OBSERVATIONS This is a ZERO SUM budget. Additinal expenditures will be at the expense f ther areas. There are n reserves ther than fund balances, excess delinquent tax funds and capital funds. The fllwing funds cntained shrtfalls within the FY 2018 Preliminary Budget: General Fund (Fund 101) $387,261 Budgeted t use fund balance The preliminary General Fund budget reflects prperty taxes f $3,546,233. This reflects a prjected 1.5% grwth in taxable value fr 2019. Vters apprved Prpsal 1 (Public Act 80 f 2014) n 08-05-2014 which will phase ut persnal prperty taxes fr small businesses and manufacturers. The Prpsal states it will reimburse lcal gvernments by dedicating a prtin f the state use tax fr that purpse. The general fund prtin budgeted fr reimbursement is $15,000. The general fund budget reflects an apprximate 50% decrease frm the tri-cunty cnventin facilities tax since 2015. In FY2015, the General Fund received $92,799 f which $46,400 was distributed fr substance abuse. Fr FY2016, the General Fund received $44,773 and substance abuse received $22,387. Fr FY2017 the General Fund received $47,526 and substance abuse received $23,763. Fr FY2018 the General Fund is budgeted t receive $47,553 and substance abuse is scheduled t receive $23,776. Fr FY2019 the General Fund is budgeted t receive $50,240 and substance abuse is scheduled t receive $25,120. The net decrease t the General Fund frm FY 2015 t FY 2019 is $21,280 (FY 2015 GF Prtin $46,400 - $25,120 FY 2019 GF Prtin). Revenue Sharing is budgeted at $252,824 fr the 2019 fiscal year in the General Fund, with a supplemental increase. Revenue Sharing is brken dwn with the fllwing estimates: $202,333 Cunty Revenue Sharing Payment $49,350 Cunty Incentive Prgram (CIP) $1,141 Supplemental revenue Sharing $252,824 Estimate fr FY 2019 The CIP prtin f Revenue Sharing requires the Cunty t submit Accuntability and Transparency reprting in rder t qualify fr the funding. As has been a standard practice the Bard charges the fllwing millages 5% fr administratin expense (Rad Patrl $85,905; Cuncil n Aging $14,352, Emergency 911 -- $35,905, Ambulance -- $28,635, Page 1 f 7
and Transprtatin -- $10,629). The Library Fund is nt charged an Administrative Fee. These revenues are dwn due t the tax cuts t the tw special millages. The FY2019 budget des nt reflect any revenues frm the state fr the cunty t d Title IVE Abuse and Neglect cases within the Prsecutr s Office. The revenues in the General Fund frm dg licenses have cntinued n a dwnward trend. These revenues are typically used t help fund Animal Cntrl services. Line item 101.000.00.477.000 is budgeted in FY2019 at $5,000 in FY2009 $9,503 was cllected. Funding fr Michigan State University Extensin includes a 2% increase n the assessment and reintrductin f additinal funding fr sme services. The cunty made cuts t the prgram with savings fr FY 2017 f $57,229 (Overall budget fr FY2017 was $94,515 befre prgram cuts). The assessment fr FY 2019 is $38,984, $15,865 is budgeted t take 4H frm ½ time t ¾ time, and $2,800 is budgeted ver tw lines fr phne and internet access. Included Memrandum f Agreement $38,984 (assessment) (includes 1 st half f 4-H Yuth Agent and 1 full-time educatr) Added ½ t ¾ 4-H Yuth Agent $15,865 Utilities (telephne/internet) $2,800 TOTAL $57,649 (2019) This amunt is still $36,866 less than the budget befre the cuts The General Fund transfer ut t the Child Care Fund is budgeted t be $135,000. This is amunt is based n the number f children predicted t enter int the system and the use f $110,000 in fund balance. The transfer ut was $487,753 in FY2015. $5,000 is budgeted in the General Fund under (101.265.03) fr seal cating the Hllister Senir Center parking lt. The Rad Patrl Fund is budgeted t use fund balance ($67,750) fr equipment purchases and related charges. $4,750 radi subscriptin, $45,000 fr 15 new radis, and $18,000 fr 15 new tasers. The Sldiers Relief Fund is budgeted with revenue frm tw state grants. A $20,000 incentive grant t create an ffice and a $27,038 State Veterans Basic Grant. Neither f these tw grants r amunts are certain. Page 2 f 7
