MISSION STATEMENT BUDGET MEMORANDUM BUDGET RESOLUTION ORGANIZATIONAL CHART PUBLIC SAFETY & JUDICIARY DEPTS...

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2 MISSION STATEMENT... 1 BOARD OF COMMISSIONERS BUDGET MEMORANDUM BUDGET RESOLUTION ELECTED OFFICIALS ORGANIZATIONAL CHART KEY ECONOMIC INDICATORS RECOMMENDED POSITIONS REVENUES & EXPENSES PUBLIC SAFETY & JUDICIARY DEPTS INFRASTRUCTURE & DEVELOPMENT DEPTS HEALTH & HUMAN SERVICES DEPTS GENERAL GOVERNMENT DEPTS POSITION LISTING DETAIL

3 The mission of Livingston County is to be an effective and efficient steward in delivering eri quality services within the constraints of sound fiscal policy. Our priority is to provide mandated ated services which may be enhanced and supplemented pl ed to improve the quality of life for all who work, reside and recreate in Livingston County. 1

4 FRONT ROW: Steven Williams - Vice Chairman; Carol Griffith - Chairwoman; and, Dennis Dolan - Finance Chairman. BACK ROW: William Green; Donald Parker; David Domas; Kate Lawrence; Ronald Van Houten; and, Gary Childs 2

5 LIVINGSTON COUNTY ADMINISTRATION LIVINGSTON COUNTY, MICHIGAN 304 E. Grand River Avenue - Suite Howell MI TEL: (517) bpeters@livgov.com BELINDA M. PETERS COUNTY ADMINISTRATOR TO: LIVINGSTON COUNTY BOARD OF COMMISSIONERS FROM: CAROL S. GRIFFITH - BOARD CHAIRWOMAN; STEVE E. WILLIAMS - BOARD VICE-CHAIRMAN; DENNIS L. DOLAN - FINANCE CHAIRMAN; and, BELINDA M. PETERS - CO. ADMINISTRATOR RE: 2015 LIVINGSTON COUNTY BUDGET DATE: NOVEMBER 17, 2014 The attached 2015 Livingston County Budget Plan complies with Public Act 2 the Uniform Budgeting and Accounting Act, as amended; supports Board policy - Maintenance of the County s Financial Integrity and balances proposed expenditures against revenue projections and available reserves with the lowest millage rate in the State and a continued Aaa bond rating. Additionally, the 2015 Budget Plan was prepared consistent with resolution number authorizing Livingston County s annual budget process (reference attached). Authorization of the budget appropriation is the single largest policy decision of the Livingston County Board of Commission because it provides necessary funding for its service delivery priorities and capital improvements. The proposed 2015 budget (including general fund, special revenue, and enterprise funds) is conservative; with a total expenditure requirement of $85.77 million, which is a 5.5% increase from the amended 2014 budget. The proposed budget includes operating expenditures of $83.76 million, and capital expenditures of $2.01 million. Traditionally, a fiscal year links the past with the present and the future. In fiscal year 2014, many projects were completed, new ones initiated and service delivery enhanced on others. It is expected that all of these changes will enhance the health, safety and welfare; economic development; and the efficiency/effectiveness of service delivery for our county residents. Some of the major programs supported in the proposed 2015 budget include: STATE-OF-THE-ART ERP SYSTEM - FIRST YEAR ANNIVERSARY (FINANCIAL SOFTWARE SYSTEM) Phase I-A which includes general ledger, cash receipts, accounts payable, purchasing & project ledger went live on October 1, 2013; Phase I-B, which includes fixed assets, went live January Phase II-A, in-house payroll processing, went live January 1, 2014 & Phase II-B, Human Resources and Employee Self-Service, is currently being implemented. Phase IV Work Orders, Fleet Management, and Inventory went live October 1,

6 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 2 Phase IV Permitting is in the planning stage with an expected go-live in late JAIL EXPANSION - AUTHORIZATION OF $16.7 MILLION (PLANNED COMPLETION EARLY 2016) Phase I- Construction of a new pod. Phase II Renovation of the existing facility to include additional isolation cells, expanded sally port, evidence room, property room, etc. Phase III Storage Facility CONTRACT WITH THE US MARSHALLS STRATEGIC PLAN (FINANCE COMMITTEE DECEMBER 10 TH ) HEALTHCARE ACTIVITIES Enhanced Wellness Program All employee groups participate Reduction of costs for active employees Obtained 100% funding - Retiree Healthcare Trust SUCCESSION PLANNING 911 STRATEGIC PLAN EMS & HEALTH DEPARTMENT ACCREDITATION NON-UNION COMPETITIVE COMPENSATION ANALYSIS ENHANCING & BUILDING NEW RELATIONSHIP LOCALLY & REGIONALLY BUDGET THEME: SECURING THE BOTTOM LINE The largest challenge for the Board of Commissioners is balancing the numerous service demands of our diverse customers; balancing mandated County services with discretionary programs; reaching a consensus on mandated versus discretionary services and defining serviceable levels such as road patrol and jail expansion; balancing maintenance levels for infrastructure that support service delivery; balancing new initiatives with the technology needed to enhance efficiency/effectiveness; balancing departmental requests with available resources. As department requests continue to outpace resources, the Board must prioritize available resources with Board identified priorities and programs. Finally, the long term fiscal stability of Livingston County is much more than simply balancing annual revenues with annual appropriations; but, a process to maintain long-term fiscal integrity. Hence, the theme for the Livingston County 2015 Annual Budget is: Redefining government is essential to succeeding in the future. Fundamental change is necessary to maintain fiscal sustainability long-term. The limited ability of Livingston County to raise revenues in the face of increasing expenses will require adjustments in the way business is conducted. Livingston County must continue to actively seek and create partnerships with Townships, surrounding Counties, 4

