760,500 1,025,500 WATER Johnson Street to Long Lake Avenue Water Main Replacement 135, ,000 Replace Roof on Wilson Street Pumphouse 6,000 6,000 Campbell Street Water Improvements 250, ,000 Eleventh Avenue-Park Street to M , ,700 Low Service Control Panel 120, ,000 Lab Equipment-New Lab Charge Analyzer (LCA) 12,000 12,000 Structural-Mechanical Upgrades 10,000 0 Replace High Service Pipe Loop Bolts 15,000 0 Critical Component-High Service Room Access & Loading 5,000 0 Critical Component Replacement 10,000 0 Asbestos Abatement 10,000 20,000 Safety Hazard Abatement 10,000 0 High Service Emergency Flooding System 5,000 0 Structural-Mechanical Upgrades 0 45,000 Main Valve Replacement 0 15,000 Large Meter Replacement 0 15,000 New Services 0 9,000 Replacement Services 0 18,000 Complete Second Avenue 0 130,800 Complete Third Avenue 0 100,000 TOTAL 745,700 1,033,500 EQUIPMENT Wheel Loader 195, ,000 Utility Truck Replacement #34 35,000 35,000 TOTAL 230, ,000 GRAND TOTAL $4,149,500 $6,409,100 The budget reflects the continued effort to maintain as many services as possible and accomplish some capital projects in an environment of State revenue sharing losses, decreased taxable values and continually rising employee benefit costs. Health care and pensions are the most costly benefits in the budget. Effort has been put into reducing health care costs, including cost sharing by the employees which will be up to 20% on July 1, The City s contribution to the pension program decreased from $738,836 in to $722,318 in Though the contribution is lower than the prior year, it is higher than expected. The system has gone from a funding level of 136.2% in 2001 to 86.3% as of December, The largest source of revenue for the City comes from property taxes. The City s total taxable value decreased from $254,592,050 in 2015 to $235,934,419 in 2016; a decrease of approximately 7.33% due to Industrial personal property exemptions. The State has informed all municipalities that loss of revenue for personal property taxes will be reimbursed fully. 6

11 The Fire/Ambulance Department has increased revenues through new programs and services such as the long-distance transfers of critical care patients. The State revenue sharing is the third largest revenue source and brought in $1.15 million in For comparison, the City received $1.75 million in Respectfully Submitted, Greg E. Sundin City Manager Karen L. Hebert City Clerk/Treasurer/Finance Director 7

12 CITY OF ALPENA 8

13 City of Alpena CREATING THE FUTURE EXECUTIVE SUMMARY The City Council of Alpena met on April 18 and 25, 2009 to develop a vision for the City, identify the values that are important guiding principles for the City, and to develop a strategic plan identifying key priorities for the City for the next three to five years. Several community members also participated in the April 18 meeting. The group identified 21 key strategies for achieving the vision. After a rigorous prioritization process, five strategies were selected as critical areas for focus in the next three to five years. Build strong understanding of and consensus for what is happening in Alpena Ensure that policies support the vision and move Alpena forward (ordinances, charter, etc.) Promote and protect natural resources Establish a coordinated economic development plan & strategy Identify a clear target market (who we are tourism, manufacturing, seniors, other) Participants also identified six strategies that are important to continue to perform well. As foundational strategies, these are critical to maintain. Strong essential services Strong infrastructure Adequate resources Identify all possible areas of funding Public and private partnerships Educated staff, board and council VALUES Understanding an organization s values is important because these represent the nonnegotiable behaviors that will govern its activities and employees. Council members, staff, and community members identified seven important values for the City, defining them as shown below. Honesty and Integrity We are transparent always. As Individuals. We say what we mean and do what we say. We avoid hidden or personal agendas. We act in a selfless manner. 9

14 As a City. We encourage openness, through meetings, communication channels and discussions. We share the information we can, and trust others when they cannot share information. We say what we mean and do what we say. Accountability We accept responsibility for our actions. As individuals We provide explanations, not excuses. We know who to direct others to. We are available and respectful of others. As a City We are open and transparent. We have clearly defined responsibilities for council and staff. We have a comprehensive plan and we live by our plan. Responsibility We do the right things, in the right way, at the right time. As individuals We model accountability. We demonstrate our commitment. We are proud of our accomplishments. As a City We practice environmental stewardship. We are service oriented, with a strong referral and support network. We build inclusive and collaborative relationships. Trust We have confidence that everyone involved will do the right thing. As individuals We are willing to be open and vulnerable. We accept each other s actions without doubt. We are consistent in our actions. As a City We encourage an open door policy, with full disclosure whenever appropriate. We are transparent and share information freely with our community. We provide opportunities for public feedback through surveys, our newsletter, and our website. 10

15 Safety We protect our community and employees from harm. As individuals We provide funding for safety initiatives. We are knowledgeable about safety practices. We enforce safety laws, ordinances and regulations. As a City We educate the public about safety practices. We update our ordinances to encourage safe practices. We issue warnings and/or tickets when necessary to encourage safe practices. Leadership We are willing to take responsibility for making things happen. As individuals We demonstrate strength of character. We have strong convictions. We are willing to be involved. As a City We cooperate with other governmental units. We demonstrate fiscal responsibility. We listen to the public and understand its needs. Competence We have the ability (through training and experience) to do things well. As individuals We participate in ongoing, continuous education. We demonstrate a positive attitude toward learning. We are dedicated to performing tasks well. As a City We budget for continuing education. We attend classes and seminars. We identify and hold each other to clear standards of performance. 11

16 VISION Understanding where an organization is going is a critical part of successful change. Council members, staff, and community members participated in a visioning exercise, which resulted in eight major themes that are important for the City in the future. Vibrant Downtown Small Town Feel Business & Commerce Consolidation of Government Services Higher Education Economic Diversity Waterfront Development Technology Infrastructure 12

17 CREATING THE FUTURE Obstacles Looking back from great success, what were the obstacles that had to be overcome to achieve the vision for the City of Alpena? Council members and staff identified the following key obstacles. Lack of $/budget Lack of cooperation (internal & external) Community apathy Public Opinion Policies (lack of, limiting, too much) Turf battles (government and agencies) Lack of resources (time, staff, money) Fear (failure, unknown, ridicule, re-election) Small Group Minority/Vocal Majority Politics Close-Minded Narrow Thinking Image (self & external) Pre-conceived ideas Having to do more with less "No" Boundary constraints / lack of room Limited staff, time, burnout Lack of citizens taking ownership Disconnect between staff and elected officials "Alpena mentality" - not good enough A discussion of the Obstacles allowed for clearing the air and served as a springboard for looking forward. Enablers What are the things we have going for us now that can help us create the City that we want? Council members and staff focused on the question, It s five years from now. You have had great success. What enablers were available that helped the City to achieve its great success? What resources did you take advantage of? The group identified the following enablers. Professional staff & council Partnerships o Public o Private 13

18 Built trust & core values Survival ability/adaptability Innovative & creative thinking Knowledge and innate ability Redeveloped downtown Natural resources Positive political endorsements "Get it done" mentality Cultural/recreational infrastructure Leadership Safety Manufacturing base Trust Volunteers/community spirit Technology Better service Cooperation amongst "powers that be" Grants STRATEGIC PROFILE Having considered the obstacles to success and possible resources that could be employed to achieve the vision for the City, participants then considered possible strategies that could be implemented to achieve success. After considering many possible strategies, participants identified 21 strategies for success. A. Educated staff, boards, council, etc. (training, workshops, abilities, skills) B. Built strong consensus and understanding for ideas (joint workshops, staff, council, community) - good communication with staff about what's happening C. Multiple opportunities for community involvement (solicited public input, listened with an open mind) D. Policies that support the vision and move us forward (ordinance, charters, etc.) E. Clear target market (who we are - tourism, manufacturing, other, seniors) F. Strong essential services (police, fire etc.) G. Strong infrastructure H. Great housing options (green/redeveloped/new) I. Great communication with state and federal legislators and agencies J. Partnerships - public and private (townships, county, MDOT, schools, service organizations, grants, etc.) K. Clear organizational priorities and goals L. Coordinated economic development plan & strategy M. Adequate resources - work together, committed to right things N. Marketed Alpena's assets O. Promoted and protected natural resources P. Found all available sources of funding (grants, private, public internal, external) 14

19 Q. Consolidated government services R. Encouraged employees input and participation S. Communicate information to public effectively (use technology, etc.) T. Empower citizens to find their own solutions and work together U. Capitalize on Alpena's small town feel Strategic Rankings The 21 strategies were ranked and plotted using Consensys technology. They were viewed from two perspectives. 1. Importance Looking back from great success, having implemented all of these strategies, which were the most important in achieving the City s vision? 2. Current Performance How well are you currently performing this strategy, as compared to where it needs to be? The following chart is an opportunity profile displaying the results of the evaluation. Letters on the chart correspond with the letters shown in the list of strategies. Profile Interpretation The items with the green rectangle around them are the most important strategies to be addressed first. 15

20 High-Leverage Opportunities Five strategies emerged as high-leverage opportunities (high importance, low performance). They are: Built strong consensus and understanding for ideas (B) Policies that support the vision and move us forward (D) Coordinated economic development plan & strategy (L) Clear target market (E) Promote & protect natural resources (O)* (note: this was moved to high-leverage because there is a clear discrepancy between the council s and staff s perception as to current performance see Appendix 1). Foundational Strategies Nine additional strategies (in blue) were identified as foundational strategies that must be continued. These are strategies that are important to continue, as they are foundational to the success of the City. Strong essential services (F) Strong infrastructure (G) Found all available sources of funding (P) Adequate resources (M) Public and private partnerships (J) Educated staff, board, and council (A) Clear organizational goals and objectives (K)* (moved to foundational based on discussion and consensus that action planning on the high-leverage opportunities would address performance issues on this strategy). Communicate information to public effectively (S) Multiple opportunities for community involvement (C) Mid-Term Opportunities (24-36 months) Seven additional strategies (in red) were identified as mid-term opportunities that should be explored. While these will take slightly longer to implement, research should be started soon. As performance improves on the high-leverage opportunities, these strategies are likely to increase in importance. Marketed Alpena s assets (N) Encouraged employees input and participation (R) Capitalize on Alpena s small town feel (U) Consolidated government services (Q) Great communication with state and federal officials and agencies (I) Great housing options (H) Empower citizens to find their own solutions and work together. (T) 16

21 FIVE BOLD STEPS When all of the activities from the strategic planning meetings are combined, the result was the following drawing that represents the vision and plan for the City. 17

22 ACTION PLANS Action plans were created for the five high-leverage strategies. These plans will need to be updated on a regular basis as progress takes place. Build Strong Understanding and Consensus WHO: Staff City Council What: Face to face meetings between council and staff When: Semi-annually or quarterly How: Specific meeting times with council / work session type environment. Set up specific times when staff is available for council interaction. Measurement: Comfort level between staff and the community (based on direction going) WHO: Manager Staff What: Manager and key staff member meetings When: Bi-weekly with all key department heads; as needed for specific issues How: Set regular meeting times (block on calendars) Measurement: Comfort level between staff and the community (based on direction going) WHO: Public Staff/City Council What: Further promote existing communication channels When: Ongoing How: Letters, s, public comment meetings, public information meetings, on-site meetings, presentations, Internet Measurement: Comfort level between staff and the community (based on direction going) WHO: City Other Governmental Agencies What: Meet with appropriate government officials as needed for specific actions When: Dictated by need based upon specific issues How: As appropriate and as needed Measurement: Comfort level between staff and the community (based on direction going) Policies that Move Us Forward WHO: City Attorney, Appropriate Staff, Council, Community What: Update city policies and charter to align with our vision; Review policies, ordinances, and charter to identify sections that are inconsistent or interfere; Develop new language When: Review within 180 days Rewrite within 180 days after review is completed Coordinate charter revisions with scheduled elections Measurements: When adopted or approved by Council When passed by the electorate 18

23 Coordinated Economic Development Plan/Strategy WHO: Area wide economic development process. Council, staff, citizens DDA, Target, CVB, business community What: Determine what we are targeting and build consensus about what we re looking for Modify zoning ordinances, etc. to help promote economic development Identify which tax incentives we want to approve based upon our economic development goals When: Need to begin immediately establish within 6-9 months Zoning done by August/September 2009 Measurements: Zoning completed Promote Natural Resources WHO: City council, DDA, CVB, individual citizens, very involved peer groups What: Promote educational programs in both government and individuals Better communicate with agencies Market Alpena s water facilities/culture (lakes, rivers, amenities) Strive for cleaner beaches and lakes When: As soon as possible long term Education institute fairly quickly Some things take more funding or planning Work on long-term as finances allow Measurements: Scientific sampling and studies Waste stream collection records Recycling collection records Public surveys Sniff tests Level of cleaner streets (protect catch basins) Reduction of salt Seeing fewer non-redeemable containers along streets and roadways Tourism surveys More people on beaches 19

24 Protect Natural Resources WHO: MDEQ, EPA, Large/small industry, private citizens, council, other environmental protection agencies What: Better communication with agencies Government and public education Offer solutions for pollution Incentives for environmental responsibility Better understanding of economic/ environmental costs and impact Seek ways to make environmental responsibility cost effective When: As soon as possible long term Education institute fairly quickly Some things take more funding or planning Work on long-term as finances allow Measurements: Scientific sampling and studies Waste stream collection records Recycling collection records Public surveys Sniff tests Level of cleaner streets (protect catch basins) Reduction of salt Seeing fewer non-redeemable containers along streets and roadways Tourism surveys More people on beaches Clear Target Market WHO: What/When: City council, staff, Public citizens, Chamber, CVB, DDA, Businesses, DNR, Sportsmen, media (involved), environmental, seniors, hospital, college, K-12, intergovernmental partners, CRTC, Airport, State & Federal representatives, NEMCOG, contractors, manufacturers, Target didn t intentionally exclude anyone Co-champions Staff, elected 30 days Create / invite / organize the Kings & Queens meeting in a workshop type session. Outside facilitator. Review recent plans Brainstorm what we want Alpena to be 120 days Identify opportunities for target market create public input forum Measurements: Agreed upon target markets 20

25 CONSENSUS While it is important to look at the overall voting results, it is equally important to consider the level of agreement for each strategy. Appendix 1 includes a complete set of diversity profiles, showing the average votes for staff members as compared to council members. In most cases, there is significant agreement among the groups (same quadrant = general agreement). Where there are significant differences, additional dialogue should be considered. CONCLUSION AND RECOMMENDATIONS There is much work to be done to turn these action plans into reality. The City is encouraged to add these items to quarterly Council agendas for the purpose of following up and keeping the focus on the important priorities that have been established. 21

26 NOTICE OF PUBLIC HEARING ON PROPOSED CITY BUDGET Notice is Hereby Given that a Public Hearing on the proposed City Budget will be held on Monday, May 16, 2016, beginning at 7:00 p.m., during the regular Municipal Council meeting at the Alpena City Hall, 208 North First Avenue, Alpena, Michigan The Municipal Council will also consider amendments to the City Budget. The proposed City Budget is available for public examination in the office of the City Clerk, City Hall, Alpena, Michigan and online at All persons attending the hearing will have the opportunity to provide written and/or oral comments and ask questions concerning the entire budget. In addition, written comments may be submitted to the City Clerk prior to the public hearing. The property tax millage rate proposed to be levied to support the proposed budget will be a subject of this hearing. CITY OF ALPENA By: Karen Hebert City Clerk/Treasurer/Finance Director 22

27 BUDGET ADOPTION RESOLUTION Moved by Councilman Nowak, seconded by Councilman Sexton, that the Budget be adopted; that the Administrative Salaries and Fringe Benefits for be adopted; and that the Comprehensive Fee Schedule be adopted, with the revised fees effective July 1, 2016, and fees proposed for revision requiring an ordinance change be effective upon the effective date of the ordinance amendment. Carried by vote as follows: Ayes: Nays: Absent: Waligora, Johnson, Nielsen, Nowak, and Sexton None None I, Karen Hebert, City Clerk of the City of Alpena, DO HEREBY CERTIFY: that the above is a true copy of a resolution adopted by the Municipal Council at a regular meeting held May 16, Karen Hebert City Clerk 23

28 RESOLUTION NO APPROPRIATIONS RESOLUTION BE IT RESOLVED, that the expenditures for the fiscal year, beginning July 1, 2016, and ending June 30, 2017, are hereby appropriated as follows: GENERAL General Government $2,784,172 IT 330,948 Building Authority 129,218 Cemetery 143,271 Police 1,993,467 Fire 1,723,497 Ambulance 1,837,712 Public Works 454,730 Light Department 218,852 Parks and Recreation 571,477 Other Financing Uses 300,000 TOTAL $10,487,344 MAJOR STREET FUND $3,595,418 LOCAL STREET FUND $ 622,598 MARINA FUND $ 118,070 TREE/PARK IMPROVEMENT $ 0 DOWNTOWN DEVELOPMENT AUTHORITY #2 $ 128,804 DOWNTOWN DEVELOPMENT AUTHORITY #5 $ 43,511 AUTHORITY FOR BROWNFIELD REDEVELOPMENT $ 0 BUILDING OFFICIAL $ 178,357 BUDGET STABILIZATION $ 25 BUILDING AUTHORITY DEBT FUND $ 129,818 CAPITAL IMPROVEMENT FUND $ 200,500 BROWNFIELD CAPITAL PROJECTS $ 32,649 SEWAGE FUND $3,077,969 WATER FUND $3,142,935 BROWNFIELD REMEDIATION REVOLVING FUND $ 0 24

