HomeMy WebLinkAboutResolutions - 1975.12.18 - 14529December 18, 1975
MISCELLANEOUS RESOLUTION 7385
BY: FINANCE COMMITTEE - Richard R. Wilcox, Chairman
IN RE: 1976 ANNUAL BUDGET
To the Oakland County Board of Commissioners
Mr. Chairman, Ladies and Gentlemen:
IC, THE Cf-,KjND COUNTY BOARD OF COMMISSIONERS
Mr, Chairman, Ladies and Gentlemen:
in accordance with the provisions of Public Act 139, the Board of Commissioners referred the County Executive Recommended 1976 Budget
to the Finance Committee for its review,
The Finance Committee deliberated for many hours over the difficult and intricate details surrounding the budget.
Additionally, a public hearing on the Recommended County Executive Budget was held in an attempt to get as much citizen input as
possible.
The Finance Committee recognizes the dangers of the escalating costs of government. We further recognize the need to contain this
cost without seriously jeopardizing the services promised to the citizens. Although the committee is satisfied that the Administration
is moving in that direction, we feel that continued cooperation and coordination between the administration and the commissioners will go
a long way toward accomplishing this goal.
To this end the Finance Committee is making certain recommendations in this Budget, whose primary objective is to give this Board of
Commissioners greater input into the decision making process.
While the Total Budget remains at 60,3 million dollars as recommended by the County Executive, the Finance Committee recognizes certain
budget increases in some line items made necessary by changing conditions since the County Executive Budget was presented to this Board,
These include Fringe Benefits such as Social Security which increased $80,000 due to a change in the Social Security Act; Hospitalization
Insurance increased $113,000 due to rate changes; Workmens Compensation Insurance increased $155,000. Additionally, provision was made for•
funding of the following on-going programs; Area Agency on Aging in the amount of $3,100, the Bi-Centennial Commission in the amount of $10,000,
and $8,840 for District Courts,
The Finance Committee is recommending the elimination of the following items of expenditures; Research Assistant - Board of Commissioners
($100,000); County Executive Professional Services ($15,000), Local Match for Organized Crime ($61,755), Oakland County Pioneer and Historical
Society ($6,500); Utilities, Parking Lots and Roads ($50,000). These funds totaling ($233,255) are transferred to the Contingency Account,
In addition the following funds are being transferred to the Contingency Account pending further program review by your Finance Committee
and the Board of Commissioners; Computer Services ($120,440); Employees Dental Plan ($228,900); Youth Activities Center ($51,400).
As a further effort to monitor and control costs, the Finance Committee adopted the following as part of this Budget document:
A) The Reserve for possible Salary Adjustments in the amount of $1,574,720 be transferred from the Salaries Budget to the
Contingency Account.
B) Reduce the number of passenger automobiles in the County Fleet from 188 to 175 in 1976.
C) Funds appropriated to outside agencies are not to be released without the review and approval of the appropriate liaison
• Committee or in the absence of such a Committee, the Finance Committee,
D) All new development programs undertaken by Data Processing must be reviewed by the Finance Committee for appropriate
• cost justification prior to its implementation,
E) That the County Executive Administration explore the possibility of having an outside agency perform the Data Processing
Services.
F) The funds for the position of Public Information Officer be set aside with the understanding that this position come
under the jurisdiction of the Board of Commissioners,
As stated earlier, the Total Budget remains at S60,358,437 for the fiscal year January 1 - December 31, 1976.
The following summarizes the major components of this Budget:
Revenues
(1) Property Tax $37,775,000
The tax rate for 1976 remains at 5.26 mills as in previous years (of which •15 mills are for the Huron-Clinton Metropolitan Authority),
k2)
(2) Non-Property Tax (State & Federal Share Revenues, Fees, etc.) $22,583,347.
For the first time in a decade our non-property tax revenues show a decrease over prior year's budget. This reflects both the
effect of current and anticipated economic conditions, as well as the unavailability of prior years reserves.
Aepropriations
(I) Non-Departmental Appropriations $20,450,552
This group of expenditures has an overall increase of $423,658 (see detail budget for specific items) which Includes provisions
for a Dental Insurance Program resulting from Labor Contract settlement and continuation of the Youth Assistance Program as a
County Funded Program.
(2) Departmental Operating Appropriations $14,013,274
This group of expenditures increased by $2,550,694. Of this $616,075 is due to a budget procedural change charging Computer Services
Development Cost directly to benefiting departnents., $260,000 for development of a Solid Waste Program; $203,000 for the General
Election Expense; $591,000 for volume increases in Defense Attorneys, Juvenile Maintenance and County Building; $1,088,000 for an
average economic increase of 8% in all Operating Departments,
(3) Personnel Cost $25,894,521
Personnel costs increased by $1,646,707. Included in this amount are increased costs of existing positions due to status changes,
merit increases, additional positions granted by the Board since January 1, 1975 and an amount approximating 5% of existing budgeted
-positions for possible salaries adjustments, The Personnel Practices Committee will recommend to this Board of Commissioners a
specific salary package detailing salary adjustments for each employee, as well as elected officials, excluding Board of Commissioners
members,
(3)
Respectfully submitted,
FINANCE COMMITTEE
Richard R. Wilcox, Chairman
Henry W. Hoot, Vice Chairman
Mary Head Dearborn
James W. Dunleavy
Wallace F. Gabler, Jr,
Paul E. Kasper
, Bernard F. Lennon
Robert W.• Page .
