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City of Lakewood *0 <br /> 12650 DETROIT AVENUE.44107.2161529-6600.FAX <br /> -`y"`_-"a <br /> latilh-F.G-9. <br /> 2023 Comprehensive May,,and Safety DirectorBudget Document Dear Residents of Lakewood and Members of Lakewood City Council <br /> It is again my privilege to present you with the City of Lakewood's 2023 proposed balanced budget,reflecting our <br /> community vision,values,and priorifies,while also remaining fiscally responsible in our operations and objectives. <br /> We enter 2023 maintaining a strong financial position and enjoying an excellent Aa2 Moody's bond rating I <br /> remain confident that we will work through the financial challen that the 2023 economy will likely present while <br /> continuing to provide residents with first-class services antransformative projects and initiatives in 2023: <br /> Public Infrastructure and n <br /> vironmental <br /> Interventions <br /> Ltpceslor Tunnel <br /> Proe,ct The City will <br /> begin a massive project on its main,100-year-old 3.6-mile artery of <br /> sanitary sewer pipe that flows across northern Lakewood before going south to the City's wastewater <br /> treatment plant We are cleaning,repairing,and"shoining"the pipe,while also adding access maintenance <br /> shafts. This project is part of the City's multi <br /> -year plan for stormwatro management compliance with the <br /> federal Clean Water Act. The City is dedicating$25 million in American Rescue Plan Act(ARPA)funds to <br /> keep costs as reasonable as possible for our utility rate payers. <br /> Parks&Public Spaces <br /> Foster Pooh,Construction continues at Foster Pool to realize the community vision developed from extensive <br /> community input in the redesign of this beloved Lakewood asset. It's a project that will resolve long-term <br /> maintenance issues including severe water loss from leakage,while also incorporating new features that <br /> create a more useful and friendly environment for people of all ages and abilities. <br /> o P7grks&Fields At Lakewood Park,the City will upgrade and expand the heavily used skate park and make <br /> major upgrades and address maintenance at Lakefront Field as the ballfield management program continues. <br /> Various capital projects will also take place at Kauffman,Merl,and Niagara Parks, <br /> Public Safety and Energy Efficiency <br /> o Alternative Ena' Vehicles: <br /> ec`28'The City continues to replace older,less efficient combustion engine models with <br /> hybrid police ehide,slh.l enjoy significant fuel savings and come with a generous warranty that dramatically <br /> reduces maintenance costs Additionally,the City is strategically targeting certain vehicle replacement <br /> candidates for its all-electric vehicles as our fleet of alternative energy vehicles continues to diversify. <br /> Fire and icohiqe_&�Wment.The Ohl.Emergency Management Agency has awarded Lakewood nearly <br /> $250,000 for necessary upgrades to Our Police and fire radio equipment. We will use over$1 million in ARPA <br /> funds to backfill the remaining costs of this important project that helps keep our community safe and our local <br /> taxes as low as possible.In addition,vital dollars are being dedicated to increasing our citywide safety camera <br /> Meghan F.George,Mayor program to both deter and help solve crimes occurring in Lakewood, <br /> I close with special thanks to the City's award-winning finance learn and senior departmental staff who worked <br /> collaboratively in creating a budget that makes a difference in the lives of all Lakewood residents. I took toward <br /> to continuing to provide Superior public service to our residents as we modernize and transform our vibrant and <br /> dynamic community. <br /> Sincerely, <br /> Cityof Lakewood,Ohio "I,I—0 l'... <br /> For the Year Ending 12-31-2023 Meghan F.George <br /> Mayor&Safety Director <br /> Executive Summary Executive Summary <br /> Introduction <br /> City of Lakewood <br /> Lakewood's 2023 Comprehensive Budget document incorporates a total budget of$209.5 mill.rT Operating Ratios-General Fund-Budget Basis <br /> for all funds,including$52.6 million in the General Fund.The 2023 budget focuses on delivering For 2023 <br /> core services to our residents,while also focusing on key capital projects that transform the way <br /> we,interact while improving the quality of life for our residents. The 2023 budget also includes <br /> both major capital and operational initiatives: EXPENDITURE DOLLAR BY FUNCTION <br /> wl,,r,,the­,Y w vp- <br /> Wage increases based on presumptive agreements with collective bargaining units <br /> Beginning the Interceptor Tunnel Project to dramatically improve the City's sionowater <br /> lb. P,bli,SaWy $ z8,z60,830 $ L I <br /> management while meeting Compliance with the Clean Water Act. Pubk works 91,389,599 $ o c <br /> The Foster Pool reconstruction project that will resolve long-standing maintenance d S­­ $ 843,685 $ 002 <br /> issuesand prevent the on-going water leakage occurring at Lakewood Park. e, oPerahng Tran l­our $ 1 orlo Coo $ — b. <br /> Various capital Upgrades throughout our public parks,Including an upgrade to the skate 52,,W5,726 <br /> Park and maintenance at Lakefront Field at Lakewood Park. J_ <br /> New Police cruisers that are more energy efficient and environmentally friendly than <br /> traditional gas Combustion engines,along with electric vehicles in other divisions. <br /> Two new refuse vehicles,and additional budget for rising fuel costs. <br /> Provide upgrade to vital radio equipment for our Fire and Police forces. <br /> 2023 General Fund Revenue Highlights <br /> EXPENDITURE DOLLAR BY OBJECT <br /> Municipal Income Taxes: Represent the largest revenue source to the City and are what n,.........,was nP­t <br /> on n <br /> generated by a 1.5%tax on wages and corporate earnings.Because the income tax <br /> accounts for such a large proportion of estimated general fund revenues(58%),the a, Was and Fn,g.3-0., $ 39,787,347 $ s7s <br /> financial resources available to provide city services is directly related to the health of b, co=r"., $ 2,813,025 $ sce <br /> 1. see $ 3,092,234 $ sm <br /> cal economy. Estimated collections for 2023 are anticipated to be$30.5 million. d. Materials&s'ppliv, 2,927,610 $ <br /> 0,04 <br /> o Property Taxes:Estimated revenues for 2023 are projected to be$10.1 million which is <br /> �jtrklws $ 1,171000 $ ro <br /> f. mPr,l o"thy 487,000 $ ool <br /> comparable to 2022. Final estimated amounts for 2023 will be available in December, a. Other 1,157,510 $ 0,02 <br /> h. Income T.Refunds 890,ee0 $ 0,02 <br /> Total delinquent property taxes and special assessments owed to the City increased byFldw,nresr. OLIt .1 1 osooe) $ 0,02 <br /> $17 thousand to$1.58 million. 52,575,726 $ 1,00 <br /> o Intergovernmental Revenues: The City receives various shared revenues from the <br /> State ofOhio.These include the Local Government Fund,various fees paid from Cigarette <br /> and Liquor licenses, reimbursements for Homestead and Rollback and payments <br /> associated with the,property tax.Since July 1,2011,the, Local Government Fund <br /> distributions have been reduced by 50 percent. <br /> The projected 2023 revenue from the Local Government Fund is$2.51 million,an increase <br /> of$415,000 from 2022 estimated receipts,but$827,000 less than 2011 actual receipts <br /> representing the last year before a 50 percent reduction was implemented by the Ohio <br /> General Assembly. <br /> Interest Earnings:The City anticipates interest earnings of$1.1 million in 2023 from our <br /> investable <br /> portfolio of$152 million.This is due to Federal Reserve Board actions to <br /> increase interest rates in 2022.The Finance Department continues to analyze cash flows <br /> it <br /> ., monitor investment <br /> strategies to maximize interest earnings while minimizing risk. <br /> 5 <br /> 9 <br />