HomeMy WebLinkAboutResolutions - 1986.12.11 - 10922Miscellaneous Resolution # 86305 September 25, 1986
By: PLANNING AND BUILDING COMMITTEE--Anne M. Hobart, Chairperson
In Re: ROAD COMMISSION APPROPRIATION
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies, and Gentlemen:
WHEREAS it is the desire of the Oakland County Board of Commissioners
to further refine its intention to participate in the future of county road
improvement programs ; and
WHEREAS it is the desire of the Oakland County Board of Commissioners
to fund county road improvements in townships, cities, and villages ; and
WHEREAS the current, successful Tr-Party Program will be completed
in 1986; and
WHEREAS it is desirable to appropriate funds for a two year commitment
for road improvements beginning in 1987 as a Tr-Party arrangement with
the local communities and the Road Commission; and
WHEREAS said first annual appropriation for 1987 would be $1,000,000
and the total commitment to be funded over a two year (1987 and 1988)
period on an annual basis of $1,000,000 in each of said years would be
$2.0 million; and
WHEREAS yearly distributions would be made to the Road Commission
from the County Board of Commissioners of $500,000 for road improvements
on county roads in cities and villages and $500,000 for road improvements
on county roads in townships, to be matched equally by the Road Commission
and local communities resulting in total yearly programs of $1,500,000 for
cities and villages and $1,500,000 for townships.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves the concept of a two year program to make annual
appropriations of $1,000,000 to the Oakland County Road Commission for the
years 1987 and 1988.
BE IT FURTHER RESOLVED that local communities may accumulate more
than one year's normal allocation under this program in order to allow for
the programming of larger projects.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
does hereby direct the County Executive and the Chairperson of the Oakland
County Board of Commissioners to prepare and execute a Memorandum of
Understanding as to the County financial obligation with respect to county
road improvement funding for the years 1987 and 1988.
BE IT FURTHER RESOLVED that copies of the executed agreement be
delivered to the Oakland County Board of Commissioners and communicated
to the County Clerk for the purpose of making said agreement an official
communication to the Oakland County Board of Commissioners.
Mr. Chairperson, on behalf of the Planning and Building Committee,
I move the adoption of the foregoing resolution.
Planning and Building Committee
T. Murphy, County Executive Danie
MEMORANDUM OF UNDERSTANDING
WHEREAS the Board of Oakland County Commissioners by Miscellaneous
Resolution No. did approve the concept or a two year program to make
annual appropriations of $1,000,000 to the Oakland County Road Commission for the
years 1987 and 1988; and did direct the County Executive and the Chairman of the
Oakland County Board of Commissioners to execute a Memorandum of Understanding
with respect to county road improvements for the years 1987 and 1988 in
accordance with Miscellaneous Resolution No. ; and
NOW, THEREFORE, WITNESS THIS MEMORANDUM OF UNDERSTANDING:
The Oakland County Road Commission will undertake road improvements on
county roads in townships, cities, and villages in Oakland County.
In consideration of the road improvements, the County of Oakland is obli-
gated and shall pay to the Oakland County Road Commission a sum of $1,000,000 for
the year 1987 and, further, the County Executive agrees that he shall recommend
for inclusion in the budget for the year 1988, the sum of $1,000,000 and,
further, that the Oakland County Board of Commissioners shall consider the
recommendation of the County Executive to include the sum of $1,000,000 in the
budget for the year 1988. It is mutually understood that this Memorandum of
Understanding does not appropriate the sum of $1,000,000 for the year 1988, but
rather is a recommendation by the present Board of Commissioners for the future
Board of Commissioners having jurisdiction of that budget year to include the sum
of $1,000,000 for the year 1988, in conformance with the concept approved in
Miscellaneous Resolution No.
IN WITNESS WHEREOF the Board of County Road Commissioners has executed this
Memorandum of Understanding on the Day of , 1986.
BOARD OF COUNTY ROAD COMMISSIONERS,
COUNTY OF OAKLAND, STATE OF MICHIGAN
A Public Body Corporate
IN WITNESS WHEREOF pursuant to the authorization contained in Miscellaneous
Resolution No. the County Executive and the Chairman of the County
Board of Commissioners have executed this Memorandum of Understanding on the
day of , 1986.
