Fiscal Action Plan FY2013-14 to FY2017-18

Presentation Fiscal Action Plan FY2013-14 to FY2017-18

In 2005/06 the City developed, and subsequently implemented, a Five-Year Financial and Strategic 
Plan. The focus of this plan was to provide methods and alternatives to mitigate reductions in funding resources attributable to the loss of a major taxpayer.

 

In May of 2007 the last vehicle rolled off the assembly line of the Ford-Wixom Automobile Assembly Plant and the Plant subsequently closed. Then, unexpectedly, beginning in 2008 property values rapidly declined. These two combined events resulted in a revenue loss to the City of 32 percent or $2 million using FY2007-08 millage rates.  In accordance with the plan, the City pursued cost reduction and containment measures as well as establishing a Budget Stabilization Fund that had a cumulative total in excesses of $2.7 million.

 

Subsequently, it became increasingly evident that these measures did not satisfy budgetary needs, that an update to the Five-Year Financial and Strategic Plan was overdue and an increase in revenue imperative. On that basis, Wixom voters approved a 3.5 mills tax increase in November of 2012, with a four-year term, and City staff initiated a Plan update in late 2012. The November 2012 ballot question is as follows:

Shall Section 9.2 of the Charter of the City of Wixom, Oakland County, Michigan, be amended so as to permit the levy by the City, beginning July 2013, of a new dedicated millage in an amount of 3.5 mills (which is equal to $3.50 on each $1,000 of taxable value) for four (4) years to provide funds for municipal operations purposes including police and fire, public works, and parks & recreation?

In updating the Five-Year Financial and Strategic Plan staff developed a financial model for the City of Wixom with the specific goal of providing options and alternatives available to address the financial situation facing the City while maintaining current levels of service and programs. This report contains the financial results of the study and the assumptions used to develop the financial estimates.