Issues-Based Strategic Plan 2009 - 2014

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Introduction
Strategic Plan Presentation
Financial Data

Updated April 1, 2011
Planning Process

Updated
January 1, 2012
Financial
Financial Commentary
Infrastructure
Personnel
Community Expectations

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

Message from Township Supervisor Leo Savoie

News Articles
Commentary Pension Benefits
Mackinac Center News Article

Township Supervisor Leo Savoie

Updated October, 2011

The Strategic Plan is now at its half-way mark and we can point to the significant progress we have made because of our focus on it. The Board of Trustees, the administrative staff, and all Township employees are dedicated to maintaining the high level of services expected by this community even in the face of declining revenues.

We have been successful in virtually eliminating our future legacy costs because the Township’s bargaining units agreed to change their pension and retiree health care plans for new hires. This achievement has not gone unnoticed: The Mackinac Center for Public Policy gave kudos to Bloomfield Township in a recent publication, noting how rare this is in government (click here). Earlier in the year, Standard & Poor’s upgraded Bloomfield Township’s credit ranking to AAA, its highest score. Only five public entities in the entire state have reached this level.

Active employees are doing their part too. They accepted changes to their health care plan several times over recent years and now have a high-deductible, consumer-directed plan that saved the Township more than $1 million last year. Furthermore, a multiple-year pay freeze remains in effect.

The number of Township employees has been reduced by 10%, almost entirely through attrition. With fewer people, greater efficiency becomes absolutely necessary. Therefore, we have cross-trained many employees so they can work in multiple departments and divisions. Additionally, we have maximized the use of technology, enabling a smaller staff to accomplish the same (or, in many cases, an even greater) workload.

Attaining all of our goals will take time. Consolidating some services with neighboring communities offers opportunities for increasing revenue which will, in turn, preserve the staffing levels necessary to meet the needs of Township residents and businesses. Consolidation is successfully in place in the assessing and cable departments and the building division. Talks are actively underway with several communities for consolidating additional services.

We remain committed to implementing the strategies that will preserve Bloomfield Township’s uniqueness and make it even stronger. The next 2 ½ years will no doubt present challenges, but we’re in a good position to meet them.

If you have any questions or concerns about this, or any suggestions, please do not hesitate to call me at 248.433.7708 or send an email.

Introduction

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./p>

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

Strengths Tradition of Financial Stability Highly educated population Citizens who are civically involved	Weaknesses Aging public infrastructure Aging population No town center, parks
Opportunities New Senior Center New businesses Inter-governmental cooperation and partnerships	Threats Economy Excessive regulation Other communities

Bloomfield Township

Strengths Stability of elected officials and employees Highly trusted by residents and businesses Professional workforce Good relationships between departments	Weaknesses Declining revenue Lack of depth for personnel succession Miscommunication between departments Inconsistent policies
Opportunities Consolidation/sharing services Technologies Raising public awareness Revamp contracts	Threats Economy Housing market decline / lower tax revenues Unfunded mandates

Planning Process

Updated April 1, 2011

Planning Process

Board and administration recognized the seriousness of the financial climate and studied a wide range of methods, all aimed at restoring lost revenue and decreasing expenses.

September 2008: Department Heads participated in a 2-day work session led by professional facilitator Lew Bender to focus on situation. At that time, we thought we were dealing with a situation in which our revenue would stay flat over the next several years. We studied the Township’s strengths, weaknesses, opportunities and threats. We brainstormed ways of capitalizing on strengths and opportunities and addressing weaknesses and threats

October 2008: New financial information indicated situation more serious than first anticipated. Revenue would not stay flat; it was projected to decline significantly in the years ahead. Every elected official and every department head assigned to one or more small groups, identified in the September retreat as critical areas:

Financial

Physical, Capital, Technological and Energy Infrastructures

Personnel Deployment and Development

Employee and Residents’ Expectations

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.

February 2010: Voters approved the 1.3 millage request that made possible the preservation of existing service levels.

Ongoing: The administration continues a quarterly review and update of all four areas of the strategic plan. Updated information is posted on the website at the start of each quarter.

Financial

Financial Data

Updated January 1, 2012

Financial Commentary and Objectives Tables

ADDRESSING PROJECTED FINANCIAL CONSTRAINTS

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

This Issues-Based Strategic Plan focuses on developing and implementing strategies that allow us to maintain top-quality public services even though we anticipate declining revenues. The Financial subcommittee submits the following facts about our financial status and history, and it projects the following trends for our major operating funds:

Facts and History

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

2. 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.

