FY19 Preliminary Budget

City of East Lansing FY 2019 Budget & Program of Services

Mayor Mark Meadows Mayor Pro Tem Erik Altmann Councilmember Ruth Beier Councilmember Shanna Draheim Councilmember Aaron Stephens City Manager George Lahanas Finance Director Jill Feldpausch CITY OF EAST LANSING

CITY COUNCIL

From left to right: Mayor Mark Meadows, Councilmember Ruth Beier, Councilmember Aaron Stephens, Councilmember Shanna Draheim, Mayor Pro Tem Erik Altmann

City of East Lansing 410 Abbot Road East Lansing, MI 48823 (517) 337-1731 www.cityofeastlansing.com

City Manager George Lahanas CITY OF EAST LANSING

BOARDS & COMMISSIONS

Arts Commission Community Housing Commission Parks & Recreation Art Selection Panel Development Human Relations Advisory Advisory Committee Commission Board of Review Commission Downtown Planning Brownfield Library Board of Development Commission Redevelopment Trustees Authority Authority Michigan Seniors’ Commission Downtown Building Authority Avenue Corridor Transportation Management Board Improvement Commission Building Board of East Lansing- Authority Appeals University Student Meridian Water & Officers Commission Commission on the Sewer Authority Compensation Environment Zoning Board of Historic District Commission Appeals Commission

CITY OF EAST LANSING DIRECTORS

54-B District Court...... Nicole Evans, Court Administrator Administrative Services...... George Lahanas, City Manager ...... Jennifer Shuster, City Clerk Finance...... Jill Feldpausch, Director ...... David Lee, Assessor Fire...... Randy Talifarro, Chief East Lansing Public Library...... Kristin Shelley, Director Human Resources...... Shelli Neumann, Director Parks & Recreation Facilities...... Tim McCaffrey, Director Planning, Building & Development ��Tim Dempsey, Director Police...... Larry Sparkes, Chief Public Works & Environmental Services �� Scott House, Director Seniors’ Program...... Kelly Arndt, Director

TABLE OF CONTENTS

Executive Summary Section: Budget Message i Acknowledgements iii Reader's Guide to the Budget iv Consolidated Budget - Table 1 vii Budget in Brief ix Personnel Summary - 3 Year xiii Budget Time Table xxvii Organizational Chart xxviii

Financial Section by Fund: GENERAL FUND:

General Fund-Graphs & Summaries 3

General Fund Revenues 7

General Government: Mayor & City Council 15 City Manager 16 Legal Counsel 17 54-B District Court 18 Finance 20 Assessing 21 Treasury 22 Human Resources 23 Clerk & Elections 24 Communication & Cable Services 26 Government Buildings 27

Public Safety: Police Operations 28 Fire Operations and Fire Prevention 30 Building Permits and Inspections 32 Housing Licenses and Inspections 34

Public Works: Administration 36 Engineering 37 Downtown Maintenance 38 Street Lighting 39 Sidewalks, Drains and Alley Maintenance 40

Health, Welfare & Community Development: Planning & Zoning 42 Social Services & Economic Development Assistance 44

Culture and Recreation: Parks Maintenance 46

Transfers to Other Funds 47

TABLE OF CONTENTS (CONTINUED)

SPECIAL REVENUE AND OTHER GOVERNMENTAL FUNDS:

Major Street Fund 51 Local Street Fund 55 Parks and Recreation Fund 59 Solid Waste Management Fund 71 Prime Time Seniors Fund 75 Drug Forfeiture Fund 81 Library Fund 85 Community Development Block Grant Fund 89 Public Art Fund 93 Art Festival Fund 97 Debt Service Fund 101 Capital Improvements Fund 105 Parks Capital Improvement Fund 109

ENTERPRISE FUNDS:

Automobile Parking System Fund 115 Building Authority Fund 121 Sewage Disposal System Fund 125 Water Supply System Fund 131

INTERNAL SERVICE FUNDS:

Computer Services Fund 139 Garage and Public Works Services Fund 143 Insurance and Benefits Fund 149

COMPONENT UNITS:

Brownfield Redevelopment Authority 157 Downtown Development Authority 163 Downtown Management Board 169 Local Development Finance Authority 173

SUPPLEMENTAL INFORMATION:

Comparative Fee Schedule SI - 1

NOTES:______EXECUTIVE SUMMARY NOTES:______ ______

MEMORANDUM

TO: East Lansing City Council

FROM: George Lahanas, City Manager

Jill Feldpausch, Director of Finance

DATE: March 26, 2018 City of East Lansing OFFICE OF THE CITY MANAGER SUBJECT: Fiscal Year 2018 Budget 410 Abbot Road East Lansing, MI 48823

(517) 319-6920 www.cityofeastlansing.com We present to the East Lansing City Council and the residents of East Lansing our Fiscal Year 2019 Budget. With this budget we see a continuation of modest revenue growth including the addition of new utility franchise revenue, but we also see the continued challenges that have impacted us over the last decade.

After significant and prolonged declines in State revenues and more recent declines in property tax revenue, we are pleased that for the fourth year in a row, both sources are expecting some growth. The City will also benefit from the first full year of our electric franchise with the Board of Water and Light. In spite of a modest recovery, our overall general fund revenues have yet to return to the 2007 level of $34.8 million. We are optimistic that we will surpass our 2007 revenue high point in FY2019, due in part to our new utility franchise agreement, by budgeting $35.5 million in revenue.

While a lack of growth has given us a lost decade in terms of revenue, we are fortunate that the desirability of our neighborhoods remains a bright spot for the City. East Lansing continues to be a vibrant university community because of those neighborhoods, the strength of our K-12 schools and the presence of Michigan State University.

We have been able to navigate the prior 17 years through many cost-controlling opportunities, but we have also relied heavily on downsizing the City staff. In addition to reducing the size of our organization, the City has also not been able to adequately invest in our infrastructure. All facets of City infrastructure including roads, parks, and government buildings will need significant additional revenue over several years, in order to return to a satisfactory level.

Employee legacy costs, pension and health care provided to retirees, continue to challenge the City. We have made good progress on the retiree health care front, with $15 million set aside in reserves. These reserves are in a separate trust and are dedicated funds. This represents a good start towards a large obligation. Our pension plan deficit, unfortunately, will take time and considerable effort to resolve. Currently, our pension plan is $90 million underfunded. Increasing contributions over the next 20 years will be challenging to meet without the addition of new revenue.

Over the prior two decades we have made many responsible changes to our retirement benefits; however, the long-term nature of these plans makes positive impacts slow to materialize. We have taken many steps in the past to adjust our compensation and benefits, but we need to balance those with the ability to recruit and retain a highly capable staff. We have also made numerous changes to how we deliver services, including partnering with private, non-profit, and other governmental organizations in various service and contracting arrangements.

Considering the steps we have taken and our current staffing levels, the City Council elected to ask our residents for increased financial support in lieu of further cuts to essential services. In response to the City’s sustained financial issues, and as a response to the Financial Health Review Team (FHT) recommendation, City Council placed an income tax on the November 2017 ballot. The ballot initiative failed by a close margin.

City Council has continued to evaluate the type of revenue that residents would support through a series of community engagement meetings and online surveys. If no new revenue is found, the City is slated to make $3 million in cuts over the next two fiscal years; including a reduction of an additional 7 firefighters and 4 police officers, reducing PACE staffing, eliminating support to festival and recreation programs, closing Hannah Community Center and programs that reside within, and continuing to defer many needed capital expenditures. While these cuts would be particularly difficult, it would be necessary in order to make progress on our looming pension obligation.

The City’s challenges remain significant in terms of unfunded obligations, a slowly recovering economy and state shared revenue. In order to continue to provide services at the current level, the City would need to increase revenue. With an understanding of the challenges, we remain confident that through responsible leadership and exploration of potential revenue generation, our vibrant university community can thrive. The City has shown a high level of competent stewardship of our government dollars through challenging economic times, and our goal is to continue to meet the expectations of our residents.

Acknowledgements

The tasks of building assumptions and compiling data for the budget begins much earlier in the fiscal year, as we update the City’s five year financial forecast for the General Fund. We presented the forecast to the City Council on Tuesday, February 20, 2018. Throughout this process, all Directors, their staff, and the City Council have provided thoughtful guidance and direction in setting budget guidelines and assisting with the revisions of these documents.

We knew, from the numbers presented in the five year General Fund financial forecast, that we would be working with a sizeable gap between revenue and expenditures. Key budget decisions had to be made, by the City Manager and department Directors, to find a way to eliminate the gap and have an operating budget completed on time.

Several Finance Department employees deserve special recognition for their efforts in the preparation of this document. Audrey Kincade, Budget and Accounting Administrator, drafted, reviewed, and proofed many of the sections and provided excellent support to many departments. She was also responsible for the position budgeting process which included providing information to departments and working through variations and multiple changes before finalizing the personnel budgets. Her work and work ethic are admirable. Andrea Smith, Treasurer, provided various revenue estimates, as well as much needed assistance in checking numbers for accuracy and reviewing the document. The remaining employees in the department also played a critical role as they ensured the day to day operations continued without pause, even with many new employees joining the team. The budget document could not have been completed without each of them putting in a tremendous amount of time and effort.

To all department Directors and their staff, we give thanks for the collaborative way they approached solving our budget challenges and for their continued involvement in the creation of our budget document. Countless hours are spent by each department to ensure the budget document reflects appropriate and accurate information and would not be the same without their insight and expertise.

We would also like to thank Mikell Frey, Communications Coordinator, and Jennifer Scott, Graphic Design Assistant, for their help in designing the cover and other title pages in the document.

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READERS GUIDE TO THE BUDGET

Fund Balance Background

City governments usually organize their accounting systems on a “fund” basis. A fund is a separate set of accounting records, segregated for the purpose of carrying on an activity. A fund is established for accountability purposes to demonstrate that financial resources are being used for only permitted purposes.

A fund will have “balance sheet” accounts consisting of “assets”, “liabilities”, and “fund balance,” as well as a series of “revenue” and “expenditure” accounts. A fund balance is created or increased when fund revenue exceed fund expenditures for a fiscal period. The difference between the fund’s assets and liabilities equals the “fund balance.”

A common misconception is that fund balance is a cash account and therefore corresponds to the City’s bank balance. While cash is an asset, it usually is not a fund’s only asset.

Our City’s Funds

General Fund - The General Fund is a major fund of the City and is used to account for the resources devoted to funding services traditionally associated with local government. It uses the modified accrual basis of accounting for budgeting purposes, which recognizes revenue when it is both measurable and available. Expenditures are recognized when the liability is incurred. It has some interaction with a majority of the other funds. The fund balance of the General Fund can be appropriated as specified by the City Council to:

• Provide a fund or reserve to meet emergency expenditures; • Demonstrate financial stability and therefore preserve or enhance its bond rating, thereby lowering debt issuance costs; • Avoid short-term borrowing and associated interest costs; • Used to fund expenditures of the next fiscal period

Special Revenue Funds - Special Revenue Funds are maintained to account for specific revenue resources that are legally restricted to expenditures for specific functions or activities. The legal restrictions may be imposed by State Statute or Constitution, City Council Charter, or City Council Resolution. Special Revenue Funds use the modified accrual basis of accounting for budgeting purposes as well. The Special Revenue Funds found in our budget are:

Major Street: The Major Street Fund is used to finance the maintenance and construction of the City’s major thorough-fares. State Statute restricts these funds.

Local Street: The Local Street Fund is used to finance the maintenance and construction of the City’s minor thorough-fares. State Statute restricts these funds.

Parks and Recreation: The Parks & Recreation Fund is used to account for funds raised (user fees and General Fund operating subsidy) for operating and maintaining a parks and recreation program. City Council passed a resolution that commits all charges for services received in the fund shall be used solely to support the fund’s programs and services and the commitment shall remain in effect until superseded by future action of the council.

Solid Waste Management: The Solid Waste Management Fund is used to finance the collection, recycling, and disposal of the City’s garbage and refuse. It is funded by a tax levy on property and user charges for sales of residential containers, trash bags, and recyclable materials.

Prime Time Seniors: A fund created to account for the activities associated with providing services to meet the needs of area seniors.

Drug Forfeiture: The Drug Forfeiture Fund includes all money seized by the police department in accordance with MCL 333.7521 of the Public Health Code.

Library: The Library Fund is used in a local unit of government to account for the operations of the library. State statute and city charter governs the establishment of a library board. The library board is responsible for budgeting and expending the library funds.

Community Development Block Grant: The Community Development Block Grant (CDBG) Fund is financed by grants received from the federal government and is restricted for use by economically disadvantaged citizens of the City.

Public Art: A fund created, per ordinance, to purchase new public art and maintain all public art owned by the City. Funding comes from the General Fund as well as private construction projects. The City’s Arts Commission oversees all activities of the fund, subject to City Council approval.

Art Festival: The Art Festival Fund is a special revenue fund that was created to account for all of the Art Festival activities.

Debt Service Funds - Debt Service Funds are established by State Statute and bond covenants to account for the recording of the collection and expenditures of resources earmarked for the retirement of debt issued directly by the City. Debt Service Funds use the modified accrual basis of accounting for budgeting.

Capital Improvement Funds - Capital Improvement Funds are used to account for financial resources to be used for the acquisition or major improvements of capital facilities. These funds use the modified accrual basis of accounting for budgeting. The City has two capital improvement funds; one for general activity and one devoted to parks and recreation capital activities.

Enterprise Funds - Enterprise Funds are financed and operated in a manner similar to a private enterprise. The intent is that costs (expenses, including depreciation) of providing services to the general public are recovered through user charges. These funds use full accrual accounting for budget purposes, which is based on Generally Accepted Accounting Principles (GAAP). Accrual accounting attempts to record transactions, events and circumstances as they occur rather than only in the periods in which cash is received or paid. The City has four enterprise funds:

Automobile Parking System: The Parking Fund is used to record all activities related to the operations of the City’s parking facilities. It is financed, primarily, through user charges.

Building Authority: This fund was established to serve as a financing board for construction of city parking facilities. These activities are now completed within the Automobile Parking System and the Building Authority only oversees debt issued and related capital prior to 2007.

Sewage Disposal and Water Supply Systems: The Water and Sewer Funds are used to account for the provision of water and sewer services to the residents of the City, financed primarily by user charges. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital improvements, billing, and collection.

Internal Service Funds - The City’s Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City, or to other governmental units, on a cost- reimbursement basis. These funds use the flow of economic resources for measurement purposes and the full

accrual basis of accounting for budget purposes. Their objective is to recover the full cost of supplying the goods or services. The City’s three internal service funds are:

Garage and Public Works Services Pool: A majority of the public works employees are centrally accounted for in this fund and billed out to other departments as services are provided. This fund also accounts for the purchase and maintenance of the City’s fleet. Its revenue comes from work order charges for labor and rental charges for equipment to other funds.

Insurance and Benefits: This fund is used to record health and other benefit insurance costs, workers compensation expenses and excess insurance premiums, as well as general liability insurance & claims costs. Other funds are charged a combination of actual and manual premiums for its employees and user departments to provide the revenue for this fund.

Computer Services: This internal service fund coordinates and manages the computer network system design, configuration, and installation of equipment across all city departments. This cost center recovers its expenses through user rental fees that capture annual cost recovery as well as a future replacement component.

Component Units

Brownfield Redevelopment Authority: Brownfield Redevelopment Authorities are established under a State Public Act and allow local governments to capture taxes for development projects, preferably on contaminated or blighted areas.

Downtown Development Authority: Local governments are allowed to create Downtown Development Districts under the Downtown Development Authority Act and assess an authorized millage and use tax increment financing to promote downtown development.

Downtown Management Board: Local governments are allowed to create Downtown Management Boards under PA120 (also known as the Principal Shopping District Act). Activities are financed through special assessments on downtown businesses.

Local Development Financing Authority: Local governments are allowed to create Local Development Financing Authorities under Public Act 281 of 1986 and utilize tax increment financing for the purpose of developing SmartZones.

DOCUMENT LAYOUT

As you review the City of East Lansing’s budget document, note that it is organized by fund type. These fund types are distinguished by a title page. The General Fund is divided into the following functional categories - General Government; Public Safety; Public Works; Culture and Recreation; Health, Welfare & Community Development; and Other Activities. Special Revenue and Other Governmental Funds will be divided with the specific fund name. The Enterprise, Internal Service, and Component Unit sections are divided in the same manner.

TABLE 1 CONSOLIDATED BUDGET - ALL FUNDS FY2018 FY2019 INCREASE INCREASE AMENDED BUDGET (DECREASE) (DECREASE) BUDGET REQUEST AMOUNT PERCENT General$ 35,698,478 $ 35,530,760 $ (167,718) -0.5% Special Revenue Funds: Major Street 3,154,525 3,767,840 613,315 19.4% Local Street 1,804,305 2,298,330 494,025 27.4% Parks, Recreation and Facilities 4,440,360 4,403,450 (36,910) -0.8% Solid Waste Management 2,021,590 2,092,550 70,960 3.5% Prime Time Seniors Program 378,440 424,480 46,040 12.2% Drug Forfeiture 2,025 15 (2,010) -99.3% Library 2,339,810 2,486,865 147,055 6.3% Community Development Block Grant 402,505 413,155 10,650 2.6% Public Art 61,500 60,500 (1,000) -1.6% Art Festival 180,895 185,185 4,290 2.4% Debt Service 1,235,715 1,245,480 9,765 0.8% Capital Improvement Funds: Capital Improvements 1,238,505 5,817,700 4,579,195 369.7% Parks Capital Improvements 1,084,838 627,595 (457,243) -42.1% Enterprise Funds: Automobile Parking System 5,656,425 4,545,995 (1,110,430) -19.6% Building Authority 998,235 907,940 (90,295) -9.0% Sewage Disposal System 41,700,550 37,765,595 (3,934,955) -9.4% Water Supply System 5,277,405 5,862,050 584,645 11.1% Internal Service Funds: Computer Services 1,328,405 1,380,525 52,120 3.9% Garage & DPW Services Pool 4,306,745 4,263,135 (43,610) -1.0% Insurance and Benefits 7,952,222 7,464,170 (488,052) -6.1% Component Units: Brownfield Redevelopment Authority 1,228,495 1,382,825 154,330 12.6% Downtown Development Authority 1,345,445 1,774,160 428,715 31.9% Downtown Management Board 64,615 56,000 (8,615) -13.3% Local Development Financing Authority 65,000 123,665 58,665 90.3%

Sub-Total 123,967,033 124,879,965 912,932 0.7%

Less Interfund Transfers (18,585,522) (18,656,350) (70,828)

TOTAL ALL FUNDS$ 105,381,511 $ 106,223,615 $ 842,104 0.8%

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TOTAL OF ALL FUNDS FY2019 BUDGETS BY FUNCTION (INTERFUND TRANSFERS ELIMINATED)

Water General Government 5.39% 4.61%

Public Safety 21.89%

Sewer 33.40%

Public Works 14.26%

Parking Health & Welfare 2.51% 0.01% Debt Service Community Development 6.57% Recreation & Culture 8.65% 2.71%

BUDGET IN BRIEF

Executive Summary

In calendar year 2016, the City formed a Financial Health Review Team (FHT) tasked with looking at the overall financial stability of the City and considering new revenue options. This was prompted by the change implemented by our pension retirement plan, administered by Municipal Employee Retirement System (MERS), and the twenty year projection of our pension payments. It was clear at that time the City would not be able pay these large amounts, thus modifications to revenue and/or expenditures needed to be executed. Over nine months, the FHT met and established forty-two recommendations to City Council in regards to pension legacy cost, real property, development incentives, citizen services and communications, revenue options, retiree health care, and infrastructure. Since the conclusion of the FHT, City Council and City staff have reviewed and analyzed all of these recommendations. As part of this review, the City placed two questions on the November 2017 ballot. The first ballot proposal was approved by the voters and enacted a charter amendment that in any year an income tax is imposed, the maximum millage rate to be levied would not exceed thirteen mills. The current levy is 17.5679 mills. The second ballot proposal, asking for a one percent resident and half percent nonresident income tax, was not successful. As a result, the City Council elected to host three successful community engagement meetings in early 2018. The meetings provided participants with an opportunity to share feedback with City Council as they look to prioritize City services, with a goal of financial sustainability. In conjunction with these meetings, community surveys were completed and compiled for review. Without any definitive solutions, the FY2019 budget does not include any new revenue options, but did require numerous expenditure reductions. The goal for the General Fund was to shrink operating expenses, not only to stay within the means of current revenue, but also to accomplish a supplemental pension payment of $1.0 million.

Several assumptions are used in preparing the annual budget, especially in relation to personnel costs. Personnel costs are one of the largest pieces of our budget, and perhaps the most complex. All bargaining group contracts are in place through June 30, 2019, and the health insurance contract is currently being finalized by the Health Care Task Force. For amounts related to wages, a 1.0% cost of living adjustment increase and a 5.0% step increase, have been used, where applicable. Additionally, retirement payouts have been estimated and included in the budget, for those employees that are eligible and likely to retire during the fiscal year. The Health Care Task Force is expecting a 7.3% increase in premiums based on the most recent bid received from McLaren. However, with the Insurance and Benefits Fund reserve level, we were able to alleviate some of the budget pressure by not passing along the full increase in the manual premiums being charged. Overall, for both retiree and active employees, the health insurance charges are actually budgeted to decrease 7.3% within the funds, as a result of less employees in the organization and minimal increases factored in. This is a budget risk as, if we have a bad year with self-funded costs, we may not have enough reserves on hand to absorb those higher costs. In addition, if we deplete reserves too much, we may need to apply a larger rate increase in FY2020.

The defined benefit contribution amounts were determined by Municipal Employees Retirement System (MERS). With the policy changes imposed by MERS recently, our contributions have escalated at an alarming rate. This change includes an objective to have the plan fully funded within the next 22 years. With this significant increase in contributions, MERS is allowing a five-year phase-in approach which lowers the contributions in the first five years, but ultimately will cost more. Due to budget constraints, the City has elected the phase-in approach. The City-wide, overall increase for contributions to the defined benefit pension plan is 8.3% for FY2019.

Beginning in FY2017, indirect cost allocations are being used to account for general government services provided to other departments and funds. An external consultant, specializing in cost allocation systems for local governments, was hired to assist finance staff with a comprehensive review of labor service hours, operating costs, and building overhead. Due to the significant amount of change in overall budget levels, FY2019 required an adjustment to these amounts to avoid certain divisions charging more than their total expenditures. The intent is to contract with a consultant for a complete review during FY2019 which will provide updated amounts for the FY2020 budget.

Noteworthy Items - The following section highlights the significant budget variances by each fund type.

General Fund:

The General Fund budget is $35,530,760, which is $167,718 less than the FY2018 amended budget. Although the overall change is minimal, the fund is experiencing significant changes both in revenue and expenditures.

As mentioned previously, the General Fund made numerous reductions due to the financial challenges facing the City. The following expenditure reductions are included in FY2019 to achieve a budget without the use of fund balance:

• Reduction of 14 full-time or part-time employees (see personnel summary for details) • Contraction of 6,610 contingent employee hours (see personnel summary for details) • Reduced support to the Community Relations Coalition • Elimination of human service agency funding • Less neighborhood sidewalk plowing planned • Removed dues for annual LEAP membership • Limited funding for the hazardous sidewalk repair program • Reduction to costs and/or service to televise meetings planned (effective April 2019) • Eliminated all other non-essential operating costs from all departments

With these changes, offset by the various personnel related increases described previously, the General Fund personnel services is decreasing $141,045. As positions are being frozen, additional stress is placed on existing staff to provide the same level of service our residents have come to appreciate. Service levels will be impacted if positions remain unfilled or additional positions become vacant as these cuts are not a sustainable long-term plan.

Operating costs include items such as contract services, general operating supplies, utilities, and the indirect cost allocation for general government services, etc. All departments were asked to remove any operating costs that were not essential to completing their duties resulting in a decrease of $271,570. Many departments agreed to postpone contractual service projects, such as implementation of procurement cards and consultant work on the zoning code, another year to help balance the budget. Again, this may help in the short-term, but eventually these kinds of projects will need to be completed.

Due to budget challenges, most capital outlay spending has been suspended and will only occur if there is a critical need or additional revenues are identified. Capital outlay costs in FY2019 are actually increasing $271,240 and will fund sidewalks, as well as replace air packs for the firefighters. Of the $567,000 total costs, $476,000 is funded by grant dollars leaving only $91,000 funded with general fund revenues. Of this, $35,000 is grant matching dollars with $56,000 set aside for hazardous sidewalk repairs, if needed. Additional capital expenditures are being funded through the transfer to the Capital Improvement (CIP) Fund and include only critical facility repairs.

Overall, transfers out to other funds are decreasing $48,308 in the FY2019 budget when compared to the amended FY2018 budget. The operating transfer to the Parks and Recreation Fund is getting an additional $35,935, or 1.8%, in the FY2019 budget in order to sustain its operations. An increase of $4,035 or 67.6% to the Art Festival Fund is requested for operation of the festival. These changes are offset by a decrease in the Parks CIP Fund, whereas it needed support in FY2018 of $106,938 but no additional funding is expected in FY2019. Finally, the CIP Fund transfer is increasing slightly with funding $141,000 of crucial facility repairs and a $90,010 subsidy to assist in paying debt related to the Avondale Square development.

On the revenue side, we are experiencing a significant increase in property taxes along with positive changes in intergovernmental revenue and franchise fees. Those are offset by decreases in charges for services and fines and forfeitures. With the expected property tax value increases and new developments, we are expecting a $983,570, or 5.8% increase over FY2018 budgeted tax revenue. Although this is positive, we are expecting an additional Headlee rollback permanently reducing our maximum authorized operating millage. The growth we are experiencing this x

year is largely due to developments, and with Proposal A and Headlee in place, we do not expect to see increases like this each year. Intergovernmental revenue is increasing $648,895, or 8.8% over the FY2018 amounts. Based on Governor Snyder’s proposed budget, increases are anticipated not only in state revenue sharing but also in PA289 fire protection monies. Additional grant money is expected through the Fire Department and 54B District Court operations. The last notable increase is a result of the Board of Water and Light (BWL) franchise fee which began in FY2018 with an increase expected in FY2019, as a result of the first full year of collections. Decreases in charges for services are predicted, due to declines in court cost recovery and ambulance services. Fines and forfeitures are expected to decrease 16.1% as we continue to see parking and ordinance fine revenues decline. See the General Fund estimated revenues section of this document for detailed explanations of each revenue category.

The General Fund’s FY2018 year-end estimates show a planned use of fund balance of $874,081. This is much less than the budgeted amount of reappropriated fund balance, due to expenditure reductions, primarily personnel related, being implemented during the year. In FY2019, we are planning no use of fund balance leaving the estimated fund balance, as a percentage of operating expenditures, at 15.8%, which remains over the guideline set by City Council. This level of fund balance equates to just under 2 months of operations. If additional revenues are not identified during the fiscal year, the City will begin implementing additional reductions, as expenditures are expected to grow at faster rate than that of our existing revenue, and the level of fund balance is not sufficient to cover long-term shortfalls.

Special Revenue Funds:

Major and Local Street Funds are seeing increases of $613,315 and $494,025, respectively. These increases are a result of anticipated growth in gas and weight tax revenue allowing for additional infrastructure improvements to be completed.

The Prime Time Seniors Program is growing 12.2% with a large increase in community support allowing the program to continue operations at the same service level and replenish fund balance for future use. The level of fund balance could prove vital in the coming years if the General Fund continues to struggle financially.

Capital Improvement Funds:

An increase of $4,579,195 is reflected in the Capital Improvement (CIP) Fund for FY2019. This fund includes activity for the Avondale Square development, property demolition, facility improvements, and the Wilson Road construction activity in partnership with MSU. The Wilson Road grant activity was not budgeted in FY2018 causing the significant jump in FY2019.

The Parks Capital Improvement Fund is decreasing by $457,243 due to the timing of work completed in conjunction with the Ingham County Trails and Parks Millage, which was implemented by Ingham County in FY2017. The majority of the pedestrian bridge work is expected to occur in FY2018, with the remaining balance completed in FY2019.

Enterprise Funds:

A decrease of $1,110,430 is planned for the Automobile Parking System Fund in FY2019, as capital improvements to the MAC Garage and PARCS equipment are wrapping up. Additional capital is planned in FY2019 in relation the Center City Garage and new office space for the Parking Department employees. The Parking Fund is also experiencing a decline in the number of transactions resulting in reduced revenue.

A significant decrease is being seen in the Sewage Disposal System Fund due to timing of the improvements to the Water Resource Recovery Facility being completed. Phase one of the improvements included a $15 million State Revolving Fund (SRF) loan which is complete. The second phase, again using SRF loan funds, is a $30 million project to replace headworks, grit removal systems, line interceptors, and repurpose large interceptors from effluent to influent lines. This project is currently in process and will be completed over multiple years. Engineering staff xi

are currently working on securing SRF funding for the third phase of improvements, which will replace the Woodingham Pump Station, replace the solids handling processes at the WRRF, and improve critical sewers on Michigan Avenue and along Harrison Road.

The Water Supply System Fund is experiencing an increase of 11.1%, or $584,645, with expected rate increases in place to allow for continued cash funding for routine repairs and maintenance of the water distribution system. In addition, the purchase of water is expected to increase 8.9% from the FY2018 budget, as the East Lansing Meridian Water and Sewer Authority (ELMWSA) reinvests in capital needs at the water treatment plant.

Component Units:

The Brownfield Redevelopment Authority and Local Development Financing Authority are seeing notable increases as the property tax capture amounts rise with property value growth. These captured amounts are distributed according to the capture plans and do not have a substantial effect on the City’s overall financial picture.

The Downtown Development Authority (DDA) is projected to rise 31.9%, or $428,715, as debt service on the Evergreen Properties is set to increase significantly with much larger principal payments scheduled, as well as expected increases in the variable interest rates. The DDA will have to use a substantial amount of fund balance in FY2019 to cover these increased costs.

Each fund listed in Table 1 is presented and explained in the applicable section of this document. Please refer to the fund specific sections for detailed amounts and further information.

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PERSONNEL SUMMARY

The City of East Lansing employs full and part-time staff in various capacities. The costs for these employees are budgeted within their respective departments. This summary represents headcount for each department, not full-time equivalents (FTE). Contingent employees are reflected by hours worked, rather than headcount. As a reference a full-time employee typically works 2,080 hours annually. The actual FY2017 column indicates the number of employees on staff as of June 30, 2017. The budgeted FY2018 column indicates what positions are currently budgeted and the requested FY2019 indicates requests and changes for the upcoming fiscal year. The final column FY2019 increase/decrease indicates the changes from FY2018 to FY2019. FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND MAYOR & CITY COUNCIL FT/PT Headcount Mayor(2) 1 1 1 1 0 Council Mayor Pro Tem(2) 1 1 1 1 0 Council Member(2) 3 3 3 3 0 Asst. City Council(4) 1 1 1 1 0 6 6 6 6 0

CITY MANAGER FT/PT Headcount Manager 1 1 1 1 0 Asst. to City Manager 1 1 1 1 0 2 2 2 2 0

JUDICIAL - 54B DISTRICT COURT FT/PT Headcount Judge(2) 2 2 2 2 0 Court Administrator 1 1 1 1 0 Court Deputy Administrator 1 1 1 1 0 Court Warrant Officer 2 2 2 2 0 Court Senior Clerk 5 5 5 5 0 Court Chief Probation Officer 1 1 1 1 0 Court Probation Officer 2 2 3 3 0 Court Probation Secretary 1 1 1 1 0 Court Recorder/Secretary 2 2 2 2 0 Court Financial Coordinator 1 1 1 1 0 Court Probation Compliance Officer 1 0 0 0 0 Court Deputy Clerk 6 6 6 6 0 Court Deputy Clerk PT 2 2 1 1 0 Court Administrator Clerk PT 1 1 1 1 0 Court/Clerk Asst/Collections 1 1 1 1 0 29 28 28 28 0

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xiii

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND cont. 54B DISTRICT COURT cont. Contingent Hours Court Warrant Officer PT(1) 695 0 0 0 0 Court Senior Clerk PT(1) 240 0 0 0 0 Court Probation Intern PT(1) 348 191 348 0 -348 Court - Law Clerk PT(1) 1,039 1,437 692 2,080 1,388 2,322 1,628 1,040 2,080 1,040

FINANCE FT/PT Headcount Finance Director 1 1 1 1 0 Budget & Accounting Administrator 0 1 1 1 0 Budget & Accounting Analyst 1 0 0 1 1 Payroll 1 1 1 1 0 Purchasing/Accounting Asst. 1 1 1 1 0 Administrative Asst. 1 0 1 0 -1 5 4 5 5 0

ASSESSING FT/PT Headcount City Assessor 1 1 1 1 0 Deputy City Assessor 1 1 1 1 0 Administrative Secretary 1 1 1 1 0 Board of Review Members(3) 5 5 5 5 0 8 8 8 8 0

Contingent Hours Intern/Work Study(1) 2,069 821 2,070 1,000 -1,070

TREASURY FT/PT Headcount Treasurer 1 0 1 1 0 Assistant Treasurer 1 1 1 1 0 Finance Assistant FT 5 5 5 4 -1 7 6 7 6 -1

HUMAN RESOURCES FT/PT Headcount HR Director 1 1 1 1 0 HR Compensation & Benefits 1 1 1 1 0 2 2 2 2 0

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xiv

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND cont. HUMAN RESOURCES cont. Contingent Hours HR Associate(1) 0 0 0 520 520

CLERK/ELECTIONS FT/PT Headcount City Clerk 1 1 1 1 0 Deputy Clerk 1 1 1 1 0 HR/City Clerk Specialist(4) 1 1 1 0 -1 3 3 3 2 -1

Contingent Hours Administrative Clerk PT(1) 1,044 449 1,044 1,044 0 Administrative Secretary PT(1) 1,044 553 1,044 1,044 0 2,088 1,002 2,088 2,088 0

COMMUNICATION SERVICES FT/PT Headcount Communications Coordinator 1 1 1 1 0 Communications Specialist PT(4) 1 1 1 1 0 2 2 2 2 0

Contingent Hours Graphic Design Assistant(1) 0 1,157 1,300 1,300 0

GOVERNMENT BUILDINGS FT/PT Headcount Facilities Technician Coordinator 1 1 1 1 0 Facilities Technician 1 1 1 1 0 2 2 2 2 0

POLICE FT/PT Headcount Police Chief 1 0 1 1 0 Police Captain 1 0 1 0 -1 Deputy Police Chief 0 0 0 1 1 Administrative Asst. FT 1 1 1 1 0 Administrative Asst. PT 1 1 1 1 0 Lieutenant 4 4 5 5 0 Sergeant 8 7 7 7 0 Police Secretary 1 1 1 1 0 Custody/Security/Evidence Supv. 1 1 1 1 0 Jail Service Officer FT 3 3 3 3 0

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xv

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND cont. POLICE cont. FT/PT Headcount Jail Service Officer PT 5 4 5 5 0 PACE Supervisor 1 1 1 1 0 Pace Officer FT 1 1 1 1 0 Pace Officer PT 8 8 8 6 -2 Administrative Clerk PT 2 2 2 2 0 Police Officers 42 37 40 35 -5 Support of Info/Tech Records 1 1 1 1 0 Police Records Assistant 4 4 4 4 0 Police Recruit Trainee 1 0 1 0 -1 86 76 84 76 -8

Contingent Hours Police Cadets(1) 8,352 9,028 9,396 7,280 -2,116 Range Instructor(1) 2,088 0 2,088 0 -2,088 Crossing Guards(1) 4,500 4,134 4,500 4,500 0 14,940 13,161 15,984 11,780 -4,204

FIRE FT/PT Headcount Chief 1 1 1 1 0 Deputy Chief 3 3 3 3 0 Captain 6 6 6 6 0 Lieutenant 6 6 6 6 0 Firefighter/Paramedic 31 30 31 29 -2 Fire Marshall 1 1 1 1 0 Fire Inspector 1 1 1 1 0 Fire Safety Training Officer 1 1 1 1 0 Administrative Assistant 1 1 1 1 0 51 50 51 49 -2

BUILDING & CODE FT/PT Headcount Building & Code Administrator 1 1 1 1 0 Inspector II(4) 4 4 4 4 0 Plumbing Inspector PT 1 0 1 0 -1 Mechanical Inspector PT 1 0 1 1 0 Administrative Secretary(4) 1 1 1 1 0 Administrative Clerk 1 1 1 1 0 9 7 9 8 -1

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xvi

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND cont. BUILDING & HOUSING RELATIONS FT/PT Headcount Housing & University Relations Adm(4) 1 1 1 1 0 Housing Inspector I 2 2 2 2 0 Housing Inspector I PT 1 1 1 1 0 FT/PT Headcount Administrative Secretary(4) 1 1 2 2 0 Administrative Clerk(4) 1 0 0 0 0 Vacant Property Coordinator PT 1 2 1 0 -1 7 7 7 6 -1

Contingent Hours Intern/Work Study PT(1) 1,044 0 1,020 0 -1,020

PUBLIC WORKS ADMINISTRATION FT/PT Headcount Director(4) 1 1 1 1 0 Environmental Service Administrator(4) 1 1 1 1 0 Infrastructure Administrator(4) 1 1 1 1 0 Accounting Assistant PT(4) 1 1 1 1 0 Administrative Secretary(4) 0 0 0 1 1 Accounting Clerk(4) 2 2 2 1 -1 6 6 6 6 0

PUBLIC WORKS ENGINEERING FT/PT Headcount Engineering Administrator 1 1 1 1 0 Engineering Asst Administrator 1 1 1 1 0 Senior Engineer 0 0 1 1 0 Design Engineer 1 1 1 1 0 Engineering Technician II 3 2 3 2 -1 Engineering Technician III 0 0 0 1 1 6 5 7 7 0

Contingent Hours Intern/Work Study PT(1) 1,044 1,279 1,044 0 -1,044

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xvii

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) GENERAL FUND cont. PLANNING & ZONING FT/PT Headcount Planning and Zoning Administrator 1 1 1 1 0 Comm. Development Director(4) 1 1 1 1 0 Strategic Projects Administrator 1 0 0 0 0 Senior Planner 0 1 1 1 0 Comm. & Economic Develop Adm 1 1 1 1 0 Comm. Development Specialist II 1 0 0 0 0 Comm. Development Analyst(4) 2 2 3 3 0

PLANNING & ZONING cont. FT/PT Headcount Administrative Secretary 1 1 1 1 0 Administrative Assistant 1 1 1 1 0 9 8 9 9 0

Contingent Hours Intern(1) 2,088 1,150 1,664 832 -832

FT/PT Headcount - GENERAL FUND 240 222 238 224 -14

Contingent Hours - GENERAL FUND 25,594 20,197 26,210 19,600 -6,610

PARKS & RECREATION FUND ADMINISTRATION FT/PT Headcount Parks & Rec Facilities Director 1 1 1 1 0 Parks & Rec Facilities Asst. Director 1 1 1 1 0 Parks & Rec Administrative Asst. 1 1 1 1 0 Parks & Rec CC Administrative Asst. 1 1 1 1 0 4 4 4 4 0 PARK STEWARDSHIP Env Stewardship/Vol Coordinator(4) 1 1 1 1 0

GUEST SERVICES Parks & Rec CC Admin. Asst. 1 1 1 1 0 Parks & Rec CC Events Planner 1 1 1 1 0 Parks & Rec Theatre Tech 1 1 1 1 0 Parks & Rec CC Coordinator 1 1 1 1 0 Parks & Rec CC PT Customer Srv PT 1 1 1 1 0 5 5 5 5 0

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xviii

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) PARKS & RECREATION FUND cont. CHILD CARE FT/PT Headcount Childcare Coordinator 1 1 1 1 0 School Age Care Specialist 1 1 1 1 0 2 2 2 2 0 PARKS, RECREATION and ARTS Program Coordinator(4) 1 1 1 1 0

ATHLETICS Recreation Coordinator(4) 1 1 1 1 0

FT/PT Headcount - PARKS & REC FUND 14 14 14 14 0

PARK STEWARDSHIP Contingent Hours Park Stewardship Intern(1) 0 146 0 400 400

SOCCER Soccer Complex Supervisor(1) 500 667 800 800 0 Soccer Complex Monitors(1) 865 736 510 510 0 1,365 1,403 1,310 1,310 0 AQUATICS Aquatics Pool Manager(1) 1,120 640 1,120 1,070 -50 Aquatic Leader(1) 560 508 560 500 -60 Aquatics Head Lifeguard(1) 980 325 884 714 -170 Aquatics Lifeguard(1) 7,500 9,168 7,380 6,615 -765 Aquatics Slide Operator(1) 4,140 3,665 3,810 3,385 -425 Aquatics CSA(1) 2,860 2,568 2,625 2,310 -315 17,160 16,874 16,379 14,594 -1,785 GUEST SERVICES Parks & Rec CC Guest Services CSA(1) 6,770 6,425 6,770 6,650 -120

HANNAH POOL CC Pool Manager(1) 720 412 680 500 -180 Team Leader(1) 1,280 1,160 680 0 -680 CC Head Lifeguard(1) 1,320 438 1,188 1,000 -188