7 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 3 State defined regions, non-profit organizations, educational institutions and private business in order to reduce unit costs achievable through greater economies of scale. PROPOSED 2015 BUDGET For the most part, departments were mindful of the current challenges when submitting their department requested budgets. Budget targets were provided to each department and the majority managed to meet those targets without any additional requests. We appreciate the responses to our current fiscal challenges that the Judges, Elected Officials, Department Directors, and all our employees offered. The majority of the budget discussions that follow are regarding the County General Fund Budget which is the main operating budget for Livingston County. A handful of departments are funded by special revenue, enterprise or internal service funds and are required to balance annual operating expenditures within annual operating revenues. Livingston County has traditionally been conservative when estimating revenues. In order to minimize the need for mid-year adjustments, it is critical that estimates for both revenues and expenses be as accurate as possible. The budget submitted has been prepared with conservative yet realistic projections based on historical and current year trends. Revenues projected for the General Fund fiscal year 2015 are $42.58 million. The overall change from the current 2014 amended budget of $42.46 million (excluding fund balance) is $115,513 or a.27% increase. The proposed 2015 budget includes a one-time transfer of $2.25 million of general fund fundbalance to the Jail Renovation Fund for renovation of the existing jail facility. MILLAGE RATES & PROPERTY TAX REVENUE Livingston continues to have the lowest millage rate of all 83 Michigan counties. Because no Headlee rollback is required, the proposed general operating millage for the July 1, 2014 tax levy is mills. In addition to the operating millage, the Board of Commissioners, at its meeting on June 2, 2014 adopted the millage rate for Ambulance mills and Veterans Relief mills. The total millage rate for 2015 is mills, which is the same millage levied since 2009; or, for seven (7) consecutive years. The general operating tax levy of has remained constant since As demand for services by the community increases it will be near impossible to provide a greater level of service without increasing the general operating millage. For the third consecutive year, it is projected that taxable value will increase. For the fiscal year 2015, it is expected to increase by 2.5%. This is attributed to increases in median home prices and new construction. The increase takes into account that in 2014 the County s industrial and commercial personal property, with a combined taxable value less than $40,000, will be exempted from personal property tax. With the approval of Proposal 1 in August 2014 by voters regarding personal property Tax (PPT); the state s use tax will be reduced and replaced with local community stabilization share of the tax. A Local Community Stabilization Authority has been created to provide local governments with revenue 5

8 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 4 dedicated for local public services. The devil is in the details, it will be interesting to see if we are made whole for the revenues lost from PPT. Revenues from taxes are projected to increase approximately 2.5%. Proposed 2015 General Fund tax revenues are $26.6 million, which is a decrease of $2.1 million or 7.3% from our highest year in 2007 of $28.7 million. The County s State Taxable Value (STV) experienced its first decrease in 2009 and continued to decline through As previously stated, STV increased 1.95% for 2014 and is projected to increase 2.5% for This is important because property taxes are the largest source of general fund revenue representing 62% of total revenues. STATE SHARED REVENUE In 2013, the County fully exhausted the funds in the Revenue Sharing Reserve Fund; therefore, the County once again began receiving state shared revenue from the State. In 2014, Governor Snyder and the legislators reinstated full-funding of the revenue sharing program. The projected increase for 2015 is $711,282 or 30.0%. CHARGES-FOR-SERVICES & FEES Other major sources of funding for county general operating services are license & permit fees, charges for services, and fines & forfeitures. Projected for fiscal year 2015, is a decrease of approximately 12%, or $811,086. This is due primarily to the decreased activity in the Register of Deeds Office, the Courts and the Sheriff s Office. Expenditures projected for the General Fund fiscal year 2015 are $45.4 million. In 2014 a $2.5 million one- time transfer was authorized by the Board of Commissioners to the County Jail Renovation project. Because of the expected timing of work to be performed, only $250,000 was transferred in The remaining $2.25 million is included in the 2015 budget as a transfer out of General Fund to the Jail Renovation Fund. Removing this one-time transfer the overall change from the current 2014 original budget of $41.39 million is an increase of $1.77 million. The proposed 2015 budget includes the use of $586,830 of fund-balance for one-time expenditures. The overall change from 2014 is mainly related to the hiring of staff and costs in preparation for the Jail expansion, one-time projects, and equipment purchases. PERSONNEL Over the past decade, the Board of Commissioners has adopted a number of actions to reduce the ongoing costs of Livingston County government. Employees are the single largest asset to the County, but also comprise the largest expense. Personnel costs represent 51.5% of all funds operating budget for 2015 and 57.6% of the General Fund operating budget. As the economy continues to improve Livingston must recognize the commitment of its employees and their respective dedication to provide services to the residents of Livingston County. A competitive compensation analysis is currently being conducted; however, the results are not known at the writing of this budget message. 6