29 BE IT FURTHER RESOLVED: that the revenues for the fiscal year are estimated as follows: GENERAL FUND General Government $5,190,207 City Hall 1,864,947 IT 92,421 Cemetery 56,600 Police 126,803 Fire 108,636 Ambulance 2,413,738 Public Works 261,364 Light Department 3,000 Parks and Recreation 9,500 Other Financing Sources 0 $10,127,216 Accumulated Surplus 360,128 TOTAL $10,487,344 MAJOR STREET FUND Revenues $3,261,602 Other Financing Sources 0 Accumulated Surplus 333,816 TOTAL $3,595,418 LOCAL STREET FUND Revenues $ 300,201 Other Financing Sources 200,000 Accumulated Surplus 122,397 TOTAL $ 622,598 MARINA FUND Revenues $ 129,925 Other Financing Sources 0 Accumulated Surplus (11,855) TOTAL $ 118,070 TREE/PARK IMPROVEMENT FUND Revenues $ 200 Other Financing Sources 0 Accumulated Surplus (200) TOTAL $ 0 DOWNTOWN DEVELOPMENT AUTHORITY #2 Tax Increments $ 114,254 Other Financing Sources 0 Accumulated Surplus 14,550 TOTAL $ 128,804 25

30 DOWNTOWN DEVELOPMENT AUTHORITY #5 Tax Levy Mills $ 44,835 Other Financing Sources 0 Accumulated Surplus (1,324) TOTAL $ 43,511 AUTHORITY FOR BROWNFIELD REDEVELOPMENT Revenues $ 1,257 Other Financing Sources 0 Accumulated Surplus (1,257) TOTAL $ 0 BUILDING OFFICIAL Revenues $ 151,764 Other Financing Sources 25,000 Accumulated Surplus 1,593 TOTAL $ 178,357 BUDGET STABILIZATION FUND Revenues $ 25 Other Financing Sources 5,000 Accumulated Surplus (5,000) TOTAL $ 25 BUILDING AUTHORITY DEBT FUND Revenues $ 5 Other Financing Sources 129,818 Accumulated Surplus (5) TOTAL $ 129,818 CAPITAL IMPROVEMENT FUND Revenues $ 400 Other Financing Sources 0 Accumulated Surplus 200,100 TOTAL $ 200,500 BROWNFIELD CAPITAL PROJECTS Revenues $ 42,171 Other Financing Sources 0 Accumulated Surplus (9,522) TOTAL $ 32,649 SEWAGE FUND Revenues $3,135,595 Other Financing Sources 0 Accumulated Surplus (57,626) TOTAL $3,077,969 26

31 WATER FUND Revenues $3,083,620 Other Financing Sources 0 Accumulated Surplus 59,315 TOTAL $ 3,142,935 BROWNFIELD REMEDIATION REVOLVING FUND Revenues $ 0 Other Financing Sources 0 Accumulated Surplus 0 TOTAL $ 0 AND BE IT FURTHER RESOLVED: that mills be levied on the taxable valuation for the purpose of paying the General Fund operating expenses for the fiscal year; and BE IT FURTHER RESOLVED: that mills (voted millage) be levied on the taxable valuation for the purpose of meeting Dial-A-Ride Operations for the fiscal year; and BE IT FURTHER RESOLVED: that mills be levied on the taxable valuation in the Downtown Development District as per resolution adopted by the Downtown Development Authority on April 12, 2016, for the purpose of paying Project 5 expenses for the Downtown Development District for the fiscal year; and BE IT FURTHER RESOLVED: that the City Treasurer is hereby authorized to collect mills for general operation, mills for Dial-A-Ride operations, making a total of mills; and also mills be collected on the taxable valuation in the Downtown Development District for Project 5 requirement; and BE IT FURTHER RESOLVED, pursuant to Section of the Michigan General Property Tax Act and Section of the Charter of the City of Alpena, the City Treasurer shall add to all summer taxes paid after the 31 st of July a three percent (3%) collection fee and onehalf of one percent (1/2%) for each and every calendar month or fraction thereof that such taxes remain unpaid; and BE IT FURTHER RESOLVED, pursuant to Section of the Michigan General Property Tax Act and Section of the Charter of the City of Alpena, the City Treasurer shall add to all winter taxes paid between February 15 th and February 28 th a three percent (3%) late penalty charge; and BE IT FURTHER RESOLVED: that the City Manager and City Clerk/Treasurer/Finance Director are hereby authorized to make budgetary transfers within the departments established through this budget, and that all transfers between departments or funds may be made only by further action of the Municipal Council, pursuant to the provisions of the Michigan Uniform Accounting and Budgeting Act. 27

32 Adoption of the above resolution was moved by Councilman Nowak, seconded by Councilwoman Johnson and carried by vote as follows: Ayes: Nays: Absent: Johnson, Nielsen, Nowak, Sexton, and Waligora None None I, Karen Hebert, City Clerk of the City of Alpena, DO HEREBY CERTIFY: that the above is a true copy of a resolution adopted by the Municipal Council at a regular meeting held May 16, Karen Hebert City Clerk 28

33 GENERAL FUND Revenues Ambulance Public Works 2.49% Light 0.03% Parks and Recreation 0.09% Fire 1.04% Police 1.21% Cemetery 0.54% Other Financing Sources 0.00% Accumulated Surplus 3.43% I.T. 0.88% General Government 49.49% City Hall 17.78% General Government $ 5,190, % City Hall 1,864, % IT 92, % Cemetery 56, % Police 126, % Fire 108, % Ambulance 2,413, % Public Works 261, % Light 3, % Parks and Recreation 9, % Other Financing Sources % Accumulated Surplus 360, % Total Revenues & Other Sources $ 10,487, % 29

34 GENERAL FUND Expenditures Parks & Recreation 5.45% Other Financing Uses 2.86% Contingency 0.00% Light 2.09% Public Works 4.34% General Government 26.54% Ambulance 17.52% I.T. 3.16% Building Authority 1.23% Fire 16.43% Police 19.01% Cemetery 1.37% General Government $ 2,784, % IT 330, % Building Authority 129, % Cemetery 143, % Police 1,993, % Fire 1,723, % Ambulance 1,837, % Public Works 454, % Light Department 218, % Parks & Recreation 571, % Other Financing Uses 300, % Contingency % Total Expenditures and Other Uses $ 10,487, % 30

35 2016 TRUTH-IN-ASSESSMENT The State of Michigan enacted Public Act 213 of 1981 on December 31, This law provides for a reduction in the authorized millage rate if the City's State Equalized Value exceeds its assessed value. Property taxes levied should not exceed that which would have been levied based on the City's assessed values. Calculations for the 2016 Truth-In-Assessment reveal the City is not penalized for assessing equal to the S.E.V. Old Formula: (Prior to 1995) Total 2016 Assessed Value = Total 2016 S.E.V. Truth in Assessing rollback $ 238,409,900 = $ 238,409,900 Starting in 1995, the language of MCL resulted in a different formula for calculating the Truth in Assessing Rollback because, starting in 1995, taxes were levied against Taxable Value, not S.E.V. The following is the formula for calculating the Truth in Assessing rollback for New Formula: 2016 Taxable Value based on Assessed Value = Truth in Assessing rollback 2016 Taxable Value based on S.E.V. $ 229,269,714 = $ 229,269,714 31

36 2016 TRUTH-IN-TAXATION Effective February 9, 1982, the State of Michigan approved Public Act No. 5 of 1982 or as it is generally known, Truth-In-Taxation. Briefly, this law states that the ensuing fiscal year tax revenues, less additions, cannot exceed the concluding fiscal year tax revenue. If it does, then the ensuing fiscal year millage is rolled back so that the tax revenues generated will be the same as the concluding fiscal year. The figures are provided by the assessor's office and confirmed by the county equalization director. These reduced millage rates can be overridden by holding a truth in taxation hearing or discussing it at the annual budget meeting Base Tax Rate Computation Formula: 2015 Taxable Value Taxable Value Losses 2016 Taxable Value Taxable Value Additions Real Property Losses Additions Personal Property 201 = $ 586, = $ 469, = 774, = 898, = 706, = 1,017,452 Total Real = $ 2,067,771 Total Real = $ 2,386,114 Losses Additions Total Personal = $ 24,055,600 Total Personal = $ 5,248,600 Losses Additions Grand Total = $ 26,123,371 Grand Total = $ 7,634,714 Computation: $ 247,418,964 26,123,371 $ 228,197,814 7,634,714 $ 221,295,593 = Base Tax Rate Fraction $ 220,563,100 (Cannot exceed ) 2016 Base Tax Rate Fraction = Maximum Millage rate = Base Tax Rate = x = Dial-A-Ride millage rate =.6500 x = Dial-A-Ride Base Tax Rate =

37 2016 HEADLEE TAX LIMITATION In 1978, the voters of Michigan approved the Constitutional Amendment Proposal E (the Headlee Amendment). The resulting change in the Constitution and its implementing statutes is a formula that limits the maximum tax rates that may be levied by local governments. These limitations do not apply to pension and debt service levy authorizations. Based upon current estimates, the tax limitation formula will result in no adjustment for 2016 tax rates, as follows: HEADLEE 2016 Millage Reduction Fraction Formula: (2015 Taxable Value - Losses) x CPI = M.R.F 2016 Taxable Value - Additions (247,418,964 26,123,371 x = ,197,814 7,634, Headlee Millage Reduction Fraction = (Cannot exceed ) History of Headlee Reductions City Operating Maximum Charter Millage Rate reduction fraction x Maximum Millage = through 1999 reduction fraction x reduction fraction x Maximum Millage = & 2002 reduction fraction x reduction fraction x Maximum Millage = reduction fraction x Maximum Millage = through 2015 reduction fraction x Maximum Millage Rate = Dial-a-Ride 1999 Maximum Millage reduction fraction x Maximum Millage = reduction fraction x Maximum Millage = Renewed by Vote Maximum Millage reduction fraction x reduction fraction x Maximum Millage = reduction fraction x Maximum Millage = reduction fraction x Maximum Millage = Renewed by Vote = through 2015 reduction fraction x Maximum Millage Rate =.6500 Comm. Events Center 2002 Maximum Millage reduction fraction x Maximum Millage = reduction fraction x Maximum Millage = through 2007 reduction fraction x Maximum Millage Rate =.2091 Millage Expired 2007 No levy Since

38 DOWNTOWN DEVELOPMENT AUTHORITY 2016 TRUTH-IN-ASSESSMENT The State of Michigan enacted Public Act 213 of 1981 on December 31, This law provides for a reduction in the authorized millage rate if the Downtown Development Authority s (DDA) State Equalized Value exceeds its assessed value. Property taxes levied should not exceed that which would have been levied based on the DDA s assessed values. Calculations for the 2016 Truth-In-Assessment reveal the DDA is not penalized for assessing equal to the S.E.V. Old Formula: (Prior to 1995) Total 2016 Assessed Value = Total 2016 S.E.V. Truth in Assessing rollback $ 14,012,200 = $ 14,012,200 Starting in 1995, the language of MCL resulted in a different formula for calculating the Truth in Assessing Rollback because, starting in 1995, taxes were levied against Taxable Value, not S.E.V. The following is the formula for calculating the Truth in Assessing rollback for New Formula: 2016 Taxable Value based on Assessed Value = Truth in Assessing rollback 2016 Taxable Value based on S.E.V. $ 13,268,001 = $ 13,268,001 34

39 DOWNTOWN DEVELOPMENT AUTHORITY 2016 TRUTH IN TAXATION Effective February 9, 1982, the State of Michigan approved Public Act No. 5 of 1982 or as it is generally known, Truth-In-Taxation. Briefly, this law states that the ensuing fiscal year tax revenues, less additions, cannot exceed the concluding fiscal year tax revenue. If it does, then the ensuing fiscal year millage is rolled back so that the tax revenues generated will be the same as the concluding fiscal year. The figures are provided by the assessor's office and confirmed by the county equalization director. These reduced millage rates can be overridden by holding a truth in taxation hearing or discussing it at the annual budget meeting Base Tax Rate Computation Formula: 2015 Taxable Value Taxable Value Losses 2016 Taxable Value Taxable Value Additions Real Property Losses Additions 201 = $ 193, = $ 104, = = = = -0- Total Real = $ 193,901 Total Real = $ 104,140 Personal Property Losses (x ) Additions (x ) Total Personal = $ 104,200 Total Personal = $ 120,900 Losses Additions Grand Total = $ 298,101 Grand Total = $ 225,040 Computation: $ 13,302, ,101 $ 13,268, ,040 $ 13,004,322 = Base Tax Rate Fraction $ 13,042, Base Tax Rate Fraction = (Cannot Exceed ) 2015 Millage rate = Base Tax Rate = x =

40 DOWNTOWN DEVELOPMENT AUTHORITY 2016 HEADLEE TAX LIMITATION In 1978, the voters of Michigan approved the Constitutional Amendment Proposal E (the Headlee Amendment). The resulting change in the Constitution and its implementing statutes is a formula that limits the maximum tax rates that may be levied by local governments. These limitations do not apply to pension and debt service levy authorizations. Based upon current estimates, the tax limitation formula will result in no adjustment for 2016 tax rates, as follows: HEADLEE Formula: 2016 Millage Reduction Fraction (2015 Taxable Value - Losses) x CPI = M.R.F 2016 Taxable Value - Additions (13,302, ,101) x = M.R.F 13,268, ,040 13,004,322 x = M.R.F. 13,027,161 13,043,335 = ,042, Headlee Millage Reduction Fraction = (Cannot exceed ) History of Headlee Reductions Downtown Development Authority Maximum Authorized Millage Rate through 2014 Millage Reduction Fraction Maximum Millage Rate Millage Reduction Fraction Maximum Millage Rate Millage Reduction Fraction Maximum Millage Rate

41 TAX RATES BY YEAR On Each $1,000 of Taxable Valuation Fiscal Year Ending June 30, CITY OF ALPENA General Debt - G.O Debt - Public Safety Dial-A-Ride Community Events Center Subtotal DOWNTOWN DEVELOPMENT AUTHORITY Only charged to properties within the DDA ALPENA COMMUNITY COLLEGE ALPENA PUBLIC SCHOOLS State Education Tax Operating Extra-Voted-Local * * * * * * * * * Debt Enhancement Subtotal EDUCATIONAL SERVICE DISTRICT ALPENA COUNTY County Operations Hospital Bond Issue Ambulance Library Recreaton Veterans Senior Citizens Subtotal (1) TOTAL TAXES PER $1,000 TAXABLE VALUE ** ** ** ** ** ** ** ** ** *** *** *** *** *** *** *** *** *** (1) Alpena County's fiscal years end December 31 prior to each June 30 listed herein. * Charged to non-principal residences only. ** Non-Principal Residence property tax rate. *** Principal Residence property tax rate. Source: Alpena City Assessor s Office

42 CITY MILLAGE RATES TAX YEARS Millage Rate Tax Years General Debt Dart Community Events

43 TAXABLE VALUE HISTORY Year Total City Taxable Change Amount Percent Valuation From Prior Year Change ,757, ,917,822 4,160, % ,358,425 8,440, % ,635,518 22,277, % ,038,962 5,403, % ,411,200 1,372, % ,463,100 51, % ,068, , % ,259,500 1,190, % ,844, , % ,042, , % ,224,700 2,182, % ,311,300 2,086, % ,920,200 3,608, % ,933,200 8,013, % ,181,100 1,247, % ,751,100 12,570, % ,800,200 8,049, % ,040,476 10,240, % ,199,796 8,159, % ,770,430 8,570, % ,247,078 12,476, % ,578,994 8,331, % ,597,633 1,018, % ,354,733 11,757, % ,488,060-2,866, % ,361,991 1,873, % ,148,258 8,786, % ,126,284 7,978, % ,987,838 8,861, % ,903,917 7,916, % ,914,270 7,010, % ,681, , % ,187,617-8,494, % ,563,355-11,624, % ,724,155-13,839, % ,526,422-2,197, % ,044,751-1,481, % ,592,050 8,547, % ,934,419-18,657, % Prior to 1983, only the ad valorem roll totals were included. After 1983, ad valorem roll and special act roll totals are included. In 2014, Commercial Personal Property was exempted. In 2016, Industrial Personal Property was exempted. Source: Alpena City Assessor's Office 39

44 TAXABLE VALUE HISTORY Prior to 1983, only the ad valorem roll totals were included. After 1983, ad valorem roll and special act roll totals are included. In 2014, Commercial Personal Property was exempted. In 2016, Industrial Personal Property was exempted. Source: Alpena City Assessor s Office

45 CITY OF ALPENA 2016 STATE EQUALIZED VALUE = $ 238,409, TAXABLE VALUATION = $ 229,269,714 Name Taxable Real Prop. Taxable Pers. Prop. Total Taxable Percent of Total Taxable *Lafarge Corporation $ 13,996,443 $ 3,182,200 $ 17,178, % Decorative Panels Int. 2,235,700 2,875,200 5,110, % Besser Company 2,175, ,400 2,403, % ATI Casting Service 1,464, ,300 2,319, % Panel Processing, Inc. 1,348, ,300 1,835, % *Miscellaneous Industry 6,681,184 6,054,400 12,735, % Total $ 27,901,955 $ 13,680,800 $ 41,582, % Utilities Alpena Power Company $ 0 $ 6,053,200 $ 6,053, % DTE Gas Co. 0 1,111,100 1,111, % Charter Communications 0 609, , % Thunder Bay Power Co. 0 18,200 18, % Total Utilities $ 0 $ 7,792,100 $ 7,792, % Breakdown by Class Industrial & Utility Total $ 27,901,955 $ 21,472,900 $ 49,374, % Commercial Total $ 43,697,511 $ 5,073,300 $ 48,770, % Residential Total $ 131,124,048 $ 0 $ 131,124, % Grand Total $ 202,723,514 $ 26,546,200 $ 229,269, % Percentage 88.42% 11.58% % *Excludes Industrial Facilities Valuation Ad Valorem Roll Only, No CRA, IFT, DNR PILT, or NEZs included. Source: Alpena City Assessor s Office 41