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xix

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) PARKS & RECREATION FUND cont. HANNAH POOL cont. Contingent Hours CC Lifeguard(1) 5,760 7,041 5,760 5,760 0 Master Swim Coach(1) 80 76 80 80 0 Swim Instructors(1) 1,020 737 1,020 1,260 240 10,180 9,863 9,408 8,600 -808 SUMMER SOLSTICE JAZZ FESTIVAL Jazz Festival Coordinator(1) 1,040 1,036 1,196 0 -1,196 Jazz Festival Intern(1) 780 406 780 300 -480 1,820 1,442 1,976 300 -1,676 COMMUNITY EVENTS Communication Intern(1) 400 300 400 400 0 Community Events Assistant(1) 0 0 0 1,144 1,144 400 300 400 1,544 1,144 CHILD CARE Site Supervisor(1) 3,914 532 1,460 370 -1,090 Site Leader(1) 7,314 8,254 9,360 8,500 -860 Child Care Aide(1) 8,325 9,491 10,578 10,250 -328 Summer Camp Aides PT(1) 2,610 3,164 2,100 2,800 700 22,163 21,440 23,498 21,920 -1,578 PARKS, REC and ARTS Artistic Dir/Leader(1) 1,300 1,479 1,300 1,300 0 Aerobics Instructor(1) 144 0 200 0 -200 Camp Supervisor(1) 390 0 0 0 0 Camp Lead Instructor(1) 0 59 0 210 210 Camp Aide(1) 0 0 100 0 -100 Ceramics Instructor(1) 960 675 1,300 1,298 -2 Drama Camp Supervisor(1) 0 250 0 240 240 Drama Camp Lead Instructor(1) 0 164 385 305 -80 Drama Camp Aide(1) 0 144 960 800 -160 Dance Instructor(1) 144 15 150 0 -150 Event Aide(1) 250 0 0 0 0

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xx

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) PARKS & RECREATION FUND cont. PARKS, REC and ARTS cont. Contingent Hours Personal Trainer(1) 500 353 500 288 -212 Fitness Instructor(1) 500 0 0 0 0 Parking Attendant(1) 300 208 250 250 0 Parking Supervisory(1) 0 0 70 70 0 Recreations Aide(1) 250 0 0 0 0 AECT Leader(1) 0 779 624 780 156 Theatre Aide(1) 1,713 387 0 200 200 6,451 4,513 5,839 5,741 -98 ATHLETICS Athletics CSA(1) 520 277 280 280 0 Parks & Rec Officials(1) 800 553 680 680 0 Recreational Specialist(1) 540 449 450 450 0 1,860 1,279 1,410 1,410 0

Contingent Hours - PARKS AND REC FUND 68,169 63,683 66,990 62,469 -4,521

SENIORS FUND FT/PT Headcount Program Director 1 1 1 1 0 Program Planner 1 1 1 1 0 Secretary PT 1 1 1 1 0 FT/PT Headcount 3 3 3 3 0

Contingent Hours Volunteer Resource Coordinator(1) 832 536 832 624 -208 Secretary PT(1) 1,044 636 1,044 832 -212 Sub Secretary(1) 870 146 570 150 -420 Office Aide(1) 0 323 624 624 0 Recreation Specialist1) 1,044 360 1,044 364 -680 Contingent Hours 3,790 2,000 4,114 2,594 -1,520

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xxi

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) LIBRARY FUND FT/PT Headcount Library Director 1 1 1 1 0 Executive Asst. to Director 1 1 1 1 0 Head of Customer Exp/Asst. Director 1 1 1 1 0 Library Digital Resource Special 1 1 1 1 0 Library Tech Services Supervisor PT 1 1 1 1 0 Librarian - Senior 1 0 0 0 0 Librarian - Teen 1 1 0 0 0 Librarian - Teen PT 0 0 1 1 0 Librarian - PT 1 1 1 1 0 Library Tech Assistant Desktop PT 1 0 0 0 0 Library Assistant PT 4 2 3 2 -1 Library Tech Assistant 5 5 5 5 0 Library-Tech Specialist Maker PT 1 0 0 0 0 Library Marketing/Dev Spec PT 1 0 1 0 -1 Library Collect/Tech Services Librarian 1 1 1 1 0 Library STEAM Specialist 0 0 0 1 1 Library Youth Services PT 1 1 1 1 0 Library Circulation Supervisor 1 1 1 1 0 FT/PT Headcount 23 17 19 18 -1

Contingent Hours Customer Service Associate(1) 0 995 1,048 1,040 -8 Substitute Public Service Assistants(1) 1,560 311 1,040 520 -520 Marketing/Communications Specialist(1) 0 0 0 1,508 1,508 Library Page 1(1) 4,576 3,564 4,580 3,796 -784 Library - Work Study Page(1) 1,040 474 2,080 1,040 -1,040 Library Tech Assistant(1) 1,040 477 1,048 1,040 -8 Library-Technology Specialist Maker(1) 0 306 1,048 1,040 -8 Library Youth Specialist(1) 0 782 1,048 1,040 -8 Contingent Hours 8,216 6,908 11,892 11,024 -868

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xxii

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) ART FESTIVAL FUND FT/PT Headcount Art Festival Director PT 1 1 1 1 0 FT/PT Headcount 1 1 1 1 0

Contingent Hours Art Festival Assistant(1) 600 565 650 650 0 Contingent Hours 600 565 650 650 0

PARKING FUND FT/PT Headcount Parking Administrator 1 1 1 1 0 Parking Asst. Administrator 1 1 1 1 0 Parking Operations Coordinator 1 1 1 1 0 Parking Office Assistant PT 1 1 1 1 0 Parking Maintenance Tech FT 2 2 2 2 0 Parking Maintenance Asst. PT 1 1 1 1 0 FT/PT Headcount 7 7 7 7 0

Contingent Hours Parking Lot Attendant Supervisor(1) 7,200 3,119 0 0 0 Parking Lead Ambassador(1) 0 76 0 1,300 1,300 Parking Ambassador(1) 0 5,734 11,162 11,480 318 Parking Lot Attendant(1) 19,880 13,774 0 0 0 Contingent Hours 27,080 22,703 11,162 12,780 1,618

SEWAGE DISPOSAL SYSTEM FUND FT/PT Headcount WRRF Plant Superintendent 1 1 1 1 0 WRRF Asst. Superintendent 1 1 1 1 0 WRRF Maintenance Supervisor 1 1 1 1 0 WRRF Physical Plant Maintainer 2 1 1 1 0 WRRF Maintenance Specialist 4 3 4 4 0 WRRF Maintenance Spec/Instru Elec 1 1 1 1 0 WRRF Master Electrician 1 0 1 1 0 Maintenance Specialist Fac. Main 1 0 1 0 -1

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xxiii

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) SEWAGE DISPOSAL SYSTEM FUND cont. FT/PT Headcount Process Control Spec -Days 4 3 3 3 0 Process Control Spec - Afternoons 2 2 2 2 0 Process Control Spec - Midnights 2 3 3 3 0 FT/PT Headcount 20 16 19 18 -1

Contingent Hours Intern Work Study(1) 0 0 1,000 0 -1,000 Contingent Hours 0 0 1,000 0 -1,000

INFO. SYSTEMS FUND FT/PT Headcount Information Systems Manager 1 1 1 1 0 Information Systems Engineer 1 1 1 1 0 Information Systems Support Analyst 1 1 1 1 0 FT/PT Headcount 3 3 3 3 0

DEPARTMENT OF PUBLIC WORKS FUND SERVICE POOL FT/PT Headcount Public Service Employee 28 24 26 25 -1 Public Service Supervisor 1 0 1 0 -1 Public Service Employee - Lead Worker 5 5 5 5 0 Public Service Employee - After 7/1/13 6 8 8 8 0 Meter Tech 3 1 3 1 -2 Meter Tech (Sr.) 1 1 1 1 0 44 39 44 40 -4 GARAGE Public Service Mechanics 4 4 4 4 0

GIS GIS Analyst 1 1 1 1 0 FT/PT Headcount - DEPT. OF PUBLIC WORKS 49 44 49 45 -4

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xxiv

FY2017 FY2018 FY2019 FY2019 ADOPTED FY2017 ADOPTED BUDGET INCREASE BUDGET ACTUAL BUDGET REQUEST (DECREASE) DEPARTMENT OF PUBLIC WORKS FUND cont. SERVICE POOL Contingent Hours Environmental Services Intern(1) 1,077 741 1,044 1,040 -4

GARAGE Public Service Mechanic(1) 1,044 981 1,000 1,000 0 Contingent Hours - DEPT. OF PUBLIC WORKS 2,121 1,722 2,044 2,040 -4

FT/PT Headcount - TOTAL 360 327 353 333 -20 Contingent Hours - TOTAL 135,570 117,778 124,062 111,157 -12,905

(1) Contingent Employee (Hours minimal with no benefits) (2) Elected Official (3) Appointed (Hours minimal with no benefits) (4) Employees in the position may be charged to multiple areas xxv

FT/PT Employee Headcounts by Function

Public Works 3.9% Health, Welfare Public Safety & Community 41.7% Development 2.7%

Culture &

Recreation 10.8%

WRRF 5.4%

Information Systems

0.9%

General Parking Garage & 2.1% Government Service Pool 19.2% 13.2%

Contingent Employee Hours by Function Health, Welfare & Community Development 0.7%

Public Works Culture & 0.0% Recreation 69.0% Public Safety 10.6%

General

Government 6.3%

Garage & Service

Pool 1.8%

Parking

11.5% WRRF Information 0.0% Systems 0.0%

xxvi

FY2019 FORECAST & BUDGET TIMETABLE December 2017 Finance Department: - Analyze Insurance Fund and set internal rates for upcoming fiscal year - Set up new budget year, including position budgeting and COLA assumptions - Analyze open positions to determine if they should be budgeted in upcoming fiscal year - Run preliminary calculations; review for missing schedules, rate increases, benefits, longevity, etc

Wednesday, January 10, 2018 Payroll budget calculation sheets out to departments for review - positions, pay grades and benefits Wednesday, January 17, 2018 Payroll budget sheets back to finance with changes and revisions Wednesday, January 24, 2018 Revised payroll budget sheets out to departments as well as direct charges, MERS, and OPEB charges

Wednesday, January 31, 2018 Payroll budget sheets and direct charges back to finance with final changes and revisions

Friday, February 16, 2018 Department budget submission deadline - all numbers and details entered into New World System ************************************************************************************************************* Tuesday, February 20, 2018 Present 5-Year Financial Forecast and Capital Improvements Plan at City Council Meeting ************************************************************************************************************* February 19 - March 02, 2018 Budget meetings with City Manager, Finance Director, and Departments as needed Friday, March 02, 2018 Departmental budget and narrative information keyed into word document March 02 - April 06, 2018 Finance staff review all submissions, balance all funds, and complete budget document Friday, April 06, 2018 Preliminary budget document delivered to City Council ************************************************************************************************************* BUDGET WORKSESSIONS, PUBLIC HEARING, AND ADOPTION DATES

************************************************************************************************************* Tuesday, April 10, 2018 Budget Worksession - 5:30 PM General Overview General Fund Questions and Answers Tuesday, April 10, 2018 Council Meeting - Council to set date of Wednesday, May 9, 2018 for a Public Hearing on Budget & Tax Rate Tuesday, April 17, 2018 Budget Worksession - 5:00 PM Community Development Block Grant Capital Improvements Fund Parking Fund Tuesday, April 24, 2018 Budget Worksession - 5:30 PM Street Funds Solid Waste Fund Utility Funds Wednesday, May 09, 2018 Budget Worksession - 5:30 PM Parks & Recreation Fund Parks Capital Improvement Fund Wednesday, May 09, 2018 Council Meeting - Hold Public Hearing on Budget & Tax Rate Tuesday, May 15, 2018 Budget Worksession (if needed) Tuesday, May 22, 2018 Council Meeting - Adopt FY2019 Budget and Tax Rate

xxvii

City of East Lansing, Michigan ORGANIZATIONAL CHART

East Lansing Citizens Boards and Commissions

City Attorney 54-B District Court City Council Tom Yeadon Chief Judge Andrea Larkin Library Judge Richard D. Ball Director Kristin Shelley Asst. Director Jason Shoup

Administrator City Manager Nicole Evans George Lahanas

Finance Services Planning, Building & Development Administrative Services Parks, Recreation & Arts Director/CFO Director Tim Dempsey Director Seniors’ Program Jill Feldpausch Human Tim McCaffrey City Clerk/ Director Kelly Arndt Resources Elections Assistant Director Parking Wendy Wilmers-Longpre Administrator Director City Clerk Caleb Sharrow Shelli Neumann Jennifer Shuster Compensation/ Art Festival Beneﬁ ts Manager Director Treasury Assessing Planning & Zoning Sally Schepis Michelle Carlson Treasurer Assessor Administrator Andrea Smith David Lee David Haywood Fire Department Information Communications Chief Randall G. Talifarro Technology Coordinator Public Works & Mikell Frey Community & Manager Environmental Economic Development Thomas Crane Services Accounting Administrator Prevention Director Budget & Acctg. Admin. Scott House Audrey Kincade Thomas Fehrenbach Police Department Fire Marshal Don Carter Chief Larry Sparkes

Housing & University Operations Infrastructure Engineering Deputy Chiefs Relations Administrator Administrator Steve Alvarado Administrator Operations Ron Lacasse Nicole McPherson Annette Irwin Deputy Chief Steve Gonzalez Ken Lehto Lt. James Campbell Dawn Carson Water Resource Building & Code Environmental Recovery Facility Administrator Administrator Superintendent Scott Weaver Cathy DeShambo Paul Stokes Communications Department Updated Nov. 2, 2017 GENERAL FUND REVENUES & EXPENDITURES

NOTES:______

FY2019 General Fund Budget $35,530,760

Sources - Revenues

Intergovernmental Charges for Services Revenue 9.6% 22.6% Fines & Forfeituress 6.3%

Licenses & Permits 5.4%

Rental Income 1.3%

Franchise Fees 4.1%

Other and Interest Income 0.6% Property Taxes 50.1%

FY2019 General Fund Budget $35,530,760

Expenditures - Uses by Function

Public Works 6.6%

Culture & Recreation 9.8% Public Safety 65.5% Health, Welfare & Community Development 3.2% Debt Service 0.2%

General Government 14.7%

Expenditures - Uses by Account Classification

Transfers Out 7.1%

Personnel Services Capital Outlay 67.4% 1.6%

Operating Costs 23.9%

GENERAL FUND Summary of Fiscal Year 2019 Operating Activity FY2019 Revenues & Financing Sources: Budget Request % of Total Property Taxes$ 17,814,205 50.1% Intergovernmental Revenue 8,018,035 22.6% Charges for Services 3,415,840 9.6% Fines and Forfeitures 2,226,200 6.3% Licenses and Permits 1,920,860 5.4% Rental Income 450,020 1.3% Franchise Fees 1,470,000 4.1% Other Miscellaneous Revenue 101,600 0.3% Interest Income 114,000 0.3%

Total Revenues & Financing Sources 35,530,760 100.0% Expenditures & Financing Sources: Personnel Services 26,517,280 74.6% Operating Costs 9,409,375 26.5% Indirect Cost Allocation (3,466,715) -9.8% Capital Outlay 567,000 1.6% Transfers Out 2,503,820 7.1% Total Expenditures & Financing Sources 35,530,760 100.0%

Operating Surplus (Deficit)$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) Nonspendable (Inventory and Prepaids) 19,398 Committed/Assigned to Encumbrances/Appropriations 1,043,634 Assigned to Special Purposes 1,150,000 Unassigned 4,281,940 Total Audited Fund Balance at June 30, 2017 6,494,972 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (874,081) Estimated Available Fund Balance as of June 30, 2018 5,620,891 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 - Estimated Total Fund Balance as of June 30, 2019 $ 5,620,891 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 15.8%

GENERAL FUND Revenues, Expenditures & Net Impact

Function Division Revenues Expenditures Net Impact General Government Mayor and City Council$ - $ 2,795 $ (2,795) City Manager - 10,175 (10,175) Legal Counsel 18,000 298,025 (280,025) 54B District Court 3,585,200 3,769,725 (184,525) Finance 30,000 310 29,690 Assessing 66,200 281,360 (215,160) Treasury 4,500 880 3,620 Human Resources - 12,020 (12,020) Clerk and Elections 88,100 311,745 (223,645) Communication Services 300 163,585 (163,285) Cable Services 370,000 140,000 230,000 Government Buildings 100 92,125 (92,025) Total General Government 4,162,400 5,082,745 (920,345) Public Safety Police Operations 246,600 11,691,805 (11,445,205) Fire Operations and Prevention 3,619,355 9,855,780 (6,236,425) Building Permits and Inspections 1,125,000 1,051,825 73,175 Housing Licenses and Inspections 790,000 675,900 114,100 Total Public Safety 5,780,955 23,275,310 (17,494,355) Public Works Administration - 314,465 (314,465) Engineering 130,200 411,295 (281,095) Downtown Maintenance 181,220 190,130 (8,910) Sidewalks 132,000 253,350 (121,350) Drains - 188,600 (188,600) Alley Maintenance - 39,400 (39,400) Street Lighting - 946,190 (946,190) Total Public Works 443,420 2,343,430 (1,900,010) Community and Economic Development Planning and Zoning 35,000 1,015,960 (980,960) Other Functions Social Services - 14,760 (14,760) Parks Maintenance 18,200 1,294,735 (1,276,535) Transfers to Other Funds - 2,503,820 (2,503,820) Unassigned Revenue 25,090,785 - 25,090,785 Total Other Functions 25,108,985 3,813,315 21,295,670 Total $ 35,530,760 $ 35,530,760 $ -

GENERAL FUND Estimated Revenues FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property Taxes Property Tax - Operating Millage$ 15,719,167 $ 16,038,020 $ 16,981,090 Property Tax Administration Fee 642,212 657,500 700,000 Penalties and Interest 118,556 105,000 103,000 Payment in Lieu of Taxes 30,366 30,115 30,115 Total Property Taxes 16,510,301 16,830,635 17,814,205 Intergovernmental Revenue State Revenue Sharing 5,440,852 5,439,265 5,583,000 Court Revenue Sharing 24,282 20,500 20,200 PA289 Fire Protection 1,701,064 1,350,000 1,468,935 Federal/State Police Grants 39,561 30,000 25,900 Federal/State Fire Grants - 185,000 350,000 Other Grants 390,493 344,375 570,000 Total Intergovernmental Revenue 7,596,252 7,369,140 8,018,035 Charges for Services City Attorney Cost Recovery 23,142 18,000 18,000 Court Costs and Fines 832,282 900,000 800,000 Finance Services - ELMWSA 30,000 30,000 30,000 Assessor Shared Services - Meridian Township 62,393 64,500 65,000 Clerk Services - Greater Lansing Taxi Authority 19,433 - - Dispatch - MSU and Meridian Township 19,000 19,000 19,000 OWI Cost Recovery 35,088 25,000 24,000 PACE Charges - Impound Lot and Other 28,868 30,000 45,000 Police - Other 154,683 144,000 130,000 Fire Chief Shared Services - City of Lansing 111,315 110,000 115,000 Ambulance Services 1,313,962 1,350,000 1,250,000 Fire Rescue Contract - MSU 326,000 326,000 326,000 Fire - Other 117,484 134,025 109,420 DDA Downtown Maintenance 105,220 120,335 181,220 Sidewalks 149,446 - 6,000 Inspection Shared Services - Meridian Township 227,777 225,000 225,000 Other 127,407 81,465 72,200 Total Charges for Services 3,683,500 3,577,325 3,415,840

Schedule continued on next page 7

GENERAL FUND Estimated Revenues (Continued) FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Fines and Forfeitures Parking Fines 1,079,173 1,250,000 1,000,000 District Court Ordinance Fines and Costs 1,283,802 1,375,000 1,200,000 District Court Alcohol Screening Fees 29,004 27,000 25,000 Restitution Fines 3,225 2,500 1,200 Total Fines and Forfeitures 2,395,204 2,654,500 2,226,200 Licenses and Permits Housing Licenses and Inspections 814,384 780,000 790,000 Building Permits and Inspections 1,144,544 900,000 900,000 Business and Restaurant Licenses 92,207 87,400 87,100 Engineering Permits 165,890 139,300 130,000 Other Licenses and Permits 12,560 14,360 13,760 Total Licenses and Permits 2,229,585 1,921,060 1,920,860 Rental Income 335,681 385,165 450,020 Community Support 9,500 - - Franchise Fees Cable Franchise Fees 371,006 385,000 370,000 BWL Franchise Fees - 750,000 1,100,000 Total Franchise Fees 371,006 1,135,000 1,470,000 Other Miscellaneous Revenue 103,667 102,000 101,600 Interest Income 108,033 105,000 114,000 Other Financing Sources Transfer from Debt Service Fund 135,986 - - Contribution From DDA 15,250 - - Reappropriated Fund Balance - 1,618,653 - Total Other Financing Sources 151,236 1,618,653 - Total Revenues & Financing Sources $ 33,493,965 $ 35,698,478 $ 35,530,760 x

GENERAL FUND Estimated Revenues

The FY2019 total revenue budget is $35,530,760 which is $167,718 less than the FY2018 amended budget. Although not a significant change in total, the FY2019 budget does not use fund balance, whereas the FY2018 amended budget includes approximately $1.6 million of reappropriated fund balance. Substantial increases in property taxes, intergovernmental revenue, and franchise fees are offset slightly by declines in charges for services and fines and forfeiture revenues.

$ 16,981,090 Property Tax - Operating Millage - Based upon anticipated taxable valuation of approximately $1.047 billion (6.3% more than prior year’s budget); or $1.000 billion of taxable value after accounting for all tax increment captures. In FY2018, a Headlee rollback was imposed reducing the operating millage limit to 17.5679 and the FY2019 budget assumes this same rate. It is likely an additional Headlee rollback will be experienced in FY2019, however official notification has not yet been received. With the expected property taxable value increases and new developments, we are expecting a 5.9% increase over FY2018 budgeted tax revenue.

$ 700,000 Property Tax Administration Fee - In FY1989, the City instituted a 1.0% tax administration fee which is permitted by law. This fee helps offset part of the Assessing and Treasury functions. This is directly related to the amount of property taxes billed by the City for all jurisdictions.

$ 103,000 Penalties and Interest - This represents the interest and penalties paid when taxpayers are late in paying their property taxes.

$ 30,115 Payment in Lieu of Taxes - Payment received from East Glen, Deerpath, and Woodside Glen housing developments. This is the City's share of the amount to be received from the projects due to their tax abatement.

$ 5,583,000 State Revenue Sharing - The State of Michigan distributes a portion of the sales tax collected to municipalities. These State monies are unrestricted and can be used by a local unit to help fund core services. In FY2012, Governor Snyder introduced the Economic Vitality Incentive Program (EVIP) which replaced and reduced the statutory revenue sharing monies that were received. In FY2015, this was replaced with City, Village, and Township Revenue Sharing (CVTRS) which is a simplified version of EVIP. FY2019 CVTRS is expected to remain flat compared to FY2018 budget, with a 3.1% increase over the projected FY2018 amount anticipated for the Constitutional piece. Based on the latest State estimates, FY2018 is expected to come in approximately $106,000 more than what was budgeted.

$ 20,200 Court Revenue Sharing - The City, as the host government for the 54-B District Court, receives annual revenue sharing from the State for drunk driving and drug related caseloads.

$ 1,468,935 PA289 Fire Protection - This is a reimbursement for fire protection costs for state-owned buildings under Public Act 289. In FY2003, former Governor Engler was unsuccessful in eliminating the State's reimbursement for fire protection, but he was able to reduce the amount to about half of what we were getting. This source of funding has been at risk each year as the State balances their budget and the funding level has continued to fluctuate significantly. In FY2017, we received $1,701,064 due to additional appropriations made by the State. In FY2018, additional appropriations were made, but at a lower level resulting in revenue of $1,335,395. Governor Snyder’s FY2019 proposed budget shows a significant increase of 40.0% to this appropriation, however, the City’s budget request factors in a more modest increase of 10.0%.

GENERAL FUND Estimated Revenues (Continued)

$ 25,900 Police Grants - The City has been awarded various grants for police activities including training funds for command officers, purchase of bullet proof vests, and overtime reimbursement for programs relating to youth alcohol, seatbelt enforcement, etc.

$ 350,000 Fire Grants - During FY2015, the City was awarded a State grant through the Competitive Grant Assistance Program in the amount of $793,167. This grant will offset the costs of fire equipment as well as training. The remainder of the grant funds are expected to be expended and reimbursed during FY2018. The FY2019 budget includes a new grant anticipated to upgrade additional fire equipment, specifically air packs.

$ 570,000 Other Grants - Represents a Veterans’ Treatment Court grant of $130,000, a Drug Court grant of $180,000, and a Sobriety Court grant of $130,000 through the 54-B District Court. In addition, $126,000 of CDBG grant is expected to help offset costs of the sidewalk program, and $4,000 of funds expected for tree replacements within the parks.

$ 18,000 City Attorney Cost Recovery - Represents revenues received by 54-B District Court, as ordered by the judges, to recover the City’s cost for the prosecuting attorneys.

$ 800,000 Court Costs and Fines - Represents revenues of the 54-B District Court from various fines and costs assessed by the Court. FY2019 is expected to decrease $100,000 to be consistent with actual amounts being received.

$ 30,000 Finance Services - This is an administrative charge to the East Lansing Meridian Water Sewer Authority (ELMWSA) for administrative services performed by the City under an amended agreement. This amount was last adjusted in FY2010; it had been $25,000 since 1992.

$ 65,000 Assessor Shared Services - In FY2011, the City entered into an agreement with Meridian Township where the City’s Assessor also acts as their Assessor. This allowed the City to recognize some savings as well as comply with the Governor’s EVIP requirements to collaborate and consolidate with other local governments. The amount paid by the Township is based on actual hours worked.

$ -0- Clerk Services - This was an administrative charge to the Greater Lansing Taxi Authority for administrative services performed by the City Clerk’s office. With the Taxi Authority abolished, no revenue is expected after FY2017.

$ 19,000 Dispatch for MSU and Meridian Township - With the County consolidation of the dispatch center completed in FY2012, and the City retaining the legacy costs of retired employees, MSU and Meridian Township agreed to contribute $10,000 and $9,000, respectively for a ten-year period (thru FY2022).

$ 24,000 OWI Cost Recovery - The actual costs incurred by the police arresting someone for operating under the influence of alcohol or drugs can be assessed by judges to the guilty party. The judges have agreed to assess these costs.

$ 45,000 Impound Lot Charges - The Police Department operates an impound lot at the DPW Garage for abandoned cars and those towed for outstanding tickets. This revenue represents a fee imposed per day while vehicles are impounded.

GENERAL FUND Estimated Revenues (Continued)

$ 130,000 Other Police Charges - Includes police records reports and FOIA charges of $15,000, PBT tests of $8,000, inmate reimbursements of $32,000, and services to MSU of $75,000. In FY2017 and FY2018 this line item included cost sharing of the School Resource Officer with East Lansing Public Schools, but this officer was eliminated in FY2019, due to personnel reductions.

$ 115,000 Fire Chief Shared Services - Beginning January 1, 2012, the City entered into an agreement with the City of Lansing for job sharing the position of Fire Chief. The City of Lansing pays 50% of the Chief’s salary, benefits, and other related costs.

$ 1,250,000 Ambulance Service Charge - Most of this revenue is paid through health insurance and fees have been adjusted in previous years to accommodate the amounts insurances are generally willing to pay. FY2019 is expected to decrease when compared to the FY2018 budget amount based on recent experience.

$ 326,000 Fire Rescue Contract - Represents the charge for fire and rescue services provided to areas owned by Michigan State University, but outside the City limits. This fee formerly was a formula based on our fire costs, the state shared revenues, and the state fire protection reimbursement. MSU canceled the contract, and instead, initiated a plan which reduced MSU's payment by $200,000 per year until it leveled off at $326,000 in FY2003.

$ 109,420 Other Fire Charges - Includes hazmat clean up fees of $13,000, miscellaneous other charges of $1,420, and services to MSU for special events of $95,000.

$ 181,220 DDA Downtown Maintenance - Charges to the Downtown Development Authority for maintenance of the downtown area including litter and refuse services, snow removal, landscaping, and assistance with downtown activity preparations. With the construction and development in the downtown, this is increasing significantly in FY2019.

$ 6,000 Sidewalks - As the City repairs broken sidewalks, a portion of the cost is assessed to the property owner. This amount fluctuates depending on the amount of sidewalks replaced on private property each year. The FY2019 budget, again, has significantly limited the sidewalk program due to budget constraints. Limited billings to property owners are expected in FY2019.

$ 225,000 Inspection Shared Services - In FY2011, the City entered into an agreement with Meridian Township where the City’s Building Department performs inspection services for plumbing, electrical, and mechanical permits. This revenue is dependent on the number of permits issued by Meridian Township. FY2019 is expected to remain consistent with prior years.

$ 72,200 Other Charges for Services - Charges include $29,200 from a Municipal Services Agreement with Deerpath Apartments; $35,000 of fees for rezoning and regulatory planning services; $200 of engineering fees for review of development plans; $1,000 of clerk FOIA fees; $800 of parks maintenance service charges; $300 of communications charges for assisting neighborhood associations with their newsletters; $1,200 of assessing services; and $4,500 of treasury services to mortgage companies.

$ 1,000,000 Parking Fines - This represents revenue collected by the Court for parking tickets issued. It includes revenue from East Lansing parking tickets that are either paid before they are due or paid after they are arraigned by the Court. FY2018 is experiencing a continued decline in these fines and FY2019 is budgeted at a much lower level, accordingly.

GENERAL FUND Estimated Revenues (Continued)

$ 1,200,000 District Court Ordinance Fines and Costs - Represents revenue derived by the Court on fines charged to those found guilty of violating City Ordinances. These fines are returned to the City which is the district control unit for the Court. FY2018 is trending significantly lower to date, therefore, the FY2019 amount was lowered.

$ 25,000 District Court Alcohol Screening Fines - Fine imposed upon those convicted of alcohol related crimes to be screened for various alcohol treatment seminars, classes, etc.

$ 1,200 Restitution Fines -Various departments receive restitution fines based on Court ordered charges.

$ 790,000 Housing Licenses and Inspections - The bulk of this revenue is derived from housing license fees for multiple dwelling units and is meant to be cost recovery of performing the inspections and issuing the permits.

$ 900,000 Building Permits and Inspections - Includes building permit charges, as well as fees for electrical, plumbing, and grading permits within the City. FY2018 activity is exceeding the amended budget amount, but we expect to start seeing a decline in permits in FY2019.

$ 87,100 Business and Restaurant Licenses - Estimated revenues from various business permits issued by the City including restaurant and entertainment licenses.

$ 130,000 Engineering Permits - This includes permit and inspection fees charged by the Department of Public Works engineering division. This amount can fluctuate greatly depending on the types and amounts of development activity.

$ 13,760 Other Licenses and Permits - Includes $13,400 of park reservation permits and $360 of residential parking permits.

$ 450,020 Rental Income - The largest amount included here is the $347,015 of City Hall building cost indirect rent allocation. This allocation is part of the indirect cost allocation that was completed in FY2017 and expected to be updated in FY2019. Also incorporated is the recognition of cell tower revenue in the amount of $36,240. The cell tower lease revenue stream was sold to AP Wireless in FY2011 and the General Fund received $784,236 up front. However, this amount has to be recognized over the life of the revenue stream sold, which was 30 years. FY2018 added $100 for rental of the Bailey Building, per the agreement with Capital Area Housing Partnership. New in FY2019, $66,665 representing a partial year of the ground lease in conjunction with the Center City development.

$ 370,000 Cable Franchise Fees - The cable franchise calls for a franchise fee of 5% of revenues collected by the cable companies doing business in the City. Currently, the City is receiving cable franchise fees from AT&T and Comcast. The FY2019 budget has been decreased slightly to line up with actual amounts being received.

$ 1,100,000 BWL Franchise Fees - New in FY2018, this franchise fee with the Board of Water and Light (BWL) includes 5% of electric billings and is remitted quarterly to the City. FY2019 is increasing as this will be the first full year of collections.

GENERAL FUND Estimated Revenues (Continued)

$ 101,600 Other Miscellaneous Revenue - Includes $100,000 of miscellaneous court revenues received from the State and $1,600 of other miscellaneous revenues from various departments.

$ 114,000 Interest Income - Interest on short-term investments at current interest rates. Interest rates have stabilized and we are starting to see an increase in interest income.

$ -0- Transfer from Debt Service Fund - FY2017 included a transfer of $135,986 from the Debt Service Fund. These funds represented accumulated interest earnings on prepaid special assessments that were not utilized in paying the annual debt requirements. No additional transfers are expected going forward.

$ -0- Downtown Development Authority Contribution - The General Fund contributed the matching piece for the grant work that was completed to East Grand River by MDOT. The DDA agreed to reimburse the General Fund, beginning in FY2013, over a period of 3-5 years by using the funds available from the taxes of the expanded DDA district. FY2017 was the final payment.

$ -0- Reappropriated Fund Balance - Fund balance represents accumulated surpluses from prior years. It can be spent on the current year's budget, but must be done cautiously. Fund balances are a cushion for emergencies and Council has set a guideline of 8-15% of operating expenditures as a target amount to hold. The FY2018 year-end estimates show a projected use of fund balance of $874,081. In FY2019, we are proposing no use of fund balance. The FY2019 estimated fund balance as a percentage of operating expenditures will be 15.8% after the expected use described above.

NOTES:______

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government - Legislative DIVISION Mayor and City Council STAFF RESPONSIBLE George Lahanas

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 112,624 $ 117,965 $ 85,445 Operating Costs 75,662 64,325 43,320 Indirect Cost Allocation (172,020) (172,020) (125,970) Capital Outlay - - - Total Expenditures$ 16,266 $ 10,270 $ 2,795

ACTIVITIES

• To coordinate the activities of all the departments of East Lansing City Government • Provide policy leadership to the City on a wide variety of local issues. The City Charter states, "All powers of the City shall be vested in and all matters of policy of the City shall be exercised and determined by the City Council" • Listen and interpret the demands of the community • Enact legislation and policy to achieve goals

EXPLANATORY INFORMATION

Personnel service costs are decreasing $32,520 when compared to the FY2018 budget. This reduction is due to the administrative staff position being split between this division and the City Clerk division.

A significant decrease of $21,005 in operating costs is expected in FY2019 primarily due to the elimination of the annual Lansing Economic Area Partnership (LEAP) membership.

A study was completed in 2016 to allocate general government costs to those departments and funds that utilize these services. The indirect cost allocation has been adjusted, from the original study, to reflect changes in the government as a whole. A full analysis of the cost allocation is expected to occur in FY2019.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government - Executive DIVISION City Manager STAFF RESPONSIBLE George Lahanas

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 277,330 $ 276,065 $ 283,165 Operating Costs 85,445 67,330 92,710 Indirect Cost Allocation (355,265) (355,265) (365,700) Capital Outlay - - - Total Expenditures$ 7,510 $ (11,870) $ 10,175

ACTIVITIES

• To coordinate the activities of all the departments of East Lansing City Government • To facilitate communication between City management and the East Lansing City Council • To provide critical information necessary for effective City Council policy decisions • To marshal over City resources for the accomplishment of the City Council Strategic Priorities

EXPLANATORY INFORMATION

The FY2019 budget reflects an increase in personnel services costs, 2.6%, from the prior fiscal year’s budget. This is due to the 1.0% COLA increase, as well as the planned step increase of the Assistant to the City Manager.

Operating costs are estimated to increase by 37.7% from the FY2018 budget. The increased costs are a result of special legal contract service fees and the added biennial community survey ($18,000) into the FY2019 budget.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government - Other DIVISION Legal Counsel STAFF RESPONSIBLE Tom Yeadon/Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ - $ - $ - Operating Costs 397,079 492,905 477,440 Indirect Cost Allocation (179,450) (179,450) (179,415) Capital Outlay - - - Total Expenditures$ 217,629 $ 313,455 $ 298,025

ACTIVITIES

• Advise City Council, the City Manager, and staff on legal matters and policy • Draft Ordinances as directed by City Council • Defend the City in lawsuits and other legal matters • Prosecute violators of City Ordinances • Work with the Assessor, defend all challenges to assessments, and negotiate settlements when appropriate

EXPLANATORY INFORMATION

The budget submission from the City Attorney is decreasing 3.1% based on anticipated hours for FY2019. The majority of the fees paid to the City Attorney are budgeted in this cost center, but those related to housing licenses ($20,000) are budgeted directly in the City’s Housing Department. It appears there was a significant increase from FY2017, however, the variance is simply due to the actual charges coming in under budget.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government - Judicial DIVISION 54-B District Court STAFF RESPONSIBLE Judge Andrea Andrews Larkin/Nicole Evans

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 2,395,500 $ 2,503,975 $ 2,588,315 Operating Costs 917,248 1,037,380 1,181,410 Capital Outlay 42,406 24,990 - Total Expenditures$ 3,355,155 $ 3,566,345 $ 3,769,725

ACTIVITIES

As a separate branch of government and a component of Michigan's one court of justice, the court provides, through effective staff operations and management of court's activities, an accessible forum for the fair, impartial, and expeditious resolution of criminal charges, civil infraction matters, and civil claims by performing the following activities:

• Arraigns defendants charged with felonies and misdemeanors, determines pretrial release conditions, conducts preliminary examinations on felonies and provides pretrial conferences, non-jury and jury trials for misdemeanor charges • Assesses fines and costs in sentencing criminal defendants, and pursues enforcement of payment through issuance of bench warrants and other collection procedures • Provides for and oversees community service as a component of sentencing and, when appropriate, as an alternative to payment of fines and costs • Places some defendants convicted of misdemeanor criminal offenses on probation in lieu of incarceration, imposes conditions of probation designed to promote rehabilitation, and monitors defendants placed on probation to ensure compliance with probation requirements • Resolves traffic, parking and municipal civil infractions, and assesses civil fines and costs after finding responsibility, through informal hearings and formal hearings • Resolves civil claims, small claims, and landlord tenant disputes expeditiously through pretrial conferences, motions, non-jury trials and jury trials

This Court collaborates with other Ingham County District Courts and the Circuit Court and serves as the Ingham County Veterans’ Treatment Court, known as a “Problem-Solving Court.” Qualified Veterans charged with a crime in Ingham County are offered to have their case heard in this specialty court. This allows for probation oversight and utilizes the specialized services and intervention of the Department of Veterans’ Affairs and seeks rehabilitation for those that may be suffering from injury or illness due to service to our Country.

In 2014, the Court started a Sobriety Court, which is its second “Problem-Solving Court.” Qualified participants who have been arrested for drunk driving and have been assessed as having a substance abuse disorder are given specialized treatment for alcohol dependency during the term of their pending case. The purpose of this court is the rehabilitation and treatment of the defendant. Statistics prove that sobriety court programs have marked success in preventing repeat offenses. Until 2018, federal and state grants paid for this specialized treatment that would be

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION General Government - Judicial DIVISION 54-B District Court STAFF RESPONSIBLE Judge Andrea Andrews Larkin/Nicole Evans

ACTIVITIES (Continued)

otherwise unaffordable for the defendant. Beginning October 1, 2018, federal funding is no longer available for Sobriety Court

In 2016, the Court implemented its third “Problem-Solving Court”, the 54B District Court Drug Court. The focus of this treatment court is to address the needs of those who struggle with drug addiction. The Drug Court handles a maximum 30 participants to allow for effective use of available treatment services and resources. Entry into the program is upon the recommendation of the respective city or county prosecutor and the drug court treatment team. The costs for treatment are fully reimbursable under the grant. The problem-solving courts were created to address underlying issues that cannot be resolved when one is simply incarcerated.

EXPLANATORY INFORMATION

The FY2019 personnel services budget is 3.4% higher than the FY2018 budget due to changes in personnel health care coverage and contractual merit increases. A large portion of this increase is based on the annual valuation of retirees in a closed group as provided by MERS. In FY2018, the Court eliminated three contingent positions and one full-time position through attrition.

Operating costs are 13.9% higher in the FY2019 budget than the current fiscal year budget. This is primarily due to the anticipated increases in the three problem-solving courts; a combined increase of $200,750. With the elimination of federal funding for the Sobriety Court in September 2018, the Court is seeking $440,000, to operate all three treatment courts, through available state grants. Since this is the Court’s first application for state funding the actual award amount will not be known until September 2018. In any case, the majority of expenditures to operate the Drug Court, Veterans’ Court, and Sobriety Court are reimbursed by grants, which are shown in the revenue section of the General Fund. The increase in problem-solving court costs is offset with approximately $57,000 of reductions to multiple line items, most notably postage, training, and operating supplies, as the Court aligns the budget with the actual experience in recent history.

The State Court Administrative Office (SCAO) began implementation of e-filing in various circuit courts. There is no specific time frame for when e-filing will be implemented in the 54-B District Court. When more information becomes available the Court will request additional funding, if necessary, to cover the costs of required equipment.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Financial Services DIVISION Finance STAFF RESPONSIBLE Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 509,814 $ 564,915 $ 586,910 Operating Costs 73,159 101,965 114,125 Indirect Cost Allocation (591,775) (591,775) (700,725) Capital Outlay - - - Total Expenditures$ (8,802) $ 75,105 $ 310

ACTIVITIES

• Promote sound financial policies and practices and facilitate the wise use of financial resources • Coordinate the 5-year forecast & budget process and prepare the annual budget document to the Council • Process the biweekly payroll and pay all related taxes and liabilities • Process the city’s weekly disbursements • Oversee the Treasury and Assessing Departments • Perform risk management functions and maintain all liability insurance policies • Maintain the fixed asset records for the City • Close monthly accounting records for accurate internal management reporting • Prepare and deliver quarterly financial reports to City Council • Manage the annual audit and preparation of the Comprehensive Annual Financial Report • Perform financial analysis and consult with departments and the City Manager • Operate as the general ledger custodian; review processing of all business transactions and report results to City Manager • Issue bonds or other debt instruments when needed at lowest interest rate possible • Ensure compliance with State mandated reporting for revenue sharing, PA289, and various retirement related filings • Coordinate the biennial Other Post Employment Benefit (OPEB) valuation

EXPLANATORY INFORMATION

The Finance Department’s FY2019 personnel budget has increased $21,995, or 3.9%, from the FY2018 budget year. This is primarily due to the reorganization of the department with the elimination of the Administrative Assistant position and addition of the Budget and Accounting Analyst position. In addition, many new employees are receiving step increases in addition to the cost of living increase.

