Proposal for Village of Franklin Ballot

1. Proposal for Village of Franklin Ballot Election Date February 28, 2012

2. History of Franklin’s Budget Crisis • In fiscal year 2008-2009 tax revenue was $923,065 • In fiscal year 2011-2012 tax revenue decreased to $774,594 or a decrease of $148,471 per year • In fiscal year 2010-2011 the Village used $93,685 of its rainy day fund (the General Fund balance) to fill the shortfall • In fiscal year 2011-2012 the Village will use approximately $80,000 of its rainy day fund to fill the shortfall after making significant cost cuts including closing the Village offices 1 day per week.

3. Cost Cuts Already Implemented REDUCED CONSULTANT FEES ACROSS THE BOARD • Village Attorney expenses reduced 27% from 2001 to 2010 • Village Planner expenses reduced 40% from 2001 to 2010 • Village Engineer expenses reduced by 50% since 2001 • DPW services bid out to reduce cost

4. Cost Cuts Already Implemented (cont.) CHANGED EMPLOYEE PENSION PLAN • New non-union employees placed in a Defined Contribution plan instead of a Defined Benefit plan • New Police union employees placed in a Defined Benefit plan with lower benefit level • New Police union employees contribute 1% more towards pension • NOTE: Closing the Police union Defined Benefit plan and replacing with a Defined Contribution plan will require an immediate increase of funding by 50% for the closed plan • The old Police Defined Benefit plan has a required employer contribution of 24% of payroll, the new Police Defined Benefit plan has a required contribution of 4% of payroll

5. Cost Cuts Already Implemented (cont.) EMPLOYEE WAGE INCREASES CONTROLLED

6. Cost Cuts Already Implemented (cont.) REDUCED SERVICES • Annual newsletter eliminated • Reduced funding for Historic District Commission and Planning Commission HEALTH INSURANCE BENEFITS MODIFIED • Insurance benefit changes resulted in a decrease of $31,000 in 2010-11 New Employees Hired At Lower Cost • Police Chief wages and benefits reduced by $114,000 over 5 years when Chief Browne was hired • Administrator wages and benefits reduced by $50,805 this year when Amy Sullivan replaced Jon Stopples

7. Cost Cuts Already Implemented (cont.) REDUCED NUMBER OF EMPLOYEES • Full time Police Clerk replaced with two part-time positions saving $18,830 per year • Cost of 1 full time Police Clerk was $48,345 including benefits • Cost of 2 part time Police Clerks is $29,515 with no benefits • Full time Finance Clerk replaced with contractual Finance Clerk saving $34,000 per year • Cost of 1 full time Finance Clerk was $75,000 including benefits • Cost of 1 contractual Finance Clerk is $41,000 with no benefits • Building Official services provided on a contractual basis and hours reduced from 1998 • Building Clerk position eliminated in 2009 saving $75,000 in Building Fund • Part-time Administrative Clerk position eliminated in 2009 saving $20,000 per year

8. Cost Cuts Already Implemented (cont.) COMBINED SERVICES WITH OTHER COMMUNITIES • Provide police services to Southfield Township and Bingham Farms • Bingham Farms provided with two types of police service: • Special Assessment District for the office buildings on Telegraph Road offset the cost of two officers and a vehicle with a separate millage levy • Police Services provided to Bingham Farms which pays 35% of the Police Department expenditures (less any money received from grants and the SAD) • Dispatch services provided by Farmington Hills • Volunteer Fire Department provides service to Bingham Farms and Southfield Township • Annual dispatch contract with Farmington Hills $50,500 • Cost of one dispatcher with benefits $74,700; four dispatchers would be needed for 24/7 coverage • Payroll services changed from outside source to in-house resulting in a $1,790/year savings

9. Cost Cuts Already Implemented (cont.) MODIFICATIONS TO POLICE DEPARTMENT • Longevity pay eliminated for new hires • Steps to top pay for a patrol officer increased from 4 to 5 years for new hires • Steps to top of vacation time scale increased by 3 years • Overtime will be reduced with the implementation of a new civil infraction hearing procedure • Purchasing of police supplies done jointly with other departments where possible for better pricing; also purchase car fuel through Farmington Hills which buys in bulk for a lower price • Joint training and pistol range training with other departments has resulted in savings • Use drug forfeiture funds whenever possible to purchase equipment rather than General Fund money • Seek grants for purchase of equipment whenever possible • Reduction in communication expense by renegotiating phone contract and elimination of repeater tower • Renegotiated dispatch contract with Farmington Hills to decrease expense • Police cars used to be replaced after 70,000 miles; now replaced after 90,000 miles • Police cars purchased through a lease program which spreads out of the payment of the vehicle

10. Cost Cuts Already Implemented (cont.) MODIFICATIONS TO VOLUNTEER FIRE DEPARTMENT • Reduced Volunteer incentive funding • Eliminated a recognition dinner • Reduction in communication expense by restructuring phone system • Reduced Hazardous material monitoring capability and increased reliance on County HazMat monitoring • Joint purchasing of equipment with other departments • Added building insulation to reduce heating costs • Deferred replacement of copier • Self-host department website to reduce hosting fees • Vehicle fuel purchased through Village plan which is non-taxed • Reduced public education funding • Fire Station windows replaced to lower utility costs • Participate in group bidding for hose and ladder testing to reduce expense

11. Cost Cuts Already Implemented (cont.) Short Term Cost Cuts Implemented 11/1/11 • Police Chief longevity pay is voluntarily suspended • Administrator car allowance voluntarily suspended • Administrator phone allowance voluntarily suspended • 20% pay reduction to all Village staff except Police Officers from closing offices one day per week

12. Fire Fund Request • The request for the fire fund is to reinstate the Charter millage of 1.5 mills • Although the entire amount is not needed and will not be taxed unless needed, it creates financial security for our volunteer fire department that operates at comparably lower cost than any of our surrounding neighbors.

13. Police and General Fund Special Millage • The request for the police and general fund is a .4000 mill increase for 4 years • This additional millage was determined as the amount needed for one police officer, funding retirement benefit obligations for all police officers, and partial restoration of the general fund (rainy day fund) • The regular general fund millage would be used for the remainder of the police budget and to operate the Village in a manner consistent with past practices (i.e., give us the opportunity to reinstate the 5 day week)

14. Forecasted Budget for Franklin Village • Overall the forecast for the Village can be summarized as shown on the next slide • It is important to note that none of these expenditures have been approved pursuant to the Village Councils mandated budgeting process • The estimates of revenues and expenditures are subject to and will change as events occur

15. Forecasted Budget for Franklin Village