ITEMS INCLUDED IN PRELIMINARY BUDGET WAGE INCREASES: Wages fr hurly emplyees are budgeted accrding t their respective step increase and unin and cntractual emplyees accrding t their respective cntract. Elected Officials (with the exceptin f the bard and Judge), and mst exempt emplyees (Undersheriff, Magistrate, Administratr, Building Inspectr, IT Directr, Emergency Services Directr, and the Assistant Prsecutr) are budgeted fr a wage increase f 2%. PERSONNEL : Curthuse Security is budgeted t cntinue t be prvided with part-time emplyees. The jail budget has exceeded its vertime budget in recent years. This expense is sizeable and thankfully is trending in the right directin. Additinal funds fr part-time hurs have been included in each f these budgets fr FY2019 t try cntinue t cntrl the expense. Jail Over Time $170,800 (2017) $165,500 (2018 estimate) $125,000 budget 2019 The Medical Examiner s budget has a $10,000 budgeted fr per diems fr MEIs ($5,000-2017 - $10,000 2018) t ffset the expense related t benefits and equipment histrically bre by the Rd Patrl Fund. The Chief Assistant Prsecutr psitin is budgeted t be mved t $45,000. This amunt includes any cst f living allwances and any retirement cntributin requirements. BENEFITS: Health Insurance: The 2019 budget reflects an increase in the mnthly premium fr health insurance and the HRA f 1.9% this amunt reflects the cunty cap under P.A. 152. Csts abve the cap are the respnsibility f the emplyee. Additinally the FY2019 budget reflects a smthed amunt charged t each department fr each emplyee eligible t take the cunty s insurance r the insurance waiver f $13,500 a year. These funds are budgeted t be cllected in the 727 Emplyee Benefit Fund fr payment f bligatins and premiums. Page 3 f 7
Fr FY2018, the cunty will be under the state impsed cap and in cmpliance with Public Act 152. Cunty s emplyees will have t cntribute$ fr their health insurance the amunt ver the cap. Retiree Health Insurance and OPEB Funding: FY2019 cntinues the new Retiree Health/OPEB charge fr eligible emplyees. The charge is weighted based n the benefit and will make the premium payments fr retiree health insurance, cntribute mnies t the HRA accunt fr pre 65 retirees, set aside funds t meet the cunty s OPEB liability, and pay new hires and pt-ut emplyees $25 per pay perid int their Retiree Health Care Savings Accunt. The charge will generate $975,760 a year. The mnthly charge fr emplyees eligible t take the cunty insurance is $570 a mnth (unchanged frm 2018) and $855 fr deputies and cmmand staff (25% reductin frm 2018 - $1,140). The charge will start t distribute the cst f retiree health and OPEB bligatins mre equally and will cst the fllwing fund accrdingly. Belw is hw thse csts were histrically spread: General Fund $100,000 (2017) RRP $150,000 (2017) Rd Patrl $50,000 (2017) 911 $50,000 (2017) Retiree Health Insurance/OPEB charge is cmprised f five difference elements: Insurance pre 65, Insurance pst 65, an HRA cmpnent fr pre 65, an OPEB bligatin, and payments t new hires and pt-ut emplyees nt eligible fr retiree health insurance. Retirement Funding: The actuarial value f assets used traditinally by MERS t determine ur funded status and required emplyer cntributin have histrically remained relatively steady: 2011, 81%; 2012, 80%; 2013, 79%; 2014, 80%. Hwever, new funding assumptins included in the 12/31/2015 actuarial have driven the verall funding percentage dwn t 74% fr the 12/31/2017 actuarial (used as basis fr FY 2019 budget) and dramatically increased the retirement csts within the departments. Page 4 f 7
