HomeMy WebLinkAboutResolutions - 1983.02.24 - 11539MISCELLANEOUS RESOLUTION # 83044 February 24, 1983
BY: FINANCE COMMITTEE, DR. C. WILLIAM CADDELL, CHAIRPERSON
IN RE: CHANGE IN RETIREMENT SYSTEM RATE OF INVESTMENT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Miscellaneous Resolution #82365, Recommended 1983 Budget and General
Appropriations Act adopted on December 2, 1982 directed the Finance Committee to
report back on their recommendation to increase the Retirement Investment Assump-
tion from 6% to 7% upon referral of this item to the Retirement Board for considera-
tion and recommendation; and
WHEREAS the Oakland County Retirement Board at their meeting of November 17,
1982 did adopt the following:
"WHEREAS, the actuary has recommended that the package of assumptions
be updated to reflect retirement system experience and emergency trends;
and
WHEREAS, the Retirement Commission must formally adopt the rate or rates
of regular interest and the mortality table,
THEREFORE, BE IT RESOLVED, that effective December 31, 1982, the rate of
regular interest be 7.0% a year, compounded yearly, be used for all
actuarial valuations, reserve transfers, option computations, and other
actuarial calculations required in the operation of the retirement system.";
and
WHEREAS the Finance Committee recommends that said charge be implemented,
effective December 31, 1982; and
WHEREAS said change will reduce the County's 1983 retirement obligation by
$1,004,428, of which $710,867 is budgeted dollars and $293,561 is other source
dollars.
NOW THEREFORE BE IT RESOLVED, that pursuant to Rule XI-C of this Board, the
Finance Committee has reviewed said change in the Retirement System Rate of In-
vestment and recommends adoption as recommended by the Retirement Board.
BE IT FURTHER RESOLVED that implementation of said change will reduce the
1983 County's budgeted retirement payment obligation in the various County De-
partments' operating budgets by $710,867 and reduce Contra-accounts (Reimburse-
ment-Fringe Benefits) by $14,433 in affected departments for a net reduction of
$696,434; said amount to be transferred from the various 1983 operating budgets
to the 1983 Contingency Account consistent with the attached schedule.
Mr. Chairperson, on behalf of the Finance Committee, I move adoption of
the foregoing resolution.
FINANCE COMMITTEE
Retirement - Account 2077
1983
Amended Budget
Adjustment
Reimbursement-Fringe Benefits (Account 1099).
1983 1983
Original Amended Budget
Budget .Budget Adjustment
1983
Original
Budget
59,837 54,736
41,941 38,366
7,603 6,955
9,552 8,738
48,813 44,652
17,654 16,149
9,654 8,831
195,054 178,427
11,572 10,586
61,697 56,438
384,139 351,394
44,211 40,442
246,228 225,239
52,779 48,280
800,626 732,379
55,025 50,335
172,585 157,874
137,161 125,469
81,674 74,712
446,445 408,390
11,735 10,735
28,448 26,023
85,220 77,956
30,358 28,228
156,261 142,942
11,268 10,307
23,507 21,503
54,293 49,665
58,833 53,813
147,901 133,293
5,101
3,575
648
814
4,161
1,505
823
16,627
986
5,259
32,745
3,769
20,989
4,499
68,247
4,690
14,711
11,692
6,962
38,055
1,000
2,425
7,264
2,630
13,319
961
2,004
4,628
5 015 .
12,603
(2,127)
(8,285)
(10,412)
(763)
(763)
(8,654)
(2,222)
(10,876)
(369)
(95)
(464)
(160,176)
(11,169)
(30,475)
(201,820)
(77,050)
(6,827)
(476)
(1,299)
(8,602)
(3,284)
(113,349)
(10,693)
(29,176)
(193,218)
-
(73,766)
(77,050) (73,766) (3,284)
(17,911)
(17,911)
(17,148)
(17,148)
OAKLAND COUNTY
CHANGE IN RETIREMENT SYSTEM RATE OF INVESTMENT
Ord.
No. Department/Division
GENERAL FUND (10100)
111 Administration
112 Auditing
113 Community & Minority Affairs
114 Public Information
115 Corporation Counsel
116 Advanced Programs Group
117 State & Federal Aid Coordinator
Sub-Total Executive Office
121 Administration
122 Budget Division
123 Accounting Division
124 Purchasing Division
125 Equalization Division
127 Reimbursement Division
Sub-Total Management & Budget
131 Administration
132 Safety Division
133 Probation Division
136 Facilities Engineering
Sub-Total Central Services
141 Administration
142 Sewer, Water & Solid Waste
145 Planning Division
146 Property Management
Sub-Total Public Works
151 Administration
153 Merit System Administration
135 Employee Relations
156 Selection, Placement & EEO
Sub-Total Personnel Department
Ord.
