2002 / 2003 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, 2002 and ending June 30, 2003. The
financial plan contains budgets for the General Fund and a variety
of other governmental and proprietary funds through which the city
provides a full range of services to Grandville residents. The total
appropriation recommended for all funds for the 2002-2003 fiscal
year, excluding General Fund transfers to other funds, is
$18,460,415.
The plan as presented continues the city operating millage rate
of 7.299 mills per $1,000 of taxable valuation – the lowest City of
Grandville millage rate since 1966. The City was able to continue
this rate for two reasons. Property tax revenue continues to rise,
showing a 3.4% projected annual increase. Additionally, the City has
continued to subsidize its commitment to streets and parks utilizing
the remaining $835,000 of its excess fund balance in order to
maintain this millage rate.
The financial condition of the State of Michigan, however, has
restricted the planned distribution of Shared Revenue to local
communities. This has produced a reduction in anticipated city
revenue sharing income of approximately $485,000, an equivalent of
nearly one full mill of property tax revenue. If this reduced
allocation in shared revenue continues, the city will have to
analyze alternate means of funding the remaining street projects
included its Capital Plan for 2003 - 2004.
The proposed budget is consistent with the historically
conservative budgeting practices of the City of Grandville. The
sections that follow contain an overview of select programs and
their proposed budgets.
General Fund
General Fund revenues are projected to total $7,687,730 for the
2001-2002 fiscal year. The majority of general fund revenue comes
from property taxes (56.8%) and federal and state shared revenues
(21.6%).
The General Fund provides a wide array of city services including
police, fire, District Court, parks and recreation, cemetery,
general administration and others. Fiscal Year 2002-2003 General
Fund expenditures are planned to exceed revenues as the City
completes its planed expenditure of the fund’s excess cash surplus
in order to complete specific capital projects.
Police Department
The City’s new Police / Court building is now fully operational.
The Department has seen steady growth of both its budget and
staffing levels over the past several years. Over that period, the
city has taken advantage of federal grant programs to partially fund
additional positions and departmental strength now stands at 29
full-time officers and six civilians. Significant capital purchases
include a new computerized records management system and in-car
video systems.
Fire Department
The City’s Fire Department not only provides fire services, but
also continues emergency medical response 24 hours per day, 365 days
per year. New equipment includes the purchase of the final Fire
Truck required in the City’s planned update of fire apparatus. This
was necessary in order to continue the City’s favorable ISO
insurance rating. This rating provides all city residents with lower
insurance premiums.
Parks and Recreation
Significant Park and Recreation activity is reflected in the
budget. The City’s match for an approved DNR grant to extend the
Kent Trails through Grandville along the Grand River to Ottawa
County is included.
Special Projects
The 2002-2003 budget contains funding to continue city
involvement in such programs as the Grand Valley Metropolitan
Council, REGIS, Michigan Municipal League, Right Place Program,
Public Access TV, and the Grandville Chamber of Commerce.
Staffing
Authorized staffing changes include the hiring of an Assistant
Director for the Department of Public Works. This position had
previously been authorized, but had not been filled for some time.
Grandville Building Authority
The Grandville Building Authority was established to facilitate
the construction of new Fire Station and Police/Court/Probation
Buildings. To fund the construction, General Obligation Bonds were
issued by the City in the amount of $6,040,000. The Fire Station was
completed initially, and the Police / Court / Probation building has
also now been finished.
Major and Local Streets
Primary activity in the Major and Local Street Funds continues to
emphasize the improvements necessary to maintain the integrity of
our street system. The most significant projects are the
reconstruction of Viaduct St., Ivanrest St. from Prairie to 44th
St., and Fairlanes St. from Chicago Drive to 36th
St. Additionally, the intersection of Kenowa Drive and 36th
Street will be reconstructed with the addition of a traffic signal.
Ten local streets will be reconstructed including Bluewater,
Woodbine, Wayburn, Church, and Ottawa Streets.
Wastewater
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 Wastewater Operations Fund is the primary operating
fund for the Wastewater system and is supported proportionally by
Ottawa County users of the system. The plant has recently
completed an extensive maintenance and renovation program prior to
re-licensing. The total budget for this fund is $2,619,640.
- The Wastewater Improvement and Extension Fund accounts
for all long term Capital improvements for the Wastewater System.
Debt retirement, interest expense, and depreciation reserves are
budgeted for in this fund. An engineering study is anticipated to
determine adequacy of fund reserves in light of future capacity
needs. Future rates will be adjusted based on this study. The
current budget for this fund is $1,131,243.
Water
The Water system is comprised of two funds. The Water Fund
is the operating fund for the system with a budget of $1,260,498.
The Water Improvement & Extension Fund accounts for long term
Capital improvements, debt retirement, interest expense and
depreciation reserves. This fund has a budget of $786,273. Water is
purchased from the City of Wyoming. The system has experienced
wholesale rate increases from Wyoming without increasing rates for
five years. As a result the funds are experiencing deficits
requiring increased revenue. This has necessitated a proposed 5%
increase in water rates.
General Debt Service Fund
The Debt Service Fund provides for the payment of the payment of
the Library Building bonds and interest. A General Fund transfer of
$260,000 will be necessary to provide for these payments.
Summary
The Fiscal Year 2002-2003 Financial Plan for the City of
Grandville reflects the result of strategic planning and the City
Council’s commitment to quality of life and efficient stewardship of
public funds.
The development of the financial plan is a team effort that
requires a great deal of time and work by many persons. I would like
to thank the City Council for their hard work and decision-making in
this year’s budget process, the city staff for the many hours of
preparation and planning they have invested in this document and, in
particular, Treasurer/Finance Director Tom Guinther for his
professional budget leadership and expertise.
Respectfully Submitted,
Kenneth D. Krombeen
City Manager
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