46 CITY OF ALPENA Industrial Facilities Tax Roll 2016 I.F.T. Equivalent S.E.V. = $ 4,392, I.F.T. Taxable Value = $ 4,392,100 IFT - After Proposal A Name Real Property Taxable Value Personal Property Taxable Value Total Taxable value Percent Lafarge Corporation 723,500 3,504,500 4,228, % Douville-Johnston 133, , % ALRO Steel Corp. 0 30,300 30, % Total IFT $ 857,300 $ 3,534,800 $ 4,392, % Percentage 19.52% 80.48% % Renaissance Zone Roll 2016 Equivalent S.E.V. = $ 3,920, Taxable Value = $ 3,732,259 Real Property Pers. Property Total Taxable Taxable Value Taxable Value Value Renaissance Zone $ 3,421,175 $ 215,900 $ 3,637,075 Renaissance Zone DDA $ 91,184 $ 4,000 $ 95,184 Total Renaissance Zone $ 3,512,359 $ 219,900 $3,732,259 Neighborhood Enterprise Zone Roll 2016 State Equalized Value = $ 1,127, Taxable Value = $ 859,985 Commercial Rehab. Act Roll 2016 State Equalized Value = $ 1,375, Taxable Value = $ 1,354,828 DNR Payment in Lieu of Taxes Roll 2016 State Equalized Value = $ 66, Taxable Value = $ 57,792 Sr. Cit./Disabled Housing PILT Roll 2016 State Equalized Value = $ 1,097, Taxable Value = $ 1,071,900 Source: City of Alpena, Assessor s Office 42

47 CITY OF ALPENA 2016 TOP TEN TAXPAYERS Taxpayer Real Property Taxable Value Personal Property Taxable Value Total 2016 Taxable Value Estimated City Taxes Percent of Total Taxable *-Lafarge $ 14,719,943 $ 6,686,700 $ 21,406,643 $ 313, % Alpena Power Co. 572,658 6,053,200 6,625, , % Decorative Panels Int. 2,235,700 2,875,200 5,110,900 82, % American Process Ener. 776,522 3,233,700 4,010,222 65, % Besser Company 2,175, ,400 2,403,062 39, % ATI Casting Service 1,464, ,300 2,319,400 37, % Vista Properties Corp. 1,888, ,000 2,138,094 34, % Dyna Fab, Inc. 434,699 1,450,000 1,884,699 30, % Panel Processing, Inc. 1,348, ,300 1,845,166 29, % Alpena Hotel, LLC 1,598, ,900 1,767,069 28, % TOTAL $ 27,214,413 $ 22,296,700 $ 49,511,113 $ 1,010, % * Includes I.F.T. Total Taxable Value with IFT s, Obsolete Properties Rehabilitation, Neighborhood Enterprise Zone, DNR PILT, and Renaissance Zone = $ 235,934,419 NOTE: City taxes based on estimated 2016 Millage rate of & 2016 New Facility IFT Millage Rate of Source: Alpena City Assessor s Office 43

48 TAXABLE VALUATION BY TYPE 2016 Residential 55.94% Agricultural (DNR) 0.02% Utilities 3.30% Commercial 21.25% Industrial 19.49% Agricultural (DNR) $57, % Residential $131,984, % Industrial $45,974, % Commercial $50,125, % Utilities $7,792, % Total * $235,934, % *Includes Special Act Rolls Source: Alpena City Assessor s Office 44

49 TAXABLE VALUATION BY TYPE Year ,000, ,000, ,000, ,000, ,000, ,000,000 Taxable Valuation Residential Industrial Commercial Utilities Agricultural (DNR)

50 POPULATION TRENDS Population 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, *2012*2013*2014* Source: Census Bureau Years *Estimate

51 SUMMARY OF TAX LEVY AND TAXABLE VALUATION BUDGET Over or (Under) TAX LEVY Before TIFA Deductions Includes IFT, NEZ, CRA, Ren. Zone & DNR PILT Operating $3,882, $3,676, ($205,930.06) Dial-A-Ride $155, $147, ($7,640.05) Debt $0.00 $0.00 $0.00 Debt - Fire/Police Bldg $0.00 $0.00 $0.00 Community Events Center $0.00 $0.00 $0.00 TAX RATE $4,038, $3,824, ($213,570.11) Operating Dial-A-Ride Debt Debt - Fire/Police Bldg Community Events Center Ad Valorem Taxable Value $239,217,496 $224,465,555 ($14,751,941) Industrial Facilities Tax. Value *New $4,597,100 $4,392,100 ($205,000) Rehabilitation $0 $0 $0 TOTAL IND. FACILITIES $4,597,100 $4,392,100 ($205,000) Renaissance Zone Tax. Value $8,201,468 $3,732,259 ($4,469,209) Neighborhood Ent. Zone T. V. $350,332 $859,985 $509,653 DNR PILT Taxable Value $57,621 $57,792 $171 Comm. Rehab. Act Roll $1,096,133 $1,354,828 $258,695 Ren. Zone, IFT Taxable Value $0 $0 $0 Non-Prof. Housing T. V. $1,071,900 $1,071,900 $0 TOTAL TAXABLE VALUE INCLUDING IFT, NEZ, DNR PILT, OPRA, REN. ZONE and NON -PROF. HOUSING $254,592,050 $235,934,419 ($18,657,631) Continued on next page 47

52 DOWNTOWN DEVELOPMENT AUTHORITY Over or (Under) **Taxable Valuation $13,415,155 $13,471,927 $56, Tax Levy = mills 2016 Tax Levy = mills $25, $26, $ *New Industrial Facilities Valuation subject to one-half of tax levy. **Levy authorized by resolution of Municipal Council pursuant to Ordinance creating Downtown Development Authority and District. Per the City's Tax Increment Financing Ordinance, the 2016 taxable value of the Downtown Development Authority District exceeds the initial base year taxable value creating captured taxable value of $2,823,567. Property taxes (City, county, etc.), except schools collected on the captured taxable value are paid to the DDA DDA to implement the approved Downtown Development Plan. The effect of this will be a reduction of property taxes available to the following funds: General Fund $ 45, Debt Fund No Levy - Expired 2008 Debt Fund-Bldg No Levy - Expired 2013 DART Fund $ 1, DDA Fund No. 5 No Levy - Expired 2009 Comm. Events No Levy - Expired 2007 TOTAL $ 47, Three Brownfield Redevelopment Authority Tax Increment Financing (BRA TIF) Plans were adopted that capture taxes from the various funds on the increase in taxable value over the base year amount. In the Thunder Bay CJD BRA TIF $823 is the incremental increase, in the Dean Arbour BRA TIF $1,071,610 is the incremental increase, and in the Holiday Inn Express BRA TIF $321,800 is the incremental increase. This will result in reductions to the General Fund of the following amounts: Thunder Bay CJD BRA General Fund $ Debt Fund No Levy - Expired 2008 Debt Fund-Bldg No Levy - Expired 2013 DART Fund $ 0.53 Comm. Events No Levy - Expired 2007 TOTAL $ Dean Arbour BRA TIF General Fund $ 17, Debt Fund No Levy - Expired 2008 Debt Fund-Bldg No Levy - Expired 2013 DART Fund $ Comm. Events No Levy - Expired 2007 TOTAL $ 18, Holiday Inn Express BRA TIF General Fund $ 5, Debt Fund No Levy - Expired 2008 Debt Fund-Bldg No Levy - Expired 2013 DART Fund $ Comm. Events No Levy - Expired 2007 TOTAL $ 5,

53 ANALYSIS OF HISTORY OF POVERTY EXEMPTIONS GRANTED IN CITY OF ALPENA AND IMPACT ON REVENUE 49 March Board July Board December Board Total Total Taxable Impact of Review of Review of Review Number Value on City # of # of T. V. # of # of T. V. # of # of T. V. of Exempted Revenues Year 100% Ex. Partial Ex. Exempted 100% Ex. Partial Ex. Exempted 100% Ex. Partial Ex. Exempted Exemptions $156, $0 0 0 $0 10 $156,832 -$2, $186, $22, $0 13 $208,358 -$3, $243, $0 0 0 $0 14 $243,941 -$3, $318, $0 0 0 $0 19 $318,150 -$5, $405, $72, $13, $490,954 -$7, $448, $140, $130, $719,373 -$11, $610, $266, $167, $1,044,080 -$16, $1,495, $278, $92, $1,866,126 -$30, $1,563, $128, $309, $2,001,816 -$32, $1,745, $311, $249, $2,307,424 -$37, $2,377, $206, $86, $2,670,438 -$43, $2,007, $179, $257, $2,443,546 -$39, $1,972, $120, $181, $2,273,800 -$36, $2,010, $70, $171, $2,252,672 -$36, $2,031, $143, $55, $2,229,662 -$36, $2,000, $89, $112, $2,202,649 -$35, * $1,971, $1,971,880 -$32, Totals $21,545, $2,029, $1,826, $25,401,701 -$344, *= Only March Board of Review totals available for this year. ANALYSIS OF HISTORY OF DISABLED VETERAN S EXEMPTIONS GRANTED IN CITY OF ALPENA AND IMPACT ON REVENUE March Board July Board December Board Total Total Taxable Impact of Review of Review of Review Number Value on City # of # of T. V. # of # of T. V. # of # of T. V. of Exempted Revenues Year 100% Ex. Partial Ex. Exempted 100% Ex. Partial Ex. Exempted 100% Ex. Partial Ex. Exempted Exemptions $0 0 0 $0 6 0 $214,472 6 $214,472 -$3, $277, $66, $15, $359,200 -$5, $321, $190, $51, $563,246 -$9, * $464, $464,398 -$7, Totals 25 0 $1,063, $0 6 0 $214, $1,277,869 -$18, *= Only March Board of Review totals available for this year.

54 HISTORY OF FORECLOSURES IN CITY OF ALPENA Year Commercial Foreclosures Residential Foreclosures Total for Year Total

55 CITY OF ALPENA WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM COUNTY OF ALPENA, STATE OF MICHIGAN 1998 WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM REVENUE BONDS ($4,000,000) CITY OF ALPENA WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM SERVICE AREA AND CUSTOMERS The City of Alpena Water Supply and Sewage Disposal System serves approximately 4,798 customers in a 8.7 square mile area of Alpena County. The City supplies its own water supply and sewage treatment. The System has not had any significant growth or reduction in the number of customers for the last 10 years. HISTORY OF WATER PURCHASED AND SOLD Fiscal Year Number of City Water Pumped Water Sold Ended June 30 Customers (in 1,000 gallons) (in 1,000 gallons) , , , , , , ,798 4, , , , , ,798 4, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,404 RATIO OF METERS FISCAL YEAR ENDED JUNE 30, 2015 NUMBER OF METERS RESIDENTIAL 91.5% COMMERCIAL/INDUSTRIAL 8.5% 100.0% 51

56 AVERAGE DAILY USE - WATER* Fiscal Year Ending Production Plant Average Daily Use , , , , , , , , , , , , , , , ,199 *In 1,000 gallons AVERAGE DAILY USE - SEWER* Fiscal Year Treatment Plant Ending Average Daily Use , , , , , , , , , , , , , , , ,340 *In 1,000 gallons 52

57 MAJOR USERS - 07/01/11 to 06/30/15 Volume of Water Used (in Customer 1,000 gallons annually)** Alpena Township 228,458 LaFarge Midwest 25,432 Sevan K. Inc. 4,997 Alpena Regional Medical Ctr. 16,122 Decorative Panels Int l 3,985 Alpena Schools 4,247 Alpena Hotel, Inc. 4,699 Tendercare 4,949 Alpena Dialysis 1,238 Alpena Housing Commission 5,228 **Also equal to the volume of sewer billed in thousand gallons BILLING AND COLLECTION PROCEDURES All users are billed quarterly. All bills are mailed the first of the month following the billing period. The users of the system have 15 days to pay without penalty. Delinquent customers are charged a 5% penalty on the unpaid balance. All delinquent accounts which are six months or more past due are certified by the City Treasurer to the City Assessor on a semi-annual basis and may be added to the July 1 tax bills. 53

58 FISCAL YEAR ENDED JUNE 30 HISTORICAL REVENUES AND EXPENDITURES WATER AND SEWER FUND OPERATING REVENUE OPERATING EXPENSES ADD BACK DEPRECIATION (NON-CASH EXPENSE) NET NON- OPERATING REVENUE (EXPENSES) SYSTEM REVENUES AVAILABLE FOR REVENUE BONDS 2015 $ 5,847,661 4,069, ,017 (146,770) 2,554, ,424,838 4,085, ,243 (159,716) 1,095, ,399,471 4,079, ,407 (149,827) 1,078, ,069,636 3,932, ,781 (255,401) 795, ,859,925 3,884, ,076 (267,336) 615, ,691,665 3,567, ,209 (263,213) 750, ,847,801 3,499, ,965 (218,076) 958, ,766,542 3,273, ,912 (79,750) 1,160, ,393,186 3,067, ,744 1,708,766 2,756, ,119,374 3,054, ,237 63, , ,070,024 2,956, , ,915 1,117, ,154,886 2,805, , ,728 1,251, ,019,582 2,783, ,671 90, , ,146,591 2,665, , ,427 2,057, ,048,264 2,577, ,213 1,144 1,054, ,841,624 2,267, , ,376 1,434,598 Source: Comprehensive Annual Financial Report of the City of Alpena WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM FUND EQUITY The System's fund equity (net assets) for the last five years has been as follows; Fiscal Year Ended June 30 Retained Earnings 2015 $ 24,193, ,562, ,382, ,213, ,331,837 Source: Comprehensive Annual Financial Report of the City of Alpena 54

59 55

60 FY CITY OF ALPENA CLASSIFICATION AND COMPENSATION STRUCTURE PAY GRADE CLASSIFICATION Building Inspector 36,636 38,470 40,302 42,138 43,970 45,801 47,635 2 Human Res. Administrator 43,099 45,449 47,794 50,136 52,481 54,832 57,177 Asst. Building Official Engineering Assistant 3 PW /Cemetery Div Head 48,009 50,686 53,367 56,041 58,715 61,401 64,071 4 Assessor 51,345 54,339 57,334 60,330 63,328 66,320 69,318 Asst City Engineer Building Official Dep Clerk/Treas/FD Planning & Dev Dir Deputy Chief/Fire Marshal 5 Fire Chief 58,176 62,054 65,932 69,812 73,883 77,572 81,447 Police Chief 6 City Engineer 63,042 67,247 71,448 75,654 79,859 84,062 88,260 Clerk/Treasurer/FD City Attorney 58,249 City Manager 95,041 Notes: 1) Classification 1-6, Pay Grades 1-6 represents a 2.0% increase for F/Y ) The City Attorney represents a 2.0% increase. 3) City Manager represents a 2.0% increase per the Manager Contract. 4) Step Increases to DPW/Cemetery Div. Head, Planning Dir., Assistant Building, & HR. 5) Building Inspector position is currently vacant. Fringe Benefit Changes 1) Employees will pay 20% of their health insurance premium. 2) All Insurances related to employee benefits will go out for bid in July to ensure the City is getting the best coverage for the employees and rates for the City. 3) The City will comply with all State and Federal requirements as to whether the employee is an hourly wage or an annual salary. 56

61 CITY COUNCIL COMPENSATION 2016 ANNUAL SALARIES: MAYOR - $6, COUNCIL MEMBERS - $4, The Compensation Committee meets once every two years with their last meeting in December of In December of 2013, they recommended a base pay for the Mayor and Council to include all meetings attended except the Board of Review. COMMITTEES/BOARDS: D.A.R.E. BOARD HUNT BOARD TARGET ALPENA DOWNTOWN DEVELOPMENT AUTHORITY (DDA) ALPENA AUTHORITY FOR BROWNFIELD REDEVELOPMENT (AABR) NEMCOG REGIONAL ECONOMIC DEV ADVISORY COMM (REDAC) TBNMS SANCTUARY ADVISORY COUNCIL (SAC) HISTORIC DISTRICT COMMISSION ALPENA AREA RECREATION COMMISSION (AARC) ALP CO CENTRAL DISPATCH POLICY & PROCEDURES COMM CITY PROPERTY COMMITTEE IG AIR/WATER QUALITY COMMITTEE IG ROADS IG COMMUNICATIONS IG PUBLIC SAFETY IG RECYCLING COMMITTEE ELECTION COMMISSION PERSONNEL COMMITTEE CIVIC CENTER COMMITTEE MEDICAL MARIJUANA COMMITTEE MML REGIONAL & BOARD MEETINGS MICHIGAN ARTS CULTURE NORTHEAST (MACNE) BOARD OF REVIEW VISIONING AND GOAL SETTING INTERGOVERNMENTAL COUNCIL (IGC) BOARD OF REVIEW: MEETINGS LESS THAN 1 HOUR = $10 MEETINGS 1 HOUR OR GREATER = $30 MEETINGS 3 HOURS OR GREATER = $60 MEETINGS 6 HOURS OR GREATER = $90 57

62 EMPLOYEE WAGES BY DEPARTMENT FOR FISCAL YEAR BEGINNING 07/01/2016 PUBLIC WORKS JOB CLASSIFICATION RATE PER HOUR LEAD MECHANIC TECHNICIAN I TECHNICIAN II TECHNICIAN III (2 Years) TECHNICIAN III (Start) CLERICAL JOB CLASSIFICATION RATE PER HOUR ACCOUNT CLERK (Start) ACCOUNT CLERK (2 Years) ACCOUNT CLERK (4 Years) CASHIER CLERK (Start) CASHIER CLERK (2 Years) CASHIER CLERK (4 Years) OFFICE CLERK (Start) OFFICE CLERK (2 Years) OFFICE CLERK (4 Years) CLERK TYPIST (Start) CLERK TYPIST (2 Years) CLERK TYPIST (4 Years)

63 FIRE JOB CLASSIFICATION RATE PER HOUR FIRE FIGHTER/PARAMEDIC (Start) FIRE FIGHTER/PARAMEDIC (After 6 Months) FIRE FIGHTER/PARAMEDIC (After 1 Year) FIRE FIGHTER/PARAMEDIC (After 3 Years) LIEUTENANT CAPTAIN INSPECTOR POLICE POLICE COMMAND JOB CLASSIFICATION RATE PER HOUR SERGEANT LIEUTENANT POLICE PATROL JOB CLASSIFICATION RATE PER HOUR Employees hired prior to 08/01/98 POLICE OFFICER Employees hired on or after 08/01/98 POLICE OFFICER (Start) POLICE OFFICER (6 Months) POLICE OFFICER (1 Year) POLICE OFFICER (3 Years)