9 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 5 During the past several years, all employee groups, including non-union and our six (6) collective bargaining units, have worked with the County by making concessions in the areas that significantly affect our budget: wages, healthcare and pension. Funds have been budgeted for all employee groups for modest and sustainable salary adjustments. SHERIFF GENERAL FUND POSITION REQUESTS/CHANGES PROPOSED IN 2015 BUDGET ONE (1) I.T. Specialist ONE (1) Financial Analyst/Grant Coordinator DISTRICT COURT Eliminate ONE (1) Probation Officer position Additional position requests were received from departments; however, they are not recommended for inclusion in the 2015 Budget because there are too many unknown circumstances. POSITIONS AUTHORIZED IN 2014 AND FUNDED IN THE PROPOSED 2015 BUDGET Sheriff - Jail positions o 5 Sergeants o 12 Correction Officers o 2 Intake Specialist o 1 Billing Specialist HEALTHCARE & OPEB COSTS Over the past several years Livingston County has strived to reduce the cost of active and retiree healthcare. A pilot wellness program was initiated in 2013 and offered to non-union employees and then expanded to all employee groups in 2014; plan design changes were implemented and cost-sharing principles modified. In 2013, the county experienced a $1.0 million reduction in actual healthcare claims paid compared to the fiscal year budget. It is projected that in 2014, we will experience a $500,000 reduction in actual healthcare costs compared to budget. The projected increase in healthcare cost for 2015 is very low at 2.5% compared with an industry average of 6.5%. A healthcare composite rate is established annually for each employee group. Based on the savings, the projected total cost of healthcare has been reduced $850,000; thereby, reducing the composite rate for every employee group in every department and fund in the proposed 2015 budget. In 2003, the retiree health care trust was created to begin funding retiree healthcare obligations. Many changes have been made over the years to manage this program. A recently prepared actuarial supplementary analysis indicates this program is 100% funded. This is a huge accomplishment! Most municipalities fund this benefit on a pay-as-you-go basis; therefore, report multi-millions of dollars in unfunded liabilities. Because of this accomplishment, this is the first year zero dollars are budgeted for the retiree healthcare annual required contribution. Additionally, in 2015 retiree healthcare claims will be funded by the trust. 7

10 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 6 PENSION COSTS Over the past several years Livingston County has strived to reduce the unfunded liability for our pension program. For the past three years, a payment of $1.0 million greater than the annual required contribution has been deposited into our employees retirement system; in 2014 the additional payment was $2.0 million, for a total additional contribution of $5.0 million. As of December 31, 2013 our employees pension plan is 75% funded. This action should result in minimizing future increases to our minimum annual required contribution. The county provides three different types of pension programs: defined contribution, defined benefit and a hybrid plan. In 2014 a composite rate was compiled blending the costs of the plans per employee group. This has resulted in significant increases/decreases for some departments depending upon the pension programs selected by their employees. SUCCESSION PLANNING The county continues to experience substantial retirements across all departments and classifications. In 2014, six (6) employees retired ranging in years of service from 12 to 35 years; collectively, we lost 143 years of experience. During the next five years, approximately 25% of our workforce will be eligible to retire. We are researching succession planning policies and practices to insure consistency of service delivery. This will create some increased costs as position overlap and additional training costs are incurred. Many departments will need to focus on succession planning efforts to smoothly transition leadership responsibilities to potential future successor employees. INTERNAL SERVICE FUNDS The internal service funds include: Building Services, Information Technology, Motor Pool and Benefits Funds. These funds provide services that are commonly utilized across all departments that require a unique expertise. These functions are consolidated into specific departments allowing other departments to focus on service delivery to the residents; thereby, creating economies of scale. Costs are calculated bases on a common measure; i.e., square footage occupied, number of devices or vehicles, etc. The user departments are charged for those services provided by the internal service department. The internal service costs are based on the actual costs to provide service from 2 years prior. Facility Services Reduced it charges-for-services to departments approximately 8%. This represents a reduction in retained earnings that had accumulated over the past few years. Major projects in 2015 include: Existing Jail Roof Replacement:... $ 750,000 Historic Courthouse Amphitheater Landscaping:... $ 179,565 MSU Extension relocation in East Complex:... $ 50,825 Judicial Center Carpet Replacement:... $ 60,000 County-wide parking lot maintenance and repair:... $ 100,000 8

11 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 7 Information Technology Charges-for-services have increased because of Board policy to utilize technology applications that streamline operations to reduce future costs and eliminate legacy applications which fail to improve efficiency. Position requests and major projects include: Courts Imaging Project and requested Application Developer position. Position reclassification to Communication Specialist/Administrative Assistant. Virtual Environment Server Refresh. Data Protection Appliance Refresh. Cisco Phone System Utility Upgrade. Motor Pool The cost of Motor Pool fluctuates based on the cost of crude oil, the number of new and replacement vehicles planned for the fiscal year. There should be a reduction in actual costs based on reduced gasoline prices. Major vehicle purchases include: 2 two-wheel drive Tahoes for Sheriff Road Patrol 2 four-wheel drive Tahoes for Sheriff Road Patrol 1 four-wheel drive Explorer for Sheriff Department 1 Express van with inmate insert for Jail inmate transportation 6 F-150 Pick Up Trucks (3-Building Department, 2-Building Services, 1-Car Pool) 1 Mini Van for Animal Control 1 Van with lift ramp for Veteran s Services GENERAL FUND CAPITAL REQUESTS Jail Expansion $2.25 million fund balance used for renovations of existing facility. Imaging Software for County Clerk - Circuit Court and Friend of the Court - $275,000. Multi-functional devices (combined scanners, printers and fax machines; commonly known as copiers); furniture replacement and vehicles listed above. Special Revenue Funds are supported by dedicated sources of revenue that may only be used for those specific purposes. EMS Department operations are funded in part by a county-wide millage (22.8%) and charges-forservice and other revenue sources (77.2%). The proposed 2015 budget is projected to increase approximately $703,252 or 7.8% depending on demands for service and call volume increases. Major requests include: 9 new positions (1 Administrative Assistant and 8 Paramedics):... $ 471,406 2 Ambulances & 1 Echo unit... $ 1,338,091 9

