Issues-Based Strategic Plan 2009 - 2014 and Approved Millage

Message from the Township Supervisor
Introduction
Strengths, Weaknesses, Opportunities &Threats
Planning Process
Financial
Infrastructure
Personnel
Community Expectations

Message from the Township Supervisor About the Approved Millage

Posted: February 24, 2010

Bloomfield Township voters approved a millage request for 1.3 mils that will restore approximately $4.4 million in property tax revenue for the fiscal year that begins April 1, 2010. These voters have made certain that our community will remain safe, secure and a great place to call home.

On behalf of the Board of Trustees, I want to thank every person who voted affirmatively. You understood the seriousness of the financial situation and voiced your commitment to keeping Bloomfield Township the distinctive and desirable place it has always been.

The millage has passed but the hard work intensifies. This section of the website features our comprehensive five-year Strategic Plan. The Plan, updated every quarter, addresses our aging infrastructure, our changing technological needs, personnel matters and community expectations as well as our finances. Revenue restored by the millage will not alleviate the need to continue progress on all areas identified in the Plan. The Board remains committed to operating the Township in the most cost-effective manner possible and will put the best business practices into place to achieve that goal.

Dave Payne,
Bloomfield Township Supervisor

Introduction

Updated December 7, 2009

Proposed Millage Powerpoint Presentation
Updated January 12, 2010

Bloomfield Township has long been considered a desirable place to live and to work. Marked by beautiful natural features and noted for its highly educated, prosperous population, the community has historically been supportive of the local government. In return, the Township’s leadership and employees have provided excellent public services and have been responsible stewards of public assets.

Still, the Township is not immune to the grave challenges facing the region, state and nation. Some of our residents are experiencing financial crises so great their homes are going into foreclosure. Some of our businesses struggle to keep their doors open. The effects on the Township are plummeting property values and a sharply declining tax base. Revenues will most certainly drop and will not recover for many years. Yet, the demand for services will likely stay the same and inflation will likely raise the cost of providing those services.

Bloomfield Township’s leadership recognizes the impending situation and will address it. The goals are to continue providing excellent public services, maintain our aging infrastructure, and attract and retain top-quality employees, all in an unfavorable financial climate.

This will not be easy. A long history of financial responsibility means there are no pockets of excess that can be painlessly cut. Bloomfield Township has been ahead of its time and has already taken the steps that many municipalities are beginning to take now.

This issues-based strategic plan identifies further actions that will be put into place, effective now and continuing through the next five years.

Strengths, Weaknesses, Opportunities and Threats

The Community

Bloomfield Township

Planning Process

October, November & December, 2008: Groups met individually and as a whole group to develop goals, strategies and action plans for each area of concentration.

January 2009: Board held a study session, which included all department heads, reviewed the collection of subcommittee plans and incorporated them into one strategic plan.

January & February 2009: Finance Department worked with department heads to prepare a balanced budget for the 2009 – 2010 fiscal year. Department Heads were charged with reducing expenses from the year before.

February 2009: Board held a study session which included all department heads to examine budget. Board approved budget at Feb. 23 Board meeting. Board worked with Department Heads to finalize longer term Issues-Based Strategic Plan for 2009 – 2014.

March 2009: Board adopted Issues-Based Strategic Plan, 2009 – 2014, at March 9 Board meeting.

March – July 2009: Board and Administration followed planned strategies, including promoting community awareness of Strategic Plan through newsletters, cable programs, talks with homeowners associations, and media. First quarterly review and update of Plan took place in July and posted on website.

September & October 2009: Second quarterly review and update. New financial information indicated property tax revenue falling more rapidly than originally projected. This, plus announced cut in state revenue sharing, called for the acceleration of several important strategies. Most significantly, it was determined that revenue restoration had to take place sooner and on a larger scale than earlier information indicated, or else as many as 25 positions would be eliminated by April 2010 to balance the 2010 – 2011 budget. Without revenue restoration, another 20 positions will be eliminated for the 2011 – 2012 budget. These positions represent 20% of the workforce and their elimination will have a negative impact on public services. The decision was made to consider a new millage rather than a Headlee override to restore lost revenue in order to avert the termination of 25 staff positions by April 2010.