64 GENERAL FUND The function of the General Fund is to record all revenues and expenditures of the City which are not accounted for in other funds. The General Fund receives money from many sources which are used to finance a wide range of City activities. The General Fund revenues are for the most part projected based on historical trending. State shared revenues are projections received from the State of Michigan. Tax revenues are based on projections from the City Assessor. The major areas that are financed by the General Fund are police, ambulance and fire protection, information technology, public works, City administration, parks, recreation, cemetery, lights, and other public services. CITY OF ALPENA HISTORICAL STAFFING LEVEL OF PERMANENT EMPLOYEES As of Fiscal Year Beginning July 1st EMPLOYEES BY GROUP ADMINISTRATIVE CLERICAL POLICE FIRE & AMBULANCE DPW TOTAL

65 GENERAL FUND SUMMARY DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED GENERAL FUND REVENUES General Government 4,996,296 5,191,668 5,190,207 5,232,368 City Hall 621,069 1,350,383 1,864, ,773 I. T. 72,407 98,446 92,421 93,208 Building Authority Cemetery 52,480 56,050 56,600 56,600 Police 122, , , ,761 Fire 82,178 93, , ,582 Ambulance 2,566,724 2,644,238 2,413,738 2,424,238 Public Works 261, , , ,245 Light Department 8,716 16,027 3,000 3,000 Parks and Recreation 32, ,200 9, ,500 TOTAL GENERAL FUND REVENUES 8,815,960 10,250,094 10,127,216 9,669,275 GENERAL FUND EXPENDITURES General Government 1,458,184 2,239,036 2,784,172 1,839,730 I. T. 264, , , ,184 Building Authority 156, , , ,108 Cemetery 135, , , ,070 Police 1,741,013 1,942,149 1,993,467 2,095,338 Fire 1,644,473 1,645,960 1,723,497 1,731,114 Ambulance 1,833,177 1,918,301 1,837,712 1,871,191 Public Works 508, , , ,035 Light Department 264, , , ,109 Parks and Recreation 459, , , ,361 TOTAL GENERAL FUND EXPENDITURES 8,466,004 10,003,513 10,187,344 9,861,240 OTHER FINANCING USES-INTERFUND TRANSFERS (OUT) 370, , , ,000 TOTAL GENERAL FUND EXPENDITURES AND OTHER USES 8,836,004 10,473,513 10,487,344 10,266,240 61

66 GENERAL FUND PROJECTED FUND BALANCE BUDGETED NET OF REVENUES (EXPENDITURES) 6/30/2017 $ (360,128) CURRENT EST. OPERATING SURPLUS (DEFICIT) 6/30/2016 $ (223,419) FUND BALANCE FROM PRIOR YEAR 6/30/2015 $ 2,932,140 FUND BALANCE ASSIGNED I.T. CAPITAL $ 102,317 DARE VEHICLE $ 911 FIBER OPTIC MAINTENANCE $ 15,124 RIVER CENTER $ 30,000 UNASSIGNED PROJECTED FUND BALANCE AT FISCAL YEAR END $ 2,200,241 TOTAL FUND BALANCE $ 2,348,593 62

67 GENERAL FUND DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED Fund GENERAL FUND REVENUES CURRENT PROPERTY TAXES 3,739,197 3,841,087 3,623,544 3,653, DELINQUENT TAXES 4,167 1,400 2,000 2, FACILITIES TAX 1,964 2,170 2,176 2, PAYMENT IN LIEU OF TAXES 35,886 34,000 34,340 34, INTEREST & PENALTIES 28,104 36,000 36,500 37, LOCAL COMM STAB SHARE 0 100, , , SALES TAX 1,157,360 1,150,000 1,150,000 1,160, INVESTMENT INCOME 16,279 17,000 17,000 18, INVESTMENTS-CHANGE IN VAL (1,171) FR BUD STABLIZATION FUND FR BROWNFIELD AUTHORITY 14,500 10, TOTAL REVENUES 4,996,296 5,191,668 5,190,207 5,232,368 63

68 Capital Outlay and Major Projects GENERAL GOVERNMENT The General Government category of the General Fund accounts for the activities of the following offices: City Manager, City Clerk/Treasurer/Finance Director, City Planner, City Assessor, Information Technology and Engineering Department. In addition, other non-specific public services and miscellaneous costs are charged to the General category. Property Reappraisals $ 90,000 Economic Development Marketing Program ,000 City Recreation Plan Update ,000 TOTAL GENERAL GOVERNMENT $ 102,000 CITY HALL STAFFING LEVEL As of Fiscal Year Beginning July 1st STAFF ADMINISTRATIVE CLERICAL SEASONAL CO-OP/TEMP/PART-TIME TOTAL

69 DEPARTMENTS DESCRIPTION GENERAL ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES BUSINESS LIC/PER 2,175 2,100 2,100 2, PLANNING & ZONING FEES 5,916 5,000 5,000 5, FED GRTS - MISC ,465 1,061, STATE GRTS - MISC 0 245, GRTS - RENTAL REHAB 0 236, , , CHARGES - RENTAL INSPECT 34,925 38,925 43,125 44, WATER FUND 192, , , , SEWAGE FUND 192, , , , EQUIP FUND - ADMIN SERV 74,425 76,657 78,957 81, STORES FUND - ADMIN SERV 58,230 59,977 61,776 63, DDA FUND - ADMIN SERV 2,271 3,060 3,152 3, RETIRE FUND - ADMIN SERV 31,334 32,274 33,242 34, COPIES - GENERAL PUBLICATIONS SCRAP & SALVAGE SALES SALE OF ASSETS INSURANCE REIMBURSEMENTS OTHER REIMBURSEMENTS 14,523 22,545 15,605 16, MISCELLANEOUS 11,527 76,000 11,000 11,000 TOTAL REVENUES 621,069 1,350,383 1,864, ,773 EXPENDITURES SALARIES & WAGES 785, , , , HEALTH ACTUARY 31,340 31,929 32,700 31, STATE/FED INS TAX 13,368 9,360 9,360 9, MI CLAIMS TAX 1,320 1,400 1,400 1, HEALTH INSURANCE 151, , , , DENTAL INSURANCE 14,112 14,600 13,700 14, LIFE INSURANCE 1,902 1,975 2,000 2, FICA 56,805 60,500 62,562 61, RETIREMENT 115, , , , UNIFORMS LONG TERM DISABILITY 4,433 4,600 4,800 5, SUPPLIES 58,426 48,000 50,000 50, DURABLE GOODS PROF & CONTRACTUAL 16,674 18, , , CONT - HUMANE SOCIETY 14,000 14,000 17,000 17, CONT - AUDITORS 11,591 11,000 11,330 11, CONT - MML 5,839 5,932 6,030 6, CONT - CITY HALL JANITOR 11,678 13,000 13,000 13,000 65

70 GL NUMBER DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED CHARGES - COMPUTER ADMIN 2,500 2,625 2,704 2, CONTINUING EDUCATION 9,815 15,000 12,000 13, COMMUNITY PROMOTION 7,162 13,000 12,000 8, ALPENA TARGET ,000 40,000 40,000 40, INSURANCE & BONDS 20,163 13,500 14,175 14, UTILITIES 38,304 38,000 38,380 38, REPAIRS & MAINTENANCE 12,925 16,000 16,000 32, EQUIPMENT RENT 4,225 3,800 4,000 4, MISCELLANEOUS 13,570 19,500 14,000 14, RENTAL REHAB 11, , , , STATE GRANTS 0 310, FED GRTS 0 230,465 1,061, CAPITAL OUTLAY 0 10, EQUIP FUND ADVANCE - PRIN 0 10,000 10,000 10, EQUIP FUND ADVANCE - INT 3,500 3,000 2,500 2,000 TOTAL EXPENDITURES 1,458,184 2,239,036 2,784,172 1,839,730 66

71 Capital Outlay and Major Projects INFORMATION TECHNOLOGY DEPARTMENT Beginning in 2009, the City contracted with Alpena County to provide technology services to the City and the Agreement has been extended and is in place until June 30, The agreement provides for Alpena County I. T. personnel to oversee the operations of the City of Alpena network and infrastructure while equipment and supply purchases will be handled through the City's general fund. The I.T. budget pays for all computers, printers, and other computer related devices as determined at time of purchase as being applicable for acquisition through this department. The fund also provides all printer supplies, computer related equipments, cables, etc as needed and warranted by the departments. This is the fourth year of developing a budget for the I.T. Department within the general fund and will be refined as the year progresses and as needed. In , the City will make the third and final payment on the phone system upgrade, replace the aging copier at Public Safety, continue the process of updating our website management software, and purchase new election poll book laptops. The normal I.T. budget expenditures will include the necessary software licensing fees, toner, ink, and other consumables as well as miscellaneous supplies throughout the year in addition to the following projects: Police Body Worn Cameras $ 2,000 Security Cameras ,000 New Technology ,000 Network Infrastructure ,000 Phone System Upgrade ,000 Fire Department Mobile Data Terminals ,000 Website Management Software ,000 Public Safety Copier ,000 Electronic Poll Books ,000 Police In-Car Video Systems ,000 Wired City ,000 Wireless City ,000 TOTAL INFORMATION TECHNOLOGY $ 78,000 67

72 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED INFORMATION TECHNOLOGY DEPARTMENT REVENUES COMPUTER ADMIN SERV 25,000 26,250 26,225 27, RENT - FIBER/INTERNAL 44,103 62,541 62,541 62, RENT - FIBER/EXTERNAL 3,303 9,655 3,655 3, OTHER REIMBURSEMENTS MISCELLANEOUS TOTAL REVENUES 72,407 98,446 92,421 93,208 EXPENDITURES SALARIES & WAGES 20,879 21,400 21,800 22, HEALTH ACTUARY FICA 1,538 1,640 1,670 1, RETIREMENT 4,082 4,599 4,482 4, SUPPLIES - OFFICE EQUIP 29,978 30,000 32,500 35, DURABLE GOODS - OFFICE 17,103 16,000 13,000 24, PROF & CONT - OFFICE 84,629 86,000 90,000 91, INSURANCE - OFFICE ,600 6, UTILITIES 2,712 2,755 2,783 2, REPAIRS & MAINTENANCE MAINT - OFFICE 76,948 83,000 88,000 85, OFFICE RENT 832 1,275 1,299 1, MISCELLANEOUS - OFFICE 4,955 1,190 1,190 1, REFUNDS & REBATES-COUNTY FIBER OPTIC 1,652 1,652 1,652 1, CAP - EQUIPMENT 15,250 20,000 20,000 25, CAP - OFFICE-EQUIPMENT 0 15,000 35,000 40, CAP - WIRED CITY 2,860 7,210 5,000 5, CAP - WIRELESS CITY 0 0 5,000 3,000 TOTAL EXPENDITURES 264, , , ,184 68

73 BUILDING AUTHORITY The City entered into a lease with the Building Authority on July 5, 2001, for an amount not to exceed $400,000. This 15-year loan was used to purchase the Lakeside Motel, demolish it and transform the property into a park area at Starlite Beach. The Alpena Rotary Club donated and built playground equipment in In 2011, a pavillion and new restrooms were installed on the property. The loan was paid off in the fiscal year. The City entered into a lease with the Building Authority in 2004 for $1,800,000. This 25-year loan was used to build a new Department of Public Works Building. The Equipment Fund made the annual payments until fiscal year At that point, the Public Safety Building loan was retired and the General Fund began making the payments on the Department of Public Works Building. GL NUMBER DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED BUILDING AUTHORITY EXPENDITURES BUILDING AUTHORITY LEASE 49,058 51, LEASE - DPW BLDG 107, , , ,108 TOTAL EXPENDITURES 156, , , ,108 69

74 CEMETERY Alpena s Evergreen Cemetery contains 61 acres and has been an active and operating cemetery for approximately 144 years. During that period, since 1865, there have been approximately 19,000 burials. In addition to maintaining and operating the Evergreen Cemetery, the City s cemetery division also maintains the privately owned Hebrew and Grace Lutheran cemeteries. The cemetery portion of the General Fund accounts for the operation of Evergreen Cemetery, utilizing a Technician I, Department of Public Works employee. Programmed into the cemetery budget are funds for hiring three part-time summer college students for up to 15 weeks. The cemetery is partially funded by the sale of lots, burials, and interest earnings from the Perpetual Lot Care Fund. By City ordinance, twenty-five percent (25%) of the funds collected from the sale of each lot are credited to the Perpetual Lot Care Fund, which has a balance, as of June 30, 2014, of $906,297. This year, the City will undertake resurfacing of roads within the cemetery with $10,000. CEMETERY STAFFING LEVEL As of Fiscal Year Beginning July 1st STAFF *ADMINISTRATIVE *TECH I SEASONAL TOTAL *Included in DPW staffing numbers. 70

75 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES CEM - MISCELLANEOUS 721 1, CEM - MONUMENT PERMITS 3,476 3,500 4,000 4, CEM - GOVERNMENT MARKERS 1,624 2,400 1,000 1, BURIALS 37,318 40,000 40,000 40, PERP LOT CARE FUND-MAINT 3,053 2,700 2,700 2, SALES - CEMETERY LOTS 6,288 6,200 8,000 8, MISCELLANEOUS FR TREE/PARK IMPROVEMENTS TOTAL REVENUES 52,480 56,050 56,600 56,600 EXPENDITURES SALARIES & WAGES 62,751 61,200 62,425 63, HEALTH ACTUARY 2,600 2,448 2,497 2, STATE/FED INS TAX MI CLAIMS TAX HEALTH INSURANCE 9,694 8,500 8,875 9, DENTAL INSURANCE LIFE INSURANCE FICA 4,758 4,685 4,776 4, RETIREMENT 1,837 8,508 8,517 9, UNIFORMS LONG TERM DISABILITY SUPPLIES 3,593 3,200 3,200 3, DURABLE GOODS PROF & CONTRACTUAL CONTINUING EDUCATION INSURANCE & BONDS 4,354 5,015 5,265 5, UTILITIES 11,714 12,000 12,120 12, REPAIRS & MAINTENANCE 2,207 2,800 2,800 2, EQUIPMENT RENT 18,249 18,300 18,300 18, FIBER OPTIC RENT 1,745 1,745 1,745 1, MISCELLANEOUS CAPITAL OUTLAY , CAP - ROAD PAVING 10,082 10,000 10,000 10,000 TOTAL EXPENDITURES 135, , , ,070 71

76 Capital Outlay and Major Projects POLICE The duty of the Alpena Police Department is to protect life and property within the City of Alpena. This is accomplished through the implementation of routine patrol, emergency response, traffic law enforcement, accident investigation, crime prevention and other recognized law enforcement procedures. The Department, operating under the direction of the Chief of Police, is currently staffed with seventeen sworn officers and three civilians. This includes the Chief, Lieutenant, Detective, four patrol Sergeants, eight Patrol officers, one D.A.R.E./School Liaison officer, one officer assigned to the Huron Undercover Narcotics Team, two Clerk/Typists and one part-time crossing guard. To accomplish its mission of providing effective and continuous law enforcement services to the citizens and businesses of this community, it is critical that officers are provided with reliable and safe equipment. The Department adheres to the scheduled replacement of body armor and will again seek funding from the DOJ to recoup 50% of the cost. The Department will also continue with the replacement of patrol vehicles and related equipment and pursue supplemental funding opportunities when available. 18 Replacement Body Armors $ 13,000 Radar Unit ,100 *Flat Roof Replace ,000 *Variable Air Valves Box Replacements ,000 1 Patrol Vehicle with Equipment ,000 TOTAL POLICE $ 99,100 *This is cost share with the Fire & Ambulance Department. POLICE DEPARTMENT STAFFING LEVEL As of Fiscal Year Beginning July 1st STAFF ADMINISTRATIVE CLERICAL (INCLUDES PART- TIME) LIEUTENANT DETECTIVE LT DETECTIVE SGT SERGEANT POLICE PATROL SEASONAL CO-OP/PART-TIME CROSSING GUARD TOTAL

77 DEPARTMENTS DESCRIPTION POLICE ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES LIQUOR LICENSES 11,882 11,855 11,855 11, GRTS - POLICE TRAINING 3,220 3,200 3,000 3, GRTS - FEDERAL 1,855 7,000 5,000 5, STATE GRTS - MISC GRTS-DARE 11,000 11,000 11,000 11, GRTS - SCH LIAS LOC SHARE 45,616 47,008 47,948 48, COPIES - POLICE 2,646 2,300 2,200 2, SCRAP & SALVAGE SALES PARKING 10,165 8,000 8,000 8, DISTRICT COURT 14,107 10,800 10,800 10, DONATIONS 726 3, , INSURANCE REIMBURSEMENTS 0 6, OTHER REIMBURSEMENTS 11,267 20,000 18, MISCELLANEOUS 9,676 9,000 8,500 8,500 TOTAL REVENUES 122, , , ,761 73

78 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED EXPENDITURES SALARIES & WAGES 1,107,055 1,210,000 1,243,720 1,267, HEALTH ACTUARY 49,200 46,512 49,928 50, STATE/FED INS TAX 9,226 9,000 8,900 8, MI CLAIMS TAX 1,507 1,080 1,080 1, HEALTH INSURANCE 182, , , , DENTAL INSURANCE 28,104 28,000 29,708 30, LIFE INSURANCE 2,990 2,950 3,031 3, FICA 18,189 15,960 18,099 18, RETIREMENT 148, , , , RETIREMENT - CIVILIANS 6,735 5,979 5,715 6, UNIFORMS 7,612 8,000 20,500 9, LONG TERM DISABILITY SUPPLIES 9,306 12,455 9,000 9, DURABLE GOODS 2,202 6,215 1,100 5, PROF & CONTRACTUAL 10,485 20,000 12,000 25, CONT - HUNT TEAM 7,500 8,000 9,000 9, CONTINUING EDUCATION 2,483 3,500 3,000 3, TRAINING FUNDS - LOCAL 3,495 3,000 3,500 3, TRAINING FUNDS ,302 3,200 4,500 3, INSURANCE & BONDS 42,455 49,923 52,419 55, UTILITIES 41,331 41,000 41,410 41, REPAIRS & MAINTENANCE 31,045 37,000 32,000 32, EXPENSE FOR EQUIP MAINT 1,782 2,500 2,500 2, EXPENSE FOR K BUILDING MAINTENANCE 17,712 17,166 18,750 22, EQUIPMENT RENT MISCELLANEOUS 3,977 2,500 2,600 2, CAPITAL OUTLAY 0 6,550 44,000 38, CAP - VEHICLES 0 73,570 41,000 86,000 TOTAL EXPENDITURES 1,741,013 1,942,149 1,993,467 2,095,338 74