Operating expenditures are expected to increase by $12,160 as funds have been added for annual audit services and completion of the indirect cost allocation study. A study was completed in 2016 to allocate general government costs to those departments and funds that utilize these services. The indirect cost allocation has been adjusted, from the original study, to reflect changes in the government as a whole. As noted above, a full analysis of the cost allocation is expected to occur in FY2019.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Financial Services DIVISION Assessing STAFF RESPONSIBLE David Lee/Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 359,301 $ 380,745 $ 381,455 Operating Costs 37,347 52,385 55,370 Indirect Cost Allocation (147,300) (147,300) (155,465) Capital Outlay - - - Total Expenditures$ 249,348 $ 285,830 $ 281,360

ACTIVITIES

• Serve as Assessor of Record for both City of East Lansing and Meridian Township • Establish values for all classes of property and prepare annual assessed and taxable values • Annually canvas City for entities conducting business and send each a Personal Property Statement • Compile millage rates for biannual tax collection • Maintain a database inventory of all taxable property in the City, its owner, legal description, and land and building information • Inspect properties and determine value increases due to new construction • Process all property transfers and determine if transfer of ownership has occurred (cause for uncapping of taxable value) • Process all address changes and post to tax roll • Defend valuation appeals to Michigan Tax Tribunal and State Tax Commission • Conduct audits on various personal property accounts • Provide a resource on property tax information for taxpayers and City departments

EXPLANATORY INFORMATION

In FY2011, with the retirement of the former City Assessor, the City entered into a partnership with Meridian Township to share the services of the new City of East Lansing Level 4 Assessor when hired in September 2010. According to the contract, the City bills anywhere from 40% to 60% of wage and benefit costs for the Assessor, based on the actual number of hours worked for the Township. Cost recovery fees from Meridian Township were $62,393 in FY2017, estimate of $64,500 in FY2018, and budget of $65,000 in FY2019.

The FY2019 personnel services budget is estimated to remain essentially flat. The increase in operating costs for FY2019 of 5.7% is attributable to increased contract services costs associated with tax appeal defenses and increased copier use charges.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Financial Services DIVISION Treasury STAFF RESPONSIBLE Andrea Smith/Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 490,868 $ 587,655 $ 462,970 Operating Costs 88,387 123,655 108,385 Indirect Cost Allocation (680,930) (680,930) (570,475) Capital Outlay - - - Total Expenditures$ (101,675) $ 30,380 $ 880

ACTIVITIES

• Collect and account for all funds received by the City including investment of idle funds • Establish policies and procedures for cash and investments • Ensure compliance with Federal, State, and Local laws pertaining to Treasury activities • Prepare and collect tax billings and distribute tax revenues to the applicable jurisdictions • Prepare and collect utility billings and assist customers with billing concerns • Prepare revenue budgets for most of the General Fund • Administer debt service on all bonds • Prepare and collect accounts receivable for monthly rents, insurance premiums, condo parking, parking validations, ambulance charges, false alarms, sidewalks program, etc. • Administer Residential Parking Permit Program • Monitor and receipt all parking revenues • Establish, implement, and monitor internal controls over all cash receipt functions in the City • Assure prompt and courteous answering and routing of all phone calls for all departments within the City • Effectively collect and distribute all City mail and correspondence

EXPLANATORY INFORMATION

The Treasury department is recognizing a significant reduction in personnel services. One full-time Finance Assistant position has been eliminated and many employees new to the organization are not yet at the top of their pay scale. Personnel services are decreasing 21.2%, or $124,685, in FY2019 due to these changes.

Operating costs are expected to decrease $15,270, or 12.3%, mostly due to a large reduction in postage costs expected as the volume of mail and rates have decreased.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Other DIVISION Human Resources STAFF RESPONSIBLE Shelli Neumann

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 302,918 $ 314,400 $ 337,555 Operating Costs 48,776 77,325 69,740 Indirect Cost Allocation (381,955) (381,955) (395,275) Capital Outlay - - - Total Expenditures$ (30,261) $ 9,770 $ 12,020

ACTIVITIES

• Administer and negotiate seven collective bargaining agreements • Recruit, interview, test, and hire applicants for all City positions • Administer and manage the City's workers’ compensation program • Coordinate, develop, and administer all benefits programs • Chair and support the City’s Health Care Task Force • Plan, direct, and coordinate health, safety and wellness training activities • Assist City Manager with special projects • Provide professional staff support to the Human Relations Commission • Develop and administer all personnel policies, procedures, rules and regulations of all related human resource programs • Act as professional resource for all City departments and legal counsel on human resources issues including employee grievances, prohibited conduct investigations, and disciplinary actions • Administer a sound wage and classification system which effectively attracts and retains well-qualified personnel for all job classes and which promotes internal equity

EXPLANATORY INFORMATION

Personnel service costs are increasing by 7.4% in the FY2019 budget from the current fiscal year. This is due to a 1.0% annual cost of living increase, along with associated benefits and step increases, as well as anticipated payouts related to an employee retirement. This also includes a part-time Human Resources Specialist position, with no benefits, replacing the full-time specialist position previously shared with the City Clerk department.

Operating costs are decreasing $7,585, or 9.8%, in FY2019 primarily due to a reduction in education reimbursement as we budget closer to the historical average.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Other DIVISION Clerk and Elections STAFF RESPONSIBLE Jennifer Shuster

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 305,286 $ 338,600 $ 306,960 Operating Costs 88,634 94,120 95,475 Indirect Cost Allocation (82,100) (82,100) (90,690) Capital Outlay - 16,750 - Total Expenditures$ 311,820 $ 367,370 $ 311,745

ACTIVITIES

• Maintain and update properly produced and indexed City Code, City Charter, and Policy Resolutions • Conduct and administer all elections in accordance with prescribed Statutes and Administrative Rules • Hire and train election inspectors needed to conduct all elections • Provide synopsis and minutes for City Council meetings • Review applications, make determinations, and issue business licenses in a timely and efficient manner and collect related fees • Review applications, make determinations, and issue miscellaneous permits in a timely and efficient manner and collect related fees • Maintain the City of East Lansing Domestic Partnership Registry. • Maintain Qualified Voter File, enter new registrations, address changes, cancellations, election inspectors, voter history, and process absent voter ballot requests • Serve as Freedom of Information Act Coordinator - accept, process, and maintain FOIA requests for the City's records according to appropriate statutes • Serve as Chair of East Lansing Election Commission as required by City Charter • Participate as an active member of Michigan State University’s MSUvote Committee

EXPLANATORY INFORMATION

During FY2018, the City held an election on November 7, 2017. As the City had a regularly scheduled election on this date, it did not qualify for a reimbursement from Ingham County, which had a question placed at the top of that ballot. With this election came the implementation of new election equipment, which prompted required training of staff and many election inspectors. As with years prior, the Clerk’s Office remained extremely busy with conducting required training sessions, voter registration information entry, and absentee voting.

Personnel services are reduced by $31,640 due to the replacement of the full-time specialist position with a part- time employee, both positions are shared with the Human Resources department. In previous years, the contingent administrative clerk position was used minimally, but with the reduction in full-time staff, this position will be used more regularly. The savings noted above are offset slightly by an administrative staff position, now shared with the City Council division.

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION General Government – Other DIVISION Clerk and Elections STAFF RESPONSIBLE Jennifer Shuster

EXPLANATORY INFORMATION (Continued)

The FY2019 operating costs remain consistent with that of FY2018. Again, we have budgeted for two elections in FY2019; the State Primary Election will be held on August 7, 2018, and the State General Election will be held on November 6, 2018. Please keep in mind that a Special Election could be called for May 2019, as well.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Other DIVISION Communication and Cable Services STAFF RESPONSIBLE Mikell Frey/George Lahanas

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 145,591 $ 162,875 $ 169,385 Operating Costs 195,966 209,980 190,640 Indirect Cost Allocation (70,610) (70,610) (56,440) Capital Outlay - - - Total Expenditures$ 270,947 $ 302,245 $ 303,585

ACTIVITIES

• Produce printed publications, including the Dialog and the Annual Report • Write and distribute news releases • Manage content for the City’s website and intranet, as well as manage social media for the City • Help administrate Nixle alerts/advisories • Create e-newsletters for various departments, including the City’s Dialog e-newsletter • Provide graphic design services and plan news/media events for various City departments • Take photos for City marketing materials/publications and for historical purposes • Oversee delivery services on Channel 22 and community bulletin board information • Provide printing support to various neighborhood associations • Work on a variety of community initiatives, including One Book, One Community, the East Lansing-MSU Celebrations Committee and the East Lansing Neighborhood Partnerships Initiative

EXPLANATORY INFORMATION

The responsibilities of the Communications Department are performed by a staff of one full-time and two part-time employees. One of the part-time employees has a percentage of their time charged to Community Events within the Parks and Recreation Fund. The personnel services budget has increased $6,510, or 4.0% due to cost of living and step increases.

Operating costs in FY2019 has decreased $19,340 due to reductions in the cable service contract as well as printing and publishing costs. The current cable service contract is expiring in March 2019, and the budget includes a 50.0% reduction to this line item for the remaining quarter of FY2019. The City will be working towards a plan to allow continued transparency through televising Council meetings but at a lower cost. Printing and publishing decreases can be attributed to printing a limited run of the Annual Reports for in-house distribution instead of printing a large quantity for all East Lansing households. Mailing costs have not decreased despite the Annual Report not being mailed due to increases in postage for the Dialog newsletter mailing.

DEPARTMENT APPROPRIATION

FUND General FUNCTION General Government – Other DIVISION Government Buildings STAFF RESPONSIBLE Tim McCaffrey/Wendy Longpre

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 233,011 $ 231,810 $ 237,080 Operating Costs 599,127 648,040 681,605 Indirect Cost Allocation (827,275) (827,275) (826,560) Capital Outlay - - - Total Expenditures$ 4,863 $ 52,575 $ 92,125

ACTIVITIES

The Government Buildings division provides maintenance services for certain City buildings. These activities include:

• Provide maintenance services for City Hall/54B District Court, Hannah Community Center, East Lansing Public Library, Fire Station #1, Valley Court Community Center, Orchard Street Pump House, DPW building, and building structures at Aquatic Center, Softball Complex, and Soccer Complex • Coordinate the planning, administration, and implementation of building capital projects, equipment replacement, and other maintenance related projects at City buildings • Coordinate the planning, administration, and implementation of the custodial services agreement for City buildings (City Hall/54B District Court, Hannah Community Center, East Lansing Public Library, and DPW Building) • Coordinate the HVAC preventative maintenance program for City buildings (City Hall/54B District Court, Hannah Community Center, East Lansing Public Library, and DPW building)

EXPLANATORY INFORMATION

The responsibilities and activities of this division are performed by two full-time staff (Facilities Maintenance Coordinator and Facilities Maintenance Technician). The Government Buildings’ staff and function are supervised by the Director of Parks and Recreation. In addition, the Assistant Director of Parks and Recreation often serves as the project manager for larger government building related projects.

The FY2019 budget request is $92,125, an increase of $39,550. Operating costs account for the majority of the increase as the City Hall facility assessment, projected to cost $30,000, has been included here.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Safety DIVISION Police Operations STAFF RESPONSIBLE Chief Larry Sparkes

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 9,552,800 $ 9,690,870 $ 9,521,570 Operating Costs 1,954,944 2,302,435 2,170,235 Capital Outlay 13,640 - - Total Expenditures$ 11,521,385 $ 11,993,305 $ 11,691,805

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Police Operation Divisions: General$ 1,472,220 $ 1,600,775 $ 1,556,820 Administration 1,767,149 1,863,460 1,911,360 Patrol and Enforcement 5,465,762 5,646,275 5,452,915 Detective Bureau 1,152,504 1,092,635 983,530 Custody 471,387 506,290 520,295 Dispatch 80,960 91,755 92,135 Support and Records 491,252 524,115 546,240 Parking Enforcement 620,151 668,000 628,510 Total Expenditures$ 11,521,385 $ 11,993,305 $ 11,691,805

ACTIVITIES

• Prevent crime, protect life and property, and preserve peace, order, and safety • Enforce laws and ordinances and safeguard constitutional guarantees of all citizens • Promote community cooperation and problem solving through partnerships • Assure compliance with all applicable laws, regulations, and internal controls through training and supervision • Investigate problems and incidents and present evidence for prosecution of offenders • Provide information to the public to foster a sense of openness, transparency, and public trust • Enforce parking and code ordinance violations including: all parking ordinances; other code violations to include, but not limited to, litter and rubbish violations, abandoned vehicles, over-grown lawns and non- outdoor furniture violations

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Public Safety DIVISION Police Operations STAFF RESPONSIBLE Chief Larry Sparkes

EXPLANATORY INFORMATION

The police budget request for FY2019 is $11,691,805 in total. As compared to the FY2018 amended budget this is a decrease of $301,500 or 2.5%.

Our authorized sworn staffing level has decreased from 54 police officers to 49 police officers. In addition two part- time PACE officers and two police cadets have been eliminated from the budget. Even with these reductions in staffing, personnel services are only decreasing $169,300 as defined benefit retirement costs continue to increase.

In addition to the normal cost of the defined benefit plan, all three years shown in the table include a $500,000 supplemental pension payment to MERS. This accounts for one-half of the total supplemental payment with the other half shown in the Fire Department division.

Minimum sworn staffing has been reduced to four police officers and one supervisor per shift. Due this reduction in staffing, overtime expenses have substantially increased to ensure community safety. Furthermore, the ability of the police department to actively participate in community policing efforts has decreased. The School Resource Officer position at the East Lansing High School and the Tri-County Metro Narcotics Detective position have been removed. While both positions provide a very valuable service, especially in today’s climate, they are being eliminated in order to ensure the continuity of services within the patrol division.

Operating costs are decreasing $132,200 in FY2019. This is primarily due to a reduction in the cost of body camera expenses, with FY2018 experiencing an upfront cost of approximately $70,000 over the annual charges. In addition, the police academy sponsorship program was eliminated and various other operating supplies were reduced as a result of fewer employees.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Safety DIVISION Fire Operations and Fire Prevention STAFF RESPONSIBLE Chief Randall Talifarro

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 7,604,333 $ 7,913,840 $ 8,059,965 Operating Costs 1,329,772 1,555,955 1,410,815 Capital Outlay 169,336 97,480 385,000 Total Expenditures$ 9,103,441 $ 9,567,275 $ 9,855,780

ACTIVITIES

The City of East Lansing Fire Department is currently comprised of fifty members including: forty-five full-time professional firefighters along with five administrative staff positions (Fire Chief, Fire Marshal, Fire Inspector, Safety/Training Officer, and an Administrative Assistant). ELFD provides a host of services on a 24-hour basis.

These services include: • Fire Suppression • Advanced Emergency Medical Life Support with transport (Paramedic Level) • Hazardous Material Response (Technician Level) • Confined Space/Structural Collapse Rescue (Technician Level) • High Angle Rescue (Technician Level) • Swift Water Rescue • Tower Rescue • Rail response (Technician Level) • Emergency Management • Tactical Emergency Medical Response (SRT Medics) • Tactical Active Violence Initiative (AVI) Response Team

Fire Prevention services and activities include: • Plans Review (new construction and remodels) • Code Enforcement and Promulgation • Public Safety Education (Pumper & Pals, Juvenile Fire Setters, 4-H, etc.) • Fire and Arson Investigation

The Fire Department also participates in a number of Greater Lansing Regional Teams including: • The Lansing Metro Haz-Mat Response Team • The Lansing Area Rapid Regional Response Team (a State led WMD Team) • The Lansing Area Special Operations Technical Response Team • The MSU/ELFD Rapid Assessment Team (RAT) • Ingham County Local Emergency Planning Committee (LEPC) • (LEPC/MSU/Lansing) Disaster Drill Development Committees • Lansing Regional AVI (FY2017)

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Public Safety DIVISION Fire Operations and Fire Prevention STAFF RESPONSIBLE Chief Randall Talifarro

EXPLANATORY INFORMATION

The personnel services budget in FY2019 is increasing 1.8% when compared to the budget in FY2018. This increase is limited by the anticipated reduction of two firefighter/paramedic positions through attrition. Thus, the budget increase is the result of step increases in wages, as well as, the increase in defined benefit retirement costs. All three years shown include a $500,000 supplemental pension payment to MERS, which accounts for one-half of the total supplemental payment.

The Fire Chief is shared with the City of Lansing, therefore one-half of his wages and fringe benefits are billed to them. This is shown in the revenue section of the General Fund budget.

In the upcoming fiscal year, up to four employees are eligible for retirement and, if needed, we can make additional staff reductions through attrition if they elect to retire at that point. Additional retirements are anticipated in FY2020 and FY2021 as well. It should be noted, however, staff reductions could result in a service reduction.

In the FY2019 budget, operating costs decrease by $145,140 primarily due to elimination of the CGAP grant related expenditures. In January 2015, the Fire Department was awarded CGAP funding from the Michigan Department of Treasury in the amount of $793,167 to fund a new Lansing Metro Active Violence Response Initiative. This reimbursement-based grant is a multi-year grant with FY2018 being the final year.

Capital outlay is included in the FY2019 budget with $385,000 for air packs. A grant has been written for this equipment, and if awarded would result in revenue of approximately $350,000. The grant requires a 10% match, therefore, the net cost to the City is expected to only be $35,000. If the grant request is not successful, the plan to purchase these items will be revisited to determine the appropriate course of action

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Safety DIVISION Building Permits and Inspections STAFF RESPONSIBLE Scott Weaver/Tim Dempsey

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 616,716 $ 758,075 $ 764,270 Operating Costs 254,238 276,505 287,555 Capital Outlay - - - Total Expenditures$ 870,954 $ 1,034,580 $ 1,051,825

ACTIVITIES

Assures the safety of the built environment by:

• Administering and enforcing State codes and standards controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and their various components • Reviewing building plans for code compliance • Issuing permits regulating construction within the City • Coordinating staff attendance at state approved training and education programs, to stay in-tune with new approved products in an ever changing industry and to maintain compliance with the "Building Officials and Inspectors Registration Act" and International Code Council (ICC) certifications • Coordinating and inspecting temporary structures (tents and stages) • Responding to complaints of dilapidated and non-code compliant structures and actively pursuing to correction • Responding to and inspecting homes and businesses for damage by fire, wind, flooding, etc. • Assisting other departments to plan and construct physical improvements and provide expert advice • Providing administrative, clerical, research, and technical assistance to the Building Board of Appeals • Providing inspection services to Meridian Township for plumbing, electrical and mechanical permits • Coordinating with the Fire Department the proper installation and testing of fire protection and alarm systems • Coordinating with other internal and external departments, including county health department and plan review committee, for approvals for new businesses • In conjunction with the Planning and Zoning division, administering, enforcing, and interpreting the sign code to regulate the location, size, and placement of all signs in the City through inspection and licensing • Actively participating in state and national organizations to influence code development and legislative issues that impact building safety • Serving as the manager and point of contact for the Americans with Disabilities Act (ADA) requirements • Managing the City’s efforts to gain entry in FEMA’s Community Rating System as part of the National Floodplain Insurance Program

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Public Safety DIVISION Building Permits and Inspections STAFF RESPONSIBLE Scott Weaver/Tim Dempsey

EXPLANATORY INFORMATION

Administrative and inspection staff currently includes an administrative secretary, administrative clerk, two building inspectors, one electrical inspector, one plumbing/mechanical inspector, one part-time mechanical inspector and the division administrator. Employee inspector staffing is supplemented with contracted trade inspector services when needed.

The division’s overall FY2019 budget is increasing by 1.7% over the FY2018 budget. The personnel services budget is increasing by $6,195 while the operating costs are increasing by $11,050. Personnel service increases include standard step increases and normal cost of living increases, with no increase in additional staff proposed. Additional operating costs are expected as the building department transitions the software program back to BS&A. Also, contracted inspectors may need to be utilized due to the large mixed-use projects under construction and the new school district elementary buildings.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Safety DIVISION Housing Licenses and Inspections STAFF RESPONSIBLE Annette Irwin/Tim Dempsey

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 457,264 $ 501,945 $ 467,560 Operating Costs 156,176 210,795 208,340 Capital Outlay - - - Total Expenditures$ 613,439 $ 712,740 $ 675,900

ACTIVITIES

Assures the safety of the built environment by:

• Conducting inspection of rental housing and administering the rental housing license process • Administering and enforcing the property maintenance code • Providing administrative, clerical, research, and technical assistance to the Housing Commission • Investigating and performing case management related to problem properties, noise problems, etc. • Investigating and enforcing rental licensing violations, including renting without a license and over- occupancy • Maintaining the rental property database and related statistical information • Serving as a source of information and assistance for citizens, tenants and property owners regarding specific rental community issues • Working cooperatively with PACE and the Fire Department in coordination of code enforcement issues • Tracking and registering vacant properties, including follow-up activities to ensure code compliance and minimize blight • Working cooperatively with student organizations to find ways to improve housing education communication to the student body • Work with Michigan State University on off-campus student living issues • Participate on the Community Relations Coalition, Capital Area Housing Partnership, and the Celebrations Committee • Provide training opportunities for inspectors through Michigan Association of Housing Officials (MAHO) and encourage attendance to attain certification through MAHO and International Code Council (ICC) • Take advantage of opportunities through the International Town Gown Association (ITGA)

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Public Safety DIVISION Housing Licenses and Inspections STAFF RESPONSIBLE Annette Irwin/Tim Dempsey

EXPLANATORY INFORMATION

Administrative and inspection staff currently includes the division administrator, two housing inspectors, a compliance officer (rental investigations), and two administrative staff positions. The overall budget for FY2019 is down by 5.2%, or $36,840. The decrease is mostly attributed to personnel services being down 6.9% due to the elimination of the Vacant Property Coordinator and intern positions.

Operating costs are decreasing by 1.2%. Large reductions including Community Resource Coalition (CRC) funding of $23,000 and a $15,000 in legal fees are offset by a proposed increase in contract services. With the minimal staffing levels there is a need for contract inspectors to fill in during vacations, absences, and fluctuations in reinspection activity.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Works DIVISION Administration STAFF RESPONSIBLE Scott House

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 192,213 $ 205,885 $ 216,415 Operating Costs 114,632 121,405 98,050 Capital Outlay - - - Total Expenditures$ 306,845 $ 327,290 $ 314,465

ACTIVITIES

• Coordinate and administer the day to day activities of the Public Works Department (DPW) • Receive and provide information regarding all public works-related telephone calls and emails • Process Public Works daily payroll records • Initiate Public Works generated bills • Maintain the Public Works data and documents • Administer accounting, budgetary, and purchasing functions of the department • Provide department clerical services • Administer department safety programs • Administer DPW and UAW contracts • Administer drug and alcohol testing, commercial drivers’ licenses, MIOSHA requirements, etc. • Administer State and Federal required programs

EXPLANATORY INFORMATION

A portion of the Director of Public Works, the Infrastructure Administrator, the Environmental Services Administrator and the department’s clerical staff are all charged to the Public Works Administration division in the City’s General Fund. The balance of the administrative staff’s costs are charged out to several funds that are part of the public works function, in recognition of the work they perform for all public works activities.

For FY2019, there is a $10,530 increase in personnel services from the FY2018 budget, representing 5.1%. This is largely a result of growth in wages due to step increases, changes in staff, and retirement costs.

The FY2019 budget for operating costs are reduced by $23,355, representing a 19.2% reduction from FY2018. This reduction was achieved through shifting operating costs to enterprise funds to be more in line with the personnel allocations.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Works DIVISION Engineering STAFF RESPONSIBLE Scott House/Nicole McPherson

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 360,746 $ 332,435 $ 334,885 Operating Costs 147,042 156,735 76,410 Capital Outlay - - - Total Expenditures$ 507,788 $ 489,170 $ 411,295

ACTIVITIES

• Evaluate and recommend projects to improve and maintain the City's infrastructure system • Design and supervise the construction of City infrastructure improvements • Review, approve, and monitor new and redevelopment project site improvements • Monitor traffic systems and design safety improvements • Provide staff support services to Transportation Commission and Neighborhood Groups on traffic related issues • Monitor and permit all work that occurs within the City right-of-ways by public and private contractors • Provide engineering knowledge and expertise to City departments for ongoing capital projects • Administer the City's soil erosion and sedimentation control program • Administer the City's Phase II Stormwater program • Maintain the City's engineering records

EXPLANATORY INFORMATION

The engineering department is composed of one Engineering Administrator, one Engineering Assistant Administrator, one Senior Engineer, one Design Engineer, and three Engineering Technicians. The respective accounts are billed through internal service charges for the services provided to other funds that account for public works activity based on actual hours worked.

Personnel services costs are increasing by $2,450, an increase of less than 1.0% in the FY2019 budget.

Operating costs are decreasing by $80,325, a reduction of 51.2% due to the reallocation of indirect engineering costs to the enterprise funds benefiting from the services and where staff time and effort are invested. The shift in costs includes city computer rental fees, fleet costs, and facility rental.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Works DIVISION Downtown Maintenance STAFF RESPONSIBLE Scott House/Cathy DeShambo

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 107,557 $ 119,120 $ 117,500 Operating Costs 47,634 64,025 72,630 Capital Outlay 8,000 - - Total Expenditures$ 163,191 $ 183,145 $ 190,130

ACTIVITIES

• Provide litter and refuse container services in the downtown and parking structures • Maintain the downtown area landscaping and plantings • Provide snow removal in the downtown area • Provide support services to downtown activities • Install street banners and holiday decorations in the downtown • Provide support services to the Downtown Development Authority

EXPLANATORY INFORMATION

The public works staff is pooled and recorded in the Garage and Public Works Services Pool Fund. Charges are billed via internal charges for the services provided to the other funds. The public works activities related to special events are included in this division. DPW staffing for downtown maintenance continues to be evaluated to effectively utilize staffing to maintain downtown East Lansing.

Personnel costs are expected to decrease by 1.4% in the FY2019 budget due to a lower amount of work order charges allocated to this division.

In FY2019 operating costs increase by $8,605, a 13.4% increase from FY2018. This increase includes funding for bike parking, a bike repair station, and recycling and refuse containers.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Works DIVISION Street Lighting STAFF RESPONSIBLE Scott House/Ron Lacasse

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ - $ - $ - Operating Costs 865,727 900,600 946,190 Capital Outlay - - - Total Expenditures$ 865,727 $ 900,600 $ 946,190

ACTIVITIES

• Coordinate the City's street lighting contracts with the Board of Water and Light (BWL) and Consumers Energy Company

EXPLANATORY INFORMATION

The FY2019 budget reflects a $45,590, or 5.1%, increase to cover electrical rate increases, maintenance costs, and additional growth in the system. Working with the BWL, several upgrades have been made to reduce electrical costs through LED street light improvements in conjunction with major street projects.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Public Works DIVISION Sidewalks, Drains, and Alley Maintenance STAFF RESPONSIBLE Scott House/Nicole McPherson/Ron Lacasse

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 82,142 $ 108,600 $ 83,500 Operating Costs 177,738 232,480 215,850 Capital Outlay 446,191 156,540 182,000 Total Expenditures$ 706,070 $ 497,620 $ 481,350

ACTIVITIES

• Administer the City's hazardous sidewalk replacement program • Install and upgrade sidewalk ramps to meet Americans with Disability Act (ADA) requirements • Construct new sidewalks as ordered in by City Council • Fund MS4 Storm Water Management Program • Provide routine maintenance on City's open drains • Fund County drain maintenance programs • Fund County and/or inter-County drain special assessments • Plow sidewalks in the downtown area, along school routes, and adjacent to most major streets • Maintain and plow the existing alley surfaces for vehicle traffic • Reconstruct alley surfaces as permitted by funding levels • Maintain private roads the City is under contract to maintain

EXPLANATORY INFORMATION

This division combines the costs of sidewalks, drains, and alley maintenance, as well as County and inter-county drains’ special assessments.

Sidewalk Maintenance:

There is a $22,500 decrease in the FY2019 personnel service costs, representing a reduction of 31.0% from the FY2018 budget. The decrease is from a reduction in sidewalk plowing, where sidewalks on local streets will not be plowed by the City and several major streets will be removed from the plowing lists, based on sidewalk width and location.

Operating costs for FY2019 sees a reduction of 34.1% from FY2018, primarily in equipment rental and supplies.

Capital outlay increases 16.3% in FY2019, with an anticipated $126,000 from CDBG funded sidewalk improvements and $6,000 of projected assessments to complete a gap closure on Hagadorn Rd. The hazardous sidewalk program remains reactive with funding limited to $50,000.

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Public Works DIVISION Sidewalks, Drains, and Alley Maintenance STAFF RESPONSIBLE Scott House/Nicole McPherson/Ron Lacasse

EXPLANATORY INFORMATION (Continued)

Drain Maintenance:

In the FY2019 budget there is a decrease of 2.1% in personnel services from the FY2018 budget. This slight decrease is based on staff allocation for the maintenance (i.e. clearing, cleaning, etc.) of City owned and operated drains.

Operating costs for FY2019 sees a reduction of 5.2% from FY2018. Funding is retained for contract drain clearing and excavation services. The reduction is based on a projected decreases in drain assessments. However, there is risk, in that the scope and fiscal impact of the Montgomery Drain is not fully known.

Alley and Private Road Maintenance:

In the FY2019 budget there is a decrease of 12.8% in personnel services from the FY2018 budget. This decrease is based the reduction of staff allocation for the maintenance of City owned alleys and contract obligations for maintenance of certain private roads.

Operating costs for FY2019 sees an increase of 18.7% from FY2018. The increase is primarily found in road repair materials to improve alleys, where funding was increased by $3,480, representing a 39.0% increase in material expenditures. This will allow for larger repairs to be made, but is insufficient to perform major maintenance, such as overlaying an alley.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Community and Economic Development DIVISION Planning and Zoning STAFF RESPONSIBLE Tim Dempsey/David Haywood/Thomas Fehrenbach

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 648,631 $ 745,190 $ 716,840 Operating Costs 314,792 302,080 299,120 Capital Outlay - - - Total Expenditures$ 963,423 $ 1,047,270 $ 1,015,960

ACTIVITIES

Planning & Zoning: • Perform ongoing Site Plan and Special Use Permit reviews • Enforce the Zoning, Subdivision, and Historic Preservation Codes • Provide staff support to the Planning Commission, Zoning Board of Appeals, Historic District Commission, and ad hoc committees as necessary • Undertake the update to the Comprehensive Plan and subsequent zoning revisions • Prepare the annual update to the Capital Improvement Program • Craft modifications to the relevant ordinances as necessary • Participate in regional planning initiatives through the Tri-County Regional Planning Commission, CATA, and other regional agencies

Community & Economic Development: • Provide staff support for the Brownfield Redevelopment Authority, Community Development Advisory Committee, Corridor Improvement Authority, Downtown Development Authority, Downtown Management Board • Administer the Community Development Block Grant funding • Implement development and redevelopment projects, including Center City and the Park District • Promote homeownership in East Lansing by providing support to Capital Area Housing Partnership (CAHP) • Promote economic development through business retention and attraction activities, as well as tools such as the economic development web site • Continue to provide financial support for the Technology Innovation Center through the Local Development Finance Authority (LDFA)

Parking: • Provide management oversight of the Parking Division • Provide staff support for the Parking Task Force • Assist with implementation of ongoing capital improvements • See parking division budget for detailed parking activities

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Community and Economic Development DIVISION Planning and Zoning STAFF RESPONSIBLE Tim Dempsey/David Haywood/Thomas Fehrenbach

EXPLANATORY INFORMATION

The department’s overall proposed FY2019 budget is decreasing by just under 3.0%. Personnel services are down $28,350 primarily due to additional Brownfield and DMB administrative fees offsetting wages, as well as the elimination of an intern position. Operating costs are down $2,960 as a result of reducing the contract services budget. In the past, contract services have largely been used for the Comprehensive Plan consultants.

Funds from the Community Development Block Grant program, Brownfield Redevelopment Authority, Downtown Development Authority, Downtown Management Board, Local Development Finance Authority, as well as internal charges to Parking, Building, and Housing Divisions now offset approximately $371,000 of planning staff costs.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Health and Welfare & Community Development DIVISION Social Services and Economic Dev Assistance STAFF RESPONSIBLE Tim Dempsey/Amy Schlusler-Schmitt

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Social Services $ 59,871 $ 61,760 $ 14,760 Economic Development and EHOP - 10,000 - Indirect Cost Allocation from Gen. Government 1,565 1,565 - Total Expenditures $ 61,436 $ 73,325 $ 14,760

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Social Services: Big Brothers & Big Sisters $ 3,000 $ - $ - Capital Area Center for Independent Living 2,460 - - Capital Area Literacy Coalition 2,000 2,000 - Child and Family Charities (CAPS/Gateway) 5,000 10,000 - East Lansing Public Library - 2,000 - Greater Lansing Housing Coalition 570 - - Greater Lansing Food Bank 3,000 2,000 - Haven House 2,000 - - Information Technology Empowerment Center 5,800 - - Listening Ear 3,750 2,000 - MSU Community Music School 3,000 2,000 - MSU HEP CAMP - 10,000 - St. Paul Lutheran Church - 2,000 - Tri County-Meals on Wheels 3,200 - - Tri County Consortium Dues 14,760 14,760 14,760 Volunteers of America MI 7,500 10,000 - East Lansing Youth Scholarship 3,831 - - Reserve Project Fund - 5,000 - $ 59,871 $ 61,760 $ 14,760 Social Services Budgeted in Other Divisions: Martin Luther King Jr. Sponsorship - City Council $ 3,500 $ 3,500 $ 3,500 Caesar Chavez Sponsorship - City Council - 1,000 1,000 Cultural Arts Grants - Public Art Fund 10,500 10,500 10,500 Comm. Relations Coalition - Housing License/Insp 25,000 25,000 2,000 Total Social Services$ 98,871 $ 101,760 $ 31,760

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Health and Welfare & Community Dev DIVISION Social Services and Economic Dev Assistance STAFF RESPONSIBLE Tim Dempsey/Amy Schlusler-Schmitt

EXPLANATORY INFORMATION

Due to the current challenges with the City’s overall financial situation, staff is recommending cutting funding to Social Service agencies and the Employee Home Ownership Program (down payment assistance). The Community Development (CD) Advisory Committee did go through their process to make funding recommendations, but were informed that these cuts may be incorporated into the City’s budget. The one exception to the proposed cuts is Tri- County Office on Aging. Unlike most other agencies historically supported, the City is one of several municipalities that have official seats on TCOA’s Consortium Board and Advisory Council.

The Social Service related activities outside of the CD Advisory process are still proposed to be funded. The notable change in this group is the significant reduction to the Community relations Coalition which is undergoing a transformation. We still propose $2,000 in funding for neighborhood specific projects.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Culture and Recreation – Parks DIVISION Parks Maintenance STAFF RESPONSIBLE Scott House/Cathy DeShambo

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Expenditures: Personnel Services$ 722,507 $ 803,360 $ 795,535 Operating Costs 487,075 515,195 499,200 Capital Outlay - - - Total Expenditures$ 1,209,582 $ 1,318,555 $ 1,294,735

ACTIVITIES

• Mow and trim all City parks and City owned property • Operate and administer a seasonal Tree Planting Program • Administer and maintain the City’s urban forest which includes trees located along streets and at City owned property • Coordinate all shrub and small tree trimming in parks and on City owned property • Maintain baseball and softball fields in City parks • Operate preventative maintenance programs for play equipment and recreational facilities • Remove snow from sidewalks along park property and City owned facilities • Implement the expansion of the non-motorized pathway system • Coordinate the maintenance of non-motorized pathway system • Respond to and resolve public inquiries and complaints • Confer with residents and City staff to resolve problems and provide assistance as necessary • Maintain grounds and plantings at City owned facilities • Provide assistance to other City departments (police abatements, snow/ice removal)

EXPLANATORY INFORMATION

Public works staff is pooled and recorded in the Garage and Public Works Service Pool Fund. Charges are billed via internal charges for the service (both labor and equipment) provided to the various funds. The staff charged here are assigned to parks maintenance, sidewalk plowing, and recreation facility maintenance.

Personnel service costs being budgeted in FY2019 are decreasing by $7,825, or 1.0%. The reduction is achieved through cost control, and a decrease in staff effort programmed for park maintenance.

Operating costs in the FY2019 budget decreased by $15,995, or 3.1%, from the FY2018 budget. Reductions were made in multiple areas, along with shifting indirect pool costs, such as facility rental. The result is an austere circumstance, with limited funds to enhance existing landscaping, and limited capabilities to repair playgrounds and other physical park infrastructure. Funds are requested in FY2019 to replace picnic tables, furnish soccer and pickle ball nets and related hardware, as well as fund refuse and recycling containers in City parks.

DEPARTMENT APPROPRIATION

FUND General FUNCTION Transfers Out DIVISION Transfers to Other Funds STAFF RESPONSIBLE Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Transfers to Other Funds: Transfer to Debt Service Fund$ 59,145 $ 58,935 $ 61,525 Transfer to Public Art Fund 19,860 20,565 16,625 Transfer to Prime Time Seniors Program Fund 140,630 143,300 143,300 Transfer to Parks & Recreation Fund 1,916,200 1,996,425 2,032,360 Transfer to Art Festival Fund 5,833 5,965 10,000 Transfer to Capital Improvement Parks Fund - 106,938 - Transfer to Capital Improvement Fund 360,000 220,000 240,010 Total Transfers$ 2,501,668 $ 2,552,128 $ 2,503,820

EXPLANATORY INFORMATION

The transfer to the Debt Service Fund covers the debt service related to the 2008 capital improvement bonds and the related 2016 refunding bonds. These bonds will be paid in full in FY2028.

Under the Percent for Art Ordinance No. 1339, an amount equal to 1.0% of the City’s General Fund’s capital spending will be transferred to the Public Art Fund. Arts Commission activities are also accounted for in the Public Art Fund, which requires additional General Fund support. FY2019 is expected to decrease due solely to the percentage calculation, as the Arts Commission funding was left flat at $10,500. See the Public Art Fund for additional information.

The transfer to the Prime Time Seniors Program provides an operating subsidy to support the programs made available to our seniors. Due to an increase in trust distributions coming into the Seniors Fund, we were able to keep the General Fund transfer in FY2019 the same as it was in FY2018. See the Prime Time Seniors Program Fund for additional information.

The transfer to the Parks and Recreation Fund subsidizes their operating budget. FY2018’s budget saw a significant increase to cover costs and maintain a nominal reserve balance. In the FY2019 budget, the General Fund transfer is increasing with an inflation factor of 1.8% over the FY2018 budget. See the Parks & Recreation Fund for additional information.

The Art Festival Fund subsidy started in FY2017 as the fund was not able to absorb the general government indirect charges and DPW related charges. In FY2019, the Art Festival Fund has requested a $4,035 increase in the subsidy to balance their budget. See the Art Festival fund for additional information.

DEPARTMENT APPROPRIATION (Continued)

FUND General FUNCTION Transfers Out DIVISION Transfers to Other Funds STAFF RESPONSIBLE Jill Feldpausch

EXPLANATORY INFORMATION (Continued)

The FY2018 budget was amended to include a transfer to the Capital Improvement Parks Fund to finance the design costs of the bridge and trail improvements scheduled for FY2018 and FY2019. The actual improvements will be funded with Ingham County Trails and Parks millage. No additional transfer is expected in FY2019.

During FY2017, the General Fund transferred $360,000 to the Capital Improvement (CIP) Fund to complete critical facility repairs including the Hannah Center roof, the City Hall freight elevator, and the Fire Station boiler. FY2018’s budget was amended to include an additional $220,000 to complete an added section of the Hannah Center roof repairs. The CIP Fund may need additional funding yet in FY2018 as the planned projects did not come in at or under budget. A formal budget amendment will come to City Council when the analysis of the potential shortage is completed. The FY2019 budget requests $240,010 to be transferred to the CIP Fund with $99,010 covering the shortfall of the Avondale Square development, and the remaining $141,000 financing various building improvements that are deemed critical at this time. See the Capital Improvement Fund for additional information on these activities.

It is important to note, the Parks and Recreation Fund remains financially challenged and the Art Festival Fund is operating with minimal reserves as well. With no additional revenue solutions for these funds, the General Fund could be called upon to make additional transfers to keep these funds out of a deficit. In addition, it is likely larger increases will be needed going forward to sustain these programs at their current service levels.