12 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 8 Health Department operations are funded in part by grants, charges-for-services and maintenance of effort appropriation from the general fund. The proposed 2015 budget is projected to use approximately $236,316 of fund balance. They are experiencing a decrease in revenues mainly attributed to the cancellation of the Health Plan. Monies are budgeted to support continued preparation for national accreditation. Additionally, charges-for-services and fee schedules will be analyzed for possible increases. 911 Central Dispatch operations are supported with telephone surcharge fees and emergency management grant monies (less than 1% of revenues). The department is in the midst of strategic plan analysis being performed by Fitch & Associates. The final report should be complete by the end of the first quarter in Major requests include: 6 positions (2 Dispatch Leaders & 4 Dispatchers):... $ 405,345 Redesign of dispatch consoles, (including increase to 12 positions):. $ 1,303,675 AT&T Phone upgrade, compatible with console redesign:... $ 57,993 Console furniture upgrade:... $ 138,173 Software upgrade, compatible with console redesign:... $ 15,188 Building & Safety operations are funded 100% by permit and inspection fees. The demands for services, measured by the number of permits issued, have steadily increased since the great recession low in Please reference the economic indicators charts attached to the budget plan. Since the low in 2009 of 1037 permits including both residential/commercial permits for construction and inspections to an all-time high of 2900 permits projected for 2014 or a near tripling of activity. Major requests include: 1 Deputy Building Official position $ 94,516 2 Ford F-150 Vehicles $ 53,344 Redesign of permitting departments space at east complex $450,118 Implementation and project management for permitting module $ 38,000 L.E.T.S. operations are funded 100% by state/federal grants and box fares. Major requests include: Generator and Parking Lot $156,201 Floor scrubber, propane tank infrastructure $158,078 8 Buses $794,890 Inasmuch as counties are governmental entities directed by State Constitution and/or statute to maintain certain elected offices, as well as conduct specific responsibilities, many expenses are mandated. The Michigan Constitution requires the following offices: 10

13 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 9 ELECTED OFFICES 2015 RECOMMENDED BUDGET Board of Commissioners:... $ 531,448 Clerk:... $ 534,471 Convention Tax / Substance Abuse:... $ 782,534 Drain Commissioner:... $ 2,401,950 Prosecutor:... $ 2,093,728 Register of Deeds:... $ 643,535 Sheriff:... $ 17,427,681 Treasurer:... $ 956,205 Total:... $ 25,370,552 Livingston County is required by statute and court decisions to fund to a serviceable level the Circuit, Probate, and District Courts, as well as the Friend of the Court. The recommended 2015 appropriation for all courts: COURTS 2015 RECOMMENDED BUDGET Total:... $ 10,453,607 Further, the County is required to fund parts or all of the following departments: COUNTY DEPTS RECOMMENDED BUDGET Animal Control:..... $ 459,728 Community Mental Health:... $ 600,470 DHS Board:... $ 9,000 Equalization:... $ 438,214 Health Department:... $ 746,063 Medical Examiner:... $ 302,218 * Veteran Affairs:... $ 426,725 * Total:... $ 2,982,418 * Not entirely funded by General Fund Support necessary for the operation of the above departments include the following: SUPPORT FOR COUNTY DEPTS RECOMMENDED BUDGET Capital Replacement:... $ 667,500 Civil Counsel:... $ 144,584 Contingencies:... $ 1,658,648 County Administration:... $ 581,288 ERP:... $ 19,339 Facility Services*:... $ 21,247 HR/Labor Relations:... $ 612,994 Information Technology*:... $ 0 11

14 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 10 Liability Insurance:... $ 1,270,000 Professional Services:... $ 117,500 Purchasing:... $ 169,733 Retirement:... $ 0 Total:... $ 5,262,833 * Amounts in these Internal Service Fund departments are General Fund allocation not charged to specific departments. GRAND TOTAL Grand Total:... $ 44,070,410 Recognizing that the total 2015 General Fund expenditures are projected to be $45,416,864 compared to the above required expenses of $44,070,410, the reality is that there is $1,346,453 or 3.0% available for discretionary activities. The following are discretionary appropriations included in the general fund: DISCRETIONARY APPROPRIATIONS 2015 RECOMMENDED BUDGET Area Agency on Aging:... $ 78,688 Animal Shelter:... $ 281,768 Catholic Social Services:... $ 27,000 Comp. Community Corrections:... $ 47,269 Economic Development:... $ 185,000 MSU Extension:... $ 214,536 OLHSA:... $ 123,117 Planning Department:... $ 360,675 Senior Meals - Livingston County:... $ 28,400 Small Business Center:... $ 0 Total:... $ 1,346,453 Finally, the following departments are funded by dedicated sources of revenue, primarily through fees and charges or grants and not dependent on General Funds for support: 911 / Central Dispatch Airport Building & Safety Department Emergency Medical Services Health Department Livingston Essential Transportation System Michigan Works! The purpose of this exercise is to demonstrate that County Government is a complex, inter-related system of constitutionally, statutorily, contractually and service-oriented activities, programs and 12