79 Capital Outlay and Major Projects FIRE The Alpena Fire Department is an all-hazards emergency service, providing the citizens of the community with fire suppression, hazardous situation mitigation, specialized rescue, arson investigation, fire code consultation, fire prevention and safety education, and juvenile fire-setter intervention. Under an interlocal agreement with Alpena County, the department provides Advanced Life Support ambulance response and transport for the City and also the townships of Alpena, Green, Long Rapids, Maple Ridge, Ossineke, Sanborn, Wellington, and Wilson. We also serve portions of Presque Isle Township and intercept with Basic Life Support responders in East Grand Lake. Another interlocal agreement provides a non-transporting advanced life support ( echo ) unit weekdays in Long Rapids, Green, Wilson and Maple Ridge Townships to augment first responder coverage there. All AFD personnel are licensed paramedics and are ACLS and PALS certified, thus providing the highest level of care available outside of a hospital. All fire and EMS services are provided by the same cross-trained employees, giving taxpayers the best possible value for their investment. The Fire Department s authorized strength is twenty-nine (29) full time employees, including a Fire Chief, a Deputy Chief/Fire Marshal, three Captains, three Lieutenants and twenty-one (21) Firefighter-Paramedics. We share the cost of two full-time clerical staff with the Police Department. The personnel are divided into three shifts with each shift working twenty-four hours on duty and having the next forty-eight hours offduty. The Fire Department and its integral EMS service operate under the direction of the Fire Chief. Through an interlocal agreement with Presque Isle Township, the Department is working with township officials and volunteers to rebuild their fire department, after it failed in Hose/Nozzle Replacement $ 4,000 *Flat Roof Replace ,000 *Variable Air Valves Box Replacements ,000 TOTAL FIRE $ 26,000 *This is cost share with the Police & Ambulance Department. 75

80 STAFF FIRE AND AMBULANCE DEPARTMENT STAFFING LEVEL As of Fiscal Year Beginning July 1st ADMINISTRATIVE FIRE MARSHAL CAPTAIN LIEUTENANT FF/PARAMEDIC SEASONAL TOTAL

81 DEPARTMENTS DESCRIPTION FIRE ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES STATE GRTS - MISC 11,715 10,794 10,794 10, TWP FIRE SERVICES 0 11,853 35,000 35, GRTS - COUNTY 55,350 57,715 50,000 50, EQUIP FUND - ADMIN SERV 10,861 11,186 11,522 11, DONATIONS 3, , INSURANCE REIMBURSEMENTS OTHER REIMBURSEMENTS MISCELLANEOUS 1, TOTAL REVENUES 82,178 93, , ,582 EXPENDITURES SALARIES & WAGES 924, , , , HEALTH ACTUARY 33,457 31,800 36,600 37, STATE/FED INS TAX 8,426 8,920 9,600 9, MI CLAIMS TAX 1,419 1,060 1,080 1, HEALTH INSURANCE 154, , , , DENTAL INSURANCE 20,263 20,500 21,450 22, LIFE INSURANCE 2,503 2,500 2,575 2, FICA 16,359 13,268 13,289 13, RETIREMENT 169, , , , RETIREMENT - CIVILIANS 3,367 2,989 2,858 3, UNIFORMS 5,227 5,983 8,112 8, UNIFORMS - TURNOUT GEAR 3,820 7,000 7,000 7, UNIFORMS - HELMETS UNIFORM CLEANING 903 1,500 1,500 1, LONG TERM DISABILITY SUPPLIES 11,806 18,465 12,000 12, SUPPLIES - HAZMAT 0 0 1,000 1, DURABLE GOODS 1,191 1,750 4, PROF & CONTRACTUAL 4,642 5,000 24,000 4, CONTINUING EDUCATION 2,062 6,900 7,000 7, INSURANCE & BONDS 33,614 43,970 46,169 48, UTILITIES 19,671 19,000 19,190 19, REPAIRS & MAINTENANCE 11,913 11,000 11,000 11, EXPENSE FOR EQUIP MAINT BUILDING MAINTENANCE 9,570 9,500 10,125 13, EQUIPMENT RENT 174, , , , MISCELLANEOUS 5,118 4,200 3,100 3, CAPITAL OUTLAY 25, ,000 19,250 TOTAL EXPENDITURES 1,644,473 1,645,960 1,723,497 1,731,114 77

82 Capital Outlay and Major Projects AMBULANCE The Fire Department s Ambulance Service provides all the citizens of the county of Alpena with emergency Advanced Life Support treatment and transport. Emergency service is provided through an interlocal agreement with Alpena County, and includes the City and the townships of Alpena, Green, Long Rapids, Maple Ridge, Ossineke, Sanborn, Wellington, and Wilson. Another interlocal agreement provides a nontransporting advanced life support ( echo ) unit weekdays in Long Rapids, Green, Wilson and Maple Ridge Townships to augment first responder coverage there. The department also provides non-emergency transfer services for non-ambulatory patients requiring continuing medical care such as dialysis, wound care or medical transportation between the hospital and skilled nursing facilities. These Basic Life Support services are coordinated with Alpena Township. Additionally, the Department operates a specially-equipped Mobile Intensive Care Unit (MICU) to provide sophisticated critical care during interfacility transport of seriously ill or injured patients being transferred to larger metropolitan medical centers. Nine firefighter-paramedics have completed extensive supplemental training as Critical Care Paramedics (CCEMTP) and are certified by the University of Maryland at Baltimore County (UMBC) to provide highly advanced medical care during such transports including the use of ventilators and IV pump administration of additional medications. All AFD personnel are licensed paramedics and are ACLS and PALS certified, thus providing the highest level of care available outside of a hospital. All fire and EMS services are provided by the same cross-trained employees, giving taxpayers the best possible value for their investment. The Fire Department Ambulance Service operates under the direction of the Fire Chief. The department also provides non-emergency transfer services for non-ambulatory patients requiring continuing medical care such as dialysis, wound care or medical transportation between the hospital and skilled nursing facilities. These Basic Life Support services are coordinated with Alpena Township. Additionally, the Department operates a specially-equipped Mobile Intensive Care Unit (MICU) to provide sophisticated critical care during interfacility transport of seriously ill or injured patients being transferred to larger metropolitan medical centers. Nine firefighter-paramedics have completed extensive supplemental training as Critical Care Paramedics (CCEMTP) and are certified by the University of Maryland at Baltimore County (UMBC) to provide highly advanced medical care during such transports including the use of ventilators and IV pump administration of additional medications. *Flat Roof Replace $ 10,000 *Variable Air Valves Box Replacements ,000 Power Cot/Loading System ,000 **MICU Ambulance ,000 TOTAL AMBULANCE $ 242,000 *This is cost share with the Police & Fire Department. **Will be financed for 3-4 years, annual cost will be $52,

83 DEPARTMENTS DESCRIPTION AMBULANCE ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES COUNTY - AMB SERVICE 716, , , , COUNTY - AMB EQUIPMENT 21,243 10,000 15,000 15, COUNTY - AMB VEHICLE 130, , TWP - ECHO 30,000 30,000 30,000 30, EMS EDUCATIONAL TRAINING 15,230 10, , AMBULANCE 1,642,598 1,700,000 1,650,000 1,650, DONATIONS 5, INSURANCE REIMBURSEMENTS OTHER REIMBURSEMENTS 1,799 1,800 1,800 1, MISCELLANEOUS 4, FR EQUIPMENT FUND TOTAL REVENUES 2,566,724 2,644,238 2,413,738 2,424,238 EXPENDITURES SALARIES & WAGES 936, , , , HEALTH ACTUARY 33,457 31,800 36,600 37, STATE/FED INS TAX 8,546 8,920 9,600 9, MI CLAIMS TAX 1,420 1,060 1,080 1, HEALTH INSURANCE 157, , , , DENTAL INSURANCE 21,421 20,500 21,450 22, LIFE INSURANCE 2,490 2,500 2,575 2, FICA 16,728 13,268 13,289 13, RETIREMENT 169, , , , RETIREMENT - CIVILIANS 3,367 2,989 2,858 3, UNIFORMS 5,491 5,983 8,112 8, UNIFORMS - JACKETS 1,019 1,100 1,100 1, UNIFORM CLEANING 902 1,500 1,500 1, LONG TERM DISABILITY SUPPLIES 11,574 9,000 10,000 10, SUPPLIES-TRAINING OTHERS 3,525 10, , SUPPLIES-GENERAL-TRANSFER 0 1,000 1,000 1, SUPPLIES - AMB.DISPOSABLE 22,381 23,000 23,000 23, SUPPLIES-DISPOS-TRANSFER 552 1,000 1,000 1, SUPPLIES - AMBULANCE 4,898 6,300 6,300 6, DURABLE GOODS 3,987 1, DURABLE GOODS (TRANSFER) 1,135 1,000 1,000 1, PROF & CONTRACTUAL 5,927 5,000 24,000 4, CONT - NORTH FLIGHT 96,352 96,000 96,000 96, CONTINUING EDUCATION 8,743 17,300 11,000 11, INSURANCE & BONDS 38,506 48,904 51,350 53,917 79

84 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED UTILITIES 22,412 23,900 24,140 24, REPAIRS & MAINTENANCE 68,581 55,000 60,000 60, EXPENSE FOR EQUIP MAINT 11,656 4,000 4,000 4, BUILDING MAINTENANCE 9,570 9,600 10,225 13, EQUIPMENT RENT 6,216 6,231 6,418 6, MISCELLANEOUS 4,759 5,200 4,100 4, CAPITAL OUTLAY 5,000 37,400 42,000 59, CAP - AMBULANCE 143, , CAP - CITY AMBULANCE ,500 52, EQUIP FUND ADVANCE - PRIN 0 18,000 18,000 18, EQUIP FUND ADVANCE - INT 4,680 3,960 3,240 2,520 TOTAL EXPENDITURES 1,833,177 1,918,301 1,837,712 1,871,191 80

85 Capital Outlay and Major Projects PUBLIC WORKS The role of the Public Works Department has evolved towards a more maintenance-oriented approach in order to preserve the infrastructure that is in place rather than build new construction. The main goal of this department is to improve efficiencies on all of the current tasks being performed and to review the costeffectiveness of current contractual services. Employees received further training on a number of relevant subjects this past year to increase competency in maintenance issues and methods. Other responsibilities overseen by this department include replacement of residential water service lines and sanitary service lines, the residential brush pickup, park and marina maintenance, and street sweeping. The City Engineering Department oversees the City sidewalk program. This program includes replacement of deficient sidewalk and the installation of new sidewalk. The City undertakes the following capital improvement projects: Sidewalk Replacement/Construction: New $ 1,000 Replacement ,000 TOTAL PUBLIC WORKS $ 26,000 81

86 DPW STAFFING LEVEL As of Fiscal Year Beginning July 1st STAFF ADMINISTRATIVE TECH TECH II TECH III SEASONAL TOTAL DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES EQUIP FUND - GARAGE RENT 169, , , , EQUIP FUND - ADMIN SERV 31,486 32,431 33,404 34, SIDEWALKS 5,579 12,000 13,000 13, SCRAP & SALVAGE SALES SPECIAL ASSESSMENTS 21,051 19,400 10, SALE OF ASSETS 4, COMPOST - SALES 2,058 2,000 2,000 2, COMPOST - LABOR/EQ COST 1, FIREWORKS DONATIONS 24,150 20,000 20,000 20, OTHER REIMBURSEMENTS 843 1,500 1,000 1, MISCELLANEOUS 1,413 1,400 1,400 1,400 TOTAL REVENUES 261, , , ,245 EXPENDITURES SALARIES & WAGES 141, , , , HEALTH ACTUARY 6,280 6,400 6,625 6, STATE/FED INS TAX 3,673 4,200 4,250 4, MI CLAIMS TAX HEALTH INSURANCE 27,231 22,000 23,614 24, DENTAL INSURANCE 4,919 6,900 7,194 7, LIFE INSURANCE FICA 7,266 13,005 13,444 13, RETIREMENT (7,914) 14,257 7,041 7, UNIFORMS 4,836 5,200 5,200 5, UNEMPLOYMENT LONG TERM DISABILITY SUPPLIES 26,347 24,000 24,000 24, DURABLE GOODS

87 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED CONT - MONTHLY PICKUPS 20,100 20,100 20,100 20, CONT - CITY HALL JANITOR 2,392 2,500 2,500 2, PROF & CONTRACTUAL 3,675 3,000 3,000 3, CONTINUING EDUCATION 779 1,800 1,800 1, INSURANCE & BONDS 11,738 17,000 17,000 17, UTILITIES 47,916 43,000 43,430 43, REPAIRS & MAINTENANCE 21,702 21,500 21,500 21, MAINT - REMOVE UST EQUIPMENT RENT 59,988 65,000 60,000 60, MISCELLANEOUS 5, CAP - NEW SIDEWALKS 370 1,000 1,000 1, CAP - REPL SIDEWALKS 13,235 25,000 25,000 25, CAP - CITY INIT SIDEWALK CAP - EQUIPMENT CAP - STM SEWERS/PARKING 105,263 70, , CAPITAL OUTLAY TOTAL EXPENDITURES 508, , , ,035 83

88 Capital Outlay and Major Projects LIGHTS The Light Division within the Department of Public Works maintains approximately 70 miles of city street lights, traffic signals, pedestrian lights, school zone flashers, and over one mile of Christmas decorations. In addition, this division is responsible for some of the capital improvements to this system. Repairs and maintenance tasks that require an electrician are carried out through the use of a private electrical contractor. All other maintenance tasks, i.e., painting pedestrian street lights, are performed by the Department of Public Works personnel. The capital for the fiscal year is as follows: Replace Pedestrian Lights $ 15,000 TOTAL LIGHT $ 15,000 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES OTHER REIMBURSEMENTS 8,716 16,027 3,000 3,000 TOTAL REVENUES 8,716 16,027 3,000 3,000 EXPENDITURES SALARIES & WAGES 13,123 16,500 16,830 17, HEALTH ACTUARY STATE/FED INS TAX MI CLAIMS TAX HEALTH INSURANCE 6,730 9,700 10,400 11, DENTAL INSURANCE , LIFE INSURANCE FICA 1,004 1,262 1,287 1, RETIREMENT 2,449 2,989 2,914 3, UNIFORMS LONG TERM DISABILITY SUPPLIES 1,826 13,500 5,000 5, PROF & CONTRACTUAL 12,561 12,500 12,500 12, CONTINUING EDUCATION INSURANCE & BONDS STREET LIGHT POWER 112, , , , REPAIRS & MAINTENANCE 27,044 35,642 27,000 27, EQUIPMENT RENT 4,998 7,000 7,000 7, MISCELLANEOUS CAPITAL OUTLAY 80, ,000 60,000 TOTAL EXPENDITURES 264, , , ,109 84

89 The following capital improvements are planned within the parks: Capital Outlay and Major Projects PARKS AND RECREATION The Parks Division maintains approximately 100 acres of land which constitutes the city s park system, approximately 18.5 miles of bike path, and approximately 1-1/2 miles of Lake Huron shoreline. There are seventeen (17) parks within the City of Alpena including, Avery, Bay View, Blair Street, Duck, Eleventh Avenue Boat Launch, Island Park, LaMarre, McRae, Mich-e-ke-wis, North Riverfront, South Riverfront, Starlite Beach, Sytek, Thomson, Washington Avenue, Water Tower, and Veterans Memorial. The department has been given additional maintenance responsibilities to improve City parks to showcase level. Irrigation, landscaping and amenities within and throughout the park system are programmed to facilitate these improvements. The Parks Division s goal is to reduce total maintenance costs while improving the general appearance of all parks. A long-term goal of the City s Wildlife Sanctuary Board has been the development of an environmental interpretive center. Over the past two years, the Board and its appointed Interpretive Center Oversight Council have worked diligently toward this end. The River Center, as it has been christened, will be located in Duck Park along the banks of the Thunder Bay River and the City s Wildlife Sanctuary. The construction schedule for this project has yet to be determined and is dependent on receipt of grant funds. Pavilion Construction Woodward Trailhead $ 80,000 Public Restroom Improvements Bayview Park ,000 TOTAL PARKS AND RECREATIONS $ 140,000 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED PARKS AND RECREATION REVENUES STATE GRTS - MISC 0 311, , CONT FROM LOCAL UNITS 4,479 60, , MICH-E-KE-WIS PAVILION 7,200 7,200 7,200 7, STARLITE PAVILION MISC. FACILITIES SALE OF ASSETS 0 15, DONATIONS 17, OTHER REIMBURSEMENTS 1, MISCELLANEOUS FR EQUIPMENT FUND FR TREE/PARK IMPROVEMENTS TOTAL REVENUES 32, ,200 9, ,500 85

90 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED EXPENDITURES SALARIES & WAGES 127, , , , HEALTH ACTUARY 5,452 5,100 5,341 5, STATE/FED INS TAX 2,214 2,325 2,325 2, MI CLAIMS TAX HEALTH INSURANCE 43,933 40,000 42,244 43, DENTAL INSURANCE 4,151 4,200 4,437 4, LIFE INSURANCE FICA 9,680 9,840 10,214 10, RETIREMENT 17,959 18,396 14,391 14, UNIFORMS 1,356 1,650 1,650 1, UNEMPLOYMENT LONG TERM DISABILITY SUPPLIES 7,050 6,000 6,000 6, SUPPLIES - PARK SHELTER DURABLE GOODS PROF & CONTRACTUAL 14, INSURANCE & BONDS 15,961 17,050 17,900 18, UTILITIES 26,081 29,000 29,300 29, UTILITIES - ICE RINK 7,310 8,200 8,280 8, REPAIRS & MAINTENANCE 26,108 26,000 26,000 26, MAINT - PARK SHELTER/ICE 2, ,000 1, EQUIPMENT RENT 73,904 74,000 74,000 74, MISCELLANEOUS PARK FOUNDATION REC CENT 20,000 20,000 20,000 20, LAND ACQUISITION CAP - STARLITE BEACH , CAP - BAYVIEW PARK , CAP - MICH-E-KE-WIS PARK CAP - ISLAND PARK 20,309 9,000 4,000 4, CAP - BIKE PATH 18, ,000 80, LAND ACQUISITION - PRIN 6,582 7, EQUIP FUND ADVANCE - PRIN 0 46,000 26,000 26, LAND ACQUISITION - INT EQUIP FUND ADVANCE - INT 5,880 4,040 2,600 1,560 TOTAL EXPENDITURES 459, , , ,361 86