48 SPECIAL REVENUE & OTHER GOVERNMENTAL FUNDS

NOTES:______

MAJOR STREET FUND

MAJOR STREET FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 2,850,759 $ 3,018,800 $ 3,416,510 Charges for Services 25,802 15,000 14,500 Interest Income 1,126 325 3,000 Other Financing Sources - 120,400 333,830

Total Revenues & Financing Sources 2,877,687 3,154,525 3,767,840 Expenditures & Financing Sources: Personnel Services 692,391 871,180 825,755 Operating Costs 944,271 1,057,410 1,299,305 Capital Outlay 53,688 545,935 902,780 Transfers Out 625,000 680,000 740,000 Total Expenditures & Financing Sources 2,315,350 3,154,525 3,767,840 Operating Surplus (Deficit)$ 562,337 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 1,085,096 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 368,245 Estimated Available Fund Balance as of June 30, 2018 1,453,341 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (333,830) Estimated Available Fund Balance as of June 30, 2019 $ 1,119,511 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 29.7%

MAJOR STREET FUND Estimated Revenues

EXPLANATORY INFORMATION

The Major Street Fund budget for FY2019 is $3,767,840, which is a 19.4% increase from the previous year budget. This increase is due to the expected increase in gas and weight tax revenue and use of fund balance.

INCOME

$ 3,416,510 Intergovernmental Revenue – The largest portion, $3,114,030, is the estimated amount to be received from the State as East Lansing's share of the gas and weight tax receipts. This is an increase of 14.2% from the FY2018 funding levels. These funds can be invested in Act 51 supported major streets. In addition, it includes $151,480 of trunkline maintenance funding which is received from the State for providing maintenance on the State trunklines within the City limits. The maintenance work is performed under a contract between the City and the State Highway Department. The trunklines consist of Michigan Avenue, Grand River Avenue, and Saginaw Highway. Finally, $151,000 is budgeted for revenue from the Metro Act. The State of Michigan passed the Metropolitan Extension Telecommunication Rights-of-Way Oversight Act, 2002 PA48. This Act, adopted by the City by Ordinance No. 1028, provides revenue to municipalities to maintain right- of-ways adjacent to City streets where telecommunication wires are housed. The revenue from the State is distributed using the same formula as the gas and weight taxes and must be spent on right- of-way expenditures.

$ 14,500 Charges for Services – This amount includes miscellaneous billings on major street work and is subject to vary, as this is strictly determined by the actual work that is performed each year.

$ 3,000 Interest Income – Accounts for investment income on idle cash balances and fund balances throughout the year.

$ 333,830 Other Financing Sources – The estimated amount of fund balance, or reappropriated fund balance, to be used during FY2019.

As shown in the statement of fund balance, FY2019 is expected to end with a fund balance of $1,119,511, or 29.7% of operating expenditures. This fund balance provides the capability to cash fund projects, and also serves as a buffer for uncertainty in future federal funding levels.

DEPARTMENT APPROPRIATION

FUND Major Street Fund FUNCTION Public Works STAFF RESPONSIBLE Scott House/Ron Lacasse

EXPLANATORY INFORMATION

The public works administrative and engineering staff costs are recorded in the General Fund. The other public works staff are pooled and recorded in the Garage and Public Works Services Pool Fund. Charges are then billed, via internal service charges, for services provided to the other funds appropriately. The staff primarily assigned to street activities is reported in this fund.

Personnel services are expected to decrease by 5.2%, due to expected changes in the allocation of labor and fringes based on work to be performed during the year.

Operating costs are expected to see an increase of 22.9%, primarily due to cost associated with design services for the installation of traffic signals along Coolidge Road and optimization of signals along Lake Lansing Road. Further, funds are programmed for crack sealing materials, pavement markings and signs, and other necessary repair materials.

Capital outlay, $902,780, is growing significantly with a 65.4% increase compared to FY2018 budget. This will fund signal improvements, equipment purchases, Surface Transportation Program (STP) matching funds, and Congestion Mitigation and Air Quality (CMAQ) matching funds. The STP project for FY2019 is the milling and repaving of 0.5 miles of Harrison Road from Forrest Road to Mount Hope, funded with $194,000 in federal funds, and $60,000 in local match. The CMAQ funded signal project, located on Coolidge Road and Lake Lansing Road, consists of the installation of three new signals and optimizing signals on Lake Lansing Road. This project is funded by $415,000 of federal funds and $155,000 in local match, not including locally funded design work. The federal funding of these projects is provided to MDOT, as the administrator, with the addition of local match. Further, funding is carried forward from FY2018 for $172,000 for concrete road repairs on Lake Lansing Road. In addition, cash funding is provided for the crush and shape of 0.23 miles of Burcham Drive, from Timberlane Road to Park Lake Road for $225,000. Funding is programmed for the milling and repaving of 0.26 miles of Marfitt Road, from Lake Lansing Road to Abbey Road for $92,000. In addition, cash funding is providing for the cape seal of 1.0 mile of Mount Hope. Last, funding is programmed for non-motorized improvements for a bicycle cut-through at Ardson Road and Grand River Avenue for bicycle traffic, and other potential non-motorized improvements.

The FY2019 budget recommends a transfer of $740,000, or 23.8%, of gas and weight taxes, to the Local Street Fund.

LOCAL STREET FUND

LOCAL STREET FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 915,839 $ 860,100 $ 985,760 Charges for Services 4,362 10,000 8,000 Interest Income 6,433 5,600 7,200 Other Financing Sources 625,000 928,605 1,297,370

Total Revenues & Financing Sources 1,551,634 1,804,305 2,298,330 Expenditures & Financing Sources: Personnel Services 436,750 472,445 518,115 Operating Costs 591,013 640,170 750,870 Capital Outlay 322,253 555,125 891,780 Debt Service 140,313 136,565 137,565 Total Expenditures & Financing Sources 1,490,329 1,804,305 2,298,330 Operating Surplus (Deficit)$ 61,305 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 1,224,401 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 245,200 Estimated Available Fund Balance as of June 30, 2018 1,469,601 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (557,370) Estimated Available Fund Balance as of June 30, 2019 $ 912,231 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 39.7%

LOCAL STREET FUND Estimated Revenues

EXPLANATORY INFORMATION

The Local Street system budget for FY2019 is $2,298,330, which is a 27.4% increase from the FY2018 amended budget.

INCOME

$ 985,760 Intergovernmental Revenue – This amount represents gas and weight tax revenues to be received from the State as East Lansing's share of the gas and weight tax receipts. In FY2019, we expect to see approximately 14.6% increase from FY2018 budget, per the State’s estimates.

$ 8,000 Charges for Services – This amount includes miscellaneous billings on local street work.

$ 7,200 Interest Income – This amount consists of investment income on idle cash balances and fund balances throughout the year.

$ 1,297,370 Other Financing Sources – This line item includes $740,000 of a transfer from the Major Street Fund as well as $557,370 of reappropriated, or planned use of, fund balance.

As shown in the statement of fund balance, FY2019 is expected to end at a balance of $912,231, or 39.7% of operating expenditures. This reserve is being pooled to cash fund larger street projects, in conjunction with utility work, which will quickly consume this balance. Act 51 funding continues to increase, however, the funding will not reach the required level to fund system improvements and street improvements related to utility work.

DEPARTMENT APPROPRIATION

FUND Local Street FUNCTION Public Works STAFF RESPONSIBLE Scott House/Nicole McPherson/Ron Lacasse

EXPLANATORY INFORMATION

The public works administrative and engineering staff costs are recorded in the General Fund. Public works staff are pooled and recorded in the Garage and Public Works Services Pool Fund. Charges are then billed, via internal service charges, for services provided to the other funds.

Personnel services are expected to increase by 9.7% due to wage and benefit increases, and allocation of direct labor and engineering costs.

Operating costs are seeing an increase of 17.3%, due to increased equipment rental costs, increased material usage by internal forces, and contract service increases. Contract service increases include right-of-way tree maintenance budgeted for FY2019. Further, funding is included for four solar powered speed limit signs that measures speeds and traffic counts. The intent is to use these as traffic calming and data gathering tools.

FY2019 capital outlay of $891,780 includes $522,470 for matching street funds for street repairs associated with the replacement of 3,820 feet of water main. The street costs associated with the water main projects include pavement replacement, drainage repairs, miscellaneous concrete, and pedestrian ramp upgrades to comply with the Americans with Disability Act (ADA). In addition, funding is allocated for milling and repaving of Hitching Post Road, from Saginaw Street to Old Mill Road and East Lansing Drive loop, off Merritt Road. Funding is also programmed to improve Timberlane Street, north of Burcham Drive, in conjunction with the proposed crush and shape project of Burcham Drive funded in the Major Street fund. Further, funding is programmed for a skid steer with a small asphalt mill that will provide the street division with the ability to make enduring repairs to distressed pavement. Overall, 1.65 miles of local streets are programmed for improvement.

Debt service of $137,565 is scheduled for FY2019 and relates to the 2009 Michigan Transportation Bonds. These bonds are scheduled to be paid in full in FY2024.

PARKS AND RECREATION FUND

PARKS AND RECREATION FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 63,573 $ 62,600 $ 21,600 Charges for Services 1,810,903 1,805,575 1,770,940 Rental Income 397,165 375,800 402,750 Community Support 180,328 189,000 174,700 Other Miscellaneous Revenue 39 - - Interest Income 886 600 1,100 Other Financing Sources 1,919,425 2,006,785 2,032,360

Total Revenues & Financing Sources 4,372,319 4,440,360 4,403,450 Expenditures & Financing Sources: Personnel Services 1,953,084 2,062,695 2,021,385 Operating Costs 2,274,190 2,302,050 2,344,365 Capital Outlay 91,250 61,670 8,000 Transfers Out 7,000 7,000 7,000 Replenish Fund Balance - 6,945 22,700 Total Expenditures & Financing Sources 4,325,524 4,440,360 4,403,450 Operating Surplus (Deficit)$ 46,795 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 75,173 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (28,715) Estimated Available Fund Balance as of June 30, 2018 46,458 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 22,700 Estimated Available Fund Balance as of June 30, 2019 $ 69,158 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 1.6%

PARKS AND RECREATION FUND Estimated Revenues

EXPLANATORY INFORMATION

The FY2019 Parks and Recreation Fund is budgeted at $4,403,450, which represents a decrease of $36,910, or 0.8%, from the FY2018 amended budget. Revenue for this fund is derived from earned income (charges for services, rental/reservation income, and community support) of $2,348,390, a General Fund operating transfer of $2,032,360, intergovernmental revenue of $21,600, and interest income of $1,100. The $2,032,360 General Fund operating transfer represents an increase of $35,935, or 1.8%, from the FY2018 amended budget.

Expenditures include $2,021,385 for personnel services, $2,344,365 for operating expenses, $8,000 for capital outlay (replacement of one piece of fitness center equipment), and $7,000 for a transfer to the Prime Time Senior Program Fund. Included in the operating cost budget is a $308,330 expense for the general government indirect cost allocation.

The FY2017 year-end fund balance, per audited financial statements, was $75,173, or 1.7%, of the annual budget. A use of $28,715 in fund balance is projected at this time for FY2018. An increase of $22,700 is projected for year- end FY2019, bringing the fund balance to $69,158 based on the proposed budget. $9,637 of the fund balance is held in reserve for the East Lansing Public Art Gallery.

Proposed fee schedule rate changes for FY2019 include the following:

• Increase the tournament per game rate at the Softball Complex from $20 for residents to $40 and from $35 for non-residents to $70, effective the 2019 season. • Increase the tournament per game rate for games starting before 9:00AM at the Softball Complex from $20 for residents to $40 and from $45 for non-residents to $90, effective the 2019 season. • Increase the Holiday Weekend per game rate at the Softball Complex from $40 to $80 for residents and from $55 for non-residents to $110, effective the 2019 season. • Increase the Holiday Weekend per game rate for games starting before 9:00AM at the Softball Complex from $40 to $80 for residents and from $65 to $130 for non-residents, effective the 2019 season. • Increase the Youth League per game rate at the Soccer Complex for non-residents from $45 to $50, effective the 2019 season. • Increase the Youth League per game rate for games in the Stadium without lights at the Soccer Complex for non-residents from $65 to $70, effective the 2019 season. • Increase the Youth League per game rate for games in the Stadium with lights at the Soccer Complex for non-residents from $95 to $105, effective the 2019 season. • Increase the Youth Tournament per game rate at the Soccer Complex for non-residents from $54 to $60, effective the 2019 season. • Increase the Capital Area Classic per game rate at the Soccer Complex from $25 to $50, effective the 2019 season. • Increase the Adult League per game rate at the Soccer Complex from $59 to $65 for non-residents, effective the 2019 season. • Increase the Adult League per game rate for games in the Stadium without lights at the Soccer Complex for non-residents from $59 to $75, effective the 2019 season.

PARKS AND RECREATION FUND Estimated Revenues (Continued)

EXPLANATORY INFORMATION (Continued)

• Increase the Adult League per game rate for games in the Stadium with lights at the Soccer Complex for non-residents from $125 to $130, effective the 2019 season. • Increase the Ultimate Frisbee per game rate at the Soccer Complex for non-residents from $50 to $55, effective the 2019 season. • Increase the NPSL Team (Lansing United) per game rate for games at the Soccer Complex without an admission from $54 to $75, effective the 2019 season. • Increase the NPSL Team (Lansing United) per game rate for games at the Soccer Complex without an admission and use of the lights from $54 to $130, effective the 2019 season. • Increase the NPSL Team (Lansing United) per game rate for games at the Soccer Complex with an admission from $500 to $600, effective the 2019 season. • Establish the rate of $50 per hour (4 hour minimum) for rental/reservation of the Kevin A. Kelly Family Pavilion at the Soccer Complex, effective the 2018 season. • Increase the Annual Farmers Market Vendor Fee for residents from $265 to $330 and from $275 to $440 for non-residents, effective the 2019 season. (22 weeks @ $15/week for residents and $20/week for non- residents). • Increase the Weekly Farmers Market Vendor Fee for residents from $25 to $30 and for non-residents from $25 to $40, effective the 2019 season. • Increase the Half Day non-sibling rate from $23 to $25 for and the Half Day sibling rate from $20 to $22 for all participants, effective Fall 2018. All participants in the program are ELPS students. • Increase the Winter & Spring Break Care non sibling rate from $37 to $38 and the Full Day sibling rate from $32 to $33, effective Fall 2018. • Increase the Full Day non-sibling rate for residents from $37 to $38 for residents and $38 to $39 for non- residents, effective Summer 2019. The outcome of a $1 per day resident/non-resident fee differential $50 for a non-resident that attends 50 days during the summer season. • Increase the per show Adult ticket price from $8 to $10 for AECT Children’s Theater, effective July 2018. • Increase the per show Youth ticket price from $5 to $7 for AECT Children’s Theater, effective July, 2018. • Establish the per show Adult ticket price of $12, the Youth ticket price of $10 and the school show ticket price of $7 for the joint AECT Children’s Theater/Riverwalk production of Wizard of Oz scheduled for Spring, 2019. • Increase the Season Ticket Pack price from $60 to $70 for AECT Children’s Theater, effective July, 2018. • Increase the AECT Children’s Theater member and non-member rate for all academies, workshops, and production participation fees by $5 per registrant in all categories, effective January 2019. • Increase the Youth Basketball per player registration fee from $60 to $70 for residents and $65 to $75 for non-residents, effective the 2019 season.

The following schedule breaks out revenue by division, which makes it easier to understand what makes up the total revenues for this fund. A few divisions have been moved around, causing variations from year to year. Effective FY2017, the Softball Complex division is included in the Athletic and Sport Programs division. In FY2018, we separated the All-of-Us Express Children’s Theatre from the Recreation and Arts Division. Previously, the theatre activity was tracked through a project within the accounting software and a spreadsheet was maintained by staff.

PARKS AND RECREATION FUND Estimated Revenues (Continued)

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request

Parks & Recreation Divisions: Park Stewardship$ 4,836 $ 8,000 $ 3,000 Soccer Complex 57,467 52,000 65,150 Aquatic Center 409,974 415,250 405,250 ELHCC - Guest Services 503,724 507,500 495,500 ELHCC - Swim Pool 85,579 73,900 83,900 Summer Solstice Jazz Festival 125,362 162,775 125,600 Arts Planning and Administration 6,375 3,800 4,000 Community Events 34,733 47,800 23,000 School Age Childcare 734,808 703,500 703,500 Recreation and Arts 302,977 156,000 151,800 Athletic and Sport Programs 199,058 205,250 188,750 All-of-Us Express Children's Theatre - 112,200 130,540 Interest & Miscellaneous Income 1,225 5,960 1,100 Transfer from General Fund for General Operations 1,906,200 1,986,425 2,022,360

Total Revenues & Financing Sources$ 4,372,319 $ 4,440,360 $ 4,403,450

EXPLANATORY INFORMATION

Information regarding each division and its activity is described in further detail later in this narrative, however, a few items are noteworthy here:

• The Aquatic Center experienced a drop in revenue in FY2017, and an additional decrease is anticipated for FY2018, as attendance declined due to less than optimal summer weather for outdoor pool activity and the timing of the school summer break. We have taken an optimistic approach and forecasted a modest rebound in revenue and attendance for FY2019. • There are increased fees proposed in several activity areas and these are incorporated into the revenue amounts for the FY2019 budget. • The Summer Solstice Jazz Festival (SSJF) experienced a $36,158 operating deficit in FY2017. Several adjustments to the budget and administrative structure have been initiated to reduce the likelihood of this recurring in FY2018 and beyond. • The FY2019 General Fund transfer, is increasing 1.8%, or $35,935, over the FY2018 amended budget to assist in sustaining current activities of this fund. There is also a $10,000 transfer specifically for the SSJF, which is unchanged from FY2018.

DEPARTMENT APPROPRIATION

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request

Parks & Recreation Divisions: Park Stewardship$ 40,675 $ 51,390 $ 44,550 Soccer Complex 161,987 159,720 164,280 Aquatic Center 445,903 463,400 443,855 ELHCC - Guest Services 502,892 544,460 536,340 ELHCC - Swim Pool 156,473 160,220 155,200 ELHCC - Building 663,498 637,015 675,930 Summer Solstice Jazz Festival 161,520 143,235 109,995 Arts Planning and Administration 4,792 2,800 3,000 Respite Center Agreement 10,000 10,000 10,000 Community Events 154,215 171,255 137,820 School Age Childcare 505,866 558,280 534,550 Recreation and Arts 384,524 231,700 220,220 Athletic and Sport Programs 313,223 321,205 338,245 All-of-Us Express Children's Theatre - 131,115 150,820 Administration 819,956 840,620 848,945 Transfer Out to Other Funds - 7,000 7,000 Replenish Fund Balance - 6,945 22,700

Total Expenditures & Financing Sources$ 4,325,524 $ 4,440,360 $ 4,403,450

EXPLANATORY INFORMATION

ACTIVITIES

The City of East Lansing’s Parks, Recreation, and Arts initiatives facilitate and encourage healthy, active, and creative lifestyles. Activities that are offered but are not limited to the following:

Park Stewardship – The Park Stewardship Program has continued in providing excellent opportunities for students and citizens to take ownership of the natural areas within the City of East Lansing. 18 different organizations with over 230 unique volunteers participated in 21 workdays across the city and throughout the year. These volunteers contributed over 600 hours of community service. The 2016 volunteer wage equivalent was $24.14/hr which equates to $14,520 worth of unpaid labor. The volunteers spent their time removing over 2 acres of buckthorn in Henry Fine Park, Harrison Meadows Park, and Albert A. White Park. They also worked to maintain the native plant garden in Harrison Meadows Park. This garden continues to perform well enough to have seeds harvested from the plants. These seeds are then used to plant in other parks and gardens, where invasive plants have been removed. Through the program, MSUFCU purchased and planted 10 trees at the East Lansing Aquatic Center and Softball Complex.

DEPARTMENT APPROPRIATION (Continued)

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

ACTIVITIES (Continued)

Soccer Complex – The complex is experiencing continued growth in attendance from spring through fall. Youth leagues including CASL, East Lansing Soccer Club, and Capital City Athletic Premier Club, fill the fields weekday nights with trainings sessions and weekends with games. The complex is the home location for boys and girls East Lansing High School soccer teams where they train, play their home game schedule, as well as some district and regional tournaments. Lansing United completed their third year with the National Premier Soccer League hosting six home games, team training April through July, and youth camps in the summer. The summer months have continued to grow in weekday popularity with the High School Summer League and many youth camps, ELHS boys and girls conditioning, youth tournaments, and Adult Ultimate Frisbee League.

Aquatic Center – The summer of 2017 saw a decrease in visitors at the aquatic center from 48,015 to 41,330. We attribute the decrease in attendance to less than optimal weather conditions in July and August and area schools starting up in mid-August. As area schools continue moving toward a balanced academic calendar we will need to continue to monitor attendance and staffing. Effective FY2019, the aquatic center will reduce hours of operation by one hour per day, saving approximately $18,000 in personnel costs.

During the 2017 calendar year, the aquatic staff received an ‘exceeds’ on all four of their Jeff Ellis & Associates unannounced audits. These audits take place at the discretion of our lifeguard service provider and are randomly done each quarter. The lifeguards are unknowingly videotaped while working and then put through a series of rescue scenarios. The intent of the audit is to show that the lifeguards are “rescue ready” and have the skills and training necessary to respond in an emergency and maintain a safe swimming environment. In 2014, 2015, 2016, and 2017 the aquatic staff received the Platinum award from Jeff Ellis and Associates, the highest honor possible. The award shows that the aquatic staff is providing the highest degree of swimmer protection for the patrons.

In September 2014, the minimum wage was increased from $7.40/hour to $8.15/hour, with additional yearly increases through January 2018. The minimum wage increased on January 1, 2016 to $8.50/hour, to $8.90 on January 1, 2017, and $9.25 on January 1, 2018. The hourly wage increase of $1.85/hour from pre-2014 to 2018 has increased staff expense by more than $25,000 per year.

Daily admission rates and 10 visit pass rate increases were approved in the FY2018 budget and will be effective for the 2018 season. Daily admission rates for residents will increase from $6 to $7 and from $10 to $11 for non- residents. 10 visit pass rates will increase from $40 to $45 for residents and $70 to $75 for non-residents. All rates will remain the same for the 2019 season.

Hannah Guest Services – The East Lansing Hannah Community Center (ELHCC) will complete its 16th year of operation as a community recreation, events, and enrichment center. While there have been adjustments in its business operations, the ELHCC has established itself and remains one of the premiere meeting and event facilities for value oriented meeting planners in our region. In FY2018 the facility hosted nearly 3,500 reservations that included state and region wide conventions and meeting, private parties, concerts, Theater performances, and board meetings. The ELHCC is open approximately 115 hours per week for regular operation with adjusted hours for rental reservations when necessary.

DEPARTMENT APPROPRIATION (Continued)

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

ACTIVITIES (Continued)

Staff are continuing to review and update the 2013 technology and interior space improvements study. This study included several recommendations to improve the technology capabilities for meeting and event space along with recommendations for refreshing and upgrading the look of the existing interior spaces. The determination was that in order to remain a viable meeting facility into the future, close consideration must be given to identifying resources to implement these recommendations as we look toward future years. The expansion of internal programming continues to place a demand on space, which requires more coordination of space and facility schedules, for internal and external users. Before and after school programs are creating further demands on the already limited available program space, particularly in summer months, necessitating a closer look at the development of the third floor as program and meeting space.

Guest services operates as the central point of contact for visitors and facility users. It also serves as the Department of Parks Recreation and Arts primary payment center for recreation & arts program registration, child care payments, processing reservation payments and pass sales, and also serves as a pick up and payment location for the DPW trash and yard waste receptacles.

Sales for the fitness center and recreation pass are flat, and averaging about $220,000 annually. The ELHCC still maintains its niche in the fitness market as one of our areas only boutique style fitness centers and attracts a wide cross section of users. However, the aging equipment, most of which has more than doubled its industry stated useful life, needs upgrades in order to remain current with fitness trends. The down time and repair periods are often longer for this aging equipment, as parts are sometimes not readily available. Moving forward if we hope to maintain or improve pass sales, consideration must be given to fitness center equipment replacement, particularly strength training machines, and consideration of expansion in the near future. FY2018 the ELHCC hosted about 60,000 recreation users.

Hannah Community Center Swim Pool – There has been a decline in group swim lessons in the winter months. We have adjusted class offerings in January and February and added more classes later in the spring. This adjustment seems to help with filling up classes and providing more classes when participants want them. Private swim lessons continue to be a very popular program for parents that want 1:1 instruction. Aqua Zumba continues to be a popular adult water aerobics class, which had 84 participants last year. We also work closely with the Junior Trojan Swim Club by renting pool space and working on promoting youth competitive swimming in East Lansing.

Hannah Building – The ELHCC Building budget covers the repairs, maintenance, custodial, grounds, and utility expenses associated with ELHCC. Repairs and maintenance are performed by the government buildings staff, custodial responsibilities are performed through a custodial services agreement with a contracted vendor, and grounds maintenance and snow removal are performed by the Department of Public Works staff with labor and benefits and garage equipment charges billed to the fund in the form of work order charges.

Summer Solstice Jazz Festival – The Summer Solstice Jazz Festival (SSJF) is a free, two day Jazz Festival in the heart of downtown East Lansing, featuring 14 hours of the best in local, regional, and national talent. In addition to the main stage, the SSJF features a performance area dedicated to young jazz performers, a traditional New Orleans style Second Line Parade, an avant-garde jazz picnic, and fun children’s activities. In FY2018, an increase of $10,000 in funding from the City’s General Fund was budgeted and $10,000 is proposed again in FY2019.

DEPARTMENT APPROPRIATION (Continued)

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

ACTIVITIES (Continued)

The SSJF had a $53,816 operating budget deficit for the 2016 Festival. Since the festival had accrued reserves over previous years the reserves covered the budget deficit. The 2017 Festival had a $36,158 operating budget deficit. This deficit was covered by an increase in General Fund contribution to the Parks and Recreation Fund. The SSJF Advisory Board has committed to reimbursing the City for covering the operating deficits over time. Several adjustments to the budget and the administrative structure have been initiated for the 2018 Festival to reduce the likelihood of ongoing annual operating budget deficits.

Arts Planning and Administration – Since FY2017, the primary responsibility of the Arts Planning and Administration activity has been the Public Art Gallery at ELHCC. Revenue is generated through receipt of 25% of net gallery sales from displayed artists. The FY2018 budget includes $3,800 in art sales revenue and $2,800 in artist sale reimbursements. The FY2019 budget includes $4,000 in revenue and $3,000 in artist sale reimbursements. Any revenues in excess of expenses are held in the Parks and Recreation Fund for use on Gallery expenses. As of June 30, 2018, this amount is estimated to be $9,637.

Respite Program – In 2012, the ALFA (Active Living for Adults) program merged with LAP Respite Center, now known as Helping Hands Respite Care. This is a non-profit agency providing lifespan respite services to families who care for children or adults with disabilities, chronic illness, or age-related conditions. Helping Hands Respite Care is now responsible for the administration and operations of the former ALFA program. Per the agreement, the City agreed to fund $20,000 per year for FY2013 and FY2014, $10,000 per year for FY2015 through FY2018. In FY2019, we recommend continuing support in the amount of $10,000.

Community Events – The Community Events program produces events year-round. The first event of the year is the Children’s Concerts. This event brings more than 500 children and their families to the Hannah Community Center for singing and dancing.

The Crystal Awards are hosted at the Hannah Community Center in April. This is an opportunity for City Council and the community to recognize outstanding citizens. In FY2017, 10 citizens and businesses were nominated. Mike Wylie, Michael Moquin, Gary Beaudoin, and Abbott Nursery School and Director Mary Howard each received a Crystal Award.

In FY2017, the Farmer’s Market had 33 vendors who served thousands of customers over the course of 22 weeks.

Over the summer there are three event series; Summer Concert Series, Moonlight Film Festival, and Play in the Park. The Summer Concert Series takes place on Fridays from the end of June through August. The Downtown Management Board (DMB) continues to sponsor the event. This sponsorship enabled the Series to end with an extra performance of Starfarm; a popular band that drew in over 500 visitors, in one night, to the downtown. The Moonlight Film Festival consists of six films in as many weeks. Play in the Park was hosted once-a-week in July. Children were able to enjoy magic, storytelling, songs, and dancing. Over 50 children and their families took part in each event.

DEPARTMENT APPROPRIATION (Continued)

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

ACTIVITIES (Continued)

In December, Winter Glow is produced. Winter Glow takes place in downtown East Lansing and is organized to collaborate with the DMB’s Green Friday (and Saturday too) event. As such, the DMB is a major contributor to the event. MSUFCU also donates to Winter Glow and a grant is received from the Arts Commission as well. Winter Glow drew over 3,000 visitors to the downtown to enjoy a winter’s farmers market, pictures with Santa, live ice carving and much more.

All of the events that are hosted by East Lansing’s Community Events program are free to the public. In addition to the events hosted by the City of East Lansing, a $34,700 contribution to the Great Lakes Folk Festival (GLFF) was made in 2017; $15,000 contribution, $4,700 for electrician fees, and $15,000 in-kind. The MSU Museum has decided to not offer the GLFF in 2018. Current thought is a 2019 festival would be re-imagined. For 2018, we are planning to add an additional concert evening to our concert series in place of the GLFF and will be working with MSU Museum regarding plans for the 2019 re-imagined event. Proposed budget adjustments are as follows; reducing federal grants from $30,000 to zero, reducing labor work order charges from $12,975 to $4,500, reducing contract services from $43,250 to $5,000.

School Age Childcare – The school age care program offers care for children in K-8th grades. Offerings for the 2017-18 school year included before & after school programs housed in each of the five East Lansing elementary schools which serve K-5th graders as well as, a site operated at MacDonald Middle School to accommodate 6th-8th graders that averaged 20 children per afternoon. We offered winter and spring break care programs at the ELHCC with an average of 38 kids per day.

Approximately 346 families with 424 children were provided services this school year in our before & after school programs. Throughout the year, we had 191 children participate in our morning programs from 7:00-8:45am and 360 children participate in our afterschool programs from 3:30-6:00pm. We had a combined site average of daily attendance of 135 children participating in our morning care programs and 248 children participating in our after care programs.

Summer “Kids Camp” was offered at the ELHCC from 7:30am-5:30pm daily. Approximately 100 families with 146 children were provided services during our 2017 summer program. This year we focused on occupations and we were able to tap into the community businesses and city services to give the children real life experiences. We broke down the summer into 10 career pathways and the kids were able to explore the working world each week with games, activities, field-trips, and special guests.

Recreation and Arts – We provide a variety of year-round recreation, art and enrichment classes, programs, and services. In FY2017, approximately 3,000 registrants participated in the various programs and services offered including fitness, pottery, visual arts, dance, enrichment, special events, and specialty summer camps for youth and more. New classes and programs are always being explored to provide additional revenue and add more opportunities for community participation. An example of a new, and successful camp, is the Zombie Survival Camp. Annually, this division teams up with Playmakers and Blue Cross Blue Shield to sponsor an 8-week Couch to 5K program. This division was awarded a $4,000 Capital Region Community Foundation grant to purchase new equipment for the Pottery Studio. This division was also awarded a $29,500 Michigan Council for the Arts and Cultural Affairs grant to upgrade sound and lighting for the ELHCC.

DEPARTMENT APPROPRIATION (Continued)

FUND Parks and Recreation FUNCTION Culture and Recreation STAFF RESPONSIBLE Tim McCaffrey

ACTIVITIES (Continued)

This division also oversees the City of East Lansing Worksite Wellness (WW) program. The WW program includes two annual activities with employees – the Employee Health Warrior Challenge and the Summertime Employee Fitness Challenge. These activities are designed to encourage employees to adopt a healthy lifestyle or to support them in their current healthy lifestyle choices.

Athletics and Sport Programs – This program operates youth athletics, middle school interscholastic athletics, adult softball leagues, and hosts tournaments at the East Lansing Softball Complex. In FY2017, the budget for the softball complex maintenance was added to this program and budgeted accordingly. The actual maintenance of the complex remains a responsibility of the DPW parks maintenance crew.

Youth sports programs provide instruction, recreation, and low-key competition. The emphasis is on maximum participation by each youth. The primary focus is on individual development, team play, group cooperation and sportsmanship. In 2013, we started a collaborative program with Meridian Township and Okemos Community Education to work on increasing game competition for recreation league play. This will continue to be developed in order to offer increased participation opportunities. In 2017, we had three Meridian Township Teams play basketball in East Lansing and our 5/6th grade boys teams played in a combined recreation league with Okemos Community Education. In 2017, there were 21 recreational baseball teams and 33 recreational basketball teams.

The Interscholastic Sports Program offers cross-country, girls volleyball, basketball, and track and field. In the 2016/2017 school year, we had 311 athletes, which was our largest participation ever, with 38 participants receiving financial assistance. Participation was up 33 athletes from the previous year mainly since 6th graders are now able to compete. For the 2017/2018 school year, we secured a $6,250 donation from the East Lansing Basketball Club Let the Tradition Continue committee. This helped reduce the cost for middle school sports by $20 per participant and offered increased scholarships. We hope this will be renewed for the 2018/2019 school year.

Adult softball is for both men and women ages 18+ and games are played at the East Lansing Softball Complex from mid-April to October. Due to declining participation in some leagues, we have started to host more youth games at the Softball Complex. In the spring/summer season we had 20 men’s teams and 17 coed teams with 509 players. In the fall season we had 8 men’s teams and 8 coed teams with 195 players. The East Lansing Softball Complex hosted 10 weekend tournaments throughout the spring/summer. This generates an average of $17,000 in rental income and additional revenue for area businesses whiles teams visit from outside the East Lansing area.

All-of-Us Express Children’s Theatre (AECT) – AECT completed its 28th season with four main stage productions, a Young Playwright’s Program, and summer drama camps. Participation numbers continue to grow. Drama camp participation had an all-time high of 175 participants in our one- and two-week camps.

In 2009, the City and AECT entered into a merger agreement. The City is responsible for the administration and operation of the program. The AECT non-profit Board of Directors continues to support the program through obtaining grants, sponsorships, and other fund-raising activities. These funds assist tremendously in offsetting costs and helping keep registration fees, show ticket prices, and workshop participation rates affordable for all participants and their families. Throughout FY2017, the AECT Board provided $40,000 in cash support to the City. In FY2018, the AECT Board agreed to $32,000 in cash support. We have budgeted $32,000 in FY2019 from the AECT Board. The increasingly competitive grant seeking, sponsorship recruitment, and fund-raising environment for Arts organizations is making it harder to generate previous fund-raising levels. As a result, we have proposed fee rate increases beginning with the FY2019 budget.

NOTES:______

SOLID WASTE MANAGEMENT FUND

SOLID WASTE MANAGEMENT FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property taxes$ 1,648,159 $ 1,683,000 $ 1,789,000 Intergovernmental Revenue 3,538 - - Charges for Services 276,626 270,500 279,100 Community Support 8,221 5,000 5,000 Interest Income 7,234 4,600 5,500 Other Financing Sources - 58,490 13,950

Total Revenues & Financing Sources 1,943,778 2,021,590 2,092,550 Expenditures & Financing Sources: Personnel Services 720,096 853,395 813,870 Operating Costs 1,105,904 1,085,720 1,209,080 Capital Outlay 11,015 21,800 6,400 Transfers Out 62,875 60,675 63,200 Total Expenditures & Financing Sources 1,899,890 2,021,590 2,092,550

Operating Surplus (Deficit)$ 43,888 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 423,168 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 4,640 Estimated Available Fund Balance as of June 30, 2018 427,808 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (13,950) Estimated Available Fund Balance as of June 30, 2019 $ 413,858 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 19.8%

SOLID WASTE MANAGEMENT FUND Estimated Revenues

EXPLANATORY INFORMATION

The Solid Waste Management Fund accounts for landfill tipping fees, refuse and yard waste collection, and recycling services. All solid waste related revenues are recorded here including yellow bag fees, special pickup fees, recycling and easy cart container fees, and yard waste fees. The budget request totals $2,092,550 for FY2019, which is a 3.5% increase from FY2018. This increase is primarily due to natural growth in costs of operations, with a corresponding rise in property taxes.

INCOME

$ 1,789,000 Property Taxes – It is recommended that no change be made to the 1.8250 mills allocated to Solid Waste Management. The millage covers the cost of the program along with Burcham landfill monitoring requirements. Although the millage rate is not increasing, we are seeing growth in dollars as taxable values increase.

$ -0- Intergovernmental Revenue – In FY2017, the amount received related to the small taxpayer loss reimbursement from the State of Michigan. Based on property values, we do not anticipate receiving any additional revenue going forward.

$ 279,100 Charges for Services – This is made up of all items sold by the fund, such as residential containers, trash bags, yard waste bags, special stickers, as well as the sale of recyclable materials. Minor increases are proposed for bulk stickers, increasing the cost from $18.50 to $19.00 per sticker, and increasing the yellow bag cost to $9.25 for a package of five, and last, increasing the 96 gallon trash cart annual fee from $85.00 to $90.00.

$ 5,000 Community Support – Recycle! East Lansing is a community event held each year to encourage waste reduction and give residents an opportunity to recycle items not collected curbside or donated for reuse. This small amount reflects contributions and donations received to help fund this program.

$ 5,500 Interest Income – The amount represents investment income on idle cash balances and fund balances throughout the year.

$ 13,950 Other Financing Sources – This amount represents reappropriated fund balance, or the use of prior years' surplus to balance current year expenditures.

There are risks that still face this fund for the year ending June 30, 2019. The Burcham Park remediation requirements are expected to continue for the foreseeable future, with future major maintenance requirements for the gas extraction system. Further, storm debris clean-up and disposal costs are charged to this fund, where adverse weather events can add significant un-forecasted cost. Additionally in FY2019, the recycling transfer and hauling contract is up for renewal and is expected to substantially increase. Fund balance is expected to reach 19.8% for the year ending June 30, 2019. This fund will be monitored closely as some of these key factors/risks become known, to ensure that we do not build fund balance in excess of what is necessary to operate.

DEPARTMENT APPROPRIATION

FUND Solid Waste Management FUNCTION Public Works STAFF RESPONSIBLE Scott House/Cathy DeShambo

EXPLANATORY INFORMATION

Personnel services are expected to decrease by 4.6%, based on more accurate budgeting and realizing savings from the efficiencies of single stream recycling. However, recycling cost reductions were not fully achieved in rental areas due to contamination.

FY2019 operating costs are expected to increase by 11.4%, from FY2018. The increase is due to several factors. The first is the projected cost increases in recycling transfer and processing costs, incurred as part of the intergovernmental agreement with the City of Lansing. The City of Lansing’s single stream recycling processing contract is out for bid, and it is anticipated there will be costs increases, as Lansing is seeking an off-site material transfer location and the recycling commodity values remain flat. Second, investment is required in the Burcham landfill gas extraction system, as part of ongoing maintenance, increasing cost by 20.1%, representing a $13,865 increase.

Capital outlay in FY2019 decreases by $15,400, or 70.6%, from FY2018. The reduction is due to the fact that the recycling program has stabilized and there are fewer recycling cart purchases, but we are still investing in field technology.

Transfers out consist of a transfer to cover debt related payments on the Burcham Park Methane Extraction System bonds issued in FY2009. This debt will be paid in full this fiscal year, FY2019.

PRIME TIME SENIORS FUND

PRIME TIME SENIORS FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 3,895 $ 4,180 $ 4,180 Charges for Services 99,566 94,500 104,600 Rental Income 565 600 200 Community Support 80,528 70,700 164,700 Interest Income 580 335 500 Other Financing Sources 147,630 208,125 150,300

Total Revenues & Financing Sources 332,764 378,440 424,480 Expenditures & Financing Sources: Personnel Services 219,518 244,620 240,540 Operating Costs 124,746 133,820 135,710 Replenish Fund Balance - - 48,230

Total Expenditures & Financing Sources 344,264 378,440 424,480

Operating Surplus (Deficit)$ (11,500) $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 86,106 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 24,770 Estimated Available Fund Balance as of June 30, 2018 110,876 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 48,230 Estimated Available Fund Balance as of June 30, 2019 $ 159,106 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 42.3%

PRIME TIME SENIORS FUND Estimated Revenues

EXPLANATORY INFORMATION

INCOME

$ 4,180 Intergovernmental Revenue – In FY2017 a 3-year grant from the Tri-County Office on Aging, was received for the Annual Fit for Life program. This grant will continue through FY2019.

$ 104,600 Charges for Services – This includes program fees, membership fees, and other charges for services. Pre-nursing students provide foot care to our participants at a very affordable cost of $20, which generates $3,500 in revenue. We will increase our annual membership fee from $20 to $25 for residents and $30 to $35 for non-residents. This will allow us to meet our membership goal of $14,000. We have increased our program fees by $8,000 due to minor increases in fees for card and board games for a total of $87,000.

$ 200 Rental Income – Outside organizations and individuals access our piano, lounge, and conference room for a fee.

$ 164,700 Community Support – We have more than doubled the general contributions/donations line item from $65,000 to $154,000. The restricted donations line item of $8,000 includes funds for honorariums provided by The Friends, curbside pickups for seniors at the annual Recycle! East Lansing event, volunteer recognition banquet, and art studio sponsorships. Fund-raising is at $2,700, with the annual rummage sale at $2,500 and cell phone recyclable program through the National Council on Aging at $200.

$ 500 Interest Income – Interest income on idle cash balances and fund balances throughout the year.

$ 150,300 Other Financing Sources – The City’s General Fund transfer of $143,300 will remain flat from FY2018. Additional operating funds in the amount of $7,000 come from the Parks and Recreation Fund to offset the cost of renting rooms at Hannah for classes. FY2019 will not require the use of fund balance.

Fund balance continues to grow, as community support to the Seniors Program rises, and is expected to reach $159,106, or 42.3% of operating costs, by the end of FY2019. These reserves will allow for continued services to our membership and may prove vital in future years.