15 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 11 services. The consequence is that while the levels of activities may be at the discretion of the Board of Commissioners, the obligation to provide the services are not. LONG-TERM PERSPECTIVE & SUSTAINABILITY Livingston County has been able to manage successfully the way it has because of its strong financial management policies and practices. This is evident by its Aaa Moody s bond rating and unsolicited Standard & Poors upgrade to Aa. There are only four other counties in Michigan with the Aaa rating. While the budget is a stepping stone connecting the past to the future, the path we find ourselves traveling is marred by obstacles and uncertainty. Clearly, the uncertainty of the future requires visionary leadership in order to manage resources. Livingston County s fiscally conservative approach has and will continue to provide great value. For the past several years, all departments, elected officials, and judges have been provided an appropriation to build their annual budget. Livingston County s option to increase revenues is limited to charges-for-services and fees. The only other viable option requires a vote of the people for a millage increase; therefore, Board strategies have focused on reducing expenditures. This includes proactive employee benefit reforms, reorganization, shared service delivery and enhanced use of technology. It will remain prudent to use calculated amounts of fund balance to balance the budget and also implement one-time expenditures that enhance service delivery. The preparation of the 2015 Budget was truly an organization-wide effort. Livingston County employees have demonstrated an understanding of the limits of this economy and a willingness to bear the personal burdens to reduce overall costs in order to preserve jobs. This willingness must not ever be taken for granted, but recognized and appreciated. In the past several years, Livingston County has accomplished more than most other governments to contain costs. We collectively wish to express our appreciation and admiration to our employees for having the maturity and knowledge to recognize the steps necessary to reduce costs and preserve jobs. Importantly, Elected Officials, Judges, Department Directors and staff are due recognition for the efforts and understanding of the goals in preparing budget requests. One major challenge this year was the implementation of the MUNIS budget module. This new software will provide the commissioners with additional information so in the future time may be spent are setting goals and objectives and streamlining the process. In addition, the burden of working out the details; finding additional opportunities for spending reductions and compiling the many individual pieces into a comprehensive document fall on a few. It is appropriate therefore to recognize and express our great appreciation to Deputy County Administrator / Financial Officer, Cindy Catanach, and Financial Analysts, Hilery DeHate and Roberta Bennett, who worked diligently in sorting through the Department budget submissions to insure compatibility and consistency with Board Policies. Once again, Carol Jonckheere, Executive Assistant, demonstrated her expertise in designing the graphics, layout and preparing the document for publication. Without the dedicated efforts of this team s grasp and understanding of the complex relationship of the internal components, the budget would never have come together into a single coordinated document. One final note regarding Livingston County s current financial position: we have maintained an envious balance in various reserves. In fact, many may argue that the existence of these reserves negates the need for a frugal approach to spending. However, the Board of Commissioners must maintain discipline 13

16 LIVINGSTON COUNTY November 17, 2014 BOARD OF COMMISSIONERS Page 12 in managing these reserves in order to respond to the above threats. The road ahead clearly will not be easy or free of unanticipated obstacles. Nonetheless, maintaining a prudent and conservative approach has and will continue to serve the County well. Sincerely, CAROL S. GRIFFITH LCBC CHAIRWOMAN STEVEN E. WILLIAMS LCBC VICE-CHAIR DENNIS L. DOLAN LCBC FINANCE COMMITTEE CHAIR BELINDA M. PETERS COUNTY ADMINISTRATOR BMP/csj S:\WP\Budget 2015\ Budget Letter.docx 14

17 RESOLUTION NO: LIVINGSTON COUNTY DATE: December 1, 2014 RESOLUTION ADOPTING THE 2015 LIVINGSTON COUNTY BUDGET - BOARD OF COMMISSIONERS WHEREAS, WHEREAS, in accordance with the provisions of Public Act 2 of 1968, Public Act 621 of 1978, the Uniform Budgeting and Accounting Act for Local Government, requires that each local unit of government adopt a balanced budget for all required funds; and the County Administrator has submitted a proposed budget as required by statute which implements board policies; Elected Officials, Judges and Department Directors were requested to submit a line-item budget; and, WHEREAS, the Finance Committee has requested and reviewed the proposed budget for the County departments, including the courts, under the scope of its policy, and recommends adoption of the Proposed 2015 Budget to the Board of Commissioners; and WHEREAS, on the 2nd of June, 2014, the County of Livingston was allocated 5.0 mills by the County Tax Allocation Board and the Livingston County Board of Commissioners approved the Headlee rolled back millage rate of on June 2, 2014, to support the 2015 General Fund Budget; and WHEREAS, it is recommended that the 2015 General Fund Budget be approved for the total of $45,416,864 and Special Revenue and Enterprise Funds approved as shown in the Proposed 2015 Budget Plan, as well as the informational summary of projected revenues and expenditures for Internal Service Funds; and WHEREAS, the recommended 2015 Budget will be filed with the Livingston County Clerk on the 21 st day of November, 2014; pursuant to state statute; and THEREFORE BE IT RESOLVED that the 2015 General Fund Budget is approved in the amount of $45,416,864 and revenues shall be appropriated and expenditures budgeted for the 2015 General Fund Budget, Special Revenue Funds, and Enterprise Funds on a fund and cost center basis in the amounts set forth below. PROSECUTING ATTORNEY Prosecuting Attorney $2,053,728 Family Support $40,000 Federal Grants $292,549 State & Other Grants $133,108 Prosecutors Drug Fund $5,000 Criminal Forfeiture $2,500 EQUALIZATION Equalization $438,214 15

18 RESOLUTION NO: PAGE: 2 VETERANS SERVICES Veterans Services $426,725 Veteran s Relief Fund $377,282 MSU EXTENSION MSU Cooperative Extension $214,536 PERSONNEL & PAYROLL Human Resources $612,994 COUNTY CLERK County Clerk $489,989 Co. Clerk Circuit Crt Div $817,450 Tax Allocation $1,050 Elections $43,432 DRAIN COMMISSIONER Drain Commission $1,986,397 DPW $151,137 Drains Public Benefit $196, $80,300 Landfill Fund General Fund Appropriation $68,197 Septage Receiving Station $1,226,601 REGISTER OF DEEDS Plat Board $300 Register of Deeds $643,235 Co. Survey Remonumentation $147,531 Register of Deeds Automation $77,421 TREASURER Treasurer $956,205 Homestead Property Exemption $13,476 ANIMAL SERVICES Animal Services $741,496 COUNTY ADMINISTRATION Board of Commissioners $531,448 Administration $581,288 ERP Project $19,339 Professional Services $117,500 Purchasing $169,733 16