Financial Summary and Objectives Tables
Financial Pie Graphs and Charts - Updated October 8, 2009

ADDRESSING PROJECTED FINANCIAL CONSTRAINTS

Ray Perkins, Team Captain
Dave Payne, Dan Devine, Leo Savoie
Police Chief Bowden, Fire Chief Piche’, Bill Griffin, Leslie Helwig

Facts and History

Almost 80% of our total expenses are directly related to employee costs.

The remaining 20%, most of which goes to utilities, infrastructure needs, insurance, equipment and supplies, are not flexible or discretionary expenses and provide minimal opportunity for cost savings.

78% of our revenue comes from property taxes, 8% comes from state revenue sharing (which is steadily declining) and 14% comes from other sources.

Revenue from the 48th District Court, which accounts for a large percentage of our non-property tax revenue, is offset by the Court’s expenses.

Bloomfield Township has, over the years, taken the following steps that have led to successful cost containment in major areas.

Our fund balance totals have been steadily rising since 2002, when the public voted to increase the public safety millage. We have just recently achieved fund balances at a level considered adequate for our level of operating expenditures. These funds will decline below recommended levels if no action is taken.

Assumptions and Projections

We will be able to achieve a balanced budget for the 2009 - 2010 fiscal year; however, this fiscal year experienced only a minor impact (2% - 3%) from the housing market decline. The next fiscal year, 2010 - 2011, will see a larger (9% - 11%) decline in revenue. We expect the full impact of the housing market slump will affect the 2011 – 2012 and the 2012 - 2013 budget years.

Property tax revenues will decrease by 18% - 22%, or $5.5 - $6.5 million, by 2011.

Inflation will probably increase by about 3% annually over the next four years.

The small level of reserves we have built will be quickly depleted within two to three years if no action is taken.

Even when the housing market recovers, taxable value increases will be limited to the rate of inflation because of Proposal A. We will not be able to recover previous losses by market gains alone. Market values may not return to pre-2007 levels until 2019.

Conclusion

We must use a combination of practices to reduce expenses and restore lost revenue to close an expected $3.1 million gap in our operating budget by April 1, 2010. Then we must further reduce expenses and/or restore lost revenues to close an expected $5.5 - $6.5 million operating deficit projected for fiscal year beginning April 1, 2011.

Infrastructure

Updated January 1, 2010

Infrastructure Summary and Objectives Tables

BLOOMFIELD TOWNSHIP INFRASTRUCTURE

Physical, Capital, Technological, and Energy
Tom Trice, Team Captain
Dave Payne, Dan Devine, Brian Kepes
Wayne Domine, Gayle Sadler, Leslie Helwig

Facts and History: Public Works and Engineering & Environment

Connected to the City of Detroit water system in 1963 to improve water quality and system reliability. Since then, the Township-owned infrastructure has increased by 65 percent.

Partnered with the Oakland County Drain Commissioner’s Office, City of Birmingham and the City of Bloomfield Hills in the construction of the Bloomfield Village CSO Retention Basin in 1997 to abate pollution from entering into our local waterways.

Asset Maintenance:

a. 50 miles of safety path

b. 237 miles of road, public roads make up 213 miles and private roads total 24 miles

c. 257 vehicles in our fleet, estimated value is approximately $14 million.

d. 300 miles of water main and 220 miles of sanitary sewer

e. 6,000 underground structures (manholes)

f. 2,700 fire hydrants

g. 2,300 water system valves

h. Nine sewage pump stations

i. One million gallon drinking water storage reservoir

j. Ten pressure regulating valves on the water system

k. 16,000 water meters

l. Supervisory Control and Data Acquisition (SCADA) system used to monitor our water system

Facts and History: Information Technology

1. Township data and voice network includes connections to nine buildings: Township Hall, Public Works Offices (building leased from School District), Public Works Garage, Cable, Temporary Fire Administration Offices (in 48th District Court) and four Fire Stations.

2. Additionally, Township Senior Services Senior Center, currently located at the Wing Lake Center, is on the Bloomfield School District computer network. Senior Center technology will be managed by Township mid-2009 with move to new building on Township Campus. Technology migration plans underway. Adult Day Services (ADS), currently located in a leased facility, resides in a stand-alone voice/data network managed by Township IT. ADS will also be moving mid-year to Township campus. Technology plans underway.