3. 78% of our revenue comes from property taxes, 7% comes from state revenue sharing (which is steadily declining) and 15% comes from other sources.

4. 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.

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

a. We were one of the first municipalities to convert all new employees who receive pension benefits to a defined contribution plan as opposed to the old defined benefit plan. The change reduces our pension expenses by over $300,000 per year. The amount of this savings will increase over time as the defined benefit plan phases out.

b. We diversified the pension plan assets portfolio to increase the chance of achieving a higher rate of return on those investments over the long term.

c. In 1998 we converted the employer-provided traditional style health care plan to a PPO, saving hundreds of thousands of dollars by capturing significant discounts from in-network health care providers.

d. We were one of the first municipalities to require employee contributions for health care benefits as a part of the 2005 employee contracts.

e. In 2010 we changed from a PPO to a high-deductible, consumer-driven health care reimbursement plan that placed a greater obligation on employees. The new plan was projected to reduce total health care costs for active employees by about $800,000 (20%) in its first year.

f. Also in 2010, we implemented a mandatory employee health awareness program which, combined with other changes, has contributed to the reduction of health care costs.

g. As of 7/1/11, actual health care costs were reduced by approximately $1.5 million from the previous year as a result of the changes discussed above.

h. Also in July, 2011, we negotiated a change in the retiree health care insurance plan that will begin to reduce and eventually eliminate future legacy costs for this benefit.

i. Between 20 – 25 positions (approximately 10% of the workforce) have been left vacant after an employee’s resignation or retirement.

j. A pay freeze is in effect until April, 2013. This will be five years for non-union employees and four years for union employees. These freezes will save approximately $1.5 million as compared to historical 2% and 3% pay increases.

k. Standard & Poor’s upgraded the Township’s bond rating to AAA in April, 2011 at least in part due the actions taken as a result of the Township’s strategic plan.

6. Our fund balance totals have been steadily rising since 2002, when the public voted to increase the public safety millage. Just prior to the large decline in our tax base we had finally achieved fund balances at a level considered adequate for our level of operating expenditures. These funds would have certainly declined below required levels without the actions that were taken.

Assumptions and Projections

1. We have implemented balanced budgets every year despite a 20% decline in the tax base from FY 2009 to FY 2012.

2. The Township’s taxable value will decline by approximately 21% before the market begins a slow recovery in 2011 or 2012. This decline would have reduced the major operating fund’s annual property tax revenues by about $6.4 million. Total Township tax revenues would have declined by over $8.0 million annually. The millage proposal passed in 2010 will replace approximately one half of the total reduced property tax revenue.

3. Inflation will probably increase on average by about 2% - 3% annually over the next four years with lower rates in the earlier years.

4. We must continue to contain costs so that the small level of reserves we have built will not be depleted.

5. 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 revenue losses by market gains alone. Taxable values may not return to pre-2007 levels until 2019 or even later.

Conclusion

We have used a combination of practices to reduce expenses and restore lost revenue to close what would have been a $3.1 million gap in our operating budget by April 1, 2010. We have continued to reduce expenses and/or restore lost revenues to close operating deficits that would have been over $6.0 million annually by April 1, 2011. We must continue to contain and reduce operating expenditures into the future to maintain public services at or near current levels while projecting stagnant or further declines to revenue.

Infrastructure

Updated January 1, 2012

Infrastructure Commentary 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

The objective of the Strategic Plan subcommittee on "Infrastructure: Physical, Technological, Capital and Energy is to focus on the physical assets of the Township and recommend ways we can preserve and improve them while we maximize their value. This sub-committee submits the following:

Proper maintenance and regular improvements to the physical infrastructure will yield efficiencies and cost-savings over time as well as preserve the quality life for our residents and businesses. Intact infrastructure provides for reliable public safety, public service and steady property values. In the long run, it costs less to maintain our infrastructure than it costs to continually do emergency repairs, apply sub-standard remedies, or suffer the consequences of infrastructure failure.

Bloomfield Township has invested significantly in its facilities and equipment and this investment must be protected. Employees must be able to do their work and provide public services in an efficient and safe environment.

Up-to-date technological tools can be a significant aid in providing services quickly and conveniently for our public. They can also be used to reduce some labor-intensive practices, thereby enabling some cost-cutting measures.

Conserving energy and fuel and increasing their efficiencies are not only socially responsible; they can lead to considerable cost savings as well.

Facts and History: Public Works and Engineering & Environment

Township-owned property consists of nine buildings (Township Hall, 48^th District Court, Public Works, Cable Building, Senior Center, and four Fire Stations), which are equal to approximately $50 million in facilities assets.

