Andy Shor Stare Mayor i statin Fa SAN ‘ OFFICE OF THE Mayor Crrv oF Lansinc, Micmtean’ Mareh 26,2018 President Carol Wood and Councimembers Lansing City Counel A124 W. Michigan Ave, Lansing, mi 40933, Dear President Wood and Cty Counc colleagues: {am submitting for your consideration my first Exective Budget Recommendation as Mayor forthe City of ‘Lansing, forthe upcoming sal year: July1,2018 through Jun 30,2019 (FY 2019}. Having just akon ofce in January, thls budget is largely a continuation budge rom prior years from an operational perspective. It oes, however, contain some significant changes to reflect my vision and the feedback received during my ‘campaign transition and the pst couple of months as Mayor ‘The FY 2019 proposed spending plan for the Citys $218.6 milion, a 4.9% Increase fom the FY 2018 adopted budget. The proposed General Fund budaet for FY 2019 $1343 milion, a 4.63 increase frm the FY 2018. adopted budget ‘Wile the Ciy’s nancial eutlook has improved greatly over th pat several years from a near-torm perspective, revenue constraint impose by the State of Michigan, the potential fra state and/or national economic downturn large pension and retiree healtheare obligations and vast infrastructure needs realn 2 significant challenges inthe coming years. Lis crtcal that we view the budget from that perspective, however itis equally important that we make strategic investments inthe services we prove inorder to help grow the City’s economy and strengthen the qual offer our current and prospective residens, business owners and visitors. ‘ny campaign, [noted the need and vision fr strongthening our neighborhoods. My proposed FY 2019, spending plan dudes a numberof key investments fr dongs: + Upon tang office, reorganized the administration and crested the new Neighborhood and lize “Engagement Department and the moved the Cys award-winning Office of Financial Empowerment Into that department. 1am pleased with the results we have seen in justa coupe of months. and my proposed spending plan strengthens those efforts including an increase to neighborhood grant funding ‘My proposal includes adtional funding fr fous n the City’s Key corridors this coming year, as wellasa tenfold increase nthe Cys corridor business farade grant program. ‘+ Tostrengthen ovr pride in our neighborhoods as well as ensure excellent quality of fe and higher property values, Iam proposing the elimination of wo vacant part-time postons and doubling the ‘umber of full-time premise code officers in order to have one allt codecomplance premise officer for each ward. “Bl Oppo phe e-‘+ Toencourage employees to livin Lansing in addition to working here have proposed doubling the ity employee residency incentive program, My administration also plans to work with employers in Lansing to expand this program to thei employees as wel ‘The most common discussion that Ihad with esidents through the ast years the contin ofthe roads Luke other ommunties in our nation, but most notably within our state the Cy’ roads are facing significant deterioration While the state and federal governments have continually underfunded al local governments for thelr infrastructure needs Lansing needs to prioritize the funding that we do receive to have the retest lmpac for ou residents and vistors. My FY 2019 budget proposal includes the following: ‘+ $400,000 fom the General Fund for road repair, which the irsttime in four years thatthe City of Lansing has allocated General Fund dlls for road repai. + Asstated in my State of the City Address in February, tls coming year, 100% of he it’s local oad rllage willbe spent on rad reals ‘+ idewalts are also a great concer, and the $300,00 in proposed allocation wil more than double the amount forthe Cys sidewall repair program + Thecurrent funding evel for closure of gaps between existing sidewalls alo maintained. The proposed budget contains otal $182 milion for road epai and maintenance (Nx, sweeplng, ling sling tc) fom federal state, City rad millage city’s General Fund, “The iy als as icant naseuciure sa Ia our parking ate aloe Cy’ BPA Combined sewer separation (CSO) program. The FY 2019 budget includes sigficent investment in oth, ile keeping the FY 2019 sewer rates ata 3 03% increase the same a this current yearandlower than Fecent yeas In reviewing city operations my frst couple months, lam recommending some changes othe C's current stafing structure, most notably ‘+ The iy has several positions through contractual arrangements for programs that began as plats, bbuthave since more tan proven their valve. Tam therefore recommending those contractual frrangements be convertad t Cy employee postion, ncudng two (2) alsin union postions in {he Office of Financial Empowerment and sx (6) part-time union positions inthe Ofc of Community Meda ‘+ Lam proposing additional staing in the Treasurer's Office to augment the increase tax compliance ‘efforts being undertaken in conjunction with the Cly Attorney's fice and courts. These postions ‘ull ensure that taxes owed othe City are callected specalyata ime when weave igacan Uncollected anes + Inlightof the local state, and national trends of increasing public safety responses for mental eth ‘Shue, ny FY 2019 budget als includes the addon of fll-sime, Cy-employed social workerto esistin police and other response cal “Eyl Oppaniy moe‘The proposed budget contains $45 milion for pension and retiree healthcare costs and an atonal $23 ulin or retire healthcare prefunding. These obligation are substan, and wil continue to grow lata the foreseeable future posing significant challenge forthe City, especialy in ight of our resource “constraints. The City recently received results and recommendations from a study on fs pension and retiree Iealthare which my administration s inthe process reviewing. For these reasons and because ofthe (ly/s resource constrains in ight af service and infrastructure needs, | announced in my Stat ofthe Cy ‘Address a eboot athe Financial Health Team (FHT) under the continued leadership af former Mayor David Hollister. We appreciate all the FHT member’ time and efforts and look forward to our continued work on these essential issues ‘Contained within his budget document are my funding proposals for FY 2019, {look forward ta working ‘with you in your evaluation ofthese proposals Sincerely, ‘andesckor Mayor yl Oppraty Ensim”