91 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED OTHER FINANCING USES MAJOR STREETS LOCAL STREETS 200, , , , DEBT - LAND ACQUISITION STORES FUND 50,000 65,000 70,000 75, BUDGET STABILIZATION FUND 5,000 5,000 5,000 5, BUILDING INSPECTION FUND 20,000 20,000 25,000 25, MARINA FUND 95,000 80, , ,000 TOTAL OTHER FINANCING USES 370, , , ,000 87

92 Capital Outlay and Major Projects MAJOR STREET FUND The purpose of the Major Street Fund is to receive all major street moneys which are paid to the City by the State of Michigan; to account for all construction, maintenance, and other authorized operations in the rightof-way of any street functionally classified as a major street within the City; to receive the moneys paid to the City for state trunkline maintenance; and to record costs associated to the Michigan Department of Transportation authorized state trunkline maintenance contracts. Each city is required to establish a Major Street fund in compliance with Act 51 of the Public Acts of The Major Street Fund has no employees but instead has employees assigned to it to perform maintenance and construction activities. Equipment is rented internally from the Equipment Fund to the Major Street Fund as needed. Motor vehicle highway funds are generated from statewide gas and weight taxes. The distribution of these funds to Alpena is based on the miles of streets in our system, a state factor, and the population of Alpena. There are 5.34 miles of state highway and miles of major streets within the City of Alpena. The City maintains US-23 and M-32 state highways within the City limits for the State of Michigan. The MDOT contract generates revenue, which is titled state trunkline maintenance. The costs associated with state trunkline maintenance are direct costs and the revenue received is based on this expenditure. The maintenance and construction associated with the major street system are funded primarily by state and federal funds. All of the major streets within the Alpena street system are paved. The City will again this year place emphasis on maintenance of our major street system. This emphasis on street maintenance will include $55,000 in Capital Preventative Maintenance funds to preserve and extend the remaining useful life of our streets. Work performed under this activity may include shoulder paving, crack sealing, chip sealing, joint repair, etc. This year will see the initiation of the road development into the US-23 North Property with $60,000 to perform environmental work and plan design. The City will also partner with the DDA to make the necessary modifications within the DDA to convert the one-way street system over to allow for two-way traffic, with $50,000 from the City and $25,000 from the DDA. The City will also continue the engineering on the Second Avenue bridge improvement project which has been funded by the Michigan Department of Transportation Critical Bridge program for $2,772,000 has been programmed for design engineering services and bridge repair. The City will also continue the process of changing out street name signs with those that meet the 2018 requirement for size and reflectivity. Capital Preventative Maintenance $ 55,000 US-23 North Road Development ,000 Street Modification within the DDA ,000 Second Avenue Bridge Engineering and Repair ,772,000 TOTAL MAJOR STREETS $ 2,962,000 88

93 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED MAJOR STREET FUND REVENUES STATE GRTS - MISC 71, ,050 2,358,200 23, STATE GRTS - GAS & WGT TX 617, , , , STATE GRTS - TRUNKLINE 86,465 88,460 87,100 87, INVESTMENT INCOME 1,711 1,700 1,700 1, SPECIAL ASSESSMENTS DONATIONS 369, MISCELLANEOUS 2,658 1,500 1,500 1, FR GENERAL FUND FR DDA FUND # , FR BROWNFIELD AUTHORITY FR TREE/PARK IMPROVEMENTS TOTAL REVENUES 1,148, ,314 3,261, ,221 EXPENDITURES ADMIN SALARIES & WAGES 16,525 16,810 21,835 22, FRINGES 9,309 8,400 10,838 11, HEALTH ACTUARY FICA 1,213 1,270 1,670 1, UNEMPLOYMENT PROF & CONTRACTUAL 16,694 17,170 18,000 18, CHARGES - COMPUTER ADMIN 2,500 2,625 2,703 2, EQUIPMENT RENT 1, ,250 1, EQUIP RENT - COMPUTERS TOTAL ADMIN 48,317 47,656 57,170 58,063 CONSTRUCTION SAL & WAGES - STREETS 4,365 5,000 8,000 8, SAL & WAGES - BRIDGES 0 4,000 5,000 5, SAL & WAGES - TRAFF CONT FRINGES - STREETS 3,394 3,900 6,230 6, FRINGES - BRIDGES 0 3,120 3,894 3, FRINGES - TRAFFIC CONTROL MAT/CONT - STREETS 376, , , , MAT/CONT - BRIDGES MAT/CONT - TRAF CONTROL , CONT - MDOT 239, ,000 2,772, EQUIP RENT - STREETS

94 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED TOTAL CONSTRUCTION 624, ,020 2,985, ,124 MAINTENANCE SAL & WAGES - STREETS 59,440 60,500 58,000 58, SAL & WAGES - BRIDGES 7,828 9,400 8,100 8, SAL & WAGES - TRAFF CONT 1,383 2,600 3,000 3, SAL & WAGES - SNOW & ICE 18,588 21,500 20,000 20, FRINGES - STREETS 25,750 42,500 35,115 38, FRINGES - BRIDGES 5,892 5,600 5,060 5, FRINGES - TRAFFIC CONTROL 1,041 1,470 2,169 2, FRINGES - SNOW & ICE 14,476 18,000 14,460 14, FICA 1,921 7,010 6,120 6, MAT/CONT - STREETS 35,326 35,000 35,000 35, MAT/CONT - BRIDGES 5,097 15,000 10,000 10, MAT/CONT - TRAF CONTROL 46,592 35,000 40,000 35, MAT/CONT - SNOW & ICE 40,069 58,000 42,000 42, EQUIP RENT - STREETS 59,470 71,000 42,000 42, EQUIP RENT - BRIDGES 1,193 1,300 2,000 2, EQUIP RENT - TRAF CONTROL ,000 1, EQUIP RENT - SNOW & ICE 49,859 54,000 42,000 42,000 TOTAL MAINTENANCE 374, , , ,659 TRUNKLINE SALARIES & WAGES 12,106 12,000 13,000 13, FRINGES 9,351 9,360 10,100 10, MAT/CONTRACTS 39,522 42,500 39,000 39, EQUIPMENT RENT 25,323 24,600 25,000 25,000 TOTAL TRUNKLINE 86,302 88,460 87,100 87,100 OTHER FINANCING USES LOCAL STREETS 0 100, , ,000 TOTAL OTHER FINANCING USES 0 100, , ,000 TOTAL EXPENDITURES AND OTHER FINANCING USES 1,133,299 1,173,516 3,595,418 1,014,946 90

95 MAJOR STREET FUND PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ (333,816) Current Est. Operating Surplus (Deficit) 6/30/2016 $ (347,202) Fund Balance From Prior Year 6/30/2015 $ 693,682 FUND BALANCE AT END OF BUDGET YEAR $ 12,664 91

96 Capital Outlay and Major Projects LOCAL STREET FUND The Local Street Fund works in a threefold capacity. First, the fund is utilized to receive all local street funds paid to the City of Alpena by the State of Michigan. Secondly, it is used to account for all construction including the moneys generated by special assessments, maintenance, traffic services, and snow and ice control. Thirdly, the fund is utilized to account for money received from the General Fund as contributions to the Local Street Fund. Every city is required to establish a Local Street Fund to comply with Act 51 of the Public Acts of The Local Street Fund has no employees but instead has employees assigned to it to perform maintenance and construction activities. Equipment is rented internally from the Equipment Fund to the Local Street Fund as needed. The City continues to utilize City personnel in a more active role in the maintenance of our Local Street system. Revenues are generated from several sources. The motor vehicle highway funds are generated from statewide gas and weight taxes. The distribution of these funds to Alpena is based on the miles of our street system, a state factor, and the population of Alpena. Local funds are moneys, which the local taxpayer contributes to maintain the local street system. Construction revenues are local funds set aside and invested for the specific purpose of upgrading existing or creating new streets. There are miles of streets within the street system, which are designated as local streets. The maintenance and construction costs associated with the local street system are funded primarily by local tax dollars. All but three one-block segments of the Local Street system are paved. The City will be resurfacing Maple Street from Third Ave to Washington Ave and Lewis Street from Second Ave to First Ave at a cost of $66,000. The City has also committed $75,000 for thin overlay resurfacing, $35,000 for Capital Preventative Maintenance to extend the useful life of our street system. Additionally High use alley paving is targeted at $35,000 and the initial design of the Johnson Street Bypass between Johnson Street and Long Lake Ave will be undertaken. Thin Overlay Resurfacing $ 75,000 Capital Preventative Maintenance ,000 High Use Alley paving ,000 Maple Street Resurfacing ,000 Lewis Street Resurfacing ,000 TOTAL LOCAL STREETS $ 211,000 92

97 DEPARTMENTS DESCRIPTION LOCAL STREET FUND ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES STATE GRTS - MISC 16,230 16,230 21,230 16, STATE GRTS - GAS & WGT TX 217, , , , INVESTMENT INCOME SPECIAL ASSESSMENTS DONATIONS MISCELLANEOUS FR GENERAL FUND 200, , , , FR MAJOR ST FUND 0 100, , , FR TREE/PARK IMPROVEMENTS TOTAL REVENUES 435, , , ,664 EXPENDITURES ADMIN SALARIES & WAGES 20,664 21,000 23,685 24, FRINGES 15,390 12,160 16,964 17, HEALTH ACTUARY FICA 1,530 1,600 1,812 1, UNEMPLOYMENT PROF & CONTRACTUAL 6,118 6,150 6,300 6, CHARGES - COMPUTER ADMIN 2,500 2,625 2,703 2, EQUIPMENT RENT 2,800 1,990 2,800 2,800 TOTAL ADMIN 49,730 46,268 55,212 56,172 CONSTRUCTION SALARIES & WAGES 0 1,000 3,000 3, FRINGES ,325 2, MAT/CONT - STREETS 100, , , , EQUIPMENT RENT TOTAL CONSTRUCTION 100, , , ,425 MAINTENANCE SAL & WAGES - STREETS 63,687 80,000 67,106 69, SAL & WAGES - TRAFF CONT 1,347 1,700 4,200 4, SAL & WAGES - SNOW & ICE 13,860 20,000 16,000 16, FRINGES - STREETS 29,108 48,000 52,000 53, FRINGES - TRAFFIC CONTROL 1, , FRINGES - SNOW & ICE 10,794 14,040 12,400 12, FICA 1,921 2,200 2,000 2,100 93

98 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED MAT/CONT - STREETS 34,477 52,000 50,000 50, MAT/CONT - TRAF CONTROL 5,792 3,000 7,000 7, MAT/CONT - SNOW & ICE 6,271 25,000 14,000 14, EQUIP RENT - STREETS 84, ,000 80,000 80, EQUIP RENT - TRAF CONTROL ,000 1, EQUIP RENT - SNOW & ICE 32,402 50,500 42,000 42,000 TOTAL MAINTENANCE 285, , , ,475 TOTAL EXPENDITURES 436, , , ,072 PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ (122,397) Current Est. Operating Surplus (Deficit) 6/30/2016 $ 63,977 Fund Balance From Prior Year 6/30/2015 $ 342,284 FUND BALANCE AT END OF BUDGET YEAR $ 283,864 94

99 Capital Outlay and Major Projects MARINA FUND The Waterways Commission who controls the fee structure for both seasonal and transient dockage at the boat harbor have adjusted the way that fees are established. Previously, the City would have to appear at a Waterways Commission Meeting and state the City s case for an increase or decrease in their established rates. This year, the Commission published a broad range of fees and allowed each individual marina to pick their own. After consulting with Thunder Bay Shores Marine, our contract operators, the rates as proposed in the new fee schedule were agreed upon. This results in lower fees for both transient and seasonal boaters. As the contract operators keep all of the money generated from these fees, this will have a zero net impact on the City s budget numbers. Hopefully, the lower fees will result in increased business at the Marina. Dock Repairs $ 5,000 TOTAL MARINA FUND $ 5,000 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES BUSINESS LIC/PER 2,710 2,500 2,500 2, STATE GRTS - MISC INVESTMENT INCOME MARINA 25,351 25,146 25,000 25, SALE OF ASSETS 0 0 1,675 3, DONATIONS MISCELLANEOUS FR GENERAL FUND 95,000 80, , ,000 TOTAL REVENUES 123, , , ,575 EXPENDITURES SALARIES & WAGES 26,067 27,000 27,540 28, HEALTH ACTUARY 1,136 1,080 1,101 1, STATE/FED INS TAX MI CLAIMS TAX HEALTH INSURANCE 3,365 4,600 4,760 5, DENTAL INSURANCE LIFE INSURANCE FICA 1,937 2,065 2,107 2, RETIREMENT 2,449 2,989 2,989 3, UNIFORMS LONG TERM DISABILITY SUPPLIES 1,633 4,500 4,500 4,500 95

100 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED PROF & CONTRACTUAL CONTINUING EDUCATION BEAUTIFICATION 0 0 4,000 4, INSURANCE & BONDS 4,770 4,845 5,136 5, UTILITIES 26,667 38,000 40,000 42, REPAIRS & MAINTENANCE 8,025 9,000 9,000 9, EQUIPMENT RENT 6,726 7,500 7,500 7, FIBER OPTIC RENT 0 1,172 1,207 1, MISCELLANEOUS 1,281 1,400 1,400 1, CAPITAL OUTLAY 11, ,000 70,600 TOTAL EXPENDITURES 96, , , ,152 PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 11,855 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 3,035 Fund Balance From Prior Year 6/30/2015 $ 115,630 FUND BALANCE AT END OF BUDGET YEAR $ 130,520 96

101 TREE/PARK IMPROVEMENT FUND In October 2006, the City of Alpena received two large donations from the Trust of Drew and Ethel McClay. One donation of approximately $70,000 was to be spent on park improvements and/or tree planting within the City. The second donation of approximately $90,000 was to be utilized for tree planting within the City. The Alpena Municipal Council authorized the investment of these donations and appointed a committee, consisting of the Mayor, the Planning and Development Director, and the City Engineer, to determine how these funds could be best utilized. The City also appointed one member each from the City Planning Commission and the Recreation Advisory Board to serve on this committee. The $70,000 donation was used to make improvements to Starlite Beach and its amenities such as the children's playscape. The balance of the donation will be used for tree planting projects and replacements throughout the park system. Funding was transferred to Local and Major Street funds, Parks & Recreation, and the Cemetery to offset expenses associated with tree planting to replace trees removed over the past several years. There is no tree planting scheduled for DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES INVESTMENT INCOME TOTAL REVENUES EXPENDITURES MAT/CONT - TREES TOTAL EXPENDITURES PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 200 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 200 Fund Balance From Prior Year 6/30/2015 $ 98,721 FUND BALANCE AT END OF BUDGET YEAR $ 99,121 97

102 DOWNTOWN DEVELOPMENT AUTHORITY City Ordinance established the Downtown Development Authority (DDA) in April of 1980 in order to revitalize downtown Alpena. Alpena s DDA operates in accordance with state law (Public Act 197 of 1975, as amended). The DDA recommends and oversees downtown tax increment financing and the levy of an ad valorem tax (2 mill maximum) on all taxable property within the DDA district. This 2 mill tax is the main source of operating revenue for the authority, and the Tax Increment Financing is the primary source of development project funding. The DDA allocates TIF funds in accordance with the provisions and improvements delineated in the 2005 Downtown Development and Tax Increment Financing (TIF) Plan (approved by the City of Alpena), the DDA section of the City of Alpena s 6 Year Capital Improvement Plan and the Downtown Market Analysis and Strategic Plan of 2003, updated in In , the DDA contracted for a new Downtown Development Plan and Market Analysis to guide us through the next five years. The new plan will work toward developing stronger relationships with our property and business owners and addressing larger projects, such as traffic flow, parking, and snow removal. These projects are key to improving the economic environment in downtown Alpena in order to increase property value and community viability. When appropriate, the DDA will advocate on issues affecting the business atmosphere and affecting community environment, as pertinent to downtown Alpena. To keep us accountable and focused the DDA Board of Directors will continue to keep the DDA Guiding Themes current & 2016 Guiding Themes of the Alpena Downtown Development Authority Priority Committee Assigned Priority Areas 1 Economic Prepare then follow a new Downtown Development Plan and Market Study to determine opportunities 2 Design Improve Building Conditions 3 Promotion Develop identity Marketing Plan Strategy to determine promotions, advertising, customer loyalty and retention programs, events, etc. 4 Board of Directors Stronger, Educated, and Visible Board 5 All (coordinated) Develop better relationships with owners The DDA has one full-time employee, the Executive Director, to help implement plans of the Board. 98