DEPARTMENT APPROPRIATION

FUND Prime Time Seniors FUNCTION Culture and Recreation STAFF RESPONSIBLE Kelly Arndt

EXPLANATORY INFORMATION

PROGRAM HIGHLIGHTS

Prime Time continues to provide a person-centered approach to programming that looks at mind, body, and spirit, as we expand to include the growing number of residents ages 55 plus!

In February of 2018, work was completed on our newly renovated Art Studio. We raised $10,000 in matching funds to access a Community Development Block Grant to enhance the accessibility and safety of this space.

We continue to work with the Planning Department to move us closer to an Age-Friendly Community designation. The Steering Committee, made up of residents and city staff, have been meeting monthly through the year to move forward in this process. In March of 2018, community focus groups were facilitated by both residents and city staff in an effort to gather data. We are now in the process of disseminating the information and developing a plan.

Currently, Prime Time has established the following community partnerships, which help us to do more with less. We will continue to add value to the seniors and the city by enhancing these community partnerships:

• Neighborhood Associations – Continue to work with neighborhood presidents to enhance chore service in all neighborhoods • AARP – Driver’s Training Workshops • Lansing Community College – Bi-monthly foot-care clinic • Department of Public Works – Recycle! East Lansing (intakes for senior pickups) • Yellow and Spartan Cabs – Transportation • Tri-County-Office on Aging – Medicare and Medicaid Waiver Program, and Fit for Life Grant • MSU – College of Nursing (suggest Prime Time venues for the nurses to assist with) • Community Relations Coalition – Friday Technology Lab, and Adopt-a-Grandparent, Tailgate Party • East Lansing Police and Fire – Continue to work with police and fire to promote the benefits of Nixle, the East Lansing Emergency Alert File, and the Emergency Call List • Ingham County Animal Control Shelter – Senior Pets for Senior People • Planning Department, AARP, and the World Health Organization – work on Age-Friendly Communities designation • MSU – School of Music – Pay music students to perform at Prime Time functions • MSU Theater Department – Continue with Scripts Course • Center for Service Learning and Civic Engagement – Reflection Circle • Playmakers – Balance and Walking Clinic • College of Human Medicine – Wellness Workshops • East Lansing Public Schools – Art Buddies (students with special needs) • The Friends of East Lansing Prime Time Seniors Program – Contribute 5% of their endowment to the East Lansing Prime Time Seniors Program

DEPARTMENT APPROPRIATION (Continued)

FUND Prime Time Seniors FUNCTION Culture and Recreation STAFF RESPONSIBLE Kelly Arndt

PROGRAM HIGHLIGHTS (Continued)

Active aging is a lifelong process, and we will continue to promote services and programs which assist retirees to age-in-place successfully. In addition, we will continue to partner with city staff and residents to address this need.

• Emergency Call List, Emergency Medical Alert File – ELPD • Chore Service – Neighborhood Association • Technology Lab – Community Relations Coalition • Gold Card Transportation – Yellow and Spartan Cabs • Recycle! East Lansing – DPW

Intergenerational activities through Prime Time focused specifically on Art Buddies with East Lansing High School Transitional Class.

NOTES:______

DRUG FORFEITURE FUND

DRUG FORFEITURE FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Fine and Forfeitures$ 876 $ 2,000 $ - Interest Income 49 25 15

Total Revenues & Financing Sources 925 2,025 15 Expenditures & Financing Sources: Operating Costs 8,500 2,025 - Replenish Fund Equity - - 15

Total Expenditures & Financing Sources 8,500 2,025 15

Operating Surplus (Deficit)$ (7,575) $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 2,683 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 15 Estimated Available Fund Balance as of June 30, 2018 2,698 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 15

Estimated Available Fund Balance as of June 30, 2019 $ 2,713

Estimated Revenues

EXPLANATORY INFORMATION

The Drug Forfeiture Fund includes all money that is seized by the Police Department in accordance with MCL 333.7521 of the Public Health Code. Funds that are collected through drug forfeiture must be used to: 1) pay the proper expenses of the proceedings for forfeiture and sale; and 2) to enhance law enforcement efforts pertaining to drug law enforcement. Revenue collection can vary from year to year; therefore, it is difficult to estimate yearly forfeitures.

DEPARTMENT APPROPRIATION

FUND Drug Forfeiture FUNCTION Public Safety STAFF RESPONSIBLE Chief Larry Sparkes

ACTIVITIES

• Enforce illegal narcotic laws of Michigan • Use forfeited funds to offset costs of enforcing these laws

EXPLANATORY INFORMATION

The East Lansing Police Department actively enforces the illegal narcotic laws of this State. Money used directly by individuals who are engaged in illegal drug activities can be forfeited upon final disposition of the criminal case. Once the criminal case has been adjudicated in the court of jurisdiction, the monies that had been forfeited at the time of the illegal activities can be released to the City. These funds can only be used to purchase equipment and supplies that are directly related to the future suppression of illegal drug activities within the City of East Lansing.

The East Lansing Police Department eliminated our drug investigator position in FY2018. The drug investigator was reassigned to road patrol operations largely due to staffing concerns. As a result, there are no operational revenues or expenses expected for FY2019.

NOTES:______

LIBRARY FUND

LIBRARY FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property taxes$ 1,806,099 $ 1,846,000 $ 1,958,000 Intergovernmental Revenue 170,132 158,350 139,000 Fines and Forefeitures 31,764 35,000 28,000 Charges for Services 17,329 29,600 14,600 Rental Income 1,325 3,000 3,000 Community Support 186,715 250,000 333,165 Other Miscellaneous Revenue 1,763 2,200 2,100 Interest Income 9,876 5,000 9,000 Other Financing Sources - 10,660 -

Total Revenues & Financing Sources 2,225,003 2,339,810 2,486,865 Expenditures & Financing Sources: Personnel Services 1,078,297 1,216,600 1,275,470 Operating Costs 733,610 716,395 753,360 Capital Outlay 1,282,748 288,000 383,000 Replenish Fund Balance - 118,815 75,035

Total Expenditures & Financing Sources 3,094,655 2,339,810 2,486,865 Operating Surplus (Deficit)$ (869,652) $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 975,525 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 216,955 Estimated Available Fund Balance as of June 30, 2018 1,192,480 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 75,035 Estimated Available Fund Balance as of June 30, 2019 $ 1,267,515 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 52.6%

LIBRARY FUND Estimated Revenues

EXPLANATORY INFORMATION

INCOME

$ 1,958,000 Property Taxes – The City is authorized to levy a dedicated millage of up to two mills as authorized by City Council under Public Act 164 (one mill) and approved by East Lansing citizens in November 2012 (one mill), though subject to Headlee rollback. As of FY2018 the allowable millage rate is 1.9976, however an additional rollback is expected in FY2019.

$ 139,000 Intergovernmental Revenue – This is comprised of state operating grants received from the State on a per capita basis in the amount of $16,000 and state-aid co-op service also received from the State on a per capita basis in the amount of $16,000. The state aid co-op portion is to be contributed in total to Woodlands Library Cooperative, which provides interlibrary loan delivery and e-book resources on Overdrive. There is also $107,000 of penal fines budgeted in this revenue category. This money is received by the Library from Ingham County and a small amount from Clinton County, as a share of traffic fines collected for state law violations. In FY2017, penal fines decreased by 7% and in FY2018 the amount decreased by an additional 13%. There is a projected decrease of 10% in FY2019.

$ 28,000 Fines and Forfeitures – The Library charges a $1.50 per day fine on overdue DVDs and a $0.25 per day fine on all other overdue materials. The amount of fines collected is trending downward since there are not late fines on digital materials. Digital circulations continue to increase every month. ELPL is also looking at automatic renewals for items checked out without holds on them; this is the trend nationally with libraries. This could result in a further reduction in the amount of fines collected.

$ 14,600 Charges for Services – Annual membership fees of $9,000, where the Library charges an annual non-resident borrowers fee of $30 per person and $40 per family, are found in this revenue category. Educator Card status fee is $10. All current Michigan State University and Lansing Community College students are eligible for a free library card, regardless of their residency status; as well as all East Lansing Public School children are eligible for a free library card regardless of their residency status. Additionally, the Library charges $0.10 per black and white copy/print and $0.50 per color copy/print and charges $0.10 per gram for 3D printing.

$ 3,000 Rental Income – The Library charges meeting room rental to those using the space for meetings or events.

$ 333,165 Community Support – Includes donations from the Friends of the East Lansing Library for programming and library materials, donations to support the One Book, One Community program, and donations from library patrons. Of the amount budgeted in FY2019, the library is projected to receive a trust payment of $279,000.

$ 2,100 Other Miscellaneous Revenue – Replacement charges for lost or damaged materials are included in this revenue source.

$ 9,000 Interest Income – Amount of interest income on idle cash balances and fund balances throughout the year.

DEPARTMENT APPROPRIATION

FUND Library FUNCTION Culture and Recreation STAFF RESPONSIBLE Kristin Shelley

ACTIVITIES

• The East Lansing Public Library (ELPL) offers books; e-books; DVDs; CDs; digital materials; circulating hotspots; circulating tools; Arduinos; science kits; and a Maker Studio with 3D printers; a midi keyboard; podcasting; Arduino lab; sewing machines; and MAC computers with the full Adobe Suite. It provides a diverse selection of programming; six book groups; homework help; summer reading programs; outreach Reading Group; a knitting group; Practice Your English conversation group; French conversation group; Spanish conversation group; computer access; free WI-FI; e-book clinics; technology workshops; job/resume help tools; career building tools; teen drop-in after-school program (Monday through Friday); access to materials from all over the state via MeLCAT; reference help; readers’ advisory; early childhood literacy stations; electronic resources databases (Lynda.com, Mango Languages, Chilton’s Automotive, Business Decision, Gale Legal Forms, Novelist and more); streaming books, music, movies, and TV shows (Hoopla); digital magazines (Zinio); homebound delivery service; a friendly, helpful staff and many more services. • During a typical month, ELPL offers 40 children’s programs and outreach efforts, over 3,000 free computer sessions, and 40 hours of one-on-one technology training. • Through press releases to local news media, a monthly radio slot on WLNZ Coffee Hour, elpl.org, and social media outlets, we promote the library’s services, programs, databases, and collections to the community. In addition, the staff provides outreach services to schools, Headstarts, daycares, Prime Time Seniors, Burcham Hill residents, The Willows residents, Independence Village residents, and East Glen residents. Library staff give presentations and are members of various civic organizations including Rotary and Kiwanis. • The library is the information hub for much of the community. We offer free public computers and free WI-FI, as well as technology literacy for all ages.

EXPLANATORY INFORMATION

The personnel service budget, at $1,275,470, has increased from the prior year budget in the amount of $58,870, or 4.8%, with planned staffing changes in FY2019. This includes both a 1% cost of living increase, as well as step increases for eligible employees. Two part-time positions will be replaced with a full-time STEAM Specialist.

Overall operating costs increased from the FY2018 budget by 5.2%, largely because of increased marketing and communication costs, along with modest increases in technology-related maintenance agreements. The general government indirect cost charged to the Library by the City increased by $4,765 (5.4%) for FY2019. This is offset by a reduction in the computer rental charges, of $6,475, resulting from fewer computers in service.

The FY2019 capital outlay budget has increased from FY2018 budgeted costs by 33.0%, largely because of replacement of the boiler in FY2019. Capital outlay also includes all circulation materials and electronic resources. The FY2017 actual amount is significantly higher, as it reflects the costs associated with the completion of the library renovation.

COMMUNITY DEVELOPMENT BLOCK GRANT FUND

COMMUNITY DEVELOPMENT BLOCK GRANT FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 468,343 $ 402,505 $ 413,155 Charges for Services 41,044 - -

Total Revenues & Financing Sources 509,387 402,505 413,155 Expenditures & Financing Sources: Personnel Services 70,782 73,900 75,295 Operating Costs 438,605 328,605 337,860

Total Expenditures & Financing Sources 509,387 402,505 413,155

Operating Surplus (Deficit)$ - $ -$ -

Statement of Fund Balance: The Community Development Block Grant Fund generally does not have a fund balance. All grant monies are for specific projects and are not available until the resources are ready to be, or have been, expended.

DEPARTMENT APPROPRIATION

FUND Community Development Block Grant FUNCTION Health and Welfare STAFF RESPONSIBLE Tim Dempsey/Amy Schlusler-Schmitt

FY2018 FY2019 Amended Budget Budget Request CDBG: Housing Programs$ 40,000 $ 8,000 Public Infrastructure Improvements 221,630 322,525 Social Services 60,375 - Administration 80,500 82,630

Total Expenditures$ 402,505 $ 413,155

The following table breaks out the specific activities planned for the housing programs and public infrastructure improvements:

Agency Activity Amount Housing Programs: Capital Area Housing Partnership Home Owner Rehabilitation Program$ 4,000 Capital Area Housing Partnership Home Owner Assistance 4,000 Total Housing Programs 8,000 Public Infrastructure Improvements: City of East Lansing Section 108 Repayment 112,275 City of East Lansing Neighborhood Sidewalk Improvements 100,000 City of East Lansing Funds to be Allocated 110,250 Total Public Infrastructure Improvements 322,525 Total Housing Programs & Public Infrastructure Improvements $ 330,525

DEPARTMENT APPROPRIATION (Continued)

FUND Community Development Block Grant FUNCTION Health and Welfare STAFF RESPONSIBLE Tim Dempsey/Amy Schlusler-Schmitt

EXPLANATORY INFORMATION

For FY2019, staff is recommending that the Community Development Block Grant (CDBG) funding support public infrastructure improvement projects, such as the repaving and installation of ADA accessible curb cuts within CDBG eligible census tract areas. Funding is also recommended to be allocated to Capital Area Housing Partnership to provide financial assistance towards the purchase or rehabilitation of homes for persons that began programming in FY2018.

In FY2007, the City of East Lansing received a Section 108 Loan, which is part of the Community Development Block Grant program, in order to facilitate the Avondale Square project. The City was approved by the Department of Housing and Urban Development (HUD) to receive a loan in the total amount of $1.5 million to cover costs of acquisition, relocation, loan costs, some site improvements, and demolition costs. As part of the Section 108 loan agreement, 10 new homes had to be constructed and sold to low-moderate income homebuyers. To date, all 10 required homes have been sold to income eligible homebuyers. Repayment of the loan will take place over a 20- year period. This will be the twelfth program year of paying back the loan with CDBG funds.

Currently, there is $110,245 in CDBG unallocated funds that can be designated towards public infrastructure improvement projects. Those funds can be allocated as follows:

1) All funds allocated towards a supplemental principal payment of the annual Section 108 loan to HUD

2) All funds allocated towards the proposed CDBG Neighborhood Sidewalk Repairs project

3) Funds can be split between the Section 108 loan and CDBG Neighborhood Sidewalk project

PUBLIC ART FUND

PUBLIC ART FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Community Support$ 50,000 $ 25,000 $ - Interest Income 290 200 500 Other Financing Sources 19,860 36,300 60,000

Total Revenues & Financing Sources 70,150 61,500 60,500 Expenditures & Financing Sources: Operating Costs 19,768 11,500 10,500 Capital Outlay - 50,000 50,000

Total Expenditures & Financing Sources 19,768 61,500 60,500

Operating Surplus (Deficit)$ 50,382 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 79,539 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 35,565 Estimated Available Fund Balance as of June 30, 2018 115,104 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (43,375) Estimated Available Fund Balance as of June 30, 2019 $ 71,729 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 118.6%

Estimated Revenues

EXPLANATORY INFORMATION

In compliance with Ordinance No. 1339 requirements, in FY2018, the Public Art Fund is budgeted to receive $25,000 in donations from private construction projects and a $10,065 transfer from the General Fund, which is 1% of the City’s FY2017 general fund capital spending for designated public facilities. In addition, $10,500 is budgeted to be transferred from the General Fund to the Public Art Fund for Cultural Arts Grants. $200 in interest revenue is also budgeted in FY2018.

In FY2019, no revenue is budgeted in the Public Art Fund for donations from private construction projects. $10,500 is budgeted to be transferred from the General Fund to the Public Art Fund for cultural arts grants and $6,125 is budgeted to be transferred from the General Fund as 1% of the City’s FY2018 general fund capital spending on designated public facilities. In addition, $500 is budgeted in interest revenue. The remaining $43,375 is planned use of fund balance to cover budgeted expenditures.

DEPARTMENT APPROPRIATION

FUND Public Art FUNCTION Culture and Recreation STAFF RESPONSIBLE Wendy Longpre/Tim McCaffrey

ACTIVITIES

• The Public Art Fund is established under the Public Art Ordinance, Ordinance No. 1339. • Ordinance No. 1339 provides for 1% of the cost of private construction projects (up to $25,000) and 1% of the City's general fund capital spending for designated public facilities, to be allocated for the purchase of new art and maintenance of all public art owned by the City. • The City's Arts Commission is designated in Ordinance No. 1339 to advise the City Council on matters pertaining to art programs within the City and to implement a program to provide for the acquisition, placement and display of works of art within the City. This includes reviewing the proposed public art accompanying a developer's site plan application for compliance with the Ordinance and overseeing expenditures from the Public Art Fund. • The General Fund provides an additional allocation of approximately $10,500 annually, for grants to local arts and cultural organizations in the community. All of the spending and activities designated to the Art Commission is budgeted and recorded in this fund, and approved by City Council.

EXPLANATORY INFORMATION

FY2018 budgeted expenditures included $10,500 in Cultural Art Grant awards, $1,000 for public art repairs and maintenance, and $50,000 for purchase and installation of artworks. Repairs were not required in FY2018 and the purchase of artworks were deferred to FY2019.

Budgeted expenditures in FY2019 include $50,000 for capital outlay of art and $10,500 for Cultural Arts Grants.

NOTES:______

ART FESTIVAL FUND

ART FESTIVAL FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 30,875 $ 33,000 $ 40,500 Charges for Services 8,725 10,000 10,700 Rental Income 61,654 64,200 64,000 Community Support 31,500 45,000 45,930 Other Miscellaneous Revenue 13,649 16,625 13,500 Interest Income 134 100 - Other Financing Sources 5,833 11,970 10,555

Total Revenues & Financing Sources 152,370 180,895 185,185 Expenditures & Financing Sources: Personnel Services 62,270 63,230 64,710 Operating Costs 99,369 117,665 120,475

Total Expenditures & Financing Sources 161,639 180,895 185,185

Operating Surplus (Deficit)$ (9,269) $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 11,275 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 5 Estimated Available Fund Balance as of June 30, 2018 11,280 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (555) Estimated Available Fund Balance as of June 30, 2019 $ 10,725 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 5.8%

Estimated Revenues

EXPLANATORY INFORMATION

The Festival is a nationally renowned non-profit arts and cultural event which is regularly recognized by art festival industry publication Sunshine Artist Magazine. After the 2017 festival season, the East Lansing Art Festival was ranked 38th in their top 100 list, out of over 4,000 fine art festivals across the nation. The Festival draws an estimated 60,000-70,000 annual visitors to the City and has a $2.2 million economic impact on the region. The Festival is produced with revenue from artist fees and generous donations from community members, businesses, and grants. Sponsor contributions and grant revenue continues to be difficult to obtain.

DEPARTMENT APPROPRIATION

FUND Art Festival FUNCTION Culture and Recreation STAFF RESPONSIBLE Michelle Carlson/Tim McCaffrey

ACTIVITIES

The East Lansing Art Festival is an annual two-day outdoor celebration of the arts in downtown East Lansing. It features nearly 180 juried fine art exhibitors, free live music performances, an artist demonstration area, a poetry reading, a haiku-writing workshop, theatrical teasers, and hands-on arts activities for children of all ages.

For the past four years, the Festival has expanded its creative offerings. In 2015, the Festival created an artist demonstration area which has provided a creative outlet for local artists and visitors alike, allowing studio artists a chance to reveal their process while patrons ask questions and observe. In 2018, All for Art, Art for All, the East Lansing Art Festival Poetry Press’ third volume, will be available in both the artist demonstration area and merchandise booth. The Festival will also unveil yet another new event in the demo area.

The literary arts have also been brought into the Festival’s mix in the form of an annual poetry reading, chalking events, a haiku-writing seminar, and the creation of a poetry press which is dedicated to taking submissions and publishing a slim volume of poetry for the Festival each year. The poetry reading and seminar give local established and emerging poets, as well as residents who just like to learn and write, an opportunity to share their most recent work and grow. Another new offering in 2017 was Flash Fiction listening event with Fiction 440, a local group that challenges local writers to write a story in four hundred forty words. Like the other events, bringing Fiction 440 to the Festival will present patrons with something different and intriguing while providing local fiction writers with the opportunity to read in front of a new, diverse audience.

In 2017, the Festival’s creative offerings continued with a niche for theater buffs, giving local theater companies an opportunity to connect with festival patrons through fifteen to twenty-five minute previews, or teasers, of their upcoming theater productions. This event gives actors and directors a bit more practice, and festival patrons a bit more excitement.

EXPLANATORY INFORMATION

The City employs a part-time festival director to manage the annual event and a part-time employee to assist in administrative and operational work. In 2018 the East Lansing Art Festival will be facing new challenges of moving the entire festival site to the east end of the downtown district. This move is due to the Center City construction project occurring in Lot 1 and using half of Albert Ave. With the move of the Festival, and as vendor service fees continue to rise, the Festival is anticipating increased costs. Total expenditures budgeted in FY2019 are increasing by $4,290, or 2.4% more than FY2018 budget.

City services charged back to the Festival, and other operating fees have increased in recent budget years. In FY2019 the City has allocated service fees, totaling $23,035, for general government indirect charges of $5,875; audit services of $300; insurance, bonds, and claims of $405, computer rental of $4,705, Department of Public Works charges for weekend staffing, site needs, and trash removal of $11,750.

The Festival will be able to absorb the intergovernmental charges in FY2018, utilizing the subsidy provided by the General Fund in the amount of $5,965. In FY2019 the Festival will not be able to cover the cost of operations and requires an increased subsidy from the General Fund in the amount of $10,000. At this time, we are estimating the City’s Art Festival Fund will end FY2019 at 5.8% fund balance as a percentage of operating expenses. This falls below the maximum fund balance desired by City Council policy resolution of (8% - 15%).

NOTES:______

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DEBT SERVICE FUND

101

DEBT SERVICE FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property taxes$ 753,536 $ 768,335 $ 796,430 Special Assessments 330,633 - - Interest Income 1,872 1,500 750 Other Financing Sources 775,565 465,880 448,300

Total Revenues & Financing Sources 1,861,606 1,235,715 1,245,480 Expenditures & Financing Sources: Debt Service 1,965,749 1,235,715 1,245,480 Transfers Out 135,986 - -

Total Expenditures & Financing Sources 2,101,735 1,235,715 1,245,480

Operating Surplus (Deficit)$ (240,129) $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 43,963 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (34,055) Estimated Available Fund Balance as of June 30, 2018 9,908 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (5,520) Estimated Available Fund Balance as of June 30, 2019 $ 4,388 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 0.4%

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DEBT SERVICE FUND Estimated Revenues

EXPLANATORY INFORMATION

The proposed millage rate is decreasing to 0.7715 mills from the prior year (0.7946 mills), and the total FY2019 budget is increasing 0.8%. The property tax revenue budgeted in FY2019 relates to bonds for the Hannah Community Center and Aquatic Center, with a final maturity date in FY2019, thus the final year that debt mills will be levied.

Other financing sources are made up of transfers from various funds to cover their associated debt payments, as well as reappropriated fund balance. The transfer from the General Fund of $61,525 relates to the debt issued in 2008 for various capital improvements. The transfer from the Solid Waste Fund of $63,200 relates to the debt issue for the methane extraction system installed at Burcham Park. The contribution from the DDA of $317,055 is for the debt issue relating to the City Center I project. The debt related to the SmartZone (Technology Innovation Center) buildout was defeased in FY2015. This resulted in approximately $600,000 of cash being deposited into a restricted escrow account which will pay off the related bonds as they become due and callable. The only remaining cost related to this defeased debt is the $1,000 paying agent fee which is paid by the Local Development Financing Authority (LDFA). In addition, FY2019 includes a $5,520 reappropriation of fund balance.

FY2018 is expected to use $34,055 of fund balance as the final voter approved debt reaches final maturity. The fund balance in this account will be minimal after FY2019, as is ordinary for debt service funds.

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DEPARTMENT APPROPRIATION

FUND Debt Service FUNCTION Debt Service STAFF RESPONSIBLE Jill Feldpausch

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Debt Service: Principal Payment$ 1,450,000 $ 1,110,000 $ 1,160,000 Interest Payment 164,462 122,245 82,355 Other Services & Charges 351,286 3,470 3,125

Total Debt Service$ 1,965,749 $ 1,235,715 $ 1,245,480

ACTIVITIES

• Central paying fund for non-proprietary fund debt payments

EXPLANATORY INFORMATION

This fund will pay the debt service on the following:

• Hannah Community Center/Aquatics Center Bond – final year FY2019 • Hannah Community Center Phase II Bond – final year FY2019 • City Center I Taxable Bonds (funded by the DDA) – final year FY2025 • Capital Improvements Bonds for various projects (funded by the General Fund) – final year FY2028 • Technology Innovation Center build out (in-substance defeasance completed in FY2015) – paying agent fee only • Burcham Park methane extraction system (funded by the Solid Waste Fund) – final year FY2019

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CAPITAL IMPROVEMENT FUND

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CAPITAL IMPROVEMENT FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue: Avondale Square CDBG Grant$ 118,691 $ 114,790 $ 110,785 Avondale Square Brownfield Reimbursement 67,002 84,925 96,520 Facility Improvements State Grant - - 8,240 Charges for Services - Wilson Rd - - 5,116,520 Other Misc Revenue - Avondale Square Lot Sales 86,900 - - Other Financing Sources: Transfer from General Fund - Avondale Square - - 99,010 Transfer from General Fund - Property Demo 56,000 - - Transfer from General Fund - Facility Imp. 304,000 220,000 141,000 Transfer from Insurance Fund - Facility Imp. 500,000 - - Reappropriated Equity - Wilson Rd - 228,865 Reappropriated Equity - Avondale Square - 109,175 - Reappropriated Equity - Property Demo - 55,600 - Reappropriated Equity - Facility Improvements - 654,015 16,760

Total Revenues & Financing Sources 1,132,593 1,238,505 5,817,700 Expenditures & Financing Sources: Personnel Services - Wilson Rd - - 35,000 Operating Costs Wilson Rd - - 5,310,385 Avondale Square 21,277 - - Property Demolition 2,131 55,600 - Facility Improvements 27,300 - 3,500 Capital Outlay - Facility Improvements 493,212 874,015 162,500 Debt Service - Avondale Square 311,106 308,890 306,315 Total Expenditures & Financing Sources 855,027 1,238,505 5,817,700 Operating Surplus (Deficit)$ 277,566 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 663,878 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (332,535) Estimated Available Fund Balance as of June 30, 2018 331,343 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (245,625) Estimated Available Fund Balance as of June 30, 2019 $ 85,718 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 1.5%

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CAPITAL IMPROVEMENT FUND Estimated Revenues & Expenditures

EXPLANATORY INFORMATION

In FY2018, the City received approximately $2.5 million through a Michigan Department of Transportation (MDOT) grant to assist MSU in redevelopment of Wilson Road, from 544 feet east of Bogue Street to Hagadorn Road. The total construction cost is expected to be $7.6 million with MSU financing the difference of $5.1 million. The City will record the full construction cost in this fund with offsetting revenue from the grant and MSU. In recognition of the City’s administrative time to manage this pass-through grant and construction activity, MSU will reimburse up to $50,000 of staff cost. The grant will be received in full in FY2018 and MSU will advance monies as needed to pay the contractor. It is anticipated this project will be 30% complete at the end of FY2018, therefore, 70% of the activity is requested as part of the FY2019 budget.

The Avondale Square project is complete with all lots sold and single family homes in place. FY2018 is projected to use approximately $107,000 of fund balance, which has accumulated over the years as General Fund transfers have exceeded the actual needs. To this point, the operating deficits have been offset by lot sale revenue, but now that those have ended, the shortfall is projected to spike in FY2018 and gradually decline as TIF revenue increases on an inflationary basis. The project will see an increase in TIF revenue for FY2019, up to $96,520. Debt on the project includes the Section 108 loan being repaid with CDBG revenue. The City bond is being repaid with TIF and lot sale revenue, as well as the aforementioned General Fund subsidies.

In FY2018, the City demolished 631 Lexington, a vacant single-family house that was designated a dangerous building. The costs will be placed as a lien on the property and hopefully will be recovered through tax or mortgage foreclosure, or alternatively at the time of a traditional sale. We are not budgeting any demolition funds for FY2019, as we do not currently have any other properties proceeding through the dangerous building process.

Numerous critical facility improvements were completed over FY2017 and FY2018. A transfer from the General Fund of $524,000 and the Insurance Fund contributing $500,000 covered the majority of these emergency repairs or replacements. However, it is expected an additional $175,000 will be needed before the end of FY2018. The improvements completed or expected to be completed by the end of the current fiscal year include City Hall sidewalk replacement to comply with ADA requirements; City Hall parking lot improvements; ADA automatic door openers for the Courtrooms; replacement of the boiler at Fire Station #1; replacement of the City Hall freight elevator; and replacing roof sections A, L, and M at the East Lansing Hannah Community Center.

A total of $1,158,700 in high priority facility related improvements were identified in the original staff recommended budget request. Due to limited funds available, the budget request included here was reduced to $166,000 and only include those of highest priority or emergency. The request includes $20,000 to repair the concrete ceiling in the basement below the Hannah swim pool, $15,000 to replace the stairs at the emergency exit from the east gymnasium at Hannah Community Center, $35,000 to replace the overhead door closures at Fire Station #1, and $46,000 to replace the windows, roof, eaves, and soffits of the Orchard Street Pump House, and $50,000 to upgrade the sound system in the Hannah Community Center Theater (funded partially through a MCACA grant).

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NOTES:______

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PARKS CAPITAL IMPROVEMENT FUND

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PARKS CAPITAL IMPROVEMENT FUND Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 272,125 $ 866,375 $ 548,775 Community Support 13,065 86,935 25,000 Interest Income 1,136 800 1,000 Other Financing Sources - 130,728 52,820

Total Revenues & Financing Sources 286,326 1,084,838 627,595 Expenditures & Financing Sources: Capital Outlay 144,661 1,079,838 367,595 Transfers Out 3,225 5,000 260,000 Total Expenditures & Financing Sources 147,886 1,084,838 627,595 Operating Surplus (Deficit)$ 138,440 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 181,786 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (124,720) Estimated Available Fund Balance as of June 30, 2018 57,066 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (52,820) Estimated Available Fund Balance as of June 30, 2019 $ 4,246 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 1.2%

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PARKS CAPITAL IMPROVEMENT FUND Estimated Revenues & Expenditures

EXPLANATORY INFORMATION

The Parks Capital Improvement fund includes revenues and expenditures related to parks capital improvement projects. The majority of revenues in this fund are grant revenues and community donations.

The FY2018 amended revenue budget includes $816,375 from the Ingham County Parks and Trails Millage for the pedestrian bridges and trails project, $50,000 from the Natural Resources Trust Fund for Patriarche Park baseball field improvements, and $86,935 in contributions and donations ($40,000 for Patriarche Park baseball fields, $21,935 for the Veterans Memorial at Hannah Community Center, and $25,000 from Capital Area Housing Partnership for use in Bailey Park). The amended revenue budget also includes a transfer from the general fund of $106,938 to cover the engineering cost of the bridge and trail work, as well as $23,790 in planned use of fund balance.

Expenditures in the FY2018 amended budget for this fund include capital outlay of $1,079,838: $26,525 for construction of a Veterans Memorial at Hannah Community Center; $105,000 for the improvements to the Patriarche Park baseball fields; $923,313 is budgeted for the Pedestrian bridges and trail project; and $25,000 for Bailey Park improvements. In addition, a $5,000 transfer out is budgeted for maintenance of the Patriarche Park playground.

Of the items budgeted in FY2018, the Patriarche Park baseball fields have been pushed into FY2019 and the Bailey Park improvements are expected to occur in FY2020 at the earliest. Much of the trail and bridge improvements are expected to be completed in FY2018 with some expenditures carried over into FY2019. These improvements are funded with Ingham County grant dollars and due to the timing of the expenditures and reimbursement schedule, FY2018 is expecting a shortfall of $260,000. A recommended budget amendment will be presented to Council closer to year end when the actual amounts are known. This budget request assumes a transfer from the Insurance Fund occurs in FY2018 to cover the cash flow shortage, with it being reimbursed in full in FY2019.

FY2019 revenues proposed in the Parks Capital Improvement Fund include: $381,525 from the Ingham County Trails and Parks Millage for pedestrian bridge repairs and improvements to the Northern Tier Trail, $50,000 from Natural Resources Trust Fund Grants for the Patriarche Park baseball field improvements, $117,250 from Ingham County for the White Park trail extension, and $25,000 of contributions from the East Lansing Baseball Club for the Patriarche Park baseball field improvements. Additional revenues proposed include $1,000 in interest income and $52,820 in reappropriated fund balance for the Patriarche Park baseball fields.

Expenditures proposed for this fund in FY2019 include $136,935 for pedestrian bridge repairs and Northern Tier Trail improvements; $113,410 for improvements to the baseball fields in Patriarche Park; and $117,250 to extend the Northern Tier Trail through White Park. Finally, a transfer of $260,000 to the Insurance Fund to reimburse the advance of funds expected in FY2018 noted above.

The fund balance at June 30, 2017 was $181,786, per audited financial statements. All of these funds are earmarked for current projects and FY2019 or FY2020 capital projects.

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NOTES:______

112 ENTERPRISE FUNDS

NOTES:______

114

AUTOMOBILE PARKING SYSTEM FUND

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AUTOMOBILE PARKING SYSTEM FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 135,839 $ 143,795 $ 154,305 Charges for Services 4,223,102 4,253,355 4,064,000 Rental Income 21,575 21,000 15,785 Capital Contributions 100,525 - - Other Miscellaneous Revenue 10,838 10,000 1,000 Interest Income 20,640 5,500 6,000 Other Financing Sources 255,200 1,222,775 304,905

Total Revenues & Financing Sources 4,767,719 5,656,425 4,545,995 Expenditures & Financing Sources: Personnel Services 984,689 818,580 830,035 Operating Costs 1,437,197 1,301,585 1,288,645 Capital Outlay (21,705) 1,788,730 640,980 Debt Service 475,055 815,170 927,575 Transfers Out 1,961,400 932,360 858,760 Total Expenditures & Financing Sources 4,836,636 5,656,425 4,545,995

Operating Surplus (Deficit)$ (68,917) $ -$ -

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AUTOMOBILE PARKING SYSTEM FUND Estimated Revenues

EXPLANATORY INFORMATION

The Automobile Parking System Fund’s FY2019 overall budget of $4,545,995 is decreasing significantly compared to that of FY2018. This is primarily due to the planned use of remaining bond proceeds during the current fiscal year. In addition, we have experienced decreases in the number of transactions in the parking system resulting in a reduction of revenue.

Intergovernmental revenue relates to monies received from the Albert Place Brownfield tax captures. This is used to offset a portion of the debt service costs for the Albert Place (Lot 7) garage and Bailey (Lot 11) lot expansion.

The largest revenue line item is charges for services which accounts for parking system user fees. The parking system has experienced an approximate 11.0% decrease in gated lot transactions so far this fiscal year, compared to the same time frame last fiscal year. Strong parking permit demand is helping to offset the trend of fewer hourly transactions. Because of this trend and several recent rate increases, we are proposing no rate increases to hourly or permit fees, this fiscal year. Aside from the decline in transactions, we did not regularly max out permit sales, and did not fill up for all football games. In addition, it is hard to determine what impact, if any, the anecdotal trend of declining motor vehicle usage has had on system utilization.

Albert Avenue (Lot 1) was taken off-line for Center City construction, which has taken away a parking lot that had $750,000 in revenue annually. We are expecting the Center City garage to come online in March of 2019, providing some replacement revenue. In addition, the developer for the project has guaranteed $350,000 of permit revenue over the course of fiscal years 2018, 2019, and 2020.

We are proposing changes to a flat, upfront fee structure for the Art Festival of $5 per day, along with football game days, but at the rate of $20. This pay at entry fee would be for the Division, Charles, and Albert (Center City) garages only. Permit proximity card costs have increased, so we are proposing an increase of those fees from $10 to $15 per card. This is charged to customers who purchase a monthly discount permit for the proximity card itself, and to anyone who loses their permit card and needs a replacement. This has a minimal impact on the budget, but helps to cover the proximity card expense.

Rental income reflects the revenue received from leasing out advertising space to Adams Outdoor Advertising in various locations, space rental in MAC garage for Marriott laundry, and space in Bailey (Lot 11) for a MSUFCU ATM. This line item could be increased by charging MSU for their use of SCENE Metrospace at Division garage, or get a paying customer in that space. The parking fund pays for gas, electric, garbage, and repairs/maintenance for this space, but receives no rent. The last year of expenses was approximately $3,500.

In FY2017, $100,525 was received from the Marriott Hotel and Office as their contribution to the MAC garage rehab project. This was used to cover some repairs that were condo unit splits, such as super-structure beam repairs, ceiling tiles, and fire suppression system work. No additional contributions are expected in FY2018 or FY2019.

Other financing sources consist of a $169,000 contribution from the DDA and $135,905 of reappropriated equity, or use of fund reserves. The DDA contribution is substantially less than previous years, due to the percentage capture being lowered to 79% on DDA TIF Plan #1 when Council amended the plan in 2014. These funds are used towards the MAC garage (Lot 12) debt service costs. The use of fund equity relates to using the final debt proceeds towards the parking equipment and other miscellaneous costs of the Center City garage.

Based on the Parking Master Plan update performed by Carl Walker in 2015, a renewed focus should be placed on establishing a parking reserve fund to help pay for future heavy repairs and capital improvements. We will continue to move towards this philosophy in the coming years, as deferred maintenance is completed and hopefully fewer funds are required for such repairs.

117

DEPARTMENT APPROPRIATION

FUND Automobile Parking System FUNCTION Parking System STAFF RESPONSIBLE Caleb Sharrow/Tim Dempsey

ACTIVITIES

• Provide a safe, convenient parking system so downtown residents and customers of the commercial district can park close to their destination at a reasonable fee • Oversee the collection and processing of revenues from 120 parking meters, 6 multi-space meter machines, and 6 gated parking facilities (2,606 spaces currently and 3,226 total spaces with Center City) • Administer the monthly and semester parking permit system • Administer the merchant validation program for approximately 50 businesses • Maintain parking lots, garages, parking gate equipment, parking meters, pay stations, and multi-space meter machines • Work with condo associations and interested parties as they relate to mixed-use developments that house city parking facilities • Coordinate with downtown businesses to assist with their parking or downtown maintenance concerns • Assist with annual downtown events including the Art Festival, Jazz Festival, Taste of East Lansing, and Winter Glow • Handle parking for special events, such as MSU home football games and the MSU homecoming parade • Work with the DMB & DDA to promote the downtown and incentivize new and existing customers to visit

EXPLANATORY INFORMATION

Throughout FY2017 and FY2018, the Parking Fund completed extensive facility improvements and upgrades including the MAC garage reconstruction project; installation of the new PARCS equipment; installation of new smart street meters; new multi-space meters; a new Division garage generator; new Charles garage battery inverter system; and new Charles garage elevator floors. The concrete and waterproofing repairs at Charles, Division and Grove garages from our 2015 facility assessment are expected to be completed in the summer of 2018.

The Parking Fund is expecting a slight increase in personnel services, which is due mostly to increased costs of funding retiree healthcare. FY2019 includes an increase in contingent employee hours and related costs. However, we continue to realize an approximate $80,000 annual savings in contingent wages by transitioning to cashier-less gated lots.

Operating costs are decreasing approximately 1.0%. This is due to a significant decrease in repairs and maintenance, offset by more credit card fees from increased credit usage, electric rate increases, and budgeting for the electric usage of the new Center City garage. The repairs and maintenance budget continues to plan for appropriate preventative maintenance and a modest amount of unexpected repairs. Keeping up on preventative maintenance, general repairs, concrete repairs, and caulking are all key to lessening future substantial repair expenses.

Capital outlay expenses are budgeted for $640,980 in FY2019 for way-finding signage for the entire Center City garage, a portion of the facility concrete and waterproofing project, two new express lane exit machines to complete our transition to express lanes at Bailey (Lot 11) & MAC (Lot 12), and main parking office move and build-out for the new location at Center City.

Debt service in FY2019 is increasing $112,405, as this will be the first year principal is paid on the MAC garage rehab and PARCS equipment debt issue.

118

DEPARTMENT APPROPRIATION (Continued)

FUND Automobile Parking System FUNCTION Parking System STAFF RESPONSIBLE Caleb Sharrow/Tim Dempsey

EXPLANATORY INFORMATION (Continued)

Transfers out of $858,760 accounts for the contributions to the Building Authority and is used for debt service. This amount is decreasing again in FY2019, as one more bond issue was paid in full in FY2018. This will again decrease significantly in FY2021 when annual debt service of approximately $730,000 drops off. The final debt issue matures in FY2025 at which time this transfer will be eliminated completely.