19 RESOLUTION NO: PAGE: 3 COUNTY ADMINISTRATION Facilities Services $21,247 Civil Counsel $144,584 Mental Health $600,470 Senior Services $134,088 Economic Development $185,000 Community Action Programs $905,651 Insurance Policies & Bonds $1,250,000 Ins Unemployment $20,000 Appropriations $5,610,906 Contingencies $1,658,648 Small Cities CDBG $60,063 CDBG OLHSA $46,500 Social Welfare Fund General Fund Appropriation $9,000 $9,000 AIRPORT Airport Fund $1,310,260 AMBULANCE Medical Examiner $302,218 Ambulance Fund $9,815,842 BUILDING & SAFETY ENGINEERING Building Safety $2,838,980 CENTRAL DISPATCH / 911 Federal Grants $62, Services $5,981,979 SHERIFF Sheriff Road Patrol $7,009,061 Secondary Road Patrol $108,457 Jail Jail Renovation General Fund Appropriation $8,060,163 $2,250,000 State Secondary Road $203,863 Drug Law Enforcement Fund $42,000 Federal Equitable Sharing $195,103 OUIL Forfeiture Fund $2,000 Criminal Forfeiture Fund $2,500 HEALTH DEPARTMENT Contagious $4,000 Health Fund $3,514,032 17

20 RESOLUTION NO: PAGE: 4 General Fund Appropriation $742,063 JOB TRAINING SERVICE / MICHIGAN WORKS! Michigan Works! $3,377,253 PLANNING Planning $360,675 COMPREHENSIVE COMMUNITY CORRECTIONS Comprehensive Community Correction General Fund Appropriation $228,074 $47,269 L.E.T.S L.E.T.S $3,864,347 BE IT FURTHER RESOLVED, that the Board of Commissioners requested and the Courts presented lineitem budget requests and those are authorized in the amounts set forth below: COURTS Circuit Court $1,479,131 District Court $2,434,572 Probate Court $694,003 Juvenile Court $969,118 Guardianship Services $12,019 Circuit Court Probation $117,750 Appellate Court $67,700 Central Services $1,670,487 Court Security Officers $364,500 Family Counseling Services $14,000 Friend of Court $2,604,727 General Fund Appropriation $886,777 Federal Grants $553,937 State Grants $564,944 Law Library Fund $6,600 Child Care Fund Juvenile Child Care Fund Social Svcs General Fund Appropriation General Fund Appropriation $1,920,741 $590,101 $712,000 $350,000 BE IT FURTHER RESOLVED that the projected revenues and expenditures for Internal Service Funds is also approved; but not as part of the Livingston County Budget for 2015, pursuant to Public Act 2 of 1968, as amended, in the amounts set forth below: 18

21 RESOLUTION NO: PAGE: 5 FACILITY SERVICES Facility Services $3,727,477 CAR POOL Car Pool Fund $1,623,985 INFORMATION TECHNOLOGY Information Technology $4,353,235 Benefit Fund $8,109,366 BE IT FURTHER RESOLVED, that during these challenging economic times County revenues and expenditures may vary from those which are currently projected and accordingly may be amended from time to time by the Board of Commissioners during the 2015 fiscal year as deemed necessary. It is the responsibility of the Chief Judges, County Elected Officials and County Department Heads to monitor their respective budget quarterly, if projected expenditures exceed the authorized budget or projected revenues are less than budgeted, then they shall present a corrective plan of action to the Finance Committee. BE IT FURTHER RESOLVED, that the Chief Administrative Officer is authorized to execute transfers among line items and cost centers within limits of $25,000 per transfer without the prior approval of the Board of Commissioners. The Chief Administrative Officer will notify the Finance Committee of any such transfers. BE IT FURTHER RESOLVED, that any services funded by State/Federal grants which costs exceed grant funding and which services are not basic to the health and safety of the residents of Livingston County and/or which are provided by others; shall be discontinued and the grant funding declined. BE IT FURTHER RESOLVED, that any services that lose funding (either charges-for-services, fees, or contractual, etcetera) or which costs exceed the revenue generated and which services are not basic to the health and safety of the residents of Livingston County and/or the services are provided by others; shall be reduced commensurate with funding levels. BE IT FURTHER RESOLVED that all Judges, County Elected Officials and County Department Heads shall abide by the Purchasing Policy, as adopted and amended from time to time by this Board, for all purchases made with funds appropriated by the Board of Commissioners and these budgeted funds shall be appropriated contingent upon compliance with the Purchasing Policy. 19

22 RESOLUTION NO: PAGE: 6 BE IT FURTHER RESOLVED that all Judges, County Elected Officials and County Department Heads shall abide by the County Cash Policy, as adopted and amended by this Board from time to time. BE IT FURTHER RESOLVED that all Judges, County Elected Officials and County Department Heads shall abide by the County Claims & Payable Policy and Budget Transfer Policy, as adopted and amended by this Board from time to time. BE IT FURTHER RESOLVED that all County Elected Officials and County Department Heads shall review departmental fees and make a recommendation, with justification, for fee increases to the Board of Commissioners to cover the costs of providing services. BE IT FURTHER RESOLVED that the approved Authorized & Funded Employee List contained in the attached budget shall limit the number of employees who are authorized to be employed and no funds are appropriated for any position or employees not on the approved Authorized & Funded Employee List. BE IT FURTHER RESOLVED that all of the positions below be authorized along with the approved 2015 budget and the Authorized & Funded Employee List be amended to reflect the authorization of the positions: SHERIFF - Addition of One (1) I.T. Specialist and One (1) Financial Analyst / Grant Coordinator DISTRICT COURT Eliminate One (1) Probation Officer Position BE IT FURTHER RESOLVED that the County utilizes Position Control in the County s ERP system to maintain all Board authorized positions. All resolutions for new positions or department reorganizations being presented to the Board of Commissioners for approval will state the approved funding source and amount approved for that position clearly on the resolution, as well as provides a complete listing of all positions and their corresponding FTEs. Positions being funded by grants or other sources of funding will not be created or added in the County Position Control File until an approved categorized budget from the awarding agency is received by County Administration Finance as the position will be tied to this funding source in Position Control. BE IT FURTHER RESOLVED that the hiring freeze enacted by the Board of Commissioners on July 7, 2008 remains in effect. All vacancies that occur during this hiring freeze are hereby declared to be a position reduction on the Authorized & Funded Employee List for each such vacated position and funding shall be removed from the Courts, Elected Officials and Department Heads budget. Said vacated position shall not be filled, except by specific Board authorization, which will consider positions required to maintain mandated functions at serviceable levels. A request for specific Board authorization 20