103 During the fiscal year, the DDA stayed mindful of its purpose: Worked with the City of Alpena and the economic development arm of the Alpena Chamber of Commerce to encourage new development in the downtown; Developed stronger relationship with the Farmers Market, introducing a once a week evening market in the downtown s core; Awarded façade grants toward the improvement of our downtown s aesthetic appeal; Upgraded our green spaces; Managed the City s new downtown parking management plan and its enforced; Submitted grant applications to augment revenue and increase investment in downtown; Increased our online communication by utilizing social media; Continued to make full use of DDA Welcome Bags for area visitors, handing out 2500; Collaborated with community partners in projects that impacted downtown; Supported efforts to support historic preservation activities; Continued to be involved in the Alpena rebranding effort; Built on our relationship with MI Main Street, which supports the DDA s existing four committees; Encouraged the use of the NEZ to add more residential units in downtown, and Continued to apply the principles of Placemaking in downtown to foster economic development In the coming year, the DDA will weave the goals of the new Downtown Development Plan into all efforts: Implement appropriate recommendations from Devleopment Plan; Act on Market Analysis suggestions; Improve Building Conditions; Develop identity Marketing Plan Strategy to determine promotions, advertising, customer loyalty and retention programs, events, etc.; Stronger, Educated, and Visible Board; Develop better relationships with owners; Include the principles of Placemaking in decision making; Investigate new revenue streams to enlarge impact; Continue to build on our strong relationships with Community Development Partners; Increase overall communication with DDA Stakeholders through small events, visits and written form; Analyze and propose improved public space usage, implement as appropriate; Work toward keeping website up-to-date while employing Facebook as communication conduit; Apply concentrated, consistent effort for improved parking regulations and traffic flow; Continue to add new promotions and support events within the district to enhance atmosphere; Promote efforts to improve gathering and outdoor dining areas; Actively research and implement revenue-producing activities. As always, the DDA will work in partnership with the City and other area-wide organizations, institutions and businesses on projects beneficial to the community and the Downtown area. 99

104 Capital Outlay and Major Projects DDA Façade Grants $ 20,000 Designated Economic Development Fund ,000 Placemaking ,000 Parking Management/Wayfinding ,000 Street Amenities & Parks ,000 TOTAL DDA $ 59,000 DEPARTMENTS DESCRIPTION DDA FUND NO ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES TAX INCREMENTS 92, ,560 83,792 90, PERS PROP TAX REIMB 19, LOCAL COMM STAB SHARE 0 19,462 19,462 19, INVESTMENT INCOME 2,605 3,350 3,000 2, SALE OF ASSETS ,000 2, MISCELLANEOUS 5,297 15,000 6,000 7,000 TOTAL REVENUES 119, , , ,054 EXPENDITURES SALARIES & WAGES 37,115 38,000 36,080 36, FICA 2,839 2,887 2,758 2, SUPPLIES 3,953 3,000 3,000 3, DURABLE GOODS 986 3, PROF & CONTRACTUAL GENERAL FUND SERVICES CONTINUING EDUCATION 2, ,000 2, COMMUNITY PROMOTION 7,252 13,000 15,000 10, BEAUTIFICATION COMMITTEE 4,926 14,500 5,000 15, ECONOMIC PROMOTION 1,252 11,200 5,000 3, UTILITIES REPAIRS & MAINTENANCE 366 4,600 2,500 2, MAINT - DDA SNOW REMOVAL 1,727 2,400 3,000 5, FIBER OPTIC RENT MISCELLANEOUS 0 7,000 1,000 1, FACADE GRANTS-DESIGN 5,000 3,622 15,000 15, RENTAL INCENTIVE PROGRAM 0 0 5,000 5, LAND ACQUISITION 0 45, CAP - LAND IMPROVEMENTS ,000 8, LAND ACQUISITION - PRIN 5, ,000 5, LAND ACQUISITION - INT ,520 2,520 TOTAL EXPENDITURES 74, , , ,

105 DOWNTOWN DEVELOPMENT AUTHORITY PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ (14,550) Current Est. Operating Surplus (Deficit) 6/30/2016 $ (5,501) Fund Balance From Prior Year 6/30/2015 $ 235,185 FUND BALANCE ASSIGNED ECONOMIC DEVELOPMENT $ 30,000 UNASSIGNED PROJECTED FUND BALANCE AT FISCAL YEAR END $ 185,134 TOTAL FUND BALANCE $ 215,

106 DEPARTMENTS DESCRIPTION DDA FUND NO ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES CURRENT PROPERTY TAXES 19,653 22,671 26,735 27, DELINQUENT TAXES PARKING 5,032 11,000 13,000 12, INVESTMENT INCOME MISCELLANEOUS PARKING LOT RENTAL 5,205 3,935 4,000 4, BIKE RACK RENTAL 1,050 1,000 1,000 1,000 TOTAL REVENUES 31,215 38,698 44,835 44,100 EXPENDITURES SALARIES & WAGES 9,681 11,000 12,367 12, FICA UNEMPLOYMENT SUPPLIES 488 1, PROF & CONTRACTUAL 3,075 11,000 22,310 22, GENERAL FUND SERVICES 1,550 2,339 2,339 2, DUES & SUBSCRIPTIONS INSURANCE & BONDS UTILITIES 3,700 3,600 3,600 3, REPAIRS & MAINTENANCE OFFICE RENT 3,900 4, MISCELLANEOUS MISCELLANEOUS - TAXES TOTAL EXPENDITURES 24,981 35,484 43,511 43,511 PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 1,324 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 3,214 Fund Balance From Prior Year 6/30/2015 $ 24,265 PROJECTED UNASSIGNED FUND BALANCE AT END OF BUDGET YEAR $ 28,

107 AUTHORITY FOR BROWNFIELD REDEVELOPMENT The Authority for Brownfield Redevelopment Fund is used by counties, cities, villages and townships to assist in the redevelopment of underutilized properties due to environmental contamination, blight or functional obsolescence. The local unit may establish an authority under the Brownfield Redevelopment Financing Act (MCL et al.) to administer the activities authorized under the Act. The authority shall be administered by a board appointed pursuant to the requirements of the Act (MCL ). The City of Alpena Brownfield Redevelopment Authority was established by City Council Resolution No in March 1997, with the City's Downtown Development Authority (DDA) Board serving as the Brownfield Authority's Board as well. As the Brownfield Authority became more active the dual role of the DDA Board became less desirable due to increased workloads for the members and the increased likelihood of conflicts of interest between the activities of the two Authorities. In 2006, the original nine-member Brownfield Authority Board represented by the DDA was dissolved and a new, independent five-member Board established with a new set of by-laws. At its first meeting in October 2006, the new Board officially changed the Authority's name to the City of Alpena Authority for Brownfield Redevelopment. This fund is used to account for the administrative costs of the Authority. The Authority's debt service and capital project activities are accounted for in fund 402. DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED AUTHORITY FOR BROWNFIELD REDEVELOPMENT REVENUES TAX INCREMENTS (ALP MARC) 3,188 3, TAX INCREMENTS (LAFARGE) 8,973 8, TAX INCREMENTS (DEAN ARBOUR) 984 1,066 1, TAX INCREMENTS (HOLIDAY INN) MISCELLANEOUS TOTAL REVENUES 13,145 12,516 1,257 1,922 OTHER FINANCING USES TRANSFER - GENERAL FUND 17,800 10, TOTAL OTHER FINANCING USES 17,800 10, TOTAL EXPENDITURES AND OTHER FINANCING USES 17,800 10,

108 AUTHORITY FOR BROWNFIELD REDEVELOPMENT PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 1,257 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 2,516 Fund Balance From Prior Year 6/30/2015 $ 4,470 FUND BALANCE AT END OF BUDGET YEAR $ 8,

109 BUILDING OFFICIAL The Public Act of 245 of 1999 amended the State Construction Code. The Act in Section 22 places accounting requirements on local government. Therefore, a separate special revenue fund has been established. This fund helps to easily identify the charges for services versus the expenses of this department. DEPARTMENTS DESCRIPTION BUILDING OFFICIAL ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES CHARGES FOR SERVICES 73, , , , CHARGES FOR SERVICES-ACCESS 17,188 21,000 40,000 40, INVESTMENT INCOME MISCELLANEOUS 1,536 1,704 1,704 1, FR GENERAL FUND 25,000 20,000 25,000 25,000 TOTAL REVENUES 116, , , ,764 EXPENDITURES SALARIES & WAGES 74,549 79,000 80,580 82, HEALTH ACTUARY 3,023 3,099 3,223 3, STATE/FED INS TAX 1,190 1,175 1,175 1, MI CLAIMS TAX HEALTH INSURANCE 24,016 23,000 23,805 25, DENTAL INSURANCE 2,519 2,550 2,627 2, LIFE INSURANCE FICA 5,482 6,043 6,164 6, RETIREMENT 8,163 11,498 11,206 12, UNIFORMS UNEMPLOYMENT LONG TERM DISABILITY SUPPLIES 5,254 5,000 5,000 5, DURABLE GOODS PROF & CONTRACTUAL 16,122 21,500 32,000 36, CONTINUING EDUCATION 1,384 2,300 3,500 3, INSURANCE & BONDS 1,274 1,362 1,430 1, UTILITIES 2,030 2,200 2,400 2, REPAIRS & MAINTENANCE 622 1,000 1,000 1, EQUIPMENT RENT OFFICE RENT 1,982 2,500 2,500 2, MISCELLANEOUS TOTAL EXPENDITURES 149, , , ,

110 BUILDING OFFICIAL PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ (1,593) Current Est. Operating Surplus (Deficit) 6/30/2016 $ (21,198) Fund Balance From Prior Year 6/30/2015 $ 22,791 FUND BALANCE AT END OF BUDGET YEAR $ 0 106

111 BUDGET STABILIZATION FUND The Budget Stabilization Fund, commonly referred to as a Rainy Day fund, was created in accordance with 1978 P.A. 30, as amended. The Budget Stabilization Fund was established by Ordinance at the March 15, 1999, Municipal Council meeting. The fund will be used to guard against periods of economic downturns when revenues are reduced. $500,000 was transferred from the General Fund in fiscal year In fiscal year , $50,000 was allocated to this fund. The cuts in state revenue forced us to use $180,000 in fiscal year and $200,000 in fiscal year to continue the same level of services to the citizens of Alpena. In , we used $165,000, leaving a balance of $5,000. We were unable to allocate money to this fund from 2006 through $5,000 was allocated for and , and $5,000 is being allocated for DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES INVESTMENT INCOME (3) TOTAL REVENUES (3) OTHER FINANCING SOURCES FROM GENERAL FUND 0 5,000 5,000 5,000 TOTAL OTHER FINANCING SOURCES 0 5,000 5,000 5,000 TOTAL REVENUES AND OTHER FINANCING SOURCES (3) 5,025 5,025 5,025 EXPENDITURES INTEREST TRANS - GEN FUND TOTAL EXPENDITURES BUDGET STABILIZATION FUND PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 5,000 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 5,000 Fund Balance From Prior Year 6/30/2015 $ 10,000 FUND BALANCE AT END OF BUDGET YEAR $ 20,

112 BUILDING AUTHORITY DEBT FUND The Building Authority Debt Fund is used to record the payment of principal and interest on projects needed to be financed. The Building Authority Debt Fund accounts for one bond issue as listed below: City of Alpena Building Authority, 2004 Building Authority Bonds - Department of Public Works Project. Original Date of Issue: August 17, 2004 Original Amount of Issue: $ 1,800,000 In 2013, the City did a refunding of the 2004 bond. The new schedule reflects the new debt service as well as a small portion of unrefunded bonds. The net savings on this refunding was $113, Refunding Date: May 15, 2013 Unrefunded 2004 Bond $ 100, Refunding Bonds $ 1,525,000 Debt Outstanding 6/30/16: $ 1,465, Deductions 95,000 Debt Outstanding 6/30/17: $ 1,370,000 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED BUILDING AUTHORITY DEBT FUND REVENUES INVESTMENT INCOME FR GENERAL FUND 156, , , , FR DEBT FUND 14, FR G.O. DEBT FUND 2, TOTAL REVENUES 173, , , ,713 EXPENDITURES PROF & CONTRACTUAL LAKESIDE MOTEL - PRIN 45,000 50, PRINCIPAL PAYMENT 70,000 95,000 95,000 90, ACCOUNT MAINT FEES 1,050 1,200 1,200 1, LAKESIDE MOTEL - INT 3,457 1, INTEREST PAYMENT 36,423 34,758 33,618 32,508 TOTAL EXPENDITURES 156, , , ,

113 BUILDING AUTHORITY DEBT FUND PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 5 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 5 Fund Balance From Prior Year 6/30/2015 $ 18,642 FUND BALANCE AT END OF FISCAL YEAR $ 18,

114 The following projects are scheduled for : Capital Outlay and Major Projects CAPITAL IMPROVEMENT FUND With the voter s approval, the City sold the Alpena Civic Center due to the high cost to maintain and upgrade it. The building was sold for $125,000 in With Council s authorization, the net proceeds of $119,889 were deposited into a new fund The Capital Improvement Fund. The County returned a balance of $19,056 from the Community Events Center millage proceeds when that funding obligation was fulfilled in That refund was deposited into this Capital Improvement Fund. The old DPW Building sold on a land contract was paid ahead of schedule in a lump sum of $120, That was deposited in the fund in October of The Capital Improvement Fund has been designated for capital improvements to the City Hall, cemetery and marina buildings. Exterior Tuck-Point, Repair and Seal $ 75,000 Front End HVAC Control Replacement ,000 HVAC Upgrade/Repair/Replacement ,000 Replace VAV Boxes and Valves ,500 Clean Duct Work ,000 TOTAL CAPITAL IMPROVEMENT FUND $ 200,500 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED CAPITAL IMPROVEMENT FUND REVENUES INVESTMENT INCOME SALE OF ASSETS 120, TOTAL REVENUES 120, EXPENDITURES BUILDING IMPROVEMENTS ,500 16,000 TOTAL EXPENDITURES ,500 16,

115 CAPITAL IMPROVEMENT FUND PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ (200,100) Current Est. Operating Surplus (Deficit) 6/30/2016 $ 600 Fund Balance From Prior Year 6/30/2015 $ 260,514 FUND BALANCE AT END OF BUDGET YEAR $ 61,

116 BROWNFIELD CAPITAL PROJECTS In accordance with Act 381 of 1996, as amended, the purpose of the City of Alpena Authority for Brownfield Redevelopment is to promote the redevelopment of contaminated, blighted and functionally obsolete properties within the City of Alpena through the use of Tax Increment Financing (TIF) and State tax credits (eliminated by the State in 2011). The Authority Board may approve site specific brownfield plans that provide financial incentives for environmental and development activities that support the redevelopment of the property, thereby creating investment, new employment opportunities and a rejuvenated tax base. A developer may be reimbursed for the cost of environmental activities such as site assessments, Baseline Environmental Assessments (BEAs) and remediation of known contaminants, as well as development activities including demolition and installation of necessary public infrastructure. These reimbursements may be funded utilizing the increase in tax revenues resulting from the new development that are captured under a TIF. Brownfield plans are reviewed and approved by both the Authority for Brownfield Redevelopment and City Council. Brownfield plans that capture state school taxes in addition to local taxes must also be approved by the Michigan Strategic Fund (MSF) Board in Lansing. To date the Authority and Council have approved six brownfield plans, two of which the NOAA Maritime Heritage Center and the Lafarge redevelopment project include both TIF tax revenue capture (including school tax capture) and tax credits. These two TIFs expired December 31, 2014 and December 31, 2015, respectively. A third, the Fletcher Street Brewing Company, received tax credits only. The fourth plan, for the Dean Arbour Ford auto dealership development at 1001 US 23 North, provides for TIF tax capture (including school tax capture), and was approved by the Brownfield Authority in late April 2010, by City Council in early May and by the MSF Board in late May Tax capture for this project commenced with the 2013 summer tax bill and will continue through December 31, The fifth plan, was approved by the Brownfield Authority and City Council in November 2014 and by the MSF Board in January 2015, for the new Holiday Inn Express hotel currently under construction in downtown Alpena. This plan provides for both local and school tax capture over a fifteen (15) year period, and includes a 10-year Commercial Rehabilitation local tax abatement. Tax capture will commence with the summer 2016 taxes. The most recent approved plan is for The Thunder Bay CJD auto dealership on Chisholm Street, which will undergo major upgrades commencing in This plan was approved by the Authority and City Council in October Since only local taxes are being captured, no approval by the MSF Board was required. This plan runs through

117 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES TAX INCREMENTS (ALP MARC) 24, TAX INCREMENTS (LAFARGE) 69,053 63, TAX INCREMENTS (DEAN ARBOUR) 31,434 33,042 32,649 32, TAX INCREMENTS (HOLIDAY INN) 0 0 9,497 87, TAX INCREMENTS (THUNDER BAY CJD) , INVESTMENT INCOME TOTAL REVENUES 125,020 96,210 42, ,060 EXPENDITURES ALPENA MARC (NOAA) SITE IMPROVEMENTS 80, TOTAL ALPENA MARC (NOAA) 80, LAFARGE BUILDING DEMOLITION 18, TOTAL LAFARGE , DEAN ARBOUR BUILDING DEMOLITION 31,434 33,042 32,649 32,313 TOTAL DEAN ARBOUR 31,434 33,042 32,649 32,313 HOLIDAY INN HOLIDAY INN-SITE ACTIVITIES ,450 TOTAL HOLIDAY INN ,450 THUNDER BAY CHRYSLER JEEP DODGE THUNDER BAY CJD-DEMO ,819 TOTAL THUNDER BAY CHRYSLER JEEP DODGE ,819 OTHER FINANCING USES SITE REMEDIATION FUND 75,240 78, TOTAL OTHER FINANCING USES 75,240 78, TOTAL EXPENDITURES AND OTHER FINANCING USES 205, ,867 32, ,

118 BROWNFIELD CAPITAL PROJECTS PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 9,522 Current Est. Operating Surplus (Deficit) 6/30/2016 $ (15,657) Fund Balance From Prior Year 6/30/2015 $ 10,657 FUND BALANCE AT END OF BUDGET YEAR $ 4,

