1998 / 1999 Budget
Members of the Grandville City Council:
I am pleased to submit to you the recommended financial plan for
the fiscal year beginning July 1, 1998, and ending June 30, 1999.
The financial plan contains budgets for the General Fund and a
variety of other governmental and proprietary funds through which we
provide the full range of services to our citizens. The total
appropriation recommended for all funds for the 1998-99 fiscal year,
excluding transfers, is $21,573,186. This is a significant
increase from the current fiscal year due primarily to one-time
revenue enhancements such as state grants and road construction
bonds totaling $5,680,000. Also included is $2,250,000 in proposed
building construction of which $1,885,000 is expected to come from
building bonds.
The proposed operating millage rate for the 1998-99 financial
plan remains at 7.679 mills plus the existing .8 mills
authorized for debt service.
The proposed budget is consistent with the historically
conservative budgeting practices of the City of Grandville as
evidenced by the overall General Fund expenses increase of just 0.3%
over the last fiscal year. The sections that follow contain an
overview of select programs and their proposed budgets.
General Fund
General Fund revenues are projected to total $6,173,205
for the 1998-99 fiscal year. The majority of general fund revenues
come from property taxes (52.4%) and federal and state shared
revenues (28.6%). Property tax revenue is expected to grow by 5.9%
over the current year.
General Fund expenditures include a wide array of city services
including police, fire, District Court, parks and recreation,
cemetery, general administration and many others. Significant
activity for this fiscal year is related to construction to fulfill
space needs in our public safety services including police, fire and
court/probation. These functions currently exist in shared space
dating back to 1970.
General Administration
$25,000 is budgeted for a telephone system upgrade. The new
system will continue the effort to enhance citizen service and staff
efficiency begun with office station upgrades in the current fiscal
year.
Police Department
The Police Department has been steadily growing in terms of both
its budget and staffing level over the past several years. The
proposed budget includes funding for one additional full-time
officer paid partly by a federal grant over three years bringing the
department to 21 full-time sworn personnel. Most other line items in
the Police budget remain stable. Authorized new equipment purchases
include 4 computers, surveillance camera, one new equipped police
vehicle, color processor, bicycles and a traffic measurement display
device.
Fire Department
The Fire Department budget includes funds for the purchase of a
new fire engine to replace an aging unit which is deteriorating and
has reached the end of its certification. The new medical first
responder system is continued to deliver quick response emergency
medical services to residents.
Parks and Recreation
The most significant Park and Recreation activity is reflected in
$75,000 being budgeted for a new permanent restroom facility in
Hertiage Park.
Special Projects
The 1998-99 budget contains funding to continue city involvement
in such programs as the Grand Valley Metropolitian Council, Michigan
Municipal League, Right Place Program, Grand Rapids Area Transit
Authority and the Grandville Chamber of Commerce. Funding for the
public access television consortium (WCET Channel 50) is increased
by $10,000 over the current fiscal year allocation.
Motor Pool
$365,000 has been allocated from fund balance to finance a much
needed building addition to the existing Kenneth E. Jenison Public
Works Facility. The addition will provide expanded office space and
new locker, conference and break rooms for DPW personnel while
freeing up garage space for public works equipment.
Staffing
Authorized staffing changes include the additional police officer
previously noted and one new full-time general worker position in
the Department of Public Works. In total, 79 full-time and 2
part-time positions are provided for in addition to paid-on-call
fire personnel, seasonal workers and unpaid police reserves.
Major and Local Streets
Primary activities in Major Streets are related to road
improvements necessary due to the development of the Rivertown
Crossings Mall. The projects include widening of Ivanrest Avenue
south of Rivertown Parkway, widening of Wilson Avenue south of
Rivertown, widening of Rivertown between I-196 and Ivanrest and work
on the 44th Street interchange ramps at I-196. Also included is work
on Ivanrest north of Chicago Drive and funds for installation of
streetlighting on Rivertown Parkway.
The largest project through the Local Street Fund is the
construction of a new segment of 40th Street between Wilson and
Ivanrest Avenues. Pavement overlays on 42nd and Wilfred are funded
as well.
Storm Sewer Fund
There is a significant reduction in storm sewer activity as a
number of very large projects initiated by the Drain Commission were
completed in the current fiscal year.
Wastewater Fund
Our Wastewater budget comprises three Funds. The Wastewater
Collection System Fund is used to account for operations directly
related to the City of Grandville and supported solely by City
residents.
The Sewage Disposal Fund is the primary operating fund for the
Wastewater system and is supported proportionally by Ottawa County
users of the system. Currently Ottawa County is billed for 48.5% of
the operational expenses, even though Ottawa County uses 67% of the
treated volume flowing through the plant. The plant is scheduled for
extensive maintenance and renovations over the next two years prior
to re-licensing. Next year these costs are budgeted at $566,000.
Ottawa County will be billed for their porportional share of these
operational expenses. The total budget for this fund is $2,164,521.
The Sewage Improvement and Extension Fund accounts for all long
term Capital Improvements for the Wastewater Collection System. Debt
retirement, interest expense and depreciationreserves are budgeted
for in this fund. In recent years the System's depreciation reserves
have been depleted and used to pay for system operations. As a
result, the City Council was forced to increase rates to City
residents by 20%. The resulting increasd revenue is earmarked for
replenishing the depreciation reserves of the system. In the future,
when depreciation reserves are adequate, consideration will be given
to eliminating this increase. The current budget for this fund is
$1,319,000.
Water Fund
The proposed Water Fund budget is $1,708.570. An appropriation
from water fund balance of $229,170 is proposed. No rate increases
are proposed at this time but system revenues and expenditures will
be watched to determine whether erosion of fund balance continues in
the future.
Summary
The development of the financial plan is a team effort that
requires a great deal of time and work by the entire city staff. I
would especially like to thank the city's department heads for the
many hours of preparation and planning they have invested in this
document. Also, Treasurer/Finance Director Tom Guinther is to be
highly commended for his professionalism, expertise and skill in
coordinating this budget process and production in his first six
months with the city.
Respectfully Submitted,
Kenneth D. Krombeen
City Manager
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