City Commission - Regular Meeting

Dear mayor, dear council members and residents, I am Steve Duchenne, city councilor. Tonight I am pleased to present the budget for 2027 to you. The annual budget begins on October 1, 2026 and ends on September 30, 2027. Tonight the public part of the budget process takes place and I will go through the cornerstones of the budget with you in about eight minutes. The household plan for the business year 2027 is based on a simple promise. We serve our community and build our future. In the creation of the household, the focus was on responsible financial management, excellent service and strategic investments in infrastructure and quality of life. Four topics draw like a red flag through the document. It is structurally balanced, Converting income causes converging expenses. It continues to finance investments that our community needs. It reflects the common priorities of the city council and the commitment of our employees. And it strengthens our commitment to a transparent and responsible administration of public resources. In short, it is a household that is based on stability, service and intelligent growth. Every household post is linked to a strategic priority. First, financial stability, appropriate, sustainable financing to provide high-quality services to the population. Second, a strong economy that supports our local companies and creates opportunities for new companies and job seekers. Third, a solid investment infrastructure, ongoing investments in parks, buildings, equipment, roads and technology. Fourth, a safe community that protects the quality of life in which St. Clair is kept safe and clean. Fifth, a feeling for the place in which we celebrate our heritage, expand access to leisure and cultural offers and strengthen the relationships between the city and its inhabitants. And sixth, a powerful government that increases efficiency and efficiency to bring city administration into the 21st century. These six pillars determine every decision that the household team has made this year Here are the most important figures. For the general fund, the revenues in the amount of 26,023,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 The most important finding on this slide, you can find below, is that this is a structurally balanced household. Returning income finances recurring expenses and we do not use any single money to pay ongoing costs and we do not shift any obligations to future years. This structural discipline is what predicts the long-term financial health of the city and its tax money. Der allgemeine Fonds ist der wichtigste Betriebsfonds. Er unterstützt die öffentliche Sicherheit, öffentliche Arbeiten, Parks und die allgemeine Verwaltung. Die Einnahmen werden auf 6 P-Hunderten vor 26.083 Dollar prognostiziert, was einem Anstieg von nur 1,7% gegenüber dem geänderten Haushalt für das Geschäftsjahr 2026 entspricht. This growth is driven by the growth of the basic tax, interest rates and state income, which in some cases are equated with lower concession fees due to the lack of one-time contributions. The revenues are estimated at $6,001,041, which corresponds to an increase of 4.8%. This increase reflects higher wages and social benefits, personal changes and greater transfer fees. Again. Again. Nevertheless, the fund is still very healthy. The end balance of the fund is forecasted at $11,061,589, which corresponds to 184% of the revenues and is therefore clearly above our political minimum target of 25 to 50%. The graph shows four service areas that this fund supports. Four revenue trends are worth mentioning. The basic tax is still our largest source of income. The proposed operating tax rate is lowered to $12.5777, compared to $12.7772 due to the withdrawal of Hedley, which caused the revenues to drop by about $42,000. According to estimates by the Ministry of Finance of Michigan, the state revenue will be estimated at $640,040 for the fiscal year 2020. The fees for services remain largely unchanged. The water price rises from $3.28 to $54. The drain fees increase from 4.86 Gs to 4.00 Gs, and the fees for drain disposal increase slightly. For a typical household, this amounts to $37.92 a year. Finally, the interest income, thanks to improved short-term interest rates and strategic investment practices, will increase to $350,000, forecast against $300,000 in the previous year to $6,011. The revenues rise slightly and we maximize every tax-free dollar. On the expenditure side, see where your dollars are working. Public safety has the highest priority for us. The police spend 25% of the general fund's expenses and we maintain the full staff strength, whereby the investment demand is financed via the investment plan. The staff costs of salaries, wages and social benefits spend about 35% of the fund. This reflects the staff stock and the predicted increase in health insurance contributions by 10% again. In the area of infrastructure, we set $300,000 for street funds, $372,000 for the near recovery of the new playground in Clough Terrace Park and $200,000 for a new public improvement fund. In addition, we are starting the second phase of a multi-year program to improve the sidewalks to take care of the aging sidewalks in the city. Safety, people and infrastructure. These are the priorities in this budget. This slide shows the taxes we want to raise in the business year 2027 from Schieß. The general tax amount is 12.5778 promille, which exactly corresponds to the upper limit of Hadley. As already mentioned, this is a reduction compared to the 12.7229 promille. The road tax amount for urban roads is 2.4004 promille and the tax amount for the elderly care of employees is 0.99638 promille. In total, this results in a total tax rate of 15.42 per mille. I would like to emphasize that the tax rate is falling and not rising, as the national law prescribes the withdrawal of Hedley. Here is the overall overview of all the funds. In addition to the net profit from the general fund at $422,042, the main road fund has a net profit of $42,072. Lola. Lokale Straßen 20.000. Lola. Städtische Straßen 151. Lola. Das Wasserwerk 7070. Lola. Der Hafenfonds 30.000. Lola. Die Fonds für Erholung, Rente, Abwasserbehandlung und Müllabfuhr sind alle bei exakt null ausgeglichen. Die Gesamtsumme beträgt 870.9. Dollars in revenue and 17,078. Dollars in spending per annum. Revenue of 8,901. Dollars across all funds. Each fund is either positive or balanced. And again, the excess of the general fund supports our political goals for the fund balance. Before I come to the end, I would like to thank the people who made this document. Our financial director, Carrie Hepton, our department manager and the city employees have done conscientious and professional work during the household process. Thank you to the mayor and the city council for your careful advice, your citizen-oriented leadership and your commitment to the inhabitants. This household plan is designed with the confidence that it reflects the values, priorities and household disciplines that the citizens of St. Clair deserve. Attention, Steve Duchesne, City Council. Thank you for your time this evening. This concludes the presentation of the Household Plan for 2027. Thank you for your attention and I am now looking forward to your comments.