23 RESOLUTION NO: PAGE: 7 must be done through the Vacancy Review process, which shall hereby be amended to require departments to provide metrics to substantiate the need to fill the vacated position. BE IT FURTHER RESOLVED that if the Board of Commissioners authorizes a vacant position shall be filled; then all Judges, County Elected Officials and County Department Heads will hold that position vacancy that occurs during the 2015 fiscal year open for the appropriate duration of time to properly compensate for vacation and/or sick pay-offs and/or any separation payments to insure personnel expenditures don t exceed the 2015 authorized budget provided that mandated functions can be performed at a serviceable levels. # # # MOVED: SECONDED: CARRIED: Commissioner VanHouten Commissioner Williams Roll call vote: Ayes: VanHouten, Parker, Williams, Griffith, Dolan, Childs, Lawrence, Green, Domas; Nays; None; Absent: None 21

24 ROBERT BEZOTTE SHERIFF MARGARET DUNLEAVY COUNTY CLERK JENNIFER NASH TREASURER BRIAN JONCKHEERE DRAIN COMMISSIONER MICHAEL HATTY TY 44 th CIRCUIT JUDGE DAVID J. READER ER CHIEF 44 TH CIRCUIT CU JUDGE THERESA BRENNAN 53 RD DISTRICT IC JUDGE L. SUZANNE NE GEDDIS DI 53 RD DISTRICT IC T JUDGE J CAROL SUE READER R 53 RD DISTRICT T JUDGE SALLY REYNOLDS REGISTER OF DEEDS MIRIAM CAVANAUGH AUG PROBATE JUDGE WILLIAM VAILLIENCOURT PROSECUTING ATTORNEY 22

25 JUVENILE COURT CIRCUIT COURT COUNTY CLERK STATE OF MICHIGAN STATE OF MICHIGAN FRIEND of the COURT PROBATE COURT CIR. CRT. PROBATION D.H.S. DRAIN COMMISH PROSECUTOR COMMUNITY CORRECTIONS DISTRICT COURT REGISTER of DEEDS SHERIFF MSU EXTENSION AIRPORT VETERANS SERVICES TREASURER ADMINISTRATION EQ FACILITY SERVICES PLANNING FINANCE H.R. /LABOR RELATIONS I.T. PUBLIC HEALTH PURCHASING PAYROLL G.I.S. ENV. HEALTH ANIMAL CONTROL MI WORKS! EMS / MED. EXAMINER 911 CENTRAL DISPATCH BUILDING INSPECTION L.E.T.S. / CAR POOL = ELECTED = APPOINTED = STATE 23

26 24

27 25

28 26

29 2015 RECOMMENDED POSITIONS DEPARTMENT CATEGORY PUBLIC SAFETY & JUDICIARY LOCATION ### FULL PART TOTAL COURT SYSTEM: Circuit Court Circuit Court Clerk Central Services District Court Friend of the Court Probate Court Juvenile Court Prosecuting Attorney Crime Victim Rights Family Support Court Security Sub-Total Court System: SHERIFF DEPT: Road Patrol Traffic - Deputies Jail Sub-Total Sheriff Dept OTHER PS: Med. Examiner /Central Dispatch Community Corrections Sub-Total Other Public Safety TOTAL: PS&J INFRASTRUCTURE & DEVELOPMENT Drain Commissioner Dept of Public Works Planning Building Inspection Airport TOTAL: I&D HEALTH & HUMAN SERVICES MSU Cooperative Extension Veterans' Services EMS Dept of Public Health Michigan Works! L.E.T.S TOTAL: H&HS: GENERAL GOVERNMENT 2015 RECOMMENDED FTE POSITIONS Board of Commissioners County Administration County Clerk Equalization Purchasing Treasurer Human Resources Register of Deeds Animal Control Facility Services IT / GIS TOTAL GEN GOVT: GRAND TOTAL

30 28

31 29

32 30

33 31

34 32

35 33

36 34

37 35

38 131 CIRCUIT COURT 136 DISTRICT COURT 148 PROBATE COURT 149 JUVENILE COURT 150 GUARDIANSHIP SERVICES 151 CIRCUIT COURT PROBATION 167 APPELLATE COURT 168 CENTRAL SERVICES - JUDICIAL CTR COUNTY CLERK - CIRCUIT COURT 267 PROSECUTING ATTORNEY FAMILY SUPPORT 301 SHERIFF SHERIFF - SECONDARY ROADS / TRAFFIC 305 SHERIFF - COURT SECURITY OFFICERS 351 JAIL DIVISION 36