No Department/Division
Budget
Adjustment
1983
Original
Budget
Retirement - Account 2077
1983
Amended
Budget
Reimbursement-Fringe Benefits (Account 1099)
1983 1983
Original Amended Budget
.21-11ELL Budget Adjustment
11,719
69,852
12,799
28,687
17,405
140,462
1,977,998
23,196
130,379
20,507
71,029
245,111
147,641
307,048
214,347
16,601
537,996
75,990
36,220
62,986
72,591
247,787
201,947
633,087
840,034
1,625,817
10,396
73,075
83,471
10,720
63,898
11,708
26,242
15,921
28,489
1,809,391
21,219
119,265
18,759
64,974
224,217
135,056
280,875
196,076
15,186
492,137
69,512
33,133
57,617
66,403
226,665
184,733
533,695
763,428
1,487,230
969
6,809
7,778
999
5,954
1,091
2,445
1,484
11,973
168,607
1,977
11,114
1,748
6,055
20,894
12,585
26,173
18,271
1,415
45,859
6,478
3,087
5,369
6,188
21,122
17,214
54,392
71,606
138,587
(2,560)
(6,876)
(9,436)
(317,093)
(12,597)
(2,451)
(6,583)
(9,034)
303,578)
(12 -,060) (537)
-B-
(109)
(293)
(402)
(13,515)
OAKLAND COUNTY
CHANGE IN RETIREMENT SYSTEM RATE OF INVESTMENT
GENERAL FUND cont'd. (10100)
161 Administration 11,365
169 Medical Examiner 79,884
Sub-Total Inst'l. 6 Human Services 91,249
171 Administration
173 Veterans Services
174 Library
175 Cooperative Extension
176 Economic Development Division
Sub-Total Public Services
TOTAL COUNTY EXECUTIVE
211 Administration
212 County Clerk
213 Elections Division
214 Register of Deeds
Total County Clerk/Register
221 Total County Treasurer
311 Judicial Administration
312 Friend of the Court
313 Law Library
Sub-Total Circuit Court
322 Division I - Walled Lake
323 Division II - Clarkston
324 Division III - Rochester
325 Division IV - Troy
Sub- Total District Court
341 Estate & Mental Division
342 JuVenile Court
Sub-Total Probate Court
TOTAL ADMINISTRATION OF JUSTICE
Retirement - Account 2077
1983
Amended
Budget
47,033
16,240
6,912
6,112
3,236
32,114
3,145
114,792
24,897
44,207
656,542
500,051
55,146
163,444
1,444,287
1,559,079
104,164
157,792
5,476,929
1,142,522
28,318
64,128
1,234,968
(14,298)
(125)
(125)
(321,171)
(2,798)
(2,798)
(335,469)
(2,923)
(2,923)
1983 1983
Original Amended
Budget Budget
Budget
Adjustment
(246) (5,779) (5,533)
(2 46) (5,533) (5,779)
(246) (5,533) (5,779)
OAKLAND COUNTY
CHANGE IN RETIREMENT SYSTEM RATE OF INVESTMENT
Reimbursement-Fringe Benefits (Account 1099)
Ord.
No Department/Division
GENERAL FUND con't. (10100)
411 Prosecutor's Office
412 Warrants Division
413 Circuit Court Division
414 Appellate Court Division
-415 Family Support Division
416 Criminal Investigations Division
417 District Court Division
Sub-Total Prosecuting Attorney
431 Sheriff's Office
432 Administrative Services
433 Corrective Services
436 Protective Services
438 Community, Inspect. & Gov't.
Services
439 Technical Services
Sub-Total Sheriff
TOTAL LAW ENFORCEMENT
511 Board of Commissioners
611 Drain Commissioner
TOTAL GENERAL FUND (10100)
HEALTH FUND(22100)
162 Health Division
177 EMS-Disaster Control
178 Animal Control
TOTAL HEALTH FUND (22100)
1983
Original
Budget
51,416
17,753
7,556
6,681
3,538
35,106
3,438
125,486
27,217
48,326
717,722
546,648
60,285
178,674
1,578,872
1,704,360
113,871
172,496
5,987,294
1,248,988
30,957
70,104
1,350,049
Budget
Adjustment
4,383
1,513
644
569
302
2,992
293
10,696
2,320
4,119
61,180
46,597
5,139
15,230
134,585
145,281
9,707
14,704
510,365
106,466 .