Through DMB meetings and discussion with Community Event employees, we are proposing the following free parking for FY2019:

• Sidewalk Sales: September 13-16, 2018 (Free Parking Voucher Provided to Registered Business from 11 a.m.-10 p.m. Sep. 13-15/NOTE: Off Weekend for MSU Football) • Great Pumpkin Walk: Oct. 30, 2018 (4 Hours Free Parking: 5 p.m.-9 p.m./Event is from 5 p.m.-7 p.m.) • Green Friday: November 30, 2018: (Free Parking Voucher valid from 11 a.m.-10:00 p.m. in gated lots) • Winter Glow: December 1, 2018 (5 Hours Free Parking: 2:00 p.m.-7:00 p.m./Event from 2:00 p.m.-5:00 p.m.) • Girls Night Out in December 2018 (Date TBD): (Free Parking Voucher Provided to Registered Businesses from 11 a.m.-10:00 p.m. in gated lots) • Holiday Guide Printed in December 2018: 2-3 Hour Parking Voucher Placed in Guide • St. Patrick's Day (Is on a Sunday): Free Overnight Parking Until Noon in Lots 4,7,8, and 15

119

NOTES:______

120

BUILDING AUTHORITY

121

BUILDING AUTHORITY Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Rental Income$ 47,474 $ 48,720 $ 47,180 Interest Income 1,359 1,000 2,000 Other Financing Sources 1,961,400 948,515 858,760

Total Revenues & Financing Sources 2,010,232 998,235 907,940 Expenditures & Financing Sources: Operating Costs 545,990 9,420 6,875 Debt Service 330,258 988,815 901,065

Total Expenditures & Financing Sources 876,248 998,235 907,940 $ - Operating Surplus (Deficit)$ 1,133,984 $ -

122

BUILDING AUTHORITY Estimated Revenues

EXPLANATORY INFORMATION

The Building Authority served as a financing mechanism to construct parking facilities. Beginning in FY2007, any new debt associated with parking facilities is accounted for in the Automobile Parking System Fund, with the debt in the City of East Lansing’s name rather than in the name of the Building Authority.

The Building Authority’s first bonds, issued in 1967 and 1968, are now fully paid off. In 1985 and 1987, bonds were issued to construct the ramp underneath University Place. In 1988 and 1989, bonds were issued to construct a 600 space ramp in the 400 block of Albert Street. In August 1991, the Building Authority issued $14,040,000 in new bonds to refinance the 1985, 1987, 1988, and 1989 bonds. These have a lower interest rate and longer maturity than the four refinanced issues. Proceeds of the newer bonds were escrowed and invested and will pay off the principal and interest on the four refinanced issues. In 1996, a portion of the 1991, issue pertaining to the 1985 issue, was refinanced again, saving $15,000 per year. In 1999, the Building Authority again refinanced a portion of the 1991 debt. In FY2008, a portion of the 1991 Building Authority bonds were refinanced, which constituted a savings of approximately $14,050 a year. In FY2009, the remaining balances of the 1999 bonds were refinanced, with an average savings of approximately $48,900 a year. These bonds were paid in full in FY2017.

In FY1997, the Building Authority issued $975,000 in bonds to renovate Lots 1 & 7. The bonds were paid in full in FY2018, and Lot 1 was formally deeded to the City to allow the Center City development to proceed.

In FY2000, the Building Authority issued $12,500,000 in debt for the City Center I garage. In FY2005, these bonds were refinanced resulting in a $16,000 savings. In FY2015, a refunding of the 2005 City Center I bonds resulted in a net present value savings of $472,000, over the remaining ten years. The 2005 bonds will be paid in full in FY2020 and the 2015 bonds will be paid in full in FY2025.

INCOME

$ 47,180 Rental Income – The Division Street garage has commercial retail space for rent. Part of the space is rented to Georgio's Pizza, while Scene Metro Space occupies the other space. This line item also includes the lessees’ share of real property taxes for Georgio’s Pizza. The total income derived from these items is $36,515 while the remaining $10,665 relates to the cell tower lease revenue that can be recognized in the current fiscal year. The cell tower leases were sold in FY2011 to AP Wireless and cash was received up front, however the revenue stream is being recognized over a 30 year period.

$ 2,000 Interest Income – This represents income from investments held by the Building Authority.

$ 858,760 Other Financing Sources – This is made up a transfer from the Parking Fund. The Building Authority leases the City Center/Charles Street garage, the Division Street garage, the MAC Avenue garage (under University Place), as well as the Bailey Street lot to the Parking Fund. The contribution from the Parking Fund, of $858,760, is based on the monies needed to cover the debt paid by the Building Authority.

123

DEPARTMENT APPROPRIATION

FUND Building Authority FUNCTION Parking System STAFF RESPONSIBLE Jill Feldpausch

ACTIVITIES

• Sell bonds and build parking ramps for the City Parking System (pre-FY2007)

EXPLANATORY INFORMATION

The minimal operating costs primarily relate to expenditures for the property taxes on the commercial space of the Division Street garage. The actual operating cost in FY2017 is much larger than the budgeted amounts, as it includes depreciation expense of the Authority’s assets and we do not budget for this non-cash expenditure.

The Authority is responsible for the outstanding debt service on the bonds which financed the City Center/Charles Street garage. The full debt service on the bond issues is included here. Total outstanding debt, including interest, as of June 30, 2017, is $6,929,659, with final principal and interest payments ending in FY2025. The actual debt service cost in FY2017 appears significantly lower, as this is the interest only piece and we budget both principal and interest amounts. FY2019 budget decreased, as the 1997 debt issue was paid in full during FY2018.

124

SEWAGE DISPOSAL SYSTEM FUND

125

SEWAGE DISPOSAL SYSTEM FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Intergovernmental Revenue$ 1,386,805 $ 1,281,670 $ 956,705 Charges for Services 10,371,675 11,489,235 13,218,855 Rental Income 13,547 12,315 11,420 Interest Income 31,355 13,430 20,000 Other Financing Sources 834,793 28,903,900 23,558,615

Total Revenues & Financing Sources 12,638,175 41,700,550 37,765,595 Expenditures & Financing Sources: Personnel Services 3,134,506 3,145,550 3,062,225 Operating Costs 5,978,592 6,116,915 6,300,330 Capital Outlay (244,172) 29,990,300 26,145,465 Debt Service 641,509 2,447,785 2,257,575

Total Expenditures & Financing Sources 9,510,435 41,700,550 37,765,595

Operating Surplus (Deficit)$ 3,127,741 $ -$ -

126

SEWAGE DISPOSAL SYSTEM FUND Estimated Revenues

EXPLANATORY INFORMATION

The FY2019 Sewage Disposal System budget is $37,765,595, a decrease of 9.4% from FY2018. The decrease is attributed to the next phase of State Revolving Fund (SRF) Water Resource Recovery Facility (WRRF) projects explained below. A utility rate model was developed in FY2008 which calculates utility rates based on the estimated cost to provide water and sewage services while maintaining adequate fund balances. Rates are divided into three components; billing, readiness to serve, and commodity charges. Rates now more accurately cover administrative costs, such as customer billing, that do not vary with yearly fluctuations in weather. This rate study recommends an overall increase of 8.2% in sewage billing rates for FY2019, for the typical user. The rate increase for a typical sewer bill is $3.57 per month.

INCOME

$ 956,705 Intergovernmental Revenue – This line item includes the portion of debt paid by MSU and Meridian Township, for the optimization improvements at the WRRF. FY2017 actual also included $631,508 of Stormwater, Asset Management & Waste Water (SAW) grant funds. FY2018 is expected to end the year at $1,038,465, with $200,340 of grant funds and $838,125 of contributions from MSU and Meridian Township.

$ 13,218,855 Charges for Services – Charges to customers for sewage services makes up more than half of this line item with $7,017,665. MSU and Meridian Township share the expected operating costs of the WRRF, $2,765,080 and $2,956,310, respectively. Eastwood Towne Center properties are anticipated to increase consumption with additional occupancy, bringing revenue to $307,000. The remaining funds are generated from connection charges and penalties on delinquent utility bills. Connection fees are increasing on average 11% in FY2019. This is part of the continued effort to increase connection fees, to recover systems costs, with the implementation of Replacements Cost New Less Depreciation (RCNLD) method.

$ 11,420 Rental Income – Represents cell tower lease revenue that can be recognized in the current fiscal year. The cell tower leases were sold in FY2011 to AP Wireless and cash was received up front, however the revenue stream is being recognized over a 30 year period.

$ 20,000 Interest Income – Income earned on fund reserves.

$ 23,558,615 Other Financing Sources – The City plans to issue debt in the spring of 2019 to finance the third in a series of upgrades to the WRRF, using low interest loans from the SRF. The third phase of improvements is a $38,200,000 project, to replace the Woodingham Pump Station, replace the Solids Handling processes at the WRRF, and improve critical sewers on Michigan Avenue and along Harrison Road. It is expected that the project will be completed in FY2021. Finally, funding is included to complete the second project, consisting of the construction of a new Headworks and Grit removal facility and related upgrades which is expected to be completed in May of 2019.

127

DEPARTMENT APPROPRIATION

FUND Sewage Disposal System FUNCTION Public Works STAFF RESPONSIBLE Scott House/Paul Stokes/Bob Scheuerman

ACTIVITIES

• Prepare combined water & sewage billings and process customer payments • Maintain customer account information and resolve billing questions • Coordinate account changeover process with rental property owners during peak turnover times • Generate delinquency notices to inform customers and third parties of past due accounts • Maintain sanitary and combined sewer collection system including: sewer main repairs; catch basin and manhole repairs and replacement; jetting; sewer main replacement; and customer complaints • Fund sanitary and combined sewer line replacements and system expansions • Treat wastewater flows for the City, MSU, Meridian Township, and Eastwood Towne Center to comply with state and federal water quality standards • Maintain the physical components of the wastewater plant • Operate and maintain the City's separated sewer pump stations • Operate and maintain the City's Combined Sewer Overflow (CSO) and retention basin

EXPLANATORY INFORMATION

The budget continues funding of phase II of the WRRF and collection system upgrades, with improvements to the headworks, grit removal system, and the rehabilitation and repurposing large interceptors to the WRRF. In addition, funding is included for phase III of WRRF and collection system, with funding for the replacement of the Woodingham Pump Station, Solids Handling Process Improvements, and improvements to critical sewers along Michigan Avenue and Harrison Road, to improve flow to the WRRF and pull storm water from the sewer system.

Personnel services have decreased by 2.6%, which can be attributed to the elimination of an intern position and a reduction in allocation of one engineer position.

Operating costs have increased 3.0% from last year. Internal maintenance efforts continue to increase at the WRRF, comprised of reactive and planned maintenance, and coordination of new construction projects. In addition, funding was increased for the required repairs and major maintenance at the WRRF. Funds are provided for the completion of the design and bidding of phase III SRF funded WRRF and collection system improvements.

Included in the operating and capital outlay amounts are $26.1 million for engineering and construction efforts for SRF funded projects and cash funded maintenance efforts. Projects include $12 million for the completion of phase II WRRF upgrades, $11.05 million for beginning of phase III WRRF and collection system improvements, $1.95 million for the lining of 7,878 feet of the Red Cedar Interceptor, $622,000 in capital maintenance at the WRRF, $390,000 for emergency sewer repairs and repairs associated with street projects, and $100,000 for major maintenance at the CSO basin.

128

DEPARTMENT APPROPRIATION (Continued)

FUND Sewage Disposal System FUNCTION Debt Service STAFF RESPONSIBLE Scott House/Paul Stokes/Bob Scheuerman

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Debt Service: Principal Payment$ - $ 1,299,340 $ 1,339,565 Interest Payment 528,795 1,147,985 917,350 Other Services & Charges 112,714 460 660

Total Debt Service$ 641,509 $ 2,447,785 $ 2,257,575

EXPLANATORY INFORMATION

The City borrowed $660,000 in FY2000 which completed the last portion of Phase I of the CSO Project, which represents sewer separation in the Wilmarth Drain area. In FY2004, the City borrowed $9,073,648 to implement the final phase of the CSO abatement project, which consisted of constructing a large retention basin near Kalamazoo St and Harrison Rd. This basin collects sewage and storm water during very heavy storms, where it is held until it can be treated by the plant. In FY2007, debt relating to the deferred connection fees for the installation of utilities on West Rd and Coleman Rd was issued. FY2013 added bonding for the Kalamazoo St SRF project, FY2015 added the SRF loan with total drawdowns of $15 million, and FY2017 began drawdowns of the previously mentioned new SRF loan with this continuing into FY2018. FY2019 includes yet another new SRF loan as previously mentioned. MSU and Meridian Township will share their applicable percentages of these FY2013, FY2015, FY2017, and FY2019 loans.

In practice, principal payments reduce the debt, but for budget purposes we include both principal and interest payments in debt service. The SRF loans are completed based on a draw down method and interest expense is based on the draws completed at that point in time. Therefore, we budget based on an estimate for interest expense. FY2018 is expected to come in much lower than budget, due to the timing of the bond proceeds being received, and we expect to end the year closer to $587,000. As mentioned previously, we will continue with SRF improvements resulting in an increase in interest amounts expected in FY2019.

129

NOTES:______

130

WATER SUPPLY SYSTEM FUND

131

WATER SUPPLY SYSTEM FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Charges for Services$ 4,788,435 $ 4,906,865 $ 5,459,350 Capital Contributions 124,129 - - Interest Income 11,363 6,400 12,000 Other Financing Sources 216,337 364,140 390,700

Total Revenues & Financing Sources 5,140,265 5,277,405 5,862,050 Expenditures & Financing Sources: Personnel Services 482,693 1,165,365 1,005,865 Operating Costs 2,707,808 2,623,410 2,849,185 Capital Outlay (15,492) 1,357,900 1,873,950 Debt Service 64,205 130,730 133,050

Total Expenditures & Financing Sources 3,239,214 5,277,405 5,862,050

Operating Surplus (Deficit)$ 1,901,051 $ -$ -

132

WATER SUPPLY SYSTEM FUND Estimated Revenues

EXPLANATORY INFORMATION

The Water Supply System budget is $5,862,050, an 11.1% increase from last year. A utility rate model was developed prior to FY2008 and updated annually. The model calculates rates based on the estimated cost to provide water and sewage services while maintaining adequate fund equity. Rates are divided into three components; billing, readiness to serve, and commodity charges. These rates more accurately recover administrative costs, such as customer billing, that do not vary with yearly fluctuations in weather. In addition, an asset management plan was developed and submitted to the Department of Environmental Quality (DEQ) in 2017. Based on expenses and projected revenues, the rate model calculated an overall increase of 9.8% in water billing rates, for typical residential users. The rate increase for a typical water user is $2.94 per month. The increase reflects the cost for adjusting rates needed to fund system renewal as identified in the asset management plan.

INCOME

$ 5,459,350 Charges for Services – Metered utility billings of $5,179,950 makes up the majority of this line item and reflects charges to customers for water and irrigation services. Consumption is anticipated to increase based on recent development in the northern tier and possible downtown developments. The remaining funding relates to water connection fees, tap in fees, cross connection inspections, and penalties on past due utility accounts. Connection fees are increasing on average 8.4% in FY2019. This is part of the continued effort to increase connection fees, to recover systems costs, with the implementation of Replacements Cost New Less Depreciation (RCNLD) method.

$ 12,000 Interest Income – Income earned on fund reserves.

$ 390,700 Other Financing Sources – Reappropriated equity is programmed to smooth rates and to fund system improvements. The planned use of reserves in FY2019 is consistent with that of FY2018. The FY2017 actual amount reflects the net change in the City’s investment of the East Lansing Meridian Water Sewer Authority (ELMWSA), which is an accounting transaction and does not affect cash, therefore, is not a budgeted item.

133

DEPARTMENT APPROPRIATION

FUND Water Supply System FUNCTION Public Works STAFF RESPONSIBLE Scott House/Bob Scheuerman/Ron Lacasse

ACTIVITIES

• Purchase treated water from the East Lansing Meridian Water Sewer Authority (ELMWSA) • Read meters for water and irrigation services to track consumption • Install meters and remote readers for new accounts, as well as inspect and replace existing meters • Turn on and shut off water services as needed • Prepare combined water & sewage billings • Maintain customer account information • Maintain the water main distribution system including water main infrastructure replacements, system expansions, and service connections to private property • Maintain one ground surface and three elevated water storage tanks • Maintain the raw water mains within the City for East Lansing Meridian Water Sewer Authority

EXPLANATORY INFORMATION

Public works administrative and engineering staff costs are recorded in the General Fund. The other public works staff are pooled and recorded in the Garage & Public Works Services Pool Fund. Charges are then billed appropriately, via internal service charges, for services provided to the other funds. The staff primarily assigned to administrative, water distribution system activities, and water purchase activities are included here.

Personnel services for FY2019 decreased by 13.7%, which is attributable to the elimination of two long-term vacancies and allocation of personnel costs. However, depending on the impacts of the proposed changes to the Lead and Copper Rule, an eliminated position may have to be reinstated.

Operating costs are increased by 8.6%, or $225,775, due to several factors. First, there is an increase in contractual services to provide options for automated meter reading technology. In addition, funding has been programmed for materials and services to respond to potential changes in the Lead and Copper Rule. Last, as ELMWSA reinvests in the water treatment plant, and as new growth increases demand, the payment to ELMWSA is anticipated to increase by 8.9% from the FY2018 budget.

Capital outlay for FY2019 is $1,873,950, an increase of 38.0% from FY2018 budget. However, a significant FY2018 year-end budget amendment will be recommended to Council for water main replacement, as part of the FY2018 Glencairn local street project, costing approximately $980,000, pending final design. This project was identified during the asset management program plan development completed during FY2018, and was therefore not part of the annual budget. FY2019 includes funding for minor repairs, capital investments, and major projects. Major project investment includes $140,000 for the exterior coating of the Abbey Water Tower, $1,560,700 for the replacement and upgrade of up to 4,911 feet of water main, and the improvement of an emergency interconnect with the Lansing Board of Water and Light on Michigan Avenue. Projects were selected based on their business risk, as calculated in the asset management plan.

134

DEPARTMENT APPROPRIATION (Continued)

FUND Water Supply System FUNCTION Debt Service STAFF RESPONSIBLE Scott House/Bob Scheuerman/Ron Lacasse

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Debt Service: Principal Payment$ - $ 71,795 $ 76,605 Interest Payment 60,296 58,720 56,230 Other Services & Charges 3,909 215 215

Total Debt Service$ 64,205 $ 130,730 $ 133,050

EXPLANATORY INFORMATION

Debt service relates to capital replacement and upgrade of the existing water mains along Harrison Rd, between Kalamazoo St and Trowbridge Rd, and along Harvard Rd, between Coolidge Rd and Touraine Ave. Debt service also relates to new installations of water utilities along Coleman Rd and West Rd. Total debt service is $133,050 for FY2019, similar to FY2018 amounts. In practice, principal payments reduce the debt, but for budget purposes we include both principal and interest payments in debt service.

135

NOTES:______

136 INTERNAL SERVICE FUNDS

NOTES:______

138

COMPUTER SERVICES FUND

139

COMPUTER SERVICES FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Rental Income$ 969,650 $ 1,326,355 $ 1,343,980 Other Miscellaneous Revenue - - 500 Interest Income 509 500 500 Other Financing Sources - 1,550 35,545

Total Revenues & Financing Sources 970,159 1,328,405 1,380,525 Expenditures & Financing Sources: Personnel Services 343,911 338,800 344,970 Operating Costs 743,067 743,510 1,005,555 Capital Outlay - 70,000 30,000 Debt Service 1,376 - - Replenish Fund Equity - 176,095 -

Total Expenditures & Financing Sources 1,088,354 1,328,405 1,380,525

Operating Surplus (Deficit)$ (118,195) $ -$ -

140

COMPUTER SERVICES FUND Estimated Revenues

EXPLANATORY INFORMATION

This is an internal service fund used as the cost center for the City's computer and all other related technology operations. Departments are charged a fee, which then pays for the computer services staff, licenses, software and hardware maintenance, equipment maintenance, and equipment replacements. The FY2019 budget is $1,380,525, which is 3.9% higher than the amended FY2018 budget. The increase is due to an investment in network monitoring, updated disaster recovery planning, and an enhancement to cyber security.

INCOME

$ 1,343,980 Rental Income – This revenue is derived from renting equipment to the City's various departments. This charge includes recovering personnel service, operating, and capital outlay costs, as well as money set aside for future replacement of equipment.

$ 500 Other Miscellaneous Revenue – This account includes PC auction revenue, the funds generated by allowing staff to purchase computers that have met their end of life, and are deemed no longer useful by the Department of Information Technology. This modest amount helps to offset any additional costs accrued during the deployment of replacement computers.

$ 500 Interest Income – This amount consists of interest income on idle cash balances and fund balances throughout the year.

$ 35,545 Other Financing Sources – FY2019 will require the use of fund equity in the amount of $35,545 to cover the appropriations budgeted.

141

DEPARTMENT APPROPRIATION

FUND Computer Services FUNCTION General Government STAFF RESPONSIBLE Thomas Crane/George Lahanas

ACTIVITIES

• Coordinate and develop activities including system installation, configuration, system design, and application programming, and ensure fault tolerance of all network hardware and software • Coordinate the acquisition, installation, and testing of all hardware and software • Evaluate the efficiency and effectiveness of the core systems and all other enterprise applications • Manage all hardware and software inventory and ensure compliance with software licenses • Manage, administer, and support all electronic data systems and infrastructure across the City • Manage, administer, and support all communication and network infrastructure for the City • Provide effective oral, written, and visual presentation that assist in educating City employees on assigned information systems and services • Create and enforce standard computer policies in achieving City goals and objectives • Attend and participate in professional group meetings, teleconferences, and seminars for up-to-date trends in information technology

EXPLANATORY INFORMATION

Personnel services have increased by 1.8% due to a modest employee cost of living increase and applicable step increases.

Operating costs are showing an increase of 35.2%, due to increases in hardware and software maintenance agreements, network infrastructure upgrades, additional training, additional monitoring of critical infrastructure, increases in cyber security initiatives, and an upgrade to a modern email system.

Capital outlay and minor equipment spending are $30,000 and $274,820, respectively. Combined this is an increase of 42.6%, when compared to the current fiscal year. Minor equipment purchases, included in operating costs discussed above, were previously budgeted as part of capital outlay. Included in these line items are the purchase of additional CCTV cameras, wireless access points, routers and switches, an email filtering appliance, an upgrade for the backup SAN, and nearly 150 desktop and laptop replacements.

142

GARAGE AND PUBLIC WORKS SERVICES POOL FUND

143

GARAGE AND PUBLIC WORKS SERVICES POOL FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Charges for Services$ 174,459 $ 182,120 $ 146,815 Rental Income 3,910,682 3,915,970 4,036,820 Interest Income 13,043 9,000 10,000 Other Financing Sources 71,129 199,655 69,500

Total Revenues & Financing Sources 4,169,313 4,306,745 4,263,135 Expenditures & Financing Sources: Personnel Services 1,844,650 800,725 760,595 Operating Costs 1,808,867 1,247,540 1,106,370 Capital Outlay - 1,588,875 1,593,610 Debt Service 126,409 569,605 568,695 Replenish Fund Equity - 100,000 233,865

Total Expenditures & Financing Sources 3,779,926 4,306,745 4,263,135 $ - Operating Surplus (Deficit)$ 389,387 $ -

144

GARAGE AND PUBLIC WORKS SERVICES POOL FUND Estimated Revenues

EXPLANATORY INFORMATION

The Garage & Public Works Services Fund FY2019 budget is $4,263,135, which is a decrease of $43,610 from the current fiscal year’s budget. The decrease can be attributed to the reduction in positions and continuing to defer a portion of police and fire vehicle replacement costs. The Garage Fund’s equity has been established as monies available to replace vehicles and equipment when they have reached the end of their useful life.

INCOME

$ 146,815 Charges for Services – Income derived from mark up for materials ($20,100) and Geographic Information System user charges ($126,715).

$ 4,036,820 Rental Income – Includes budgeted revenue from the following sources:

• Equipment Rental of $3,109,945 is income derived from renting equipment to all departments, as well as services performed on state trunklines for the State Highway Department. Rental rate increases were capped for Police, Fire, and other General Fund activities to alleviate near term budgetary stress, but creating future liabilities. The replacement fees are now indexed by an inflationary factor and are more reflective of the current cost of replacing vehicles.

• Building Rent of $918,135 are charged to the various funds and departments using the garage and DPW offices, based upon the size of the area used and related maintenance and upkeep. This is a $5,435 increase from FY2018.

• Recognition of Sale of Cell Tower Leases accounts for $8,740 and relates to cell tower lease revenue stream. These leases were sold to AP Wireless in FY2011 and the Garage Fund received $189,720 up front; however, this amount has to be recognized over the life of the revenue stream sold, 30 years.

$ 10,000 Interest Income – Consists of interest income on idle cash balances.

$ 69,500 Other Financing Sources – This includes $69,500 derived from the proceeds of sales when the City sells vehicles and equipment taken out of service, usually at auction.

145

DEPARTMENT APPROPRIATION

FUND Garage and Public Works Services Pool FUNCTION General Government STAFF RESPONSIBLE Scott House/Cathy DeShambo

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Garage and DPW Services Pool Divisions: DPW Services Pool$ 1,027,319 $ 469,740 $ 511,255 Geographic Information System 111,210 129,040 119,990 Garage Equipment 2,514,989 3,138,360 3,063,195 Debt Service 126,408 569,605 568,695 Total Expenditures$ 3,779,926 $ 4,306,745 $ 4,263,135

ACTIVITIES

• Provide preventative maintenance and major repairs to public works vehicles and equipment, police vehicles, and fire vehicles and equipment • Maintain and operate the City's fuel dispersing system • Plan and arrange for the purchase of City equipment and vehicles • Construct and/or modify equipment to improve the efficiency of City operations • Administer the Garage revolving fund • Operate and maintain the Public Works facility and grounds on State Road • Serve as the public service labor pool

EXPLANATORY INFORMATION

The Garage and Public Works Services Pool Fund owns all City vehicles, including the Police and Fire Department’s equipment. It leases all of the vehicles and equipment back to each of the departments and is in turn responsible for the repairs and maintenance.

The majority of public works employees are centrally accounted for in this internal service fund and then billed to other funds as services are provided. The intent is to charge out approximately 100% of these employees' hourly pay, including benefits, to the activity for which the employee is providing the service. The majority of the personnel service costs presented are for the garage employees and the geographic information system analyst.

As with other City departments, the Service Pool has been reduced, through attrition, to achieve operational efficiencies and cost-savings. Since 2005, 17 positions have been eliminated, including four additional long-term vacancies in the FY2019 budget.

The FY2019 budget for operating costs is actually decreasing by $141,170, or 11.3%, from the FY2018 budget, primarily due to reduced expenditures in facility maintenance, shifting of computer rental charges, and more accurate budgeting of fuel costs. We have eliminated the practice of budgeting for depreciation, which is a non- cash item. Alternatively, we set up an equipment replacement reserve amount of $180,000, included in replenish fund equity. These monies will be set aside for future equipment and vehicle purchases.

146

DEPARTMENT APPROPRIATION (Continued)

FUND Garage and Public Works Services Pool FUNCTION General Government STAFF RESPONSIBLE Scott House/Cathy DeShambo

EXPLANATORY INFORMATION (Continued)

For budgeting purposes, in the current and future years, we choose to budget the cash outlay related to capital purchases. These purchases are capitalized in practice, as noted in FY2017 actual where capital outlay is zero. Capital outlay in the FY2019 budget is predominately for the replacement of vehicles in the City’s fleet, with $1,531,910 of capital outlay is included in the garage equipment division of the fund. It can, of course, fluctuate based on the number of vehicles scheduled to be replaced in the fiscal year, as well as the size/cost of the vehicles. Progress is being made on previously deferred vehicle replacements, increasing the reliability and productivity of the fleet, while decreasing maintenance costs.

Debt service expenditures relate to the bonds issued to build the DPW building. In practice, principal payments reduce the debt, but for budget purposes we include both principal and interest payments in debt service. There are two outstanding issues, with the first one being paid in full in FY2025 and the other in FY2028. The FY2019 amount is consistent with that of FY2018.

147

NOTES:______

148

INSURANCE AND BENEFITS FUND

149

INSURANCE AND BENEFITS FUND Revenues & Expenditures FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Charges for Services$ 7,330,185 $ 7,429,410 $ 7,186,670 Other Miscellaneous Revenue 20 - - Interest Income 20,856 15,000 17,500 Other Financing Sources - 507,812 260,000

Total Revenues & Financing Sources 7,351,061 7,952,222 7,464,170 Expenditures & Financing Sources: Operating Costs 6,156,038 7,952,222 7,203,040 Transfers Out 500,000 - - Replenish Fund Equity - - 261,130

Total Expenditures & Financing Sources 6,656,038 7,952,222 7,464,170 $ - Operating Surplus (Deficit)$ 695,023 $ -

Workers Health General Statement of Net Position: Compensation Reserve Liability Total Net Position as of June 30, 2017 $ 654,461 $ 1,584,418 $ 666,223 $ 2,905,102 Anticipated Surplus (Deficit) for year end June 30, 2018 127,886 474,694 99,460 702,040 Estimated Net Position as of June 30, 2018 782,347 2,059,112 765,683 3,607,142 Anticipated Surplus (Deficit) for year end June 30, 2019 - 261,130 - 261,130 Estimated Net Position as of June 30, 2019 $ 782,347 $ 2,320,242 $ 765,683 $ 3,868,272

150

INSURANCE AND BENEFITS FUND Estimated Revenues

EXPLANATORY INFORMATION

A Workers' Compensation Fund was established in FY1992 when the City became self-insured for workers' compensation. In FY1998, unemployment compensation and retiree health insurance reserves were added to this fund. The employee fringe benefits are now charged to the various departments and are recorded as revenue to the fund. Premiums and any self-insured costs are charged as expenses to this fund. The fund name was changed to Insurance & Benefits Fund to reflect the expanded activities. In FY2014, we began budgeting general liability claims out of this fund. This fund is an internal service fund which means it derives its revenues from other funds. It is the City’s intent to maintain a sufficient level of reserves in this fund to anticipate fluctuations in the self- funded portion of the plan, as well as self-insurance retention amounts.

In response to the challenge of controlling ever increasing healthcare costs, a Health Care Task Force (HCTF), comprised of administrative staff and bargaining unit representatives, was formed in the early 2000s. The HCTF has had continued success in creating health insurance cost savings by changing health care providers in response to competitive bids; in FY2017 the City switched to McLaren, from PHP, and will continue with McLaren through FY2019. By doing this, the HCTF has enabled the City to stay below the State mandated “hard cap”. In the FY2019 budget, we are expecting that all divisions will break even. The anticipated surplus for FY2019, shown on the statement of net position, is the reimbursement of the $260,000 transfer made at the end of FY2018.

INCOME

$ 5,836,630 Health Insurance Charges – Charges to other funds for health and prescription coverage for employees, dependents, and retirees. In recent years, the rate charged to other funds for active employees has subsidized the shortfall in the amount collected for retirees. The manual premiums have been adjusted for actives and retirees to eliminate this subsidy, and to accommodate a likely increase from the health care provider. Total income for these charges is decreasing from the FY2018 budget, as there are reductions in staffing and the make-up of the workforce changes.

$ 650,290 Other Benefit Charges – Internal charges for other benefits such as dental, long-term disability, and life insurance. These costs fluctuate based on personnel changes throughout the City.

$ 245,820 Workers' Compensation Charges – Charges to other funds to participate in the workers’ compensation self-insurance pool. Due to the uncertainty of claims, we set rates to maintain sufficient workers’ compensation equity to cover our self-insured retention level, $450,000 per occurrence. We kept rates flat in the FY2019 budget, as we have maintained adequate reserves over the past year.

$ 453,930 General Liability Insurance Charges – Charges to other funds for general, property, commercial, crime, excess liability premiums, third party administration fees, and actual claims paid out that fall below the self-insured retention amounts. We generate sufficient charges to user departments, via manual premiums, to generate money to pay our insurance carrier’s premiums and claim costs up to the self-insured retention level. The budget for liability insurance costs will remain flat for FY2019.

$ 17,500 Interest Income – This amount consists of interest income on idle cash balances throughout the year.

$ 260,000 Other Financing Sources – In FY2018, the Parks Capital Improvement Fund is expecting a cash shortfall of $260,000, due to the timing of expenditures and their grant reimbursement schedule. This fund will cover the shortfall, but is expected to be fully reimbursed in FY2019.

151

DEPARTMENT APPROPRIATION

FUND Insurance and Benefits FUNCTION General Government STAFF RESPONSIBLE Audrey Kincade

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request Insurance and Benefits Divisions: Medical Benefits$ 5,333,616 $ 6,743,990 $ 6,087,630 Other Fringe Benefits 539,720 492,700 676,790 Workers Compensation 88,037 249,820 245,820 General Liability 194,665 465,712 453,930 Transfers Out 500,000 - - Total Expenditures$ 6,656,038 $ 7,952,222 $ 7,464,170

ACTIVITIES

• Administration of employee benefits • Operation of self-insurance pool for employee high deductible medical, dental, and workers’ comp claims • Obtain general liability insurance policies and administer general liability insurance claims below the self- insured retention amounts • Establish reserves for retiree health insurance, workers' comp claims, and general liability insurance • Provide data to actuaries for bi-annual OPEB valuation report • Process payments for claims, administration fees, and reinsurance premiums • Record contributions from employees and payments to a third party administrator for the 125 flex plans

EXPLANATORY INFORMATION

The FY2019 budget is $7,464,170, which is $488,052, or 6.1%, lower than the FY2018 amended budget.

The Medical Benefits budget is decreasing from the FY2018 budget by 9.7%. The FY2018 budget anticipated a large premium increase, while actual experience was better than expected. The FY2019 budget includes a 7.3% increase to the estimated premium costs in FY2018. The rate used is a preliminary figure provided by McLaren to the HCTF.

The rates for the FY2019 budget remain flat for other fringe benefits such as dental, long-term disability, and life insurance, as we do not anticipate significant cost increases in those areas. The large increase in the budget is due to a change in budget methodology related to flex spending. This is typically collected from employees and remitted to the administrator; the impact to the fund is minimal. A corresponding revenue amount has also been budgeted for flex spending.

The FY2018 Workers Compensation budget is significantly higher when compared to the actual amount in FY2017. This conservative budget amount was a result of substantial claims being paid in the previous years. In FY2019, workers’ compensation claims are budgeted similarly to that of FY2018. Several large claims have been resolved and it is our hope, with the creation of a Safety Committee and increased safety training, we will have a low number and cost of future claims. Manual premiums will be reviewed and adjusted in future budget years to maintain appropriate reserves.

152

DEPARTMENT APPROPRIATION (Continued)

FUND Insurance and Benefits FUNCTION General Government STAFF RESPONSIBLE Audrey Kincade

EXPLANATORY INFORMATION (Continued)

General liability claims are budgeted 2.5% lower in FY2019. The total budgeted amount is sufficient to accommodate premium cost increases, and cover out-of-pocket claims that do not reach our various self-insured retention amounts.

While equity will continue to grow in FY2018, we are expecting that all divisions will break even in the FY2019 budget. The anticipated surplus for FY2019, shown on the statement of net position, is the reimbursement of the $260,000 advance made at the end of FY2018. This fund requires that reserves be maintained in the event of claims exceeding our self-insured retention amounts, as noted above. We have not experienced any catastrophic claims in recent years, resulting in the current level of reserves. If FY2018 ends as expected, we may consider bringing a budget amendment to Council to use some of these reserves to make an additional supplemental pension payment.

Every two years, the City has its other post-employment benefits (OPEB) calculation performed to determine the value of employer financed retiree health benefits provided by the City. This actuarial valuation process ensures compliance with current standards of the Governmental Accounting Standard Board (GASB). As a note, the FY2018 audited financial statement will be the first year that we will be required to include the unfunded liability on government-wide and enterprise fund statements. Our most recent valuation, based on data as of December 31, 2016, calculated our unfunded OPEB liability ($35,546,898) and our actuarial determined contributions (ADC) for FY2018 and FY2019. We will continue to contribute the pay-as-you-go portion, but no contribution for the pre- funding of the liability is budgeted in FY2019.

As of December 2017, the City has accumulated over $15.5 million in the trust for the funding of our post- employment (retiree) healthcare obligations. These funds are restricted, to be used only on retiree health care costs.

153

NOTES:______

154 COMPONENT UNITS

NOTES:______

156

BROWNFIELD REDEVELOPMENT AUTHORITY

157

BROWNFIELD REDEVELOPMENT AUTHORITY Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property taxes$ 1,045,489 $ 1,228,495 $ 1,382,825 Interest Income - - -

Total Revenues & Financing Sources 1,045,489 1,228,495 1,382,825 Expenditures & Financing Sources: Personnel Services 70,250 70,250 85,750 Operating Costs 834,450 1,158,245 1,297,075

Total Expenditures & Financing Sources 904,700 1,228,495 1,382,825

Operating Surplus (Deficit)$ 140,788 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 350,696 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (350,180) Estimated Available Fund Balance as of June 30, 2018 516 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 - Estimated Available Fund Balance as of June 30, 2019 $ 516 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 0.0%

158

BROWNFIELD REDEVELOPMENT AUTHORITY Estimated Revenues

EXPLANATORY INFORMATION

The East Lansing Brownfield Redevelopment Authority (BRA) was established in 2003 as a tool to facilitate the development and/or redevelopment of properties within the City that are either environmentally contaminated, blighted or functionally obsolete. Through the use of Tax Increment Financing (TIF) as an incentive, the Authority has been successful in supporting over $149 million in new development and redevelopment projects and an additional $135 million will be added when Center City and 1100 Trowbridge (SpringHill Suites) are complete.

The BRA makes available incentives for difficult to develop properties by reimbursing the developer for site clean- up and infrastructure costs. This revenue is derived from the capture of new tax revenue, resulting from the increase in taxable value created by the development project. For some projects, the State of Michigan also provides financial incentives by increasing the reimbursement amounts to the project through the capture of state and local school millages. At the conclusion of the reimbursement, each taxing jurisdiction will receive their full pro rata share of taxes at the new taxable value.

Two projects have been terminated in FY2018. The M-78/Saginaw (Rite Aid) project reached its maximum years of capture and the 514 Michigan Avenue (500 Michigan) project reached its maximum allowable dollar reimbursement. All property tax revenue will now accrue to the appropriate jurisdictions. In FY2019, tax capture will begin on two others, 565 E. Grand River and Costco. Overall, the Authority will capture property taxes for the following projects:

• The Pointe (1427 W. Saginaw) • 2000 Merritt • 1226 Michigan Ave. • A&G Residences • Stonehouse Village I • Interstate Partners Project • Avondale Square • St. Anne • Campus Village II • Trowbridge Village • West Village Phase 1-3 • 565 E. Grand River • Albert Place Condominiums • Costco • Louis Street

All of the projects are expected to see a continued increase in TIF revenue, reflecting the improving condition of property values after several years of decline. Four of the last five most recently approved Brownfield Plans all include a split of the TIF revenue, with Trowbridge Village capturing 65%, Costco at 75%, and 565 E. Grand River at 90%. Beginning in FY2020, the 1100 Trowbridge development will capture 75% of the increment. This practice allows more of the new revenue to benefit the City and other taxing jurisdictions more immediately, but often prolongs the capture period and results in greater financing costs for the project. Capture of tax revenue from Center City was approved in FY2018 and dedicated to fund the construction of the new Albert Street garage and other public infrastructure will begin in FY2021.

Fund balance at June 30, 2017 is $350,696, as Campus Village II and Louis Street developments have not yet received the captured amounts. Louis Street has not yet submitted the schedule of eligible expenses, which is required for reimbursement. Campus Village reimbursements are withheld pending their fulfillment of a separate forbearance agreement with the City. If these reimbursements do not come to fruition, the captured funds will need to be returned to the appropriate taxing jurisdictions. Monies captured each year should be reimbursed and there should be minimal, if any, fund balance remaining.

159

DEPARTMENT APPROPRIATION

FUND Brownfield Redevelopment Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Tim Dempsey/Thomas Fehrenbach

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request The Pointe Administrative Fee $ 15,000 $ 15,000 $ 15,000 Reimbursable Costs 33,763 53,160 62,900 1226 Michigan Avenue Reimbursable Costs 4,200 5,105 5,445 West Village Administrative Fee 15,000 15,000 15,000 Reimbursable Costs 61,862 190,375 199,980 Stonehouse Village 1 Administrative Fee 1,000 1,000 1,000 Reimbursable Costs 46,694 47,315 49,690 Campus Village II Administrative Fee 7,500 7,500 7,500 Reimbursable Costs - 97,835 103,285 Albert Place Condominiums Reimbursable Costs 135,839 143,795 154,305 M-78 Project Administrative Fee 7,500 7,500 - Reimbursable Costs - 13,805 - Avondale Square Reimbursable Costs 67,002 84,925 96,520 Louis Street Administrative Fee 2,500 2,500 2,500 Reimbursable Costs - 23,105 24,550 A&G Residences Administrative Fee 10,000 10,000 10,000 Reimbursable Costs 119,299 120,560 125,970 St. Anne Administrative Fee 5,000 5,000 5,000 Reimbursable Costs 75,369 86,045 90,190 2000 Merritt Road Administrative Fee 1,000 1,000 1,000 Reimbursable Costs 12,646 12,655 12,935 Continued on next page

160

DEPARTMENT APPROPRIATION (Continued)

FUND Brownfield Redevelopment Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Tim Dempsey/Thomas Fehrenbach

FY2017 FY2018 FY2019 Continued Actual Amended Budget Budget Request Interstate Partners Project Administrative Fee 250 250 250 Reimbursable Costs 94,268 94,885 99,610 514 Michigan Avenue Administrative Fee 5,000 5,000 - Reimbursable Costs 71,364 71,565 - Trowbridge Village Administrative Fee 500 500 500 Reimbursable Costs 112,145 113,115 116,545 Brownfield Redevelopment Fund - - 5,220 565 E. Grand River Administrative Fee - - 15,000 Reimbursable Costs - - 94,855 Brownfield Redevelopment Fund - - 4,900 Costco Administrative Fee - - 13,000 Reimbursable Costs - - 50,175 $ 904,700 $ 1,228,495 $ 1,382,825

ACTIVITIES

• Provides financial incentives for the development and/or redevelopment of sites that are either environmentally contaminated, blighted, or functionally obsolete. • Assists property owners in the determination of site contamination. • Seeks state and federal grant funding for assessment and remediation activities.