OTHER ITEMS OF NOTE IN THE 2019 BUDGET: Revenues The General Fund includes $108,000 in revenue frm State PILT. This amunt is nt an increase ver 2018, but is an increase f $26,500 ver FY2016. The General Fund includes $190,000 frm Federal Payment in Lieu f Taxes payments (PILT). The General Fund includes $43,430 in revenue fr the Survey and Remnumentatin Grant, a decrease frm FY2018, but an increase f ver $7,500 frm 2017. The General Fund includes net asset distributins frm the MMRMA and the Wrker s Cmpensatin Pl in the amunt f $164,080. ($68,321 MMRMA and estimated $95,759 frm Wrkers Cmp). The General Fund reflects State Revenue Sharing payments f $252,824 with a $1,141 supplemental increase. The General Fund and IT Fund reflect transfers in frm the 402 Fund f $24,249. $8,249 int the General Fund fr cpier fr the PA s Office, and $16,000 fr the IT Fund fr the beginning f a cmputer replacement and windws upgrade prgram. The General Fund includes $256,000 frm fees fr the Register f Deeds, a cntinued increase and a sign f the imprved real estate market. The revenue fr the jail husing utside inmates is budgeted at $73,000 fr FY2019. The revenues generated frm the Rad Patrl, Ambulance, Emergency 911, and Cuncil n Aging millages are figured at 99% f the cmputatin (Taxable value/1,000 x millage rate). The Library and Transpstatin millages are at 96%. These millages are all levied in December f 2018 fr their respective FY 2019 budgets. The General Fund s FY2019 prperty tax revenue is based n a predicted 1.5% increase in taxable value because it is levied in 2019. Rent fr the CMH Building in the amunt f $20,875 is budgeted t be received in the Other Cunty Prperty Fund (403) and then transferred t the General Fund. The General Fund is budgeted t receive $30,000 frm the Ambulance Fund as reimbursement fr the millage renewal questin planned t be befre the vters in either August r Nvember f 2019. Page 5 f 7
Expenditures The General Fund expenditures are budgeted at $6,100,398 f which generally apprximately 75% are fr wages and benefits. $8,249 is budgeted within the General Fund fr capital utlay items and purchases. This amunt is planned fr a new clr cpier/printer fr the PA s Office. The apprpriatin t the District 10 Health Department frm the General Fund has nt changed in nearly a decade and FY2019 marks an increase f $1,307 r 1.8%. This amunt is in additin t an in-kind space with an apprpriatin valued at $74,000 and $9,500 budgeted csts fr utilities and maintenance. The apprpriatin t Mental Health frm the General Fund reflects n increase and remains at $55,250. The General Fund budget retains a $1,000 cntributin fr Cnservatin Masn-Lake, and a $1,000 cntributin fr Cnservatin Oscela-Lake. The General Fund includes $3,000 under Sheriff s Administratin Dive Team fr equipment and training. The General Fund includes $2,000 under the Sheriff s Administratin fr wages related t marine patrl. The General Fund includes $7,500 in the Bard f Cmmissiner s Dues and Subscriptins fr MAC annual dues. The General Fund includes $2,600 in funding fr the West Michigan Shreline Reginal Develpment Cmmissin (WMSRD) and $750 fr the Area Agency n Aging f West Michigan. The General Fund includes $25,000 fr Ecnmic Develpment, derived frm fund balance. The funds are part f a three year cmmitment ($75,000 ttal ver three years) t match utside dllars raised t perate the Lake Cunty Ecnmic Develpment Alliance. The FY 2018 budget reflects a transfer ut frm the General Fund (Trail Curts) int the Friend f the Curts f $100,000. The General Fund includes a transfer ut t the recently created (FY 2017) Parks and Rec Fund f $8,000 fr peratins. Apprximately $94,188 is budgeted within the General Fund fr the Jail fr medical services fr inmates. This amunt is spread ver several line items and the renewal f the new cntract t prvide medical services is budgeted at a 2% increase. Page 6 f 7
The Electins Department within the General Fund (101.191) reflects a budgeted expenditure f $35,157 in expenses. Of this amunt $30,000 are budgeted t be reimbursed by the Ambulance Fund. The General Fund includes a 3% increase in the cntracts fr the Medical Examiner ($5,719 t $5,889) and t administer the ME s Office ($19,627 t $20,216). The General Fund includes $15,000 budgeted fr cntracted legal services. In 2016 the cunty spent $34,167 ut f this line item; in 2017 nly $2,377 was spent. The General Fund includes a $1,000 apprpriatin fr Husehld Hazardus Waste Cllectin under the General Fund Legal Sectin (210). $5,200 is budgeted within the General Fund fr the Animal Cntrl Department t purchase new mdems ($2,000) and decals ($1,500) fr bth f the vehicles; and a new riding mwer ($1,700). $9.374 is budgeted within the General Fund fr the Cunty Guardian psitin. Page 7 f 7