2,639
';,976
115,081
Reimbursement-Fringe Benefits (Account 1099)
1983 1983
Original
Budget
(335,469)
(2,923)
Amended
Budget
(321,171)
(2,798)
Budget
Adjustment
(14,298)
(125)
(10) (244) (234)
'710,867
(14,433)
:(696,434)
OAKLAND COUNTY
CHANGE IN RETIREMENT SYSTEM RATE OF INVESTMENT
Ord. SUMMARY
No. Department/Division
TOTAL GENERAL FUND (10100)
TOTAL HEALTH FUND (22100)
TOTAL CAMP OAKLAND FUND (29210)
TOTAL CHILDREN'S VILLAGE FUND (29230)
TOTAL JUVENILE MAINTENANCE FUND (29260)
TOTAL MEDICAL CARE FACILITY FUND (52100)
1983
Original
Budget
5,987,294
1,350,049
113,189
448,703
20,885
419,340
Retirement - Account 2077
1983
Amended
Budget
5,476,929
1,234,968
103,541
410,455
19,105
383,595
Budget
Adjustment
510,365
115,081
9,648
38,248
1,780
35,745
TOTAL BUDGETED FUNDS
TOTAL OTHER SOURCE FUNDS
GRAND TOTAL
8,339,460
3,443,852
11,783,312
7,628,593
3,150,291
10,778,834
710,867
293,561
1,004,428
(338,636)
(338,636)
(324,203)
(324,203)
(14,433)
(14,433)
Summary of Budget Amendment
Retirement Accounts
Reimbursement Accounts
General Fund Contingency
-0-
. Investment Base
Annual Investment Earnings
$97,422,530
5,845,352
$97,422,530 $
6,819,577 976,225
0.93%
0.12%
1.05%
OAKLAND COUNTY
1983 BUDGET
RETIRE=•T TuW CONTRIDUTJON
Fav/(Unfav)
Assumed Input on
Return on Investments - Employee
6.0% 7.0% Contribution
Contribution Rate (Percent of Payroll)
Normal Cost:
( 1
Age and Service Allowances
Casualty Allowances
. Sub-Total
Member's Current Contributions
Future Refunds
Available for Allowances
14.61%
0.75%
15.376%
0.03%
(0.02 )
0.01%
13.68%
0.63%
14.31%
0.03%
(0.02)
0.01%
County's Total Normal Cost 15.35% 14.30% 1.05%,
Unfunded Actuarial Accrued
Liability-Active Members 2.19% -
Total Contribution Rate 17.54% -
Payroll Valuation (12-31-81) $60,874,388
•
1.59% 0.60%
1.65% 15.89%
$60,874,388
TOTAL COUNTY CONTRIBUTION (1983) $10,677,368 $ 9,672,940 $1,004,428
Caddell - Yes
Hampton - Yes -
T Shane Murphy - No
Wilcox - Yes
Hodson - Yes
Page 3 - Retirement Minutes November 17, 1982 -
12. Moved by Caddell, supported by Wilcox the following motion:
"WHEREAS, the actuary has recommended that the package of
assumptions be updated to reflect retirement system
experience and emerging trends, and
_WHEREAS, the Retirement Commission must formally adopt the
rate or rates of regular interest and the mortality table,
THEREFORE, BE IT RESOLVED, that effective December 31, 1982
:the rate of regular interest be 7.0% a year, compounded
yearly, be used for all actuarial valuations, reserve
, transfers,: option computations, and other actuarial calcu-
lations required in the operation of the retirement system."
. • Motion failed.
13 Moved by Hampton, supported by Wilcox to reconsider the motion.
Motion to reconsider carried. Roll call on original motion:
Motion carried.
14. Moved by Wilcox, supported by Caddell that the proposal of
"Non-Duty Survivor death benefit be lowered from 15 years of
service to 10 years of service" be forwarded to the Board of
Commissioners with this Board's recommendation for adoption.
Motion carried.
.-15. A presentation was given by Bob O'Keefe of Gabriel, Roeder,
Smith & Co. -
16. The next meeting was, set for December 15, 1982, at 1:30 p.m.
17. Moved by Wilcox, supported by Shane Murphy that the meeting be
adjourned. Motion carried. Meeting adjourned at 2:00 p.m.
. • Respectfully submitted,
J. R. Hodson, Vice-Chairman C. Hugh Dohany, Secretary-Treasurer
#83 0 44 February 24, 1983
Moved by Caddell supported by Gosling the resolution be adopted.
AYES: R. Kuhn, S. Kuhn, Lanni, Law, McConnell, McPherson, Moffitt,
Moore, Nelson, Olsen, Page, Perinoff, Pernick, Price, Rewold, Wilcox,
Aaron, Caddell, Calandro, Doyon, Foley, Fortino, Gosling, Hobart, Jackson.
(25)
NAYS: None. (0)
A sufficient majority haying voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution # 83044 adopted by the Oakland County Board of Commissioners
at their meeting held on February 24, 1983
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, 1 have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan
this 24th,
1_Y/IJ, ALLEN, County Clerk/Register of Dt