EXPLANATORY INFORMATION

The BRA receives staff support from the Department of Planning and Community Development and the Finance Department. During the reimbursement phase of each project, an annual administrative fee is returned to the City which is collected from a portion of the captured property tax revenues. The City collects up to $15,000 each year for administrative fees from each of its active Brownfield projects, in accordance with the Brownfield Plans and related reimbursement agreements. Total administration fees for FY2019 will be $85,750, which includes fees from the new projects coming on line, and accounts for the projects that ended in FY2018.

For plans approved after January 1, 2013, that include capture of taxes levied under the state education tax (SET), the City is required to return 50% of SET capture to the State Brownfield Redevelopment Fund. This affects Trowbridge Village, 565 E. Grand River, and will affect all future brownfields that include SET capture.

161

DEPARTMENT APPROPRIATION (Continued)

FUND Brownfield Redevelopment Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Tim Dempsey/Thomas Fehrenbach

EXPLANATORY INFORMATION (Continued)

The balance, and largest portion of expenditures, is for the reimbursement to individual projects for eligible Brownfield expenses. Each project is supported through a tax capture plan of varying duration and receives a payment from the City, out of captured taxes, to reimburse the project until the eligible program costs have been fully paid. Projects are only reimbursed to the extent TIF revenue is available. Developers are not reimbursed if property taxes are in arrears or if eligibility has not yet been verified for other reasons, as is currently the case for Campus Village II and Louis Street.

162

DOWNTOWN DEVELOPMENT AUTHORITY

163

DOWNTOWN DEVELOPMENT AUTHORITY Revenues, Expenditures, & Changes in Fund Balance

FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property taxes$ 973,074 $ 1,019,500 $ 1,084,000 Intergovernmental Revenue 104,000 - - Rental Income 377,790 305,680 297,000 Community Support 48,714 10,000 - Interest Income 3,215 2,835 3,500 Other Financing Sources - 7,430 389,660

Total Revenues & Financing Sources 1,506,792 1,345,445 1,774,160 Expenditures & Financing Sources: Personnel Services 108,300 110,000 110,000 Operating Costs 613,712 529,940 674,945 Debt Service 132,999 140,000 503,160 Transfers Out 578,495 557,120 486,055 Replenish Fund Equity - 8,385 -

Total Expenditures & Financing Sources 1,433,506 1,345,445 1,774,160

Operating Surplus (Deficit)$ 73,286 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 552,958 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 168,420 Estimated Available Fund Balance as of June 30, 2018 721,378 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (389,660) Estimated Available Fund Balance as of June 30, 2019 $ 331,718 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 18.7%

164

DOWNTOWN DEVELOPMENT AUTHORITY Estimated Revenues

EXPLANATORY INFORMATION

The Downtown Development Authority (DDA) operates with a Board of Directors consisting of 11 members, the majority of whom own property and/or businesses in the downtown. A primary mission of the Authority is to attract new business investment in the downtown, and to enhance the overall business climate through marketing and promotion. Since its formation in 1985, the DDA has been responsible for over $68 million in new development and redevelopment in the downtown. This was leveraged by a DDA capital investment of over $22 million for new infrastructure, including new parking facilities, streetscape improvements, and amenities. Examples of supported projects include University Place (the Marriott Hotel); City Center; Stonehouse Village; Albert Place; St. Anne; The Residences; 300 W. Grand River; 565 E. Grand River; Center City Project, currently under construction; and a $6 million streetscape project. The streetscape project improved the pedestrian alleys, rebuilt various parking lots, and spearheaded a $700,000 campaign of privately donated funds, through Envision East Lansing, which resulted in numerous fountains, the Clock Tower, and other attractive amenities. The Authority has successfully leveraged $3 of private investment for every $1 of public capital invested.

The most recent project supported by the DDA is the Center City Project which includes 22,225 sq. ft. of retail along Grand River Ave., 23,917 sq. ft. of retail along Albert Ave., 92 units of senior housing, 273 mixed market rental units, 620 space parking structure, and new utility infrastructure. During FY2018, the DDA, along with the City, applied for and received a LEAP Public Art for Communities Grant in the amount of $10,000. The grant allowed for the installation of four artistic panels to the fence that surrounds the Bailey parking lot. The DDA also partnered with the MSU Dept. of Art, Art History and Design during FY2018. Through this partnership a class created and installed a mural in the Grove Alley.

The Authority’s revenues are derived primarily from three operating sources: the incremental tax revenues that result from increased development and redevelopment in the downtown, a separate operating millage tax levy of 2 mills (reduced to 1.7319 mills due to Headlee restrictions), and rental income from the Evergreen properties owned by the DDA at 314, 328, 334, 340, and 344 Evergreen.

Property tax revenue for FY2018 is expected to be slightly lower than the budgeted amount. We are estimating FY2018 to come in at $931,490 and FY2019 is expected to increase from that, as overall taxable values are expected to increase in the downtown area. FY2019 budget includes $144,000 from the DDA millage; $169,000 from the TIF1 plan capture; and $771,000 from the TIF2 plan capture.

As noted above, rental income is derived primarily from the Evergreen Properties and is estimated to be $288,000 for FY2018 and the same for FY2019. The remaining rental income of $9,000 comes from the lease of the dumpster pads in the downtown. In FY2019, additional dumpster spaces will be leased in the 400 and 500 block of E. Grand River Ave.

In FY2019, the overall fund balance is expected to decrease. This fund balance decrease is attributable to the Evergreen properties, as rental income is expected to remain flat, and the debt payments are expected to increase significantly, with much larger principal payments scheduled, as well as expected increases in interest rates. Achieving a sustainable solution to address the debt through re-development, sale of property, reappropriation of the project development fund, or otherwise is a priority for the DDA to avoid exhausting the overall fund balance in future years. Of the projected $331,718 fund balance at the close of FY2019, $326,000 relates to general activities of the DDA and $5,718 for the restricted Artist Alley Project.

165

DEPARTMENT APPROPRIATION

FUND Downtown Development Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Thomas Fehrenbach/Heather Pope

FY2017 FY2018 FY2019 Actual Amended Budget Budget Request DDA Divisions: Downtown Development$ 973,087 $ 1,038,995 $ 1,107,970 303 Abbot Road 159,472 325 325 Evergreen Properties 300,947 306,125 665,865 Total Expenditures$ 1,433,506 $ 1,345,445 $ 1,774,160

ACTIVITIES

• Promote business investment and development in the downtown • Recruit new businesses and help retain existing ones • Facilitate the growth and development of high tech businesses • Advise the City Council on downtown opportunities and issues • Support diversification of the downtown housing market • Make available economic incentives to encourage downtown development projects • Support bike-ability and walkability in the downtown

EXPLANATORY INFORMATION

Personnel services are provided to the DDA primarily from the Department of Planning, Building, and Development and the Finance Department. For FY2019, there is no increase for these personnel services.

Budgeted operating costs have increased 27.4% when compared to the previous year’s budget. The main reason for the increase is a large sidewalk project planned in FY2018, and is expected to take place in FY2019 in coordination with the Center City project. A small increase in the operating expense for the Evergreen Properties and an increase in the Municipal Service Agreement for downtown maintenance is also reflected here.

The Authority continues its dedication to the downtown with additional investments and development support in FY2019. In particular, the DDA anticipates it will have expenses related to the active redevelopment projects, streetscape planning, minor streetscape improvements, Grand River sidewalk improvements, and a downtown art project. The Authority also intends to continue to support recruiting efforts, wayfinding signage, and other infrastructure improvements. In addition, the Authority will continue the facade improvement program for businesses located within the DDA District for FY2019.

Costs related to 303 Abbot have decreased significantly as the building was demolished in FY2017. The now vacant property is anticipated to be included as part of a larger redevelopment project adjacent to the parcel.

166

DEPARTMENT APPROPRIATION (Continued)

FUND Downtown Development Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Thomas Fehrenbach/Heather Pope

EXPLANATORY INFORMATION (Continued)

The debt service line relates to the Evergreen properties which were refinanced in FY2015. This debt issuance has a variable interest rate causing the interest expense to fluctuate year to year. Interest rates have been rising over the last year causing actual amounts to exceed the budget in FY2018, resulting in an estimated overage of approximately $32,510. FY2019 allows for an increase of 44% in interest expense and is the first year with a significant payment to principal. The loan was structured with minimal principal in the early years in hopes to pay off the debt in a lump sum within that time frame. The debt payments will continue to increase in future years, but at a more modest rate. These bonds can be paid at any time, but have a required paid in full date of April 2035.

There is additional debt service budgeted in the transfers out line. The City issued the debt and the DDA transfers the required monies to cover the debt for the City Center I project bonds. This transfer accounts for $317,055. Also included in the transfers out is the contribution to the Parking Fund, equal to the TIF1 capture of $169,000.

167

NOTES:______

168

DOWNTOWN MANAGEMENT BOARD

169

DOWNTOWN MANAGEMENT BOARD Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Special Assessments$ 45,322 $ 39,835 $ 39,835 Charges for Services 2,275 2,000 2,000 Community Support 11,700 11,000 4,500 Other Miscellaneous Revenue 2,500 5,000 5,000 Interest Income 159 200 150 Other Financing Sources - 6,580 4,515

Total Revenues & Financing Sources 61,955 64,615 56,000 Expenditures & Financing Sources: Personnel Services 12,000 12,000 21,000 Operating Costs 49,035 52,615 35,000 Total Expenditures & Financing Sources 61,035 64,615 56,000 Operating Surplus (Deficit)$ 920 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 16,107 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 (8,225) Estimated Available Fund Balance as of June 30, 2018 7,882 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 (4,515) Estimated Available Fund Balance as of June 30, 2019 $ 3,367 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 6.0%

170

DOWNTOWN MANAGEMENT BOARD Estimated Revenues

EXPLANATORY INFORMATION

The Downtown Management Board (DMB) was established by the East Lansing City Council in January 1997 to serve as the managing and marketing entity for the downtown. The DMB has a Board of Directors that is comprised almost exclusively of downtown business owners.

As authorized by State law, the DMB is able to levy a special assessment on all commercial properties located within the downtown and use those funds specifically for such activities as marketing, promotion, security, maintenance, and parking operations. The special assessment is evaluated by the DMB and City Council at the end of each term, to determine its continuance as a levy.

The DMB is currently in the process of levying a special assessment, subject to approval from City Council, estimated to generate $39,835. The proposed special assessment would be in effect for two years, tax year 2018 (FY2019) and tax year 2019 (FY2020).

The charges for services relate to a new project the DMB wishes to undertake in FY2019. The DMB intends to create a Downtown Holiday Guide, in which businesses would purchase advertising space. The advertisements would be created in-house and the business would be charged based upon the size of the advertisement created. In previous years, the DMB purchased an advertisement in the Greater Lansing magazine and then charged businesses that wished to be listed in the advertisement.

Community support represents fund-raising and sponsorship campaigns the DMB manages. These funds provide outreach activities, such as the bi-annual Downtown Business Cocktail Soiree. As the DMB plans to hold less events in FY2019, the sponsorship amounts are reduced accordingly. Events occurring in FY2018, but eliminated going forward, are Paint the Aves, the Ice Skating Rink, and the Downtown Welcome Dance.

Within the other miscellaneous revenue line item, the East Lansing Parking Fund has committed to once again give $5,000 in funds to assist with marketing and promotion of the downtown during the holiday season.

With the disruption of construction, the DMB is dedicated to supporting downtown businesses and expects to use $8,225 of fund balance in FY2018. In FY2019, the budget includes use of fund balance of $4,515 leaving total fund balance projected at 6.0% of expenditures.

171

DEPARTMENT APPROPRIATION

FUND Downtown Management Board FUNCTION Community and Economic Development STAFF RESPONSIBLE Tim Dempsey/Amy Schlusler-Schmitt

ACTIVITIES

• Marketing and promotion of downtown businesses • Sponsoring downtown events • Serving as liaison between the City and the downtown businesses

EXPLANATORY INFORMATION

Staff support for the DMB is provided by the Planning, Building, and Development Department. All other support services are provided by the City. FY2019 is increasing significantly based on the actual staff hours dedicated to the Board.

The DMB uses the proceeds from the special assessment to undertake marketing programs aimed at attracting customers to the downtown businesses. The DMB develops and oversees a year round marketing campaign program which includes generic advertising for downtown East Lansing through a monthly social media campaign, as well as television or radio advertisements when deemed appropriate. The DMB continues to draw advertising attention to DowntownEL.com, which serves as the main webpage for downtown events and activities.

The DMB solely hosts an average of six community engagement events each year. The planned events for FY2019 include: Sidewalk Sales in July; Back to School/Welcome Back Week in September; Great Pumpkin Walk in October; Green Friday & Saturday Too in December; a Girls Night Out Event in December; and a Downtown Chili Cook-Off in April. The DMB also partners on regional events such as the Be A Tourist In Your Own Town event each June.

The DMB also provides financial sponsorship to five festivals and concert venues in the downtown. In FY2019, the DMB will continue to serve as a Premiere Sponsor of the East Lansing Summer Concert Series and Winter Glow. All of these activities are managed by the City’s Parks and Recreation Department.

The DMB is focused on providing support to its downtown businesses. As a result, each fall and spring the DMB plans a Downtown Business Cocktail Soiree, in which merchants will receive informational materials about upcoming events and activities, as well as marketing ventures available to downtown businesses.

The DMB will continue to manage holiday lighting in the months of November and December. In addition, ‘pocket lighting’ is scheduled to occur in the 500 block alleyway and in Sharp Park.

Finally, the DMB will print the 2018-2019 Visitor’s Guides that are distributed throughout the downtown, and placed in rest stops throughout the State of Michigan. Additionally, the brochures are made available in the lobby of the Marriott Hotel and Kellogg Center. This program brochure lists all businesses within the downtown district and provides map information. Once the program brochure is updated, the business directory listings will be placed within the downtown wayfinding signs as well.

172

LOCAL DEVELOPMENT FINANCE AUTHORITY

173

LOCAL DEVELOPMENT FINANCE AUTHORITY Revenues, Expenditures, & Changes in Fund Balance FY2017 FY2018 FY2019 Revenues & Financing Sources: Actual Amended Budget Budget Request Property Taxes$ 45,094 $ 65,000 $ 123,665 Interest Income 10 - -

Total Revenues & Financing Sources 45,104 65,000 123,665 Expenditures & Financing Sources: Personnel Services 4,009 5,500 11,365 Operating Costs 40,584 58,500 111,300 Transfers Out 500 1,000 1,000 Total Expenditures & Financing Sources 45,094 65,000 123,665

Operating Surplus (Deficit)$ 10 $ -$ -

Statement of Fund Balance: Fund Balance as of June 30, 2017 (per audited financial statements) $ 176 Anticipated Operating Surplus (Deficit) for year ended June 30, 2018 - Estimated Available Fund Balance as of June 30, 2018 176 Anticipated Operating Surplus (Deficit) for year ended June 30, 2019 - Estimated Available Fund Balance as of June 30, 2019 $ 176 FY2019 Estimated Fund Balance as a Percentage of Operating Expenditures 0.1%

174

LOCAL DEVELOPMENT FINANCE AUTHORITY Estimated Revenues

EXPLANATORY INFORMATION

The Local Development Finance Authority (LDFA) fund was put into place in FY2008. A joint LDFA was created in 2005 between the City of East Lansing, the City of Lansing, and Ingham County to foster development of the Lansing Regional SmartZone. The board changed in 2014 from a seven member entity consisting of three members from the City of East Lansing, three members from the City of Lansing, and one Ingham County member to a nine member Board with East Lansing and Lansing each appointing one representative from MSU to serve on the Board. The LDFA is authorized under Public Act 281 of 1986.

Under the LDFA Act, communities are allowed to utilize tax increment financing for the purpose of developing certified technology parks, or SmartZones. SmartZones are intended to foster the partnership between municipalities, universities, and the public sector to advance technology commercialization and create high tech jobs. Under the leadership of the Downtown Development Authority, the East Lansing Technology Innovation Center, a high tech business incubator, was started in October of 2008. Tax increment revenue can be utilized to support the activities of the Technology Innovation Center (TIC). The Hatch, a business incubator for student entrepreneurs, was created through a partnership between, the LDFA, MSU, and the DDA in January of 2011 and was funded primarily through contributions from MSU (received in FY2011) and student memberships. During FY2014, Spartan Innovations assumed the lease for the Hatch space from the DDA and expanded that space.

In 2012, the LDFA entered into a management agreement with the Lansing Economic Area Partnership (LEAP) for SmartZone management services to be provided by LEAP. As part of a larger sustainability plan for the SmartZone, LEAP was successful in obtaining funding to defease the DDA’s debt associated with the Technology Innovation Center buildout. The City, DDA, LDFA, and LEAP entered into a SmartZone and TIC transfer agreement in July of 2014, which eliminated the DDA’s debt and the City’s responsibilities toward management of the TIC. In FY2017, the MSU Foundation took over the lease of the SmartZone space and the management of the TIC.

The recommended budget for FY2019 is $123,665. This figure represents only the East Lansing portion of the estimated tax increment finance (TIF) revenue. In FY2018, TIF capture grew due to increasing property values. It is expected to continue to grow in FY2019 based on higher occupancy and the addition of square footage from recently completed projects. The TIF is derived from 50% of the school millages (State Education Tax, Intermediate School District, and local schools) in the downtown and East Village. City and other local taxes are not included in the tax capture for the East Lansing portion of the LDFA. The State is obligated to reimburse the schools for the foregone school revenue resulting from this TIF capture.

In August of 2014, the entire fund balance of the LDFA was transferred to the Regional LDFA managed by LEAP per the transfer agreement mentioned above. There is a small fund balance remaining which is expected to remain unchanged. This fund balance will remain minimal as the LDFA is now more of a pass through for TIF dollars, rather than operating an incubator space.

175

DEPARTMENT APPROPRIATION

FUND Local Development Finance Authority FUNCTION Community and Economic Development STAFF RESPONSIBLE Tim Dempsey/Thomas Fehrenbach

ACTIVITIES

• Collect TIF revenue and distribute to the Regional LDFA for the operation of the TIC • Provide staff support to the City’s LDFA members • Support networking activities and special events that foster the “culture of entrepreneurship” in the Mid- Michigan area

EXPLANATORY INFORMATION

The LDFA receives support from the Department of Planning, Building, and Development and the Finance Department. The City will retain 10% of the TIF for administrative expenses and the transfer to the Debt Service Fund to cover the minimal remaining expenses associated with the defeased debt. The remaining funds will be paid to the MSU Foundation for management and operation of the SmartZone, including the TIC.

176 SUPPLEMENTAL INFORMATION NOTES:______ ______ FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Business Licenses and Permits Fee Schedule (City Clerk) AMUSEMENT AND VIDEO ARCADE Maximum Permitted Occupancy Annual Fee Annual Fee 0 to 50 $100.00 $100.00 51 to 75 $200.00 $200.00 76 to 125 $300.00 $300.00 126 to 150 $400.00 $400.00 151 to 200 $5.00 per licensed occupant $5.00 per licensed occupant 201 to 300 $6.50 per licensed occupant $6.50 per licensed occupant Over 300 $8.00 per licensed occupant $8.00 per licensed occupant Additional late hours fee for hours 10:00 p.m. to 2:00 a.m. BACKYARD CHICKENS (section 4-4) Up to four (4) chickens Five (5) year permit $20.00 $20.00 BUS (See MOTOR BUS) DANCEHALL Annual fee $100.00 $100.00 Restaurants which hold a current entertainment license as required by section 8-251 shall be exempt from the annual fee. Resident Fee $20.00 $20.00 Non-Resident Fee $30.00 $30.00 Certified Copy Replacement $5.00 $5.00 ENTERTAINMENT: The annual entertainment license fee shall be an amount determined according to the following schedule: Maximum Permitted Indoor Occupancy 0 to 150 $50.00 $50.00 Over 150 An amount equal to the annual restaurant An amount equal to the annual restaurant license fee license fee Additional late hour fee between 12:00 a.m. and 8:00 a.m. 50% of annual restaurant license fee 50% of annual restaurant license fee New establishments, except those that have or obtain a liquor license shall be exempt from payment of license fees during the first two years of operation

SI - 1 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

JUNK DEALERS (section 30-31) $50.00 $50.00 MEDICAL MARIHUANA CAREGIVER - THESE HAVE NOT BEEN FINALIZED Initial Application Fee N/A $275.00 Renewal Application Fee N/A $525.00 Replacement/Updated Certificate N/A $10.00 MOTOR BUS (section 8-471) Each Bus - Annual Fee $5.00 $5.00 Each Company - Annual Fee $100.00 $100.00 (Except a regional motor bus company operated by a public authority of which the city is a member shall be exempt from payment of all annual fees.) NEWSPAPER VENDING MACHINE Annual Fee $10.00 $10.00 PEDDLER, SOLICITOR OR TRANSIENT MERCHANT (section 8-131) On Foot: Per Day $5.00 $5.00 Per Month $20.00 $20.00 Per Year $50.00 $50.00 With Vehicle: Annual Fee $50.00 $50.00 Plus Per Person Annual Fee $5.00 $5.00 PRECIOUS METAL/GEM DEALERS (section 30-31) Annual Fee $50.00 $50.00 RESTAURANT Annual fee – Zone 1: Central Business District Maximum Permitted Indoor Occupancy 0 to 50 $100.00 $100.00 51 to 75 $200.00 $200.00 76 to 125 $300.00 $300.00 126 to 150 $400.00 $400.00 Maximum Permitted Indoor Occupancy 151 to 200 $5.00 per licensed occupant $5.00 per licensed occupant

SI - 2 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

201 to 300 $6.50 per licensed occupant $6.50 per licensed occupant Over 300 $8.00 per licensed occupant $8.00 per licensed occupant Annual fee – Zone 2: All areas of the city not included in zone 1 50% of annual fee for zone 1 establishments 50% of annual fee for zone 1 establishments Application fee for initial restaurant license $80.00 $80.00 Transfers of restaurant ownership $275.00 $275.00 New establishments, except those that have or obtain a liquor license, shall be exempt from payment of license fees during the first two years of operation. Hotel and motel guestrooms shall not be considered in determining the maximum permitted indoor occupancy of a restaurant. RUBBISH COLLECTOR (section 36-88) Annual Fee $20.00 $20.00 SECOND HAND GOODS (section 30-31) $50.00 $50.00 TAKE-OUT STORES Annual Fee: Zone1: Central business district $400.00 $400.00 Zone2: All areas of the city not included in zone 1 $200.00 $200.00 TOBACCO RETAILER (section 26-436) 3-Year Term Per Vending Machine $50.00 $50.00 Other Retailer Per Location $115.00 $115.00 USED AUTOMOBILES (section 30-61) Initial License $150.00 $150.00 Annual Renewal $100.00 $100.00 Plus for each site over 1 Annual Fee $50.00 $50.00 WRECKERS (section 8-501) Initial License $50.00 $50.00 Annual Renewal $25.00 $25.00 Each Wrecker Annual Fee $4.00 $4.00

SI - 3 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Other City of East Lansing copy charge $2.00 for the first page; $.10 each additional $2.00 for the first page; $.10 each additional page thereafter page thereafter Assessing BS&A Data Base List $1,200.00 $1,200.00 City Clerk Certified Documents (FOIA & non-FOIA requests) $10.00 $10.00 Notary Services (per page) (FOIA & non-FOIA requests) $5.00 Service no longer offered Voter Information Requests: Set-up fee/ Formatting $10.00 $10.00 Paper per page $2.00/1st page; $.10 each add'l page $2.00/1st page; $.10 each add'l page Labels per page $0.50 $0.50 Diskette $2.00 $2.00 Email per email $2.00 $2.00 Compact Disc $5.00 $5.00 Parks and Recreation Parks, Recreation, Open Space and Greenways Plan $15.00 $15.00 Treasury Complete Tax Roll (per season) $600.00 $600.00 Returned Payment Fee – (the remitter is charged this fee) $25.00 $25.00 Residential Parking Permits Replacement of lost/stolen permit $5.00/each $5.00/each Temporary permits for home business (undated; up to 60/month) $.50/each $.50/each

Police Labor costs directly associated with necessary searching for, locating & examining the records: Per Hour $18.25 $26.57 Per 15 Minutes (all partial increments rounded down) $4.56 $6.64 Labor costs for review & separation and deletion of exempt & nonexempt material: Per Hour $27.23 $55.90

SI - 4 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Per 15 Minutes (all partial increments rounded down) $6.81 $13.97 Cost of non-paper media: DVD-R $.18/each $.18/each DVD for In Car Video $.40/each $.40/each USB Drive $4.00/each $4.00/each Cost of paper copies: $.05/copy $.05/copy Notary Service $5.00 $5.00 Security Clearance will be figured using the above fee schedule. Impound Lot Fee $20.00/vehicle/day $20.00/vehicle/day Preliminary Breath Test (PBT) $7.00 $7.00 Fingerprint Card $6.00/card $6.00/card

Fire Medical Transport Ambulance Fee ALS Non-Emergent (per run) $750.00 $825.00 Plus Mileage (per loaded mile) $12.75 $16.50 Plus Oxygen (if necessary) $50.00 $50.00 ALS Emergent (per run) $750.00 $750.00 Plus Mileage (per loaded mile) $12.75 $16.50 Plus Oxygen (if necessary) $50.00 $50.00 ALS-2 (per run) $750.00 $1,150.00 Plus Mileage (per loaded mile) $12.75 $16.50 Plus Oxygen (if necessary) $50.00 $50.00 Hazardous Materials Cost Recovery Fees Fire Department Engine or Ladder Truck (per hour) $250.00 $250.00 Fire Tender, Ambulance, Brush Engine or ATV (per hour) $125.00 $125.00 Fire Hazmat or Rescue Unit (per hour) $225.00 $400.00 Mileage Car or Command (per mile) $0.68 $0.68 Mileage Pick-up (per mile) $0.90 $0.90 Personnel Costs Employee Rate + Benefits Employee Rate + Benefits Consumables billed at replacement costs for peat sorb Minimum of $2.00 per/lb Minimum of $2.00 per/lb SI - 5 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

OCCUPATION OF STREETS, ALLEYS & RIGHT-OF-WAYS PERMIT FEES & DEPOSITS Drive Approach and/or Sidewalk Within Public ROW: Residential Permit (Includes Inspection) $130.00 $134.00 Commercial Permit (Includes Inspection) $164.00 $170.00 Additional Cost to Review Traffic Control Plan if Required $75.00 $85.00

Water, Sanitary Sewer, or Storm Sewer Lead Installation/Repair/Replacement: Permit- Installation/Repair/Replacement Water and Sewer Services $90.00 $93.00 Inspection- Installation/Repair/Replacement Water and Sewer Services Located Within Public Right-of-Way (2 hours) $138.00 $144.00 Inspection- Installation/Repair/Replacement Water and Sewer Services Located Outside Public Right-of-Way $69.00 $72.00 Additional Cost to Review Traffic Control Plan if Required $75.00 $85.00 Additional Inspection Cost (normal business hours) $69.00/hr $72.00/hr Additional Inspection Cost (outside normal business hours) $99.00/hr $103.00/hr Pavement Deposit $16.00/sft $16.00/sft Pavement Revisit Fee $2.20/sft $2.30/sft

Utility Company Installation/Repair/Replacement within Public Right-of-Way: Permit- Installation/Repair/Replacement Private Utility $120.00 $124.00 Inspection- Installation/Repair/Replacement of Private Utility Within Public Right-of-Way (2 hours) $138.00 $144.00 Additional Cost to Review Traffic Control Plan if Required $75.00 $85.00 Additional Inspection Cost $69.00/hr $72.00/hr Additional Inspection Cost (outside normal business hours) $99.00/hr $103.00/hr Pavement Deposit $16.00/sft $16.00/sft Pavement Revisit Fee $2.20/sft $2.30/sft

SI - 6 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Use or Obstruction in ROW: (Including Street & Lane Closures): (1) Local Street (Permit & Inspection) First 3 Days $145.00 $202.00 Additional Days $34.00/day $36.00/day Extension of Original Permit $60.00 plus $34.00/day $62.00 plus $36.00/day Major Street (Permit & Inspection) First 3 Days $231.00 $231.00 Additional Days $38.00/day $38.00/day Extension of Original Permit $85.00 plus $38.00/day $85.00 plus $38.00/day (1) -A deposit may be required if deemed necessary by Director of Public Works and Environmental Services. The amount will be determined based on the scope of work.

Annual Public Utility Tree Trimming Permit $265.00/year $270.00/year

Oversize/Overweight Loads: Annual Cab Card $163.00/Unit $170.00/Unit Individual Permits $60.00/Unit $93.00/Unit

Traffic Impact Study: Administrative Review $273.00 $300.00 Third Party Review Direct Costs Plus 5% Direct Costs Plus 5%

Wetlands Delineation and Permit: Administrative Review $850.00 $1,200.00 Third Party Review Direct Costs Plus 5% Direct Costs Plus 5%

Special Permits: Engineering Administrator $92.00/hr $95.00/hr Assistant Engineering Administrator $80.00/hr $85.00/hr Senior Design Engineer N/A $75.00/hr Design Engineer $68.00/hr $68.00/hr SI - 7 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Engineering Technician $60.00/hr $62.00/hr

Road Closures for Parades/Block Parties/etc.: (Must be approved by City Council) No Charge No Charge

Tree Removal and Land Clearing Activities No Charge No Charge

Permit Compliance Violation Notice $150.00/notice $200.00/notice

Review of Plans Requiring MDEQ Sewer or Water Permits $1,500.00 $1,500.00

Penalty for Starting Work Without a Permit Permit Fee Is Doubled Permit Fee Is Doubled

GRADING & SOIL EROSION & SEDIMENTATION CONTROL PERMIT FEES & DEPOSIT/BONDS Post Construction Storm Water Review and Permit $1,500.00 $1,500.00 Performance Bond Cost based on the total estimated construction Cost based on the total estimated construction cost of the approved components of the cost of the approved components of the stormwater management system stormwater management system

Single Family & Duplex Residences: First Acre $474.00 $495.00 Each Additional Acre $96.00/acre $104.00/acre Duration of Original Permit 12 Months 12 Months Renewal of Permit 50% of Original Permit 50% of Original Permit Duration of Renewal Permit 3 Months 3 Months Bond Amount $500.00 $500.00 Issuance of Notice of Violation $250.00/violation $260.00/violation Issuance of Cease & Desist Order $560.00/order $585.00/order

SI - 8 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Penalty for Starting Work Without a Permit Permit Fee Is Doubled Permit Fee Is Doubled

Non-Single Family & Duplex Residential Properties: First Acre $979.00 $1,075.00 Additional Acres Up to 10.0 Acres $138.00/acre $154.00/acre Each Additional Acre Over 10.0 Acres $96.00/acre $112.00/acre Duration of Original Permit 12 Months 12 Months Renewal of Permit 50% of Original Permit 50% of Original Permit Duration of Renewal Permit 6 Months 6 Months Bond Amount $2,000.00 for first 2 acres or fraction thereof $2,000.00 for first 2 acres or fraction thereof plus $750/acre thereafter plus $750/acre thereafter Issuance of Notice of Violation $250.00/violation $260.00/violation Issuance of Cease & Desist Order $630.00/order $705.00/order

- Permit fees include all routine inspections by Engineering Staff. - All fees based on acreage will be rounded upward to the nearest whole acre.

Penalty for Starting Work Without a Permit Permit Fee Is Doubled Permit Fee Is Doubled

HANG BANNER AT PATRIARCHE PARK & MICHIGAN AVENUE $35.00 $40.00

PARK RENTAL (Effective 4-1-17) Open Area $3.00 $4.50 Pavilion $6.00 $48.00 Open Area All Day $4.00 $5.50 Pavilion All Day $8.00 $65.00 Entire Park - EL Based Business $850.00 $1,150.00 Entire Park - Outside EL Based Business $1,300.00 $1,690.00

SI - 9 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

HOUSING LICENSING AND INSPECTION FEE SCHEDULE INSPECTION FEES (2) Class I Annual $165.00 $165.00 Class II Annual $165.00 $165.00 Class III Annual $165.00 $165.00 Class IV Annual $165.00 $165.00 Class V Annual $3.85 (3) $3.85 (3) Class VI Annual $325.00 $325.00 Class I Reinspection $82.00 $82.00 Class II Reinspection $82.00 $82.00 Class III Reinspection $82.00 $82.00 Class IV Reinspection $82.00 $82.00 Class V Reinspection $.95 (3) $.95 (3) Class VI Reinspection $91.00 $91.00 Class I No Show $82.00 $82.00 Class II No Show $82.00 $82.00 Class III No Show $82.00 $82.00 Class IV No Show $82.00 $82.00 Class V No Show $145.00 $145.00 Class VI No Show $100.00 $100.00 Class I Complaint $165.00 $165.00 Class II Complaint $165.00 $165.00 Class III Complaint $165.00 $165.00 Class IV Complaint $165.00 $165.00 Class V Complaint $165.00 $165.00 Class VI Complaint $165.00 $165.00 (2) Per inspection except as noted (3) Charge per licensed occupant with a minimum fee of $ 165 for an annual inspection and $ 82 for a reinspection

SI - 10 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

LICENSE FEES License Renewal Fee $240.00 $240.00 Initial Rental License Fee $1,550.00 $1,550.00 Commission Hearing Fee $760.00 N/A New Owner Review $250.00 $250.00 Late Application Fee $25.00 $25.00 All Trades Fee (includes 1 reinspection) $100 plus $300 per inspector $100 plus $300 per inspector All Trades Inspection (4) $65.00 $65.00 (4) For each trade inspector who must reinspect; for 2nd or more reinspections

LICENSED RENTAL PROPERTIES LIST $15.00 $15.00

BUILDING FEES Application/Zoning Review/Base Fee (non-refundable) for all building permits $50.00 $50.00 Building permit fees based on work not involving a square foot computation: Application/Base Fee (non-refundable) as listed above $50.00 $50.00 plus for each inspection $60.00 $60.00 Building permit fees based on square foot computation: Application/Base Fee (non-refundable) as listed above $50.00 $50.00 plus the fees as figured in the below chart

BUILDING PERMIT FEE CHART $1.00 to $2,000 total valuation $70.00 $70.00 $2,001 to $25,000 total valuation $70 for the first $2,000 plus $14 for each $70 for the first $2,000 plus $14 for each additional $1,000 or fraction thereof additional $1,000 or fraction thereof $25,001 to $50,000 total valuation $392 for the first $25,000 plus $12 for each $392 for the first $25,000 plus $12 for each additional $1,000 or fraction thereof additional $1,000 or fraction thereof $50,001 to $100,000 total valuation $692 for the first $50,000 plus $10 for each $692 for the first $50,000 plus $10 for each additional $1,000 or fraction thereof additional $1,000 or fraction thereof $100,001 to $500,000 total valuation $1,192 for the first $100,000 plus $9 for each $1,192 for the first $100,000 plus $9 for each additional $1,000 or fraction thereof additional $1,000 or fraction thereof

SI - 11 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

$500,001 to $1,000,000 total valuation $4,792 for the first $500,000 plus $7.75 for $4,792 for the first $500,000 plus $7.75 for each additional $1,000 or fraction thereof each additional $1,000 or fraction thereof $1,000,001 to $5,000,000 total valuation $8,667 for the first $1,000,000 plus $5.75 for $8,667 for the first $1,000,000 plus $5.75 for each additional $1,000 or fraction thereof each additional $1,000 or fraction thereof $5,000,001 and up $31,667 for the first $5,000,000 plus $3.50 for $31,667 for the first $5,000,000 plus $3.50 for each additional $1,000 or fraction thereof each additional $1,000 or fraction thereof

PLAN REVIEW FEES Building Valuation $0 - $50,000 No Charge No Charge Building Valuation over $50,000 5% of building permit fee 5% of building permit fee EMP - when applicable 2% of building permit fee 2% of building permit fee

ROOFS Residential N/A $170.00 Commercial N/A value of construction

DEMOLITION PERMIT FEES (Also require an application fee) Single-family or two-family dwelling $100.00 $100.00 Private garage $68.00 $68.00 Multi-family dwellings, commercial buildings $220.00 $220.00

REINSPECTION FEE $60.00 $60.00

APPEAL APPLICATION FILING FEE $150.00 $150.00

COMMUNICATIONS AND LOW VOLTAGE WIRING $60.00 $60.00 REINSPECTION

MOVING PERMIT FEES (Also require an application fee): Mobile home with foundation $150.00 $150.00 Mobile home to an existing foundation $125.00 $125.00

SI - 12 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

All buildings and structures less than five hundred (500) square feet in area and less than seventeen (17) feet high when loaded $155.00 $155.00 All buildings over five hundred (500) square feet in area or seventeen (17) feet high $310.00 $310.00

INVESTIGATION INSPECTION FEE $80.00 $80.00

LICENSE REGISTRATION FEE $15.00 $15.00

INSPECTION FOR WHICH NO FEE IS INDICATED $75.00/hr $75.00/hr

INSPECTION FEE OUTSIDE OF NORMAL BUSINESS HOURS $115.00/hr, Minimum $115.00 $115.00/hr, Minimum $115.00

PERMIT FEE SCHEDULE--MECHANICAL MECHANICAL FEES Plan review fee (when required) 2% of permit fee 2% of permit fee Application/Base Fee (non-refundable) $50.00 $50.00 Contractor registration fee $15.00 $15.00

UNIT FEE INSPECTION (IN ADDITION TO APPLICATION/BASE FEE) FURNACES Furnace and attached ducts ( including chimney liner if required) $30.00 $30.00 Add Roof Top Units $35.00 $40.00 HEATERS AND VENT/DUCT INSTALLATION Each suspended, recessed wall or floor-mounted unit heater $30.00 $30.00 Each single appliance vent/duct not included in an appliance permit $15.00 $15.00 Relocate or replace existing water heater (base fee only) $15.00 $15.00 Repair, alteration, or addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or system, including controls $30.00 $30.00 BOILERS AND REFRIGERATION UNITS Through 3 horsepower, or absorption system through 100,000 BTU/h $30.00 Fee restructured, see below SI - 13 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Over 3 horsepower through 15 horsepower, or absorption system over 100,000 BTU/h through 500,000 BTU/h $50.00 Fee restructured, see below Over 15 horsepower through 30 horsepower, or absorption system over 500,000 BTU/h through 1,000,000 BTU/h $70.00 Fee restructured, see below Over 30 horsepower through 50 horsepower, or absorption system over 1,000,000 BTU/h through 1,750,000 BTU/h $100.00 Fee restructured, see below Over 50 horsepower, or each absorption system over 1,750,000 BTU/h $160.00 Fee restructured, see below Add Air Conditioning (includes split systems) N/A $30.00 Add Boiler Residential N/A $50.00 Add Boiler Commercial (includes gas piping, venting and combustion air) N/A $70.00 Add Commercial Refrigeration (self contained and split systems) N/A $50.00 Add Hydronic Piping N/A $25.00 AIR-HANDLERS AND ATTACHED DUCTWORK Each air-handling unit through 10,000 CFM $35.00 $35.00 Each air-handling unit over 10,000 CFM $55.00 $55.00 Each evaporative cooler other than portable type $20.00 $20.00 VENTILATION, EXHAUST FANS AND HOOD SYSTEMS Each ventilation fan connected to a single duct $15.00 $15.00 Ventilation system not under heating or air conditioning system permit $20.00 $20.00 Each commercial type hood which is served by mechanical exhaust $65.00 $65.00 GAS PIPING Each gas piping system installed, one to five outlets $20.00 $20.00 Six or more outlets, per outlet $7.00 $7.00 OTHER APPLIANCES OR EQUIPMENT Each appliance or piece of equipment not classed in other appliance Add Heat Pumps/Geo Thermal and Complete Residential $35.00 $40.00 OTHER INSPECTIONS AND FEES Inspections outside normal business hours, per hour (minimum of one hour) $115.00 $115.00 Reinspection fee $60.00 $60.00 Investigation fee $80.00 $80.00 Appeal application filing fee $150.00 $150.00 SI - 14 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

License registration fee $15.00 $15.00 Additional Inspection $60.00 $60.00 Final Inspection $60.00 $60.00

PERMIT FEE SCHEDULE--ELECTRICAL ELECTRICAL FEES Plan review fee (when required) 2% of permit fee 2% of permit fee Application/Base Fee (non-refundable) $50.00 $50.00 Contractor registration fee $15.00 $15.00