COUNTY OF OAKLAND
- Richard R. Wilcox, Chairman
Okland County Board of Commissioners
Alternatively, a financial plan can be developed for funding a
continuing Road Improvement Program in the future by setting aside
current General Fund revenues at a predetermined rate and allowinv
interest earnings to accumulate and supplement the initial
aPpropriations, For example, if the above mentioned investment schedule
were utilized, a sum of $1,153,291 would be available to fund projects
in 1992 with the advantage of having over $400,000 available annually
thereafter. This scenario is worthwhile only if the return on
investment equals or exceeds the inflationary pressures on construction
costs. An additional advantage is the enhanced capability of
policymakers to schedule projects in relation to existing and 17,rojected
market conditions, as well as maintain the valuable resource pool of
private construction firms during periods of economic hardship.
If T, can he of further assistance, please contact my office
Respectfully,
Louis A, MacKenzie, Director
Department of Management & Budge
Detober 1. 1986
Ms. Anne Hobart, Chairperson
Planning and Building Committee
Re: FIVE YEAR TRI-PARTY ROAD IMPROVEMENT PROGRAM
Dear Ms. Hobart:
In response to your request regarding the financial implications of
the proposed five year ($1,000,000 annually) Tr-Party Road improvement
Program, the following information is provided.
First, viewed in terms of an opportunity cost, a value judgment
must be made ranking the relative priority of this proposal against
several other proposals currently under consideration, including: an
expansion of the Law Enforcement Complex, construction of a new Computer
Center, Library facility, South Oakland Office and West Oakland Health
Center, as well as development of a 911 Emergency Communication System,
installation bf a county-owned telephone system, and general
improvements to the service center roadway and parking facilities.
Another perspective on opportunity cost is the time value of money.-
In other words, if the proposed $1,000,000 annual appropriation were not
spent but, rather, invested, what interest earnings could be
anticipated? Assuming a seven (7%) percent interest rate, a $1,000,000
annual investment would accumulate to $6,153_,291 at the end of five
years or, in other words, an additional $1;153,291 of investment
earnings would be realized, as indicated in the following schedule:
AVAILAB L E
ANNUAL TO TNTERES7
YEAR APPROPRIATION INVEST EARNINGS
1987 $1,000,000 $1,000,000 .-..;:;70,000
1988 1,000,000 2,070,000 144,900
1989 1,000,000 3,214,900 225,045
1990 1,000,000 4,439,943 310.796
1991 1,000,000 ' 5,750,739 402,552
1992 6,153,291
TOTAL $1,153,291
Given that the issue of road improvements is a never-ending
problem, the burden of financing can impact taxpayers in several ways.
Future taxpayers carry the load when bonds are issued to cover the cost
of current projects, such as those previously issued by the Road
Commission. Current projects which provide an immediate benefit to the
taxpayer can be funded with current revenues, such as the increase in
the gas tax approved by the state legis U t,ure or the use of County
General Funds via the current Tri-Party Ap -remnt. Since 1973, Oakland
County has appropriated $6,149,000 for road imProvements and the County
Executive has included an additional $500,000 in his 1987 Budget
Recommendation.
)
FISCAL NOTE
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: ROAD COMMISSION APPROPRIATION - MISCELLANEOUS RESOLUTION #86305
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has
reviewed Miscellaneous Resolution # 86305 and finds the request for
continuation of the Tr-Party Program and the level of funding beyond 1986
will be considered during the 1987 budget review process.
FINANCE COMMITTEE
Resolution # 86305
December 11, 1986
Moved by Hobart supported by Perinoff the resolution, with Fiscal Note
attached, be adopted.
AYES: Webb, Caddell, Calandro, Doyon, Fortino, Gosling, Hobart, Richard
Kuhn, Susan Kuhn, Lanni, McConnell, McDonald, McPherson, Moffitt, Nelson,
Page, Perinoff, Pernick, Price, Rewold, Rowland. (21)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution, with Fiscal
Note attached, was adopted.
$TATE OF m[c171GAN
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a
seal, do hereby certify that L have compared the annexed copy. of
Miscellaneous Resolution adopted by the Oakland County Board of Commissioners
at their meeting held on December 11, 1986
with the original record thereof now remaining in my office,
and that it is a true and correct transcript therefrom, and .
of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and affixed
the seal of said County at Pontiac, Michigan
this 11th day of December.,
Lynn/D Allen, Coun y Clerk
Register of Deeds-