Developed a replacement plan for the Township fleet

Developed a repair, maintenance and replacement plan for all Township-owned buildings and facilities

Implemented PubWorks software to track all equipment, facilities, labor, materials, and projects. Allows for tracking and budgeting.

Developed Long-term Capital Improvement Plan to fund water and sewer infrastructure repair and replacement.

Developed and began implementing the MDEQ mandated Short-term Corrective Action Plan for sanitary sewer rehabilitation which includes an Operational Program for the following scheduled preventative maintenance:

Approximately 40,000 feet (or 8 miles) of sewer pipe is cleaned annually

Inspect 8,000 feet of sewer pipe annually via our sewer televising equipment

Inspect each sewer manhole every five years, approximately 1000 manholes per year.

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 of 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.

7. First network server environment implemented February 1999. Prior to that there were only a small number of stand-alone systems with limited connectivity.

8. Asset Management (2008 data)

a. Data/voice network and attached devices

i. 205 PC/Thin Client/Laptops

ii. 103 Printers/Scanners

iii. 14 Servers

b. Public safety and local government radio systems

c. Technology in 250+ vehicles in our fleet

Mobile Police: 25 Mobile Data Computers, 26 Radar Units, 23 E-Ticket Printers, 27 Digital In-car Video Systems, 5 Wireless Access Points and Storage Server

d. Township building security systems including alarm systems, access control, video surveillance

e. Technology for 911 Computer Aided Dispatch Center

f. Audio/visual technology equipment and video conferencing system

Personnel

Updated January 1, 2012

Personnel Commentary 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, Bloomfield Township’s employee level has decreased by fifteen full time positions over the past three decades:

Year	Employees
1988	256
2008	265
2010	241

Over the same period of time, services have expanded significantly to include a professional Planning Division, a Senior Services Center and Information Technology support.

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):

Senior Services – Adult Day Service, home delivered meals, tax preparation assistance, fitness and adult enrichment classes, support groups, driver safety, CPR training, vaccinations, medical transportation, etc.

Planning Building & Ordinance – Master Plan Update oversight, site plans, lot splits and rezoning reviews, ordinance development, development project oversight, International Construction Code updates, etc.

IT – GIS mapping, expansion and maintenance of computer network, emergency service mobile technology, 911 dispatch technology, public safety radio system, cell tower management, etc.

Clerk’s Office – Passports, ordinance codification, historical minutes, solicitor identification

Engineering & Environmental – Safety Paths, Gypsy Moth spraying, West Nile Virus containment, replacement and maintenance programs for water, sewer and roads, wetland mapping and permits, woodlands management, road median landscape beautification, environmental public awareness campaign and activities such as E-waste, paper shredding, pharmaceutical recycling, sewer pollution abatement, water quality reliability program

DPW – maintenance of increased number of miles of water & sewer lines, roads, cross connection inspections

Cable/Community Relations – quarterly newsletter, website, special events, special projects, BACB programming contract

2. The number of public safety employees has decreased since 1988 in spite of increased demand in critical areas:

Sworn Police Officers

Year	Employees	Incidents
1988	71	18,263
2008	70	21,170
2010	67	19,553

Uniformed Firefighters

Year	Employees	Medical Runs	Fire Runs
1989	76	1358	995
2009	60	2265	1721
2010	59	2228	1521

Community Expectations

Updated January 1, 2012

Expectations Commentary and Objectives Tables

ADDRESSING THE EXPECTATIONS OF RESIDENTS AND EMPLOYEES

Police Chief Bowden, Team Captain
Dave Payne, David Buckley
Fire Chief Piche’, Patti McCullough, 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.

Other Information

Press Releases

Feb 23, 2010	Election Results
Nov 24, 2009	Board of Trustees Unanimously Adopts Millage Proposal
Oct 21, 2009	TTownship Revises Strategic Plan to Address Changing Economic Projections

Related Information

Mackinac Center News Article
Proposed Millage Powerpoint Presentation
Strategic Plan 2009-14 - Progress Review 2009 through 2010/a>
Cable Programs about Proposed Millage
Proposed Millage Powerpoint Presentation
Township Newsletters
Special Edition Newsletter: Property Assessments
Frequently Asked Questions (FAQs)

Charter Township of Bloomfield
4200 Telegraph Road
P.O. Box 489
Bloomfield Hills, MI 48303-0489
248.433.7700
All information © 2012 Bloomfield Township, Michigan

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