UNIT FEE INSPECTION (IN ADDITION TO APPLICATION/BASE FEE) Service through 200 amp $35.00 $35.00 Over 200 amp to 600 amp $40.00 $40.00 Over 600 amp to 800 amp $80.00 $80.00 Over 800 amp – each amp $0.16 $0.16 RECEPTACLE, SWITCH AND LIGHTING OUTLETS First 20, each $1.70 Fee restructured, see Circuits 21 to 400 outlets, each $0.65 Fee restructured, see Circuits Additional outlets, each $0.16 Fee restructured, see Circuits CIRCUITS 120v each $9.00 LIGHTING FIXTURES First 20, each $1.70 Fee restructured, see below 21 to 400 fixtures, each $0.65 Fee restructured, see below Additional fixtures, each $0.16 Fee restructured, see below LIGHTING FIXTURES AND SMOKE DETECTORS Lighting Fixtures/Smoke Detectors Per 25 Units N/A $17.00 RESIDENTIAL AND NON-RESIDENTIAL APPLIANCES First 50, each $10.50 Fee restructured, see below Over 50, each $5.25 Fee restructured, see below

SI - 15 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

APPLIANCES AND HVAC RELATED Appliances, Climate Control and Power Outlets 220v Dishwasher, Garbage Disposal, etc. N/A $8.00 Ranges, Dryers, etc. N/A $10.00 Furnace, Heat Pump, etc. N/A $10.00 Electric Heating Units (Baseboard) N/A $13.00 POWER APPARATUS Up to and including 1 hp, kw or kvar, each $13.50 $13.50 Over 1 to 10, each $20.50 $20.50 Over 10 to 50, each $68.00 $68.00 Over 50 to 100, each $136.00 $136.00 Over 100 $205.00 $205.00 BUSWAYS AND FEEDERS Busways and feeders, each 50 feet $27.00 $27.00 SIGNS, OUTLINE LIGHTING, MARQUEE, EACH Signs, outline lighting, marquee, each $27.00 $27.00 Additional branch circuits, each $5.50 N/A FIRE ALARM SYSTEMS 1 to 20 devices and panel $105.00 $105.00 Over 20 devices, each $7.50 $9.00 SWIMMING POOLS, SPAS, HOT TUBS OR SIMILAR FIXTURES Swimming pools, spas, hot tubs, each $32.00 $32.00 MISCELLANEOUS APPARATUS, CONDUITS AND CONDUCTORS Miscellaneous apparatus $13.50 $13.50 OTHER INSPECTIONS AND FEES Inspections outside normal business hours, per hour (minimum of one hour) $115.00 $115.00 Reinspection fee $60.00 $60.00 Investigation fee $80.00 $80.00 Appeal application filing fee $150.00 $150.00 License registration fee $15.00 $15.00 Additional Inspection $60.00 $60.00 SI - 16 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Final Inspection $60.00 $60.00

PERMIT FEE SCHEDULE – PLUMBING PLUMBING FEES Plan review fee (when required) 2% of permit fee 2% of permit fee Application/Base Fee (non-refundable) $50.00 $50.00 Contractor registration fee $15.00 $15.00

UNIT FEE INSPECTION (IN ADDITION TO APPLICATION/BASE FEE) FIXTURES Each plumbing fixture or set of fixtures on one trap (includes water and drain connection piping and backflow protection) $10.00 $10.00 SEWERS AND DRAINS Each building sewer $60.00 $60.00 Each back water valve installation $20.00 $20.00 Rainwater systems - per drain (inside building) $15.00 $15.00 WATER EQUIPMENT, APPLIANCES, AND DEVICES Water heater and/or vent $15.00 $15.00 Installation, alternation, or repair of water piping and/or water treatment equipment (each fixture) $10.00 $10.00 Lawn sprinkler system or meter and backflow devices $20.00 $20.00 BACKFLOW PROTECTIVE DEVICE OTHER THAN ATMOSPHERIC TYPE VACUUM BREAKERS: 2 inch in diameter and smaller $20.00 $20.00 Over 2 inches in diameter $40.00 $40.00 STACKS, VENTS, AND CONDUCTORS 3 stories or less $20.00 $20.00 Over 3 stories (per story) $15.00 $15.00 Repair or change of drainage or vent piping fixture $10.00 $10.00 GAS PIPING Gas piping system of 1 to 4 outlets $25.00 $25.00 SI - 17 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Gas piping system of 5 or more outlets $10.00 $10.00 OTHER INSPECTIONS AND FEES Inspections outside normal business hours, per hour (minimum of one hour) $115.00 $115.00 Reinspection fee $60.00 $60.00 Investigation fee $80.00 $80.00 Appeal application filing fee $150.00 $150.00 License registration fee $15.00 $15.00 Additional Inspection $60.00 $60.00 Final Inspection $60.00 $60.00

PERMIT FEE SCHEDULE—SIGNS SIGN CONSTRUCTION PERMIT FEES Display Area (Square Feet) 0-10 $30.00 $30.00 11-50 $60.00 $60.00 51-75 $90.00 $90.00 Over 75 $150.00 $150.00 Banner application processing fee $20.00 $20.00 MODIFICATION OF EXISTING SIGN FEES Display Area (Square Feet) 0-10 $15.00 $15.00 11-50 $30.00 $30.00 51-75 $45.00 $45.00 Over 75 $80.00 $80.00

PERMIT FEE SCHEDULE—PAVING (section 50-815) $60.00 $60.00 Reinspection Fee $30.00 $30.00

LAND DEVELOPMENT APPLICATION FEES Rezoning $1,100 + $100/acre $1,100 + $100/acre

SI - 18 FEE SCHEDULE COMPARISON GENERAL FUND FY2018 Actual For Proposed FY2019 Budget

Site Plan or Special Use Permit Residential $1,100 + $25/dwelling unit $1,100 + $25/dwelling unit Nonresidential $1,100 + $25/1,000 sq. ft. GFA + $250/drive $1,100 + $25/1,000 sq. ft. GFA + $250/drive thru service lane and/or gasoline pump island thru service lane and/or gasoline pump island Modification $1,100 + increment per new construction $1,100 + increment per new construction Administrative Only $250.00 $250.00 Parking Plan (B-3) $1,100 + $25/ 1,000 sq. ft. GFA $1,100 + $25/ 1,000 sq. ft. GFA Administrative Only $250.00 $250.00 Combined applications (i.e., rezoning + SUP/site plan) Larger fee +1/2 second fee Larger fee +1/2 second fee Zoning Variance $300.00 $300.00 Subdivisions Tentative Preliminary $1,100 + $25/lot $1,100 + $25/lot Final Preliminary $250.00 $250.00 Final Plat $25.00/lot $25.00/lot Lot Split $500.00 $500.00 Administrative Only $200.00 $200.00 Certificate of Appropriateness (required public hearing by Historic District Fee rescinded December 6, 2006 (5) Fee rescinded December 6, 2006 (5) Commission) Zoning Compliance Letters $200.00/letter $200.00/letter Brownfield Plan Application/Review Fee 1% of request not to exceed $25,000 1% of request not to exceed $25,000

(5) Per City of East Lansing Resolution 2006-1 adopted February 7, 2006. GFA = Gross Floor Area of Building

SI - 19 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident East Lansing Softball Complex and Patriarche Park Ball Field Fees Youth Games (includes initial field preparation) City Sponsored Leagues (per game) $20.00 N/A $20.00 N/A East Lansing Baseball Club (per game) $20.00 N/A $20.00 N/A Other Youth Leagues (per game) $20.00 $35.00 $20.00 $35.00 East Lansing High School Free Free Free Free

Adult Games (includes initial field preparation) City Sponsored Leagues (per game) $20.00 N/A $20.00 N/A Other Leagues (per game) N/A $35.00 N/A $35.00

Youth and Adult Tournaments (Includes initial field preparation) Games (per game) $20.00 $35.00 $40.00 $70.00 Games starting prior to 9a or later than 8p (per game) $20.00 $45.00 $40.00 $90.00 Holiday Weekend (per game) $40.00 $55.00 $80.00 $110.00 Holiday Weekend Games starting prior to 9a or later than 8p (per game) $40.00 $65.00 $80.00 $130.00

Additional Services Full Field Preparation (per field) $20.00 $20.00 $20.00 $20.00 Partial Field Preparation (per field) $10.00 $10.00 $10.00 $10.00 Partial Field Preparation After 4 Games (per field) Free Free Free Free Lights (per field) $15.00 $15.00 $15.00 $15.00 Scoreboards (per field) $10.00 $10.00 $10.00 $10.00

Recreational Field Rental (No field preparation) Game (per field) - 90 minutes $15.00 $25.00 $15.00 $25.00

SI - 20 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident East Lansing Soccer Complex Field Fees Youth Games League Games (per game) $25.00 $45.00 $25.00 $50.00 League Games in Stadium without Lights (per game) $25.00 $65.00 $25.00 $70.00 League Games in Stadium with Lights (per game) $55.00 $95.00 $55.00 $105.00 Tournament Games (per game) $48.00 $54.00 $48.00 $60.00 Tournament Games in Stadium without Lights (per game) $75.00 $95.00 $75.00 $95.00 Tournament Games in Stadium with Lights (per game) $95.00 $115.00 $95.00 $115.00 Capital Area Classic Tournament (per game) $25.00 N/A $50.00 N/A

Adult Games League Games (per game) $54.00 $59.00 $54.00 $65.00 League Games in Stadium without Lights (per game) $54.00 $59.00 $54.00 $75.00 League Games in Stadium with Lights (per game) $105.00 $125.00 $105.00 $130.00 Ultimate Frisbee (per game) $50.00 $50.00 $50.00 $55.00

Youth Training Youth - 90 Minute Sessions (per field) $40.00 N/A $40.00 N/A East Lansing Soccer Club - Season $5,000.00 N/A $5,000.00 N/A

Camps, Clinics and Tryouts Youth - 60 Minute Sessions (per field) $50.00 $75.00 $50.00 $75.00

NPSL Team Games without Admission Fees without Lights (per game) $54.00 N/A $75.00 N/A Games without Admission Fees with Lights (per game) $54.00 N/A $130.00 N/A Games with Admission Fees (per game) $500.00 N/A $600.00 N/A Team Training - 2 hours (per field) $40.00 N/A $40.00 N/A

SI - 21 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Pavilion Rental Rate Per Hour - Maximum 4 Hours N/A N/A $50.00 $50.00

East Lansing Family Aquatic Center Daily Passes Daily Pass $7.00 $11.00 $7.00 $11.00 Daily Pass - After 5:00p $5.00 $9.00 $5.00 $9.00 Daily Pass - Senior $5.00 $9.00 $5.00 $9.00 Daily Pass - Senior - After 5:00p $4.00 $8.00 $4.00 $8.00

10 Visit Passes 10 Visit Passes $45.00 $75.00 $45.00 $75.00

Season Passes First Family Member $80.00 $130.00 $80.00 $130.00 Additional Family Member $60.00 $80.00 $60.00 $80.00

Group Rates All-day pass with 3 hour reserved shade picnic structure $4.00 $6.00 $4.00 $6.00

East Lansing Hannah Community Center Passes Daily Passes Child (3-10) $3.00 $5.00 $3.00 $5.00 Youth (11-18) $4.00 $6.00 $4.00 $6.00 Adult (19-59) $6.00 $9.00 $6.00 $9.00 Senior (60+) $4.00 $6.00 $4.00 $6.00 Adult Weekend - Friday through Sunday (19-59) $5.00 $15.00 $5.00 $15.00

10 Visit Passes Child (3-10) $15.00 $30.00 $15.00 $30.00 SI - 22 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Youth (11-18) $25.00 $40.00 $25.00 $40.00 Adult (19-59) $40.00 $55.00 $40.00 $55.00 Senior (60+) $25.00 $40.00 $25.00 $40.00

Six Month Passes Adult (19-58) $160.00 $215.00 $160.00 $215.00

Annual Passes Child (3-10) $96.00 $153.00 $96.00 $153.00 Youth (11-18) $153.00 $211.00 $153.00 $211.00 Adult (19-59) $235.00 $300.00 $235.00 $300.00 Senior (60+) $157.00 $215.00 $157.00 $215.00 Family $370.00 $451.00 $370.00 $451.00

Combo Passes Annual Pass at Hannah and Season Pass at Aquatic Center Child (3-10) $126.50 $204.00 $126.50 $204.00 Youth (11-18) $184.00 $262.00 $184.00 $262.00 Adult (19-59) $241.00 $319.00 $241.00 $319.00 Senior (60+) $184.00 $262.00 $184.00 $262.00 Family $490.00 $694.00 $490.00 $694.00

East Lansing Hannah Community Center Space Rental Room Rental (Hourly Rates) East Gym $33.00 $38.00 $33.00 $38.00 East Gym - Premium Time (November - April) $40.00 $45.00 $40.00 $45.00 West Gym $24.00 $29.00 $24.00 $29.00 West Gym - Premium Time (November - April) $31.00 $36.00 $31.00 $36.00 Banquet Hall $65.00 $70.00 $65.00 $70.00 Banquet Hall - Weekend Hours (Friday 6:00p through Sunday) $75.00 $80.00 $75.00 $80.00 SI - 23 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Banquet Hall - Special Event (5 hour block) $350.00 $375.00 $350.00 $375.00 Recital Room $25.00 $30.00 $25.00 $30.00 Executive Conference Room $45.00 $50.00 $45.00 $50.00 Executive Conference Room - Weekend Hours (Fri. 6p - Sunday) $50.00 $55.00 $50.00 $55.00 Dance Studio $25.00 $30.00 $25.00 $30.00 Classroom 235/237 $29.00 $34.00 $29.00 $34.00 Classroom 144 $24.00 $29.00 $24.00 $29.00 Classroom 142 $24.00 $29.00 $24.00 $29.00 Executive Meeting Room $24.00 $30.00 $24.00 $30.00 Auditorium (Without admission charge) $100.00 $115.00 $100.00 $115.00 Auditorium (With Admission Fee) $100.00 $115.00 $100.00 $115.00 Plus $1 per person Auditorium - East Lansing Film Festival $58.00 N/A $58.00 N/A Auditorium - Non-Profit Youth Organization Production Rate $2,000.00 $2,000.00 $2,000.00 $2,000.00 Auditorium - Non-Profit Adult Organization Production Rate $2,000.00 $2,000.00 $2,000.00 $2,000.00 Plus $2 per person

East Lansing Hannah Community Center Swim Lesson and Pool Rental Rates Programs 5 Week Swim Lessons $35.00 $40.00 $35.00 $40.00 6 Week Swim Lessons $42.00 $47.00 $42.00 $47.00 8 Week Swim Lessons $54.00 $59.00 $54.00 $59.00 Junior Lifeguard Class $70.00 $75.00 $70.00 $75.00 Four (4) - Half Hour Private Swim Lessons $70.00 $75.00 $70.00 $75.00 Four (4) - Half Hour Semi-Private Swim Lessons $55.00 $60.00 $55.00 $60.00 Masters Swim (20 Hours) $73.00 $78.00 $73.00 $78.00 Water Aerobics (16 Classes) $80.00 $85.00 $80.00 $85.00 Swim Pool Rental (per hour) $60.00 $65.00 $60.00 $65.00

SI - 24 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident East Lansing Farmer's Market Vendor Fee Annual $265.00 $275.00 $330.00 $440.00 Weekly $25.00 $25.00 $30.00 $40.00

Before & After School and Summer Kids Camp Before & After School Program Registration Fee $50.00 $50.00 $50.00 $50.00 Before School - Non-Sibling $6.00 $6.00 $6.00 $6.00 Before School - Sibling $5.00 $5.00 $5.00 $5.00 After School - Non-Sibling $10.00 $10.00 $10.00 $10.00 After School - Sibling $8.50 $8.50 $8.50 $8.50 Half Day - Non-Sibling $23.00 $23.00 $25.00 $25.00 Half Day - Sibling $20.00 $20.00 $22.00 $22.00 Field Trip Fee $7.00 $7.00 $7.00 $7.00 Winter & Spring Break Care - Full Day - Non-Sibling $37.00 $37.00 $38.00 $38.00 Winter & Spring Break Care - Full Day - Sibling $32.00 $32.00 $33.00 $33.00

Summer Kids Camp Registration Fee $30.00 $30.00 $30.00 $30.00 Full Week - Non-Sibling $185.00 $190.00 $185.00 $190.00 Full Week - Sibling $160.00 $165.00 $160.00 $165.00 Full Day - Non-Sibling $37.00 $38.00 $38.00 $39.00 Full Day - Sibling $32.00 $33.00 $33.00 $34.00

Recreation and Arts Program Fees Ceramic Classes Adult Classes (6 weeks) $96.00 $101.00 $96.00 $101.00 Youth Classes (5 Classes) $62.00 $67.00 $62.00 $67.00 Ceramic Supply Fee (per session fee) $4.25 $4.25 $5.00 $5.00 SI - 25 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Open Lab Fee $10.00 $15.00 $10.00 $15.00 Lab Only Fee (6 weeks) $90.00 $95.00 $90.00 $95.00

Art Classes Adult Adult Painting (8 classes) $125.00 $130.00 $125.00 $130.00 Adult Drawing Classes (8 classes) $125.00 $130.00 $125.00 $130.00 Youth Youth Art Workshops (4 classes) $40.00 $45.00 $40.00 $45.00 Youth Art Explorers (4 classes) $60.00 $65.00 $60.00 $65.00

Dance Classes Adult Line Fusion (6 sessions) $56.00 $61.00 $56.00 $61.00 Belly Dancing (6 sessions) $48.00 $53.00 $48.00 $53.00 Youth Lil' Tykes Ballet (6 sessions) $44.00 $49.00 $44.00 $49.00

Studio de Danse Dance Classes (monthly charge) 45 Minute Classes $45.00 $50.00 $45.00 $50.00 60 Minute Classes $47.00 $52.00 $47.00 $52.00 75 Minute Classes $49.00 $54.00 $49.00 $54.00 Recital $70 - $75 $70 - $75 $70 - $75 $70 - $75 Registration $15.00 $15.00 $15.00 $15.00

Enrichment & Special Events Babysitting $50.00 $55.00 $50.00 $55.00 LEGO Classes without Robotics $150.00 $155.00 $150.00 $155.00 LEGO Classes with Robotics $185.00 $190.00 $185.00 $190.00 SI - 26 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Specialty Camps (various) $100 - $350 $105 - $355 $100 - $350 $105 - $355 Elementary Dances (per person) $14.00 $15.00 $14.00 $15.00

Fitness Classes Adult Tai Chi (10 sessions) $46.00 $51.00 $46.00 $51.00 Yoga Classes (6 sessions) $65.00 $70.00 $65.00 $70.00 Group Fitness (6 sessions) $48 - $94 $53 - $99 $48 - $94 $53 - $99

Youth Camps Summer Youth Sports Camps $30 - $50 $35 - $55 $30 - $50 $35 - $55 Buddy Basketball Camp $40.00 $45.00 $40.00 $45.00 Fencing (15 sessions) $150.00 $155.00 $150.00 $155.00

All-of-Us Express Children's Theatre Fees Tickets Non-Musical Adult $8.00 $8.00 $10.00 $10.00 Non-Musical Youth $5.00 $5.00 $7.00 $7.00 Musical Adult (18 & up) $8.00 $8.00 $10.00 $10.00 Musical Youth (6-17) $5.00 $5.00 $7.00 $7.00 Musical Pre-school (2-5) $5.00 $5.00 $5.00 $5.00 School Shows $5.00 $5.00 $5.00 $5.00 Adult (Riverwalk) N/A N/A $12.00 $12.00 Youth (Riverwalk) N/A N/A $10.00 $10.00 School Shows (Riverwalk) N/A N/A $7.00 $7.00 Young Playwrights Program $10.00 $10.00 $15.00 $15.00 Season Ticket Pack $60.00 $60.00 $70.00 $70.00

SI - 27 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Academies & Workshops Weekly Summer Drama Camp - Member (1 week) $125.00 $125.00 $125.00 $125.00 Weekly Summer Drama Camp - Non-Member (1 week) $150.00 $150.00 $150.00 $150.00 Weekly Summer Drama Camp - Member (2 weeks) $245.00 $245.00 $245.00 $245.00 Weekly Summer Drama Camp - Non-Member (2 weeks) $280.00 $280.00 $280.00 $280.00 Audition Workshop Member $5.00 $5.00 $10.00 $10.00 Audition Workshop Non-Member $5.00 $5.00 $15.00 $15.00

Production Participation Fees Cast - Member (Non-Musical) $90.00 $90.00 $95.00 $95.00 Cast - Non-Member (Non-Musical) $105.00 $105.00 $110.00 $110.00 Crew - Member $50.00 $50.00 $55.00 $55.00 Crew - Non-Member $65.00 $65.00 $70.00 $70.00 Guild Journeyman - Member $70.00 $70.00 $75.00 $75.00 Guild Journeyman - Non-Member $85.00 $85.00 $90.00 $90.00 Guild Master - Member $90.00 $90.00 $95.00 $95.00 Guild Master - Non-Member $105.00 $105.00 $110.00 $110.00 Cast - Member (Musical) $105.00 $105.00 $110.00 $110.00 Cast - Non-Member (Musical) $120.00 $120.00 $125.00 $125.00

Miscellaneous Items DVD $20.00 $20.00 $20.00 $20.00 DVD Musical $25.00 $25.00 $25.00 $25.00 Best Wishes Ad $5.00 $5.00 $8.00 $8.00 Show T-Shirt $18.00 $18.00 $18.00 $18.00

Sports and Athletics Adult Softball Team Fee (20 game schedule) $725.00 $725.00 $725.00 $725.00 Player Fee (20 game schedule) $20.00 $25.00 $20.00 $25.00 SI - 28 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Team Fee (18 game schedule) $660.00 $660.00 $660.00 $660.00 Player Fee (18 game schedule) $20.00 $25.00 $20.00 $25.00 Team Fee (14 game schedule) $530.00 $530.00 $530.00 $530.00 Player Fee (14 game schedule) $15.00 $20.00 $15.00 $20.00 Team Fee (12 game schedule) $450.00 $450.00 $450.00 $450.00 Player Fee (12 game schedule) $15.00 $20.00 $15.00 $20.00 Team Fee (10 game schedule) $385.00 $385.00 $385.00 $385.00 Player Fee (10 game schedule) $15.00 $20.00 $15.00 $20.00 Team Fee (10 game schedule - unofficiated) $250.00 $250.00 $250.00 $250.00 Player Fee (10 game schedule - unofficiated) $15.00 $20.00 $15.00 $20.00

Adult Volleyball Adult Volleyball Session (13 weeks) $39.00 $44.00 $39.00 $44.00 Adult Volleyball Daily $5.00 $6.00 $5.00 $6.00

Youth Recreation Leagues Baseball T-Ball League (per player) $65.00 $70.00 $65.00 $70.00 Midget League - Resident (per player) $70.00 $75.00 $70.00 $75.00 Midget League - Non-Resident - Full Team (per players) N/A $75.00 N/A $75.00 Little League (per player) $75.00 $80.00 $75.00 $80.00 Little League - Non-Resident - Full Team (per players) N/A $75.00 N/A $75.00 Basketball Youth Basketball (per player) $60.00 $65.00 $70.00 $75.00 Youth Basketball - Non-Resident - Full Team (per players) N/A $75.00 N/A $75.00 T-Shirts $15.00 $15.00 $15.00 $15.00

Interscholastic Sports Basketball (12 games) (per player) $250.00 $250.00 $250.00 $250.00 Basketball (10 games) (per player) $220.00 $220.00 $220.00 $220.00 SI - 29 FEE SCHEDULE COMPARISON PARKS, RECREATION AND ARTS FUND FY2018 Actual For Proposed FY2019 Budget

Resident Non-Resident Resident Non-Resident Cross Country (per player) $175.00 $175.00 $175.00 $175.00 Track and Field (per player) $175.00 $175.00 $175.00 $175.00 Volleyball (12 games) (per player) $250.00 $250.00 $250.00 $250.00 Volleyball (10 games) (per player) $220.00 $220.00 $220.00 $220.00

SI - 30 FEE SCHEDULE COMPARISON SOLID WASTE FUND FY2018 Actual For Proposed FY2019 Budget

Solid Waste Fees Bulk Refuse Tag (per tag) $18.50 $19.00 Special Bulk Refuse (per tag) (6) $42.00 $42.00 (6) -items with Freon refrigerant like freezers, air conditioners, refrigerators, etc. Yellow City Plastic Trash Bags (per roll of five) $8.75 $9.25 Yardwaste Paper Yard Waste Bags (per bag) $2.00 $2.00 Yard Wast Stickers (per sticker) $2.00 $2.00 Easy Carts (trash) 32 gallon trash cart $55.00 $55.00 64 gallon trash cart $70.00 $70.00 96 gallon cart $79.00 $79.00 Replacing Recycling Carts (7) 32 gallon trash cart $45.00 $45.00 64 gallon trash cart $50.00 $50.00 96 gallon cart $55.00 $55.00 (7) -Cost for lost, stolen, destroyed or additional carts after the initial distribution Annual Service Fee (96 gallon trash cart) $85.00 $90.00

SI - 31 FEE SCHEDULE COMPARISON PRIME TIME SENIORS' FUND FY2018 Actual For Proposed FY2019 Budget

Member Non-Member Member Non-Member Memberships Residents $20.00/year $25.00/year Non-Residents $30.00/year $35.00/year On-Going Recreational Offerings Active Senior Exercise (drop-in/per session) $5.00 $10.00 $5.00 $10.00 Adaptive Yoga (4 sessions) $20.00 $25.00 $20.00 $25.00 Men's 20-20-20 (4 sessions) $20.00 $25.00 $20.00 $25.00 Pickleball for Fun (4 sessions) N/A N/A $20.00 $25.00 Pickleball: Rules and Skills (per session) N/A N/A $5.00 $10.00 Stretch, Flex, and Balance (4 sessions) $20.00 $25.00 $20.00 $25.00 Stretch, Flex, and Balance Adv. (4 sessions) $20.00 $25.00 $20.00 $25.00 Tai Ji Quan (4 sessions) $28.00 $33.00 $28.00 $33.00 Walking Club (drop-in/per session) $2.00 $2.00 $2.00 $2.00 Water Aerobics (per session) $6.00 $11.00 $6.00 $11.00 Zumba (4 sessions) $24.00 $29.00 $24.00 $29.00 Social Events Annual Holiday Party $10.00 $15.00 $12.00 $15.00 Open House Salad Luncheon $7.00 $7.00 $8.00 $10.00 Senior Picnic $5.00 $7.00 $5.00 $7.00 Thanksgiving Luncheon $10.00 $10.00 $12.00 $15.00 On-Going Social Activities Bridge Duplicate (per game) $2.00 $3.00 $3.00 $4.00 Canasta (per game) $1.00 $2.00 $2.00 $3.00 Chess (per game hour) $1.00 $2.00 $2.00 $3.00 Euchre (per game hour) $1.00 $2.00 $2.00 $3.00 Health Fair Luncheon N/A N/A $12.00 $15.00 Mah Jongg (per game hour) $1.00 $2.00 $2.00 $3.00 Scrabble (per game hour) $1.00 $2.00 $2.00 $3.00 Enrichment/Lifelong Learning Beginning Birding (4 sessions) N/A N/A $25.00 $30.00 SI - 32 FEE SCHEDULE COMPARISON PRIME TIME SENIORS' FUND FY2018 Actual For Proposed FY2019 Budget

Member Non-Member Member Non-Member Beginning French (4 sessions) $40.00 $45.00 $40.00 $45.00 Brain Exercise (per session) $3.00 $3.50 $3.00 $3.50 Comparing East and West (6 sessions) $10.00 $15.00 N/A N/A Continution Meditation (3 Sessions) N/A N/A $45.00 $50.00 Crime Time (4 sessions) $12.00 $17.00 $12.00 $17.00 Current Events (per session) $1.00 $2.00 $2.00 $3.00 Democracy N/A N/A $12.00 $17.00 Fiction Book Discussion (6 sessions) $10.00 $15.00 $10.00 $15.00 Gary Stollak Psych Class (10 sessions) $15.00 $20.00 N/A N/A Grief and Remembering (3 weeks) N/A N/A $24.00 $29.00 Let’s Talk (per session) $1.00 $2.00 $2.00 $3.00 Non-fiction Book Discussion (6 sessions) $10.00 $15.00 $10.00 $15.00 Online Security (3 sessions) $5.00 $10.00 $5.00 $10.00 Read Aloud (per session) $1.00 $2.00 $2.00 $3.00 Science Fiction and Fact in the Far Future N/A N/A $20.00 $25.00 Spanish Literature (per session) $1.00 $2.00 $2.00 $3.00 Speaker’s Series $12.00 $15.00 $12.00 $15.00 TED Talks (6 sessions) $10.00 $15.00 $10.00 $15.00 The Self N/A N/A $12.00 $17.00 Twice a Month Movies $1.00 $2.00 N/A N/A What's So Funny? (per session) $1.00 $2.00 $2.00 $3.00 The Arts Acrylics Painting Class (3 sessions) $55.00 $60.00 N/A N/A Carving for Fun (3 sessions) $24.00 $29.00 $24.00 $29.00 Chinese Brush Painting (4 sessions) N/A N/A $40.00 $45.00 Copper Enameling (2 sessions) $30.00 $35.00 $30.00 $35.00 Copper Wire (2 sessions) $30.00 $35.00 N/A N/A Fused Glass Class (1 session) N/A N/A $25.00 $25.00 Mosaic Gazing Balls (4 sessions) $70.00 $75.00 $70.00 $75.00 Mosaic Stepping Stones (2 sessions) $30.00 $35.00 $30.00 $35.00 SI - 33 FEE SCHEDULE COMPARISON PRIME TIME SENIORS' FUND FY2018 Actual For Proposed FY2019 Budget

Member Non-Member Member Non-Member Memoir Writing (8 sessions) $75.00 $80.00 $75.00 $80.00 MSU Theater Script Class – MSU Department of Theatre $35.00 $40.00 $35.00 $40.00 No-Fire Tile Casting (5 sessions) $30.00 $35.00 $30.00 $35.00 Open Strum Free Free $2.00 $3.00 Painting (3 sessions) $50.00 $55.00 $50.00 $55.00 Polymer Clay (4 sessions) N/A N/A $40.00 $45.00 Sing and Strum (6 sessions) $40.00 $45.00 N/A N/A Studio Tuesday (per session) $3.00 $4.00 $3.00 $4.00 Textured Mold Casting $20.00 $20.00 $20.00 $20.00 The Short Story N/A N/A $75.00 $80.00 Ukulele (10 sessions) $50.00 $55.00 $50.00 $55.00 Services AARP Driving Course $15.00 (all funds derived N/A N/A N/A from this class go to AARP) Appraisal Fair $10.00 $15.00 N/A N/A Coffee with State Rep. Singh Free N/A Free N/A Decluttering and Paring Down Possessions $12.00 $17.00 N/A N/A Estate Dispersal - Member $10.00 $15.00 N/A N/A Estate Planning $5.00 $10.00 $5.00 $10.00 Estate Planning with Ted Hughes $5.00 $10.00 N/A N/A Foot Care Clinic $20.00 $20.00 $25.00 $25.00 Good Form Walking Clinic Free N/A N/A N/A Home Repair/Equity Scams Free N/A N/A N/A HomeFit Free N/A N/A N/A Ingham Health Plan Seminar Free N/A N/A N/A Life Reimagined Free N/A N/A N/A Medicare Open Enrollment Free N/A Free N/A Medicare Presentation Free N/A Free N/A Tax Clinic Free N/A N/A N/A

SI - 34 FEE SCHEDULE COMPARISON PRIME TIME SENIORS' FUND FY2018 Actual For Proposed FY2019 Budget

Member Non-Member Member Non-Member Technology Lab Free N/A Free N/A Transportation $10.00 for initial Gold N/A $10.00 for initial Gold N/A Card start-up Card start-up Retirement/Rehab. Center Tours Free N/A N/A N/A Wellness Week Free-subsidized by N/A N/A N/A sponsorships Wellness Workshops Free N/A Free N/A

SI - 35 FEE SCHEDULE COMPARISON LIBRARY FUND FY2018 Actual For Proposed FY2019 Budget

Public Library Fines and Fees Late Fines Non-DVD Late Fines $.25/day $.25/day DVD Late Fines $1.50/day $1.50/day Non-Resident Borrowers’ Card Fees Individual Annual Card $30.00 $30.00 Individual 6-month Card $18.00 $18.00 Family Annual Card $40.00 $40.00 Educator - certified public, private, charter, online and parochial school teachers $10.00 $10.00 (K-12) and preschool or daycare center instructors who work in the City Copier and Printer Fees Color print $0.50 $0.50 Black & White print $0.10 $0.10 3D print N/A $0.10 per gram Meeting Room Rental Charges Resident/Non-Profit Organization Whole Room $40 for 2 hours, each additional hour $10 $40 for 2 hours, each additional hour $10 Half-Room $30 for 2 hours, each additional hour $5 $30 for 2 hours, each additional hour $5 Non-Resident/For-Profit Organization Whole Room $50 for 2 hours, each additional hour $15 $50 for 2 hours, each additional hour $15 Half-Room $40 for 2 hours, each additional hour $7 $40 for 2 hours, each additional hour $7

SI - 36 FEE SCHEDULE COMPARISON PARKING FUND FY2018 Actual For Proposed FY2019 Budget

PARKING RATES Gated Lot Rates Enforced time-frames 8am-3am 8am-3am Gated Surface Lots: 1 and 11 Per 1/2 hour $1.00 $1.00 Daily Maximum $20.00 $20.00 Gated Garages: 3,9,10 & 12 Per 1/2 hour $0.75 $0.75 Daily Maximum $15.00 $15.00 Special Event Parking Rates Gated Lots: Per 1/2 hour first two hours $1.00 $1.00 Per hour thereafter $6.00 $6.00 Daily Maximum $30.00 $30.00 Gated Lot Football Pay-at-Entry N/A $20.00 Metered Lot Football Pay-at-Entry $20.00 $20.00 VIP Football Reserved Street Meters $30.00 $40.00 Art Festival Pay-at-Entry N/A $5.00 Permit Rates Gated Lot permit purchase / replacement $10 / card $15 / card Non-Gated Lot permit replacement $25 / permit $25 / permit Albert Ave. Garage (Lot 1/Center City) Nested Parking N/A $100.00/month Lower Level Parking N/A $125.00/month Charles St. Garage (Lot 3/City Center) Nested Parking $100.00/month $100.00/month Lower Level Permit $125.00/month $125.00/month Grove St. Garage (Lot 9 ) Nested Parking $95.00/month $95.00/month Lower Level Permit $120.00/month $120.00/month Division St. Garage (Lot 10) Nested Parking $90.00/month $90.00/month SI - 37 FEE SCHEDULE COMPARISON PARKING FUND FY2018 Actual For Proposed FY2019 Budget

Lower Level Permit $115.00/month $115.00/month M.A.C. Ave. Garage (Lot 12) Permit Parking $95.00/month $95.00/month Reserved Spaces $105.00/month $105.00/month Bailey Street Lot (Lot 7) $95.00/month $95.00/month People's Church Lot (Lot 8) $90.00/month $90.00/month City Hall West Lot (Lot 15 ) $85.00/month $85.00/month Valley Court Dr. (Lot 13) $90.00/month $90.00/month Meter Rates Rates enforced time-frame 8am-3am 8am-2am *Exception - Valley Court meters rates enforced time-frames* 8am-6pm 8am-6pm Rate A per 1/2 hour (10 minutes free) $0.75 $0.75 Rate B per 1/2 hour $0.75 $0.75 Rate C per hour $0.75 $0.75 Rate D per hour $1.00 $1.00 Rate E per 1/2 hour (15 minutes free loading) $0.75 $0.75

SI - 38 FEE SCHEDULE COMPARISON WATER & SEWER FUNDS FY2018 Actual For Proposed FY2019 Budget

WATER Administration Charge per quarter $16.02 $15.84 Readiness to Serve (RTS) Charge, per Meter Size, per Quarter 5/8" x 3/4" $8.04 $8.78 1" $20.10 $21.95 1 1/2" $40.20 $43.90 2" $64.32 $70.24 3" $180.90 $197.55 4" $402.00 $439.00 6" $804.00 $878.00 Commodity Charge per 1,000 Gallons $4.40 $4.95 SEWER Administration Charge per quarter $9.47 $9.68 Readiness to Serve (RTS) Charge, per Meter Size, per Quarter 5/8" x 3/4" $19.97 $20.96 1" $49.93 $52.40 1 1/2" $99.85 $104.80 2" $159.76 $167.68 3" $449.33 $471.60 4" $998.50 $1,048.00 6" $1,997.00 $2,096.00 Commodity Charge per 1,000 Gallons $6.74 $7.38 IRRIGATION Administration Charge per quarter $4.01 $3.96 Readiness to Serve (RTS) Charge, per Meter Size, per Quarter 5/8" x 3/4" $2.01 $2.20 1" $5.03 $5.49 1 1/2" $10.05 $10.98 2" $16.08 $17.56 3" $45.23 $49.39 Commodity Charge per 1,000 Gallons $4.40 $4.95 SI - 39 FEE SCHEDULE COMPARISON WATER & SEWER FUNDS FY2018 Actual For Proposed FY2019 Budget

WATER & SEWER MISCELLANEOUS FEES Irrigation Flat Rate (City facilities w/o a water meter) $31.50 $41.14 Sewer Flat Rate - Non-metered (Sewer services w/o a water meter) $130.50 $141.34 Non-payment Door Tag Fee $15.00 $15.00 Water Shut Off and Turn On Fee for Non-payment and Contractor (8:00 AM - 3:00 PM, $35.00 $40.00 M-F, excluding holidays) After Hours Water Turn On Fee (Outside of normal working hours, weekends and $170.00 $200.00 holidays) Missed Scheduled Appointment Fee $25.00 $30.00 Hydrant Flow Testing $235.00 $235.00 Meter Test Fee $80.00 $95.00 Pool & Irrigation Winterizing: Pull Meter (Non-Neighborhood Assoc.) $55.00 $65.00 Out of Sequence Meter Read Fee $20.00 $20.00 System Check Fee $75.00 $75.00 ARB Replacement (Missing or damaged) $190.00 $205.00 Temporary Meter/Backflow Device Fee & Rental per month $270.00 Fee + $730 Deposit + $50 Month Rent $275.00 Fee + $725 Deposit + $50 Month + Consumption Rent + Consumption Private Hydrant Flushing Fee N/A $165.00 New Main/Water Service Flushing/Sampling Fee N/A Actual Labor, Equipment & Water Used

CAPITAL CONNECTION CHARGES (In addition to the physical connection - does not include pavement and concrete restoration) Capital Connection Charge Water Service Meter Size WATER 5/8" x 3/4" $1,365.30 $1,449.43 1" $3,412.14 $3,623.58 1 -1/2" $6,820.95 $7,247.17 2" $10,915.74 $11,595.47 3" $30,697.05 $32,612.25 4" $68,212.83 $72,471.66 6" $136,425.66 $144,943.32

SI - 40 FEE SCHEDULE COMPARISON WATER & SEWER FUNDS FY2018 Actual For Proposed FY2019 Budget

SEWER 5/8" x 3/4" $2,004.66 $2,225.17 1" $5,011.65 $5,562.93 1 -1/2" $10,023.30 $11,125.86 2" $16,037.28 $17,801.38 3" $45,103.74 $50,065.15 4" $100,230.78 $111,256.17 6" $200,461.56 $222,512.33

PHYSICAL TAP AND METER FEES (does not include pavement and concrete restoration) City Excavates & Backfill Fee 1" Tap & 5/8" x 3/4 Meter $3,655.00 $3,665.00 1" Tap & 1" Meter $3,800.00 $3,815.00 1 1/2" Tap & 1" Meter $4,280.00 $4,320.00 1 1/2" Tap & 1 1/2" Meter $4,495.00 $4,530.00 2" Tap & 1 1/2" Meter $4,835.00 $4,880.00 2" Tap & 2" Meter $4,970.00 $5,040.00 Water Service Line Abandonment $1,775.00 $1,795.00 Winter Fee Addition (Dec. 1 thru Mar. 31) $445.00 $445.00 Greater Than 2" Tap (Fee + Time and Material) $140.00 + Time and Material $165.00 + Time and Material Greater Than 2" Connection Time and Material Time and Material Applicant Excavates & Backfill Fee 1" Tap & 5/8" x 3/4 Meter $1,360.00 $1,360.00 1" Tap & 1" Meter $1,505.00 $1,510.00 1 1/2" Tap & 1" Meter $1,990.00 $2,015.00 1 1/2" Tap & 1 1/2" Meter $2,200.00 $2,225.00 2" Tap & 1 1/2" Meter $2,540.00 $2,575.00 2" Tap & 2" Meter $2,680.00 $2,735.00 Water Service Line Abandonment $495.00 $505.00 Greater Than 2" Tap (Fee + Time and Material) $140.00 + Time and Material $165.00 + Time and Material SI - 41 FEE SCHEDULE COMPARISON WATER & SEWER FUNDS FY2018 Actual For Proposed FY2019 Budget

Greater Than 2" Connection Time and Material Time and Material

METER, YOKE & ARB FEES 5/8" x 3/4 Meter $395.00 $430.00 1" Meter $530.00 $575.00 1 1/2" Meter $750.00 $775.00 2" Meter $900.00 $925.00 3" Meter & Larger (Price Meter Each Time) $140.00 + material $165.00 + material

REPLACE FROZEN/BROKEN METER 5/8" x 3/4 Meter $250.00 $280.00 1" Meter $355.00 $395.00 1 1/2" Meter $585.00 $635.00 2" Meter $700.00 $755.00 3" Meter & Larger (Price Meter Each Time) $140.00 + material $165.00 + material

SI - 42