119 Number of City of Alpena Customers 4,632 Number of Alpena Township Customers 1,906 Miles of City Sewer Main 69.3 Alpena CRTC Main Customers (Inc. Above) 6 Capital Outlay and Major Projects Treatment Plant Back Up Boiler $ 90,000 Asbestos/Hazard Abatement ,000 Electronic Control Valve ,000 Methane Gas Lifter Enclosure ,000 TOTAL TREATMENT PLANT $ 140,000 Collection System-Construction SEWAGE FUND The Sewage Fund is an enterprise fund. It is used to account for the acquisition, operation, maintenance, and replacement of the sewage treatment and sewage collection systems. The two systems are entirely selfsupported by user charges. User Fees are expected to produce $1,988,200. The meter change out program which began in 2012 will impact this revenue as consumers with under registering meters are now be billed for the actual sewage generated based on the volume of water being used. We have also proposed a 5% rate increase beginning July 1, 2016, to stabilize the funds position and to maintain the current level of capital improvements necessary to repair, maintain, and upgrade the system and provide reliable service to the customers of the system. Since July 1, 1988, the operation and maintenance of the Waste Water Treatment Plant and Collection System has been operated by W. W. Operation Services, now Suez. The contract with Suez was extended through June 30, 2020 in conjunction with an approved meter change out program funded by Suez and to be paid over the next 4 years. The City will be finish the replacement of Sewer mains in Second and Third Avenue started last fiscal year and will be replacing the sewer mains in Eleventh Avenue from Park Street to M-32 and Campbell Street from Washington Avenue to Fifth Avenue. The City will also construct a replacement sewer main along the proposed Johnson Street bypass, perform spot repairs of deficiencies noted during past video inspection work and rebuilding short sections of sanitary sewer main to eliminate infiltration or correct failing pipe. The proposed projects are as follows: Sewer Bypass Piping $ 20,000 Sanitary Sewer Spot Repairs ,000 Complete Second Avenue ,000 Complete Third Avenue ,000 Johnson Street Bypass ,000 CRTC Lift Station Telemetry ,

120 Sanitary Sewer Main Rehabilitation ,000 Eleventh Avenue Park to M ,000 Campbell Street ,000 Upgrade Pump at Lift Stations ,500 TOTAL COLLECTION SYSTEM $ 840,500 Other New Services $ 10,000 Replacement Services ,000 TOTAL OTHER $ 45,000 TOTAL SEWAGE FUND $ 1,025,500 DEPARTMENTS DESCRIPTION SEWAGE FUND ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES PLUMBING PERMITS IPP PERMITS CHARGES - TAP FEES 2,663 8,475 3,000 3, CHARGES - SAMPLING/TEST SALES & CHARGES 2,800,443 2,942,228 3,030,495 3,121, SALES - HAULED WASTE 32, SALES - SEPTAGE 85, ,140 90,000 90, INVESTMENT INCOME 4,754 5,300 4,000 4, INVESTMENTS-CHANGE IN VAL MISCELLANEOUS 6,730 6,000 7,000 7,000 TOTAL REVENUES 2,934,346 3,084,243 3,135,595 3,226,510 EXPENDITURES TREATMENT LIFE INSURANCE SUPPLIES 33,644 40,000 41,200 41, DURABLE GOODS 4,291 4, CONT - OPERATIONS 592, , , , CONT - COLLECTION 35,944 35,940 36,660 37, CONT - METERS (6,500) CONT - FIXED ASSETS STUDY CHARGES - ADMINISTRATION 192, , , , INSURANCE & BONDS 20,129 20,526 21,552 22, UTILITIES 249, , , ,

121 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REPAIRS & MAINTENANCE 120 2,000 2,000 2, FIBER OPTIC RENT 3,848 3,848 3,848 3, MISCELLANEOUS 30,656 55,000 55,000 55, CAPITAL OUTLAY 0 70, , , CAP - LAND IMPROVEMENTS 0 12,000 20,000 0 TOTAL TREATMENT 1,156,659 1,298,605 1,375,550 1,432,965 COLLECTION SALARIES & WAGES 10,966 10,000 27,197 27, HEALTH ACTUARY ,061 1, STATE/FED INS TAX MI CLAIMS TAX HEALTH INSURANCE 5,047 5,000 10,905 11, DENTAL INSURANCE ,332 1, LIFE INSURANCE FICA ,030 2, RETIREMENT 3,878 4,599 4,482 4, LONG TERM DISABILITY DURABLE GOODS PROF & CONTRACTUAL CONT - OPERATIONS 307, , , , CHARGES - COMPUTER ADMIN 8,750 9,188 9,464 9, UTILITIES 20,325 17,000 17,170 17, REPAIRS & MAINTENANCE 6,221 9,000 9,000 9, MAINT - AIR BASE 2,751 3,700 3,700 3, EQUIPMENT RENT 7,202 6,000 7,000 7, FIBER OPTIC RENT 35,398 35,398 35,398 35, MISCELLANEOUS 585 1,000 1,000 1, CAPITAL OUTLAY , CAP - SEWER MAINS 0 237, ,000 2,171, CAP - NEW SEWER SERVICES 0 10,000 10,000 10, CAP - REPL SEWER SERVICES 0 40,000 35,000 35, CAP - LIFT STATIONS 0 15,000 15,500 15, S/W REV BONDS - PRIN 0 145, , , SRF BOND - PRIN 0 150, , , G.O. BOND - PRIN 0 25,000 25,000 25, S/W REV BONDS -INT 11,186 9,119 6,426 3, SRF BOND - INTEREST 41,164 39,335 36,898 34, G.O. BOND - INTEREST 17,227 16,406 15,313 14,218 TOTAL COLLECTION 480,754 1,096,698 1,702,419 3,047,

122 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED OTHER FINANCING USES WATER FUND 300, TOTAL OTHER FINANCING USES 300, TOTAL EXPENDITURES AND OTHER FINANCING USES 1,937,413 2,395,303 3,077,969 4,480,259 PROJECTED SURPLUS Budgeted Net Revenues (Expenditures) 6/30/2017 $ 57,626 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 688,940 Accumulated Available Undesignated 6/30/2015 $ 1,390,732 Surplus (Deficit) From Prior Years RESERVED G.O. BOND ISSUE $ 40,312 RESERVED W/S REVENUE 2012 BOND ISSUE $ 73,213 PROJECTED SURPLUS AT END OF BUDGET YEAR $ 2,023,

123 Number of City of Alpena Customers 4,638 Number of Alpena Township Customers 2,377 Miles of City Water Main 80.6 Capital Outlay and Major Projects Treatment Plant Lab Equipment Charge Analyzer $ 12,000 Structural Mechanical Upgrades ,000 Asbestos/Hazard Abatement ,000 Low Service Control Panel ,000 TOTAL TREATMENT PLANT $ 197,000 Distribution System WATER FUND The Water Fund is an enterprise fund and is used to account for the acquisition, operation, maintenance, and replacement of the Water Production and Water Distribution systems, which are entirely self-supported, by user charges. User Fees are expected to produce $1,893,900. The recently approved meter change out program will impact this revenue as consumers with under registering meters will now be billed for the actual water being used. We have also proposed a 10% rate increase to stabilize the funds position and to maintain the current level of capital improvements necessary to repair, maintain, and upgrade the system and provide reliable service to the customers of the system. Since July 1, 1988, the operation and maintenance of the Water Production and Water Distribution system has been operated by W. W. Operation Services, now Suez. The contract with Suez was extended through June 30, 2020 in conjunction with an approved meter change out program funded by Suez and to be paid over the next 4 years. The City will complete the water main replacement work in Second Avenue and Third Avenue started last fiscal year and will replace the water mains in Eleventh Avenue from Park Street to M-32 and Campbell Street from Washington Avenue to Fifth Avenue. The City will also replace the water main along the proposed Johnson Street bypass route from Johnson Street to Long Lake Avenue. Complete Second Avenue $ 130,800 Complete Third Avenue ,000 Johnson Street Bypass ,000 Eleventh Avenue Park to M ,700 Campbell Street ,000 TOTAL DISTRIBUTION SYSTEM $ 773,

124 Other Replace Roof Wilson Pump Station $ 6,000 Main Valve Replacement ,000 Large Meter Replacement ,000 New Services ,000 Replacement Services ,000 TOTAL OTHER 63,000 TOTAL WATER FUND $ 1,033,500 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES PLUMBING PERMITS 1,935 1,000 1,000 1, CHARGES - TAP FEES 0 8,240 8,000 8, CHARGES - SAMPLING/TEST 17,070 18,000 18,000 18, HYDRANT USE 7,883 2,400 4,400 4, SALES & CHARGES 2,887,268 2,881,162 3,025,220 3,176, INVESTMENT INCOME 8,242 2,000 2,000 2, INVESTMENTS-CHANGE IN VAL (6,657) SALE OF ASSETS MISCELLANEOUS 35,692 25,000 25,000 25, FR SEWER FUND 300, TOTAL REVENUES 3,251,434 2,937,996 3,083,620 3,234,881 EXPENDITURES PRODUCTION SUPPLIES 140, , , , DURABLE GOODS CONT - OPERATIONS 578, , , , UTILITIES 121, , , , MISCELLANEOUS 26,620 55,000 55,000 55, CAPITAL OUTLAY 0 239, , ,000 TOTAL PRODUCTION 868,868 1,156,000 1,149,210 1,304,432 DISTRIBUTION SALARIES & WAGES 22,270 20,000 36,997 37, FICA 1,704 1,530 2,830 2, PROF & CONTRACTUAL CONT - OPERATIONS 271, , , , CHARGES - COMPUTER ADMIN 8,750 9,187 9,463 9, REPAIRS & MAINTENANCE 62,674 40,000 40,000 40,

125 DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED MAINT - WATER TOWERS 63,035 69,970 69,970 69, EQUIPMENT RENT 13,428 13,000 13,000 13, FIBER OPTIC RENT 2,887 2,887 2,887 2, MISCELLANEOUS LOSS ON DISPOSAL 2,274 3,000 3,000 3, CAPITAL OUTLAY 0 0 6, CAP - WATER MAINS 0 200, ,500 2,450, CAP - MAIN VALVES 0 15,000 15,000 15, CAP - LARGE METERS 0 15,000 15,000 15, CAP - NEW WATER SERVICES 0 15,000 9,000 9, CAP - REPL WATER SERVICES 0 18,000 18,000 18, S/W REV BONDS - PRIN 0 145, , , DWRF BOND - PRIN 0 155, , , G.O. BOND - PRIN 0 25,000 25,000 25, S/W REV BONDS -INT 11,186 9,119 6,426 3, DWRF BOND - INTEREST 52,077 49,632 46,339 43, G.O. BOND - INTEREST 17,227 16,406 15,313 14,218 TOTAL DISTRIBUTION 530,287 1,102,960 1,703,462 3,371,521 COMMERCIAL HEALTH ACTUARY STATE/FED INS TAX MI CLAIMS TAX HEALTH INSURANCE 10,936 10,850 17,340 18, DENTAL INSURANCE 1,129 1,160 1,820 1, LIFE INSURANCE RETIREMENT 3,878 4,599 4,482 4, LONG TERM DISABILITY CONT - OPERATIONS 5,547 5,577 5,577 5, CONT - COLLECTION 36,053 36,800 36,800 36, CONT - METERS (6,500) CONT - FIXED ASSETS STUDY CHARGES - ADMINISTRATION 192, , , , INSURANCE & BONDS 16,648 17,482 18,356 19,274 TOTAL COMMERCIAL 261, , , ,754 TOTAL EXPENDITURES 1,660,824 2,535,204 3,142,935 4,974,

126 WATER FUND PROJECTED SURPLUS Budgeted Net Revenues (Expenditures) 6/30/2017 $ (59,315) Current Est. Operating Surplus (Deficit) 6/30/2016 $ 402,792 Accumulated Available Undesignated 6/30/2015 $ 1,366,176 Surplus (Deficit) From Prior Years RESERVED G.O. BOND ISSUE $ 40,312 RESERVED W/S REVENUE 2012 BOND ISSUE $ 73,213 PROJECTED SURPLUS AT END OF BUDGET YEAR $ 1,596,

127 BROWNFIELD REMEDIATION REVOLVING FUND The Brownfield Remediation Revolving Fund (RRF) is used to support the development or redevelopment of contaminated or potentially contaminated sites within the City by providing funding, either through grants or loans, to conduct environmental site investigations, prepare BEAs and Due Care Plans, and conduct site remediation activities. The Authority Board establishes policies and procedures for use of the funds, including whether they shall be provided as a loan or a grant to an eligible recipient. Funding is provided through an approved Brownfield Tax Increment Financing (TIF) Plan via the capture of local property taxes once all other eligible expenses are reimbursed. In 2013, the Authority and City Council approved a Brownfield Plan to allow for the expenditure of Remediation Funds in support of the City s purchase and demolition of the Beach Motel on State Avenue. Remediation Funds specifically covered the costs for a Phase 1 ESA, asbestos survey and removal of asbestos from the building, demolition of the building and air quality monitoring during demolition. In 2014, a Brownfield Plan was approved to assist the Austin Brothers Beer Company with the costs of Phase 1 and 2 Environmental Site Assessments, development of a Due Care Plan, and remediation of on-site contamination necessary for the development of a new production brewery and bar/restaurant in an existing industrial building. The new brewery, located off Miller Street adjacent to the railroad tracks, opened in November In February 2016, Council approved a Brownfield Plan for Target Alpena Development Corporation to assist in the redevelopment of the former Alpena Power Company property in downtown Alpena along the Thunder Bay River. Remediation Funds will pay for a Phase 2 ESA, BEA, Due Care Plan and necessary environmental remediation. Demolition of the building is slated for May-June 2016 utilizing a blight elimination grant from the state and private funding. Target is currently marketing the property to potential developers. The RRF is funded from existing brownfield TIFs once all eligible expenditures have been paid. Only local tax capture is deposited into the RRF for a period of five years or the expiration of the brownfield plan, whichever occurs first. To date both the NOAA (both expired) and Lafarge TIFs, have contributed funds to the Brownfield Remediation Revolving Fund. DEPARTMENTS DESCRIPTION ACTUAL EST. CURRENT BUDGET PROJECTED REVENUES BRA CAPITAL FUND (LOCAL) 75,240 73, BRA CAPITAL FUND (SCHOOL) TOTAL REVENUES 75,240 73, EXPENDITURES BEACH MOTEL 25, AUSTIN BROS BEER CO LLC 0 57, TOTAL EXPENDITURES 25,176 57,

128 BROWNFIELD REMEDIATION REVOLVING FUND PROJECTED FUND BALANCE Budgeted Net Revenues (Expenditures) 6/30/2017 $ 0 Current Est. Operating Surplus (Deficit) 6/30/2016 $ 16,195 Fund Balance From Prior Year 6/30/2015 $ 137,269 FUND BALANCE AT END OF BUDGET YEAR $ 153,

129 Capital Outlay and Major Projects New Equipment/Vehicles - DPW EQUIPMENT FUND This fund owns and maintains the City s fleet of vehicles (except police, ambulance, and older fire vehicles) and construction equipment. Equipment rental is the amount charged to the other City departments for the use of this equipment. Two Department of Public Works employees provide fleet vehicle maintenance. Equipment is assigned a rental rate, which in turn funds the replacement and maintenance costs. Revenues generated by the sale of outdated equipment will be placed back into the fund for future fund operations. Purchases for the City s equipment and vehicle fleet are coordinated by the Department of Public Works or Fire Department as needed. Wheel loader $ 177,000 Utility Truck # ,000 TOTAL EQUIPMENT/VEHICLE PURCHASES $ 212,000 DPW CONSTRUCTION FUND During the fiscal year , the Alpena Building Authority completed construction of the new Department of Public Works Service Facility on Long Lake Avenue; which is now occupied by the Department of Public Works. The Building Authority financed this project through the sale of approximately $1.8-million in bonds. The Building Authority now leases the DPW facility to the City until the bonds are repaid, at which time the City of Alpena will assume direct ownership of it. Since the City s Equipment Fund rents space in the new facility for storage of the DPW construction equipment and vehicle fleet, the Equipment Fund paid approximately $120,000 per year to the Building Authority towards repayment of the bonds until , then the General Fund began to make the lease payments. The Alpena Municipal Council has also authorized that the principal amount of $207,000 in the DPW Construction Fund be retained within this fund and that the investment income only be used for building improvements and stationary building equipment. There are no capital projects scheduled for

130 Non-skid Floor Boiler Replacement Study Humidifier System Generator Phone System Expansion Boiler Replacement Phase 1 of the Energy Light Installation Control System Upgrade to Carbon Monoxide Emission System Completion of Energy Efficient Light Installation Phone System Air Compressor Environmental Site Work Initial Improvements and Renovations to the Public Safety Facility Annex Overhead Doors Gate & Fence Paving Roof Repairs Exterior Painting PUBLIC SAFETY FACILITY CONSTRUCTION FUND On February 5, 1996, the Municipal council authorized that the principal amount of $386,000 in the Public Safety Facility Construction fund be retained in the Construction Fund and that the investment income only be used for building improvements and stationary building equipment. The interest was used for building projects and when it was depleted, Council authorized the use of the principal for continued capital and maintenance projects on the building. The following are building improvements completed over the years and scheduled through With completion of the roof projects, the fund will have no balance left. Gutter Repair/Roof/Soffits Air Conditioning Completion of Roof Project 126

131 Grants Table of Contents Page No. Grants Summary Grants Engineering Department Police Department General Government Planning & Development 2014 Grants Engineering Department Police Department Fire/Ambulance Department Planning & Development 2013 Grants Engineering Department Police Department Fire/Ambulance Department Planning & Development 2012 Grants Engineering Department Police Department Fire Department Planning & Development 2011 Grants Engineering Department Police Department Planning & Development 2010 Grants Engineering Department Police Department Planning & Development 2009 Grants Engineering Department Police Department Planning & Development 127

132 Page No Grants Engineering Department Police Department Fire Department General Government Planning & Development 2007 Grants Engineering Department Police Department Fire Department General Government Planning & Development 2006 Grants Engineering Department Police Department Fire Department General Government 128

133 GRANTS ,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, TOTAL FUNDING GRANT CITY MATCH OTHER FUNDING SOURCES TOTAL GRANT HISTORY OTHER FUNDING YEAR FUNDING GRANT CITY MATCH SOURCES ,218,433 1,674, ,935 1,346, ,145, , , , ,141, , ,120 88, , ,356 68, , , ,950 76, , ,525 67,559 49,333 47, ,610,298 1,228, , , ,767,153 3,673,682 2,140,024 9,953, ,334,580 3,730, , , ,099,493 2,672,587 1,426,906 0 TOTAL $ 29,220,522 $ 12,849,902 $ 5,082,633 $ 11,287,