39 37

40 38

41 39

42 40

43 41

44 42

45 43

46 44

47 45

48 46

49 47

50 48

51 49

52 50

53 51

54 52

55 214 FAMILY COUNSELING SERVICES 215 FRIEND OF THE COURT 238 FEDERAL GRANTS 239 STATE & OTHER GRANTS CENTRAL DISPATCH 264 PROSECUTOR'S DRUG FUND 265 DRUG LAW ENFORCEMENT FUND 266 FEDERAL EQUITABLE SHARING (DEA) 267 OUIL - FORFEITURE FUND 269 LAW LIBRARY 275 COMMUNITY CORRECTIONS 292 CHILD CARE FUND 296 CRIMINAL FORFEITURE FUND 53

56 54

57 55

58 56

59 57

60 58

61 59

62 60

63 61

64 62

65 63

66 64

67 65

68 66

69 67

70 68

71 69

72 70

73 275 DRAIN COMMISSIONER 441 DPW 445 DRAINS PUBLIC BENEFIT 721 PLANNING 728 ECONOMIC DEVELOPMENT 71

74 72

75 73

76 74

77 75

78 76

79 243 SMALL CITIES DEVELOPMENT BLOCK GRANT 77

80 78

81 517 LANDFILL 542 BUILDING & SAFETY 577 SEPTAGE RECEIVING STATION 79

82 80

83 81

84 82

85 83

86 84

87 85

88 86

89 261 MSU COOPERATIVE EXTENSION 605 CONTAGIOUS 648 MEDICAL EXAMINER 649 MENTAL HEALTH 672 AREA AGENCY ON AGING 682 VETERANS SERVICES 747 COMMUNITY ACTION PROGRAM (NON-PROFITS) 87

90 88

91 89

92 90

93 210 EMS 221 HEALTH 244 COMMUNITY DEVELOPMENT BLOCK GRANT - OLHSA 277 MI WORKS! 290 SOCIAL WELFARE FUND 293 VETERANS RELIEF FUND 91

94 92

95 93

96 94

97 95

98 96

99 97

100 98

101 99

102 100

103 101

104 102

105 103

106 104

107 000 TAXES 101 BOARD OF COMMISSIONERS 172 COUNTY ADMINISTRATION 192 ERP 215 COUNTY CLERK 223 PROFESSIONAL SERVICES 233 PURCHASING 248 TAX ALLOCATION 249 PLAT BOARD 253 TREASURER 262 ELECTIONS 265 FACILITY SERVICES 268 REGISTER OF DEEDS 269 CIVIL COUNSEL 270 HUMAN RESOURCES 430 ANIMAL SERVICES 851 INSURANCE - OTHER 870 INSURANCE - UNEMPLOYMENT 966 APPROPRIATIONS 968 CONTINGENCIES 257 EQUALIZATION 105

108 106

109 107

110 108

111 109

112 110

113 111

114 112

115 113

116 114

117 115

118 116

119 245 COUNTY SURVEY & REMONUMENTATION 255 HOMESTEAD PROPERTY EXEMPTION 256 REGISTER OF DEEDS AUTOMATION 117

120 118

121 119

122 120

123 581 AIRPORT FUND 588 L.E.T.S. 121

124 122

125 123

126 124

127 125

128 631 FACILITY SERVICES 636 INFORMATION TECHNOLOGY 661 MOTOR POOL 677 BENEFIT FUND 126

129 127

130 128

131 129

132 130

133 131

134 132

135 133

136 134

137 135

138 136

139 137

140 138

141 139

142 2015 RECOMMENDED POSITIONS Position # Loc # Description Status # Emps CY FTE AIRPORT MANAGER A AIRPORT WORKER A AIRPORT WORKER A OFFICE ASSISTANT A BOARD CHAIR A VICE CHAIR BOC A COMMISIONERS A COMMISIONERS A COMMISIONERS A COMMISIONERS A COMMISIONERS A COMMISIONERS A COMMISIONERS A ADMIN SPECIALIST A CHIEF CIRCUIT JUDGE A CIRCUIT JUDGE A CIRCUIT COURT ADMINI A ADMINISTRATIVE COORD A RESEARCH ATT/CLERK A RES.ATTORNEY/CLERK A SECRETARY A SECRETARY A JUD.SECRETARY A JUD SEC CC A CLERK / COURT RECORD A CLERK / COURT RECORD A DISTRICT COURT JUDGE A DISTRICT COURT JUDGE A DISTRICT COURT JUDGE A DISTRICT COURT ADMIN A CHIEF DEPUTY DISTRIC A MAGISTRATE A LAW CLERK A LAW CLERK A LAW CLERK A CHIEF PROBATION OFFI A PROBATION OFFICER A PROBATION OFFICER A PROBATION OFFICER A JUD SECRETARY/CT REC A JUD SECRETARY/CT REC A DEPUTY COURT CLERK A DIVISION LEADER A DIVISION LEADER A Page 1 of

143 CHIEF ACCOUNT CLERK A ACCOUNT CLERK A JUD SECRETARY/CT REC A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A DEPUTY COURT CLERK A FRIEND OF THE COURT A ATTORNEY REFEREE FOC A ATTORNEY REFEREE FOC A ATTORNEY REFEREE FOC A ATTORNEY REFEREE FOC A CONCILIATOR A CHIEF CHILD SUPPORT A SUPPORT ENFORCEMENT A OFFICE COORDINATOR A SECRETARY A SECRETARY A INVESTIGATOR A COURT INVESTIGATOR/M A CASEWORKER A CASEWORKER A CASEWORKER A CASEWORKER A CASEWORKER A CASEWORKER A CASEWORKER A CASEWORKER A CLERK A CLERK A CLERK A CLERK A CLERK A CHIEF ACCT CLERK FOC A Page 2 of