3. Developed a maintenance schedule and replacement plan for Township-owned computers, servers and network devices.

4. Implemented Track-It! Software to track IT requests for resources and services.

5. Developed inventories of equipment and software for tracking and budgeting purposes.

6. Developed Township-wide Geographic Information System (GIS) to provide asset tracking, decision-making and mapping support. Started in 1999, more than 500 mapping projects have been completed with majority of Township departments using GIS in daily tasks.

8. Asset Management (2008 data)

Personnel Summary and Objectives Tables

TOWNSHIP PERSONNEL DEPLOYMENT AND DEVELOPMENT

Patti Voelker, Team Captain
Dave Payne, Neal Barnett, Jan Roncelli
Police Chief Bowden, Fire Chief Piche, Tom Trice,
Gayle Sadler, Leslie Helwig

The purpose of this subcommittee is to develop a plan that creates a versatile workforce in which individuals are proficient at a wide range of tasks within departments as well as tasks that cross departmental lines. Employees will be trained and empowered to assume responsibilities up to the level of their full potential.

Key Messages

Bloomfield Township is a desirable place to live and work because of, in part, the high level of service provided by Bloomfield Township employees.

The effort to maintain this high level of service will require Bloomfield Township to develop and deploy its employees in creative, effective and efficient ways.

Bloomfield Township’s Trustees, administration and citizens value highly skilled and responsive employees and strive to attract and retain them.

Over the years, the Township has steadily worked to keep the number of employees as low as possible.

At the same time, demand for services has increased. In the Police and Fire Departments, the number of complaints and incidents have risen. In other departments, the variety of services has expanded either because of rising community expectations or state and federal mandates.

The Township has structurally reorganized when changes in personnel or in the requirement for new or expanded services made this necessary and more efficient. Two examples are the creation of the Engineering & Environmental Services Department and the reorganization of the Water Department and Road Department into a Department of Public Works.

History

1. Overall, the number of Bloomfield Township’s full-time employees with benefits have decreased by 15 over the past two decades:

• Over the same period of time, services have expanded significantly.
• Eleven employees added in three new departments – Planning, Senior Services and IT
• Most departments have expanded the range of services offered to the community, either because of community expectations or because of state and federal mandates. Some examples (following list cites examples and is not all inclusive):

2. The number of public safety employees has decreased in spite of increased demand in critical areas:

Sworn Police Officers

Increased Incidents: 2,907 (16%)

Uniformed Firefighters

Expectations Summary and Objectives Tables

ADDRESSING THE EXPECTATIONS OF RESIDENTS AND EMPLOYEES

Police Chief Bowden, Team Captain
Dave Payne, David Buckley
Fire Chief Piche’, Patti Voelker, Christine Tvaroha, Leslie Helwig

Key Messages to Employees and Residents

Bloomfield Township is a desirable place to live and work.

The Board of Trustees and the administration have anticipated tough times and have already put some measures in place to prepare for declining revenues. We developed and now present this plan to meet future challenges and will be focused on implementing the plan over the next five years.

The Township budget has special revenues and debt retirement millages that have been voted upon and must be used for specific purposes. Monies from one fund cannot be used for a different purpose. For example, the funds for the current Capital Improvement Program were voted for that purpose and cannot be used to supplement the General Fund.

Resident Profile: Facts and Assumptions

Bloomfield Township demographic data show residents to have above average education and incomes.

They value living in a safe and attractive community and historically have been willing to pay appropriate taxes to support excellent public services.

Residents hold high expectations. They assume there will be quick and effective responses to criminal, fire and medical emergencies. They insist on timely snow removal, good road maintenance and well maintained water and sewer lines. They expect professional planning capabilities, knowledgeable building inspections, and strict code enforcement. They participate in efficient elections and assume there will be accurate records, fair assessments and tax collections. They appreciate good communication from their local government and require responsiveness from all government officials, both elected and appointed.

Employee Profile: Facts and Assumptions

Bloomfield Township has established exceptionally high standards in hiring and training employees. This results in a highly skilled, dedicated workforce, valued by the Township Board, administration and the community’s citizens.

Employees, in one way or another, will be the first to be affected by declining revenues. Some departments are already short-staffed and will remain so for the foreseeable future. Employees will be expected to carry out the same responsibilities with fewer resources available to them.

Bloomfield Township compensates its employees fairly. Wages and salaries are comparable to other local governments, as are the benefit packages.

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Charter Township of Bloomfield
4200 Telegraph Road
P.O. Box 489
Bloomfield Hills, MI 48303-0489
248.433.7700
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