Hamtramck Budget Process Overview & Highlights

CITY OF HAMTRAMCK BUDGET KICK OFF FY 26 Syed Aamir Ahsan

BUDGET PROCESS The City of Hamtramck follows the recommendations of the State of The City of Hamtramck follows the recommendations of the State of Michigan Uniform Budgeting And Accounting Act Michigan Uniform Budgeting And Accounting Act MCL 141.421 et. seq./ PA 2 of 1968 MCL 141.421 et. seq./ PA 2 of 1968 The Michigan Department of Treasury recommends that the local unit use the activity form of budgeting. The adopted budget must be at the revenue by source and expenditures by activity level. Revenues The budget should contain only those revenues that are reasonable assured. If revenue that is reasonable assured, but there may be some doubt as to its realization is included in the budget there should be a plan for reduction in expenditures if it becomes apparent that the revenue will not be received. Mar. 11 2025 Budget FY 2026 2

BUDGET PROCESS City Manager provides preliminary budget preparation information to Department Directors. Department Directors prepare and submit budget estimates to Finance. Finance consolidates and reviews budget estimates received from Department Heads. City Manager reviews budgets and finalizes the budget recommendation for subsequent presentation to the legislative body. City Council reviews the City Manager s recommended budget and proposed general appropriations act. This review also encompasses a formal public hearing. City Council passes a general appropriations act. City Council amends budget as necessary during the fiscal year. Mar. 11 2025 Budget FY 2026 3

BUDGET CALENDAR February Department Heads and Finance meetings to complete departmental budgets March March 11, 2025 Budget Process Overview & Establish Council Priorities 5:30 p.m. 6:00 p.m. Department Heads and Finance meetings to complete departmental budgets Revenue study Update rates and fees where applicable. City Manager reviews and finalizes draft budgets April April 8, 2024 - Budget Work Session 6:00 p.m. 7:00 p.m. (as necessary) April 11, 2024 - Budget Notice published in local newspaper April 22, 2024 - Budget Work Session 6:00 p.m. 7:00 p.m. (as necessary) April 22, City Council to hold First Reading on Proposed Appropriations Ordinance May May 13, 2024 - Public Hearing and 2nd Reading of Proposed Appropriations Ordinance May 13, 2024 - Mayor & Council consider Proposed Appropriations Ordinance for adoption Mar. 11 2025 Budget FY 2026 4

HIGHLIGHTS OF THE YEAR We purchased Lot for subsequent construction of a new DPW facility. Completed around 790 Lead Service Line Replacements. Reconstructed Caniff from Joseph Campau to Gallagher. Completed two long streets resurfacing projects. Completed Four alleys throughout the City. Water Main replacement in 10 Areas with Grants of $25 M and work is still on going. Pension Grant payment to MERS. Completed Contract negotiations with Fire CBA. Completed Contract Negotiations with POAM CBA. Dickerson Facility Tax revenue stopped in 2025. City is in negotiation with Wayne County for its resumption. Mar. 11 2025 Budget FY 2026 5

HIGHLIGHTS OF THE YEAR We have received over $43 million in grant approvals this year which include some of the Following Grants: Pension Grant $16,000,000 M and one for $792,000 directly to MERS MSP FEMA Brick Grant for Sewer relief 1B $9,962,147 Brenda Lawrence Grant for $5,852,972 M MEDC - Grant for New DPW Building $2,000,000 MEDC Grant for Veterans Park parking lot and Access road $2,000,000 Grant for various Alleys $1,5000,000 MDOT Caniff Street reconstruction $ 1,394,590 US Forrest Services Tree Grant $1,000,000 Grant for Fire Engine $800,000 HUD Grant for Veteran's Park Restroom $653,989 Grant for Alley and Parking lot behind City Hall $260,000 Mar. 11 2025 Budget FY 2026 6

AREAS OF FOCUS IN FY 2026 Continue the replacement of Lead Service Lines. Continue various street resurfacing projects. Continue to replace alleys throughout the City utilizing the grants. Continue with water main replacement projects. Complete revamp of Alley and parking lot behind City Hall. Complete the Revamp projects around Veterans Park Look for additional Grant for another Fire Engine Pursue more grants for the city s Infrastructure needs. Pursue grants for Alley replacements Focus on Deep cleaning and Televising of City s sewers to alleviate some of the flooding issues in the city. Complete negotiation with Police COAM CBA. Complete negotiation with AFSCME CBA. Mar. 11 2025 Budget FY 2026 7

DISCUSSION ON COUNCIL PRIORITIES Mar. 11 2025 Budget FY 2026 8

CONCLUSION We will be utilizing some of the fund balance to pay for activities during the year which were planned last year but got completed this Fiscal Year. The City requires sustained investment for the next 30 years to replace its aging infrastructure. Identify total Infrastructure needs of the city Like Watermain Replacements, LSLR, Sewer, Roads, Alleys, Fire Engines etc. and quantify them into $. Apply for Maximum Grant to fund these projects. Those Projects that can not be funded through grants will need alternate fundings from debt or other revenue sources. Mar. 11 2025 Budget FY 2026 9