City of Adrian - City Manager, Dane Nelson

Posted by Allen Slater 
on Feb 28, 2013
 

     Today, Dane shared with us some interesting information regarding the state of finances for the City of Adrian as well is dispelling a few myths.  He did a great job breaking down what is a very complex budget into a simple income versus expense summary.  There are three primary income sources for the City; Real Property Taxes, Personal Property Taxes, and Revenue Sharing (Our cut of the State Sales Tax).  Even after cutting our expenses by 24%, we are left with a deficit because Real Property taxes are down 29% which will take 14 years to recover, Personal Property taxes are being eliminated (-$110,000) and Revenue Sharing has been cut by about $1,000,000 which is approximately 2/3 of what it was.

Here are a few general points that Dane made especially in light of the potential Rec. Dept. cut.

  • The average number of city employees per 1000 citizens is 16.4 nationally, 12.2 in Michigan and only 6.2 in Adrian.
  • The new City Complex including the library cost 6.3 million dollars and $38,000 per year in utilities compared to keeping the old structure at a remodel cost of 7.3 million and $89,000 in utilities.
  • Seniors Program is not funded by the City
  • 2-Way Street redesign funds came from strictly dedicated funds for streets.
  • Comstock Park wall came from the Fee Estate
  • The new Farmers Market was funded by a specific grant.
  • The prison is not in the City therefore does not pay City taxes.  They do, however, buy City water.
  • City Parks will not be cut because they are funded by the Fee Estate...not the Rec. Dept.
  • Efforts to cut total costs through the District Library concept failed, so there was no point to pursue it further.
  • Oil production has started.  Because the longevity of those funds is unknown, they will be used to fund special projects not become part of the budget income.

     Here are a few options that will be considered to balance the budget:

  • City Income Tax
  • Headke Override
  • Library millage
  • General millage increase
  • Dedicated millages
  • Recreation Authority- District concept managed by an independent board and shared cost among participating local governments.

     In closing, Dane was asked what motivates him to continue as City Manager given all of its challenges.  His answer was that his lifetime is invested in Adrian, and he wants to put the City in a sustainable structural position so that it is a place that his grand children would choose to live.

   Thanks for the talk today, Dane.  For further information go to  www.adrianmi.gov