.Alexander C. Perinoff
Lawrence R. Pernick
Kenneth E. Roth
C,eneral Federal ,Revenue Sharing
This budget contemplates General Fund Revenue Sharing receipts of $3,350,000. These funds will be earmarked for the following
purposes. State Institutions -Community Mental Health $400,000; Reference Library $35,000; Social Services-Hospitalization $600,000; Law
Library $40,000; Circuit Court Defense Attorneys $600,000; Juvenile Court Defense Attorneys $175,000; Medical Examiner $100,000; Chapter
20 & 21 Drains $400,000 and Law Enforcement - Sheriff's Department $1,000,000 for a total of $3,350,000.
Capital Improvement Program
The Capital Improvement Program appropriations has been reduced to $600,591, which is approximately a 75% reduction as compared
to last years Budget.
in accordance with rule X-A of this Board, the Finance Committee will submit ..a revised five year Capital Improvement Plan as a
supplement to this Budget upon completion of the review and setting of priorities by the Planning and Building Committee.
Mr. Chairman, on behalf of the Finance Committee, I move the adoption of the above report and approval of the 1976 Budget
as submitted.
(1,897)
(0)
$23,209,801
0
800,000
• 200,000
100,000
80,0.00
20,000
10,000
1,574,720
Previously Approved Positions
New Positions
Overtime Reserve .
Summer Employment
Emergency Salaries
Tuition Reimbursement Program
Classification and Rate Changes
Children's Village Student Employment
Possible Salary Adjustments
TOTAL SALARIES RESERVE $25,994,521
New Positions Budgeted
New .Positions.
SUMMARY - SALARIES PORTION - 1976 BUDGET OAKLAND ,COUNTY MICHIGAN
TABLE OF CONTENTS
-Page Subject
SummerEMployment -
Tuition Reimbursement
Classification and Rate Changes K
Children's Village Employment -
D Elected Officials'
Overtime Reserve •. Appointed Officials
New Positions Summary E, F, G, H, I Comparison with Previous Budgets 0
Emergency Salaries
Subject
Distribution to Departments
salary:Adjus.tments
- _
Fringe Benefit Improvements
SALARY ADJUSTMENTS
no $1,574 s 720 included in this recommendation represents an amount to cover the cost of labor contracts
yeL to be completed; the cost of new positions granted since August 23, 1975; and an amount for salary
adjustments equal to 5.0% of the cost of previously approved budgeted positions. It is a bulk amount, and -
j recommendation on the amounts of 1976 individual classification salary adjustments will .be submitted in
Lhe future.
Some inequities exist in and between certain job classifications and departmental salary adjustment requests
'Ali be reviewed as will the Annual Salary Survey, which is nearing completion.
dddition, a review is being made of the overtime.eligibility status of all County classifications in order
determine overtime eligibility requirements of the Fair . Labor Standards Act, as amended. As a result of
review, changes will be recommended in overtime eligibility for certain classifications.
FRINGE BENEFIT If\APROVEMENTS'
The only employee Fringe Benefit Improvement included in this draft of the 1976 County Budget is for an
eployer paid Dental Plan.
The proposed plan would be available on an optional basis to eligible active employees with twelve months
.rvice. Benefits would be similar to industrial insurance plans for auto workers in this area except
cM.uees would be required to make a deductable payment of $25 per covered individual per calendaryear
on certain types of expenses.
ihe employer cost For this coverage will be $350,000 for 1976.
NW POSITIONS - BUDGETED
There are no new budgeted positions recommended in this budget. County departments, as a part of the
normal budget process, submitted documented requests for an additional 200 new positions they deemed
necessary because of general increases in the demand for services resulting in increasing workloads,
attempts to improve service or to staff new programs. No new positions are recommended, however, because
of the County's attempt to hold the line on rapidly increasing costs, the diminishing growth in revenues
and the uncertainties in economic forecasts for 1976.
NEW POSITICiNS
The County currently has a total of 239 employees working under Title II and Title VI of the Federal
Comprehensive Employment Training Act of 1973 (C.E.T.A.)t Total authorized County C.E.T.A. positions
either filled or in the process of being filled number 295 (199 under Title II; 96 under Title VI).
Federal allocation will fund the County's X.E.T.A. program through June 31, 1976 and provide up to 45
new C.E.T.A. positions now under review but not yet authorized. Total C.E.T.A. expenditures from June,
1975, through June 31, 1976, are projected at $2,466,854, including adjustments in salary rates and
additional positions.
C)VERTIME RESERVE •
The creation of the Overtime Reserve, within the Salaries Reserve Fund, allows funds to be budgeted for
the payment of overtime without committing the funds to particular departments. Overtime is used only
when the work and the time of doing it are assigned by the department head, reviewed and approved by the
Department of Management and Budget, and only employees in certain categories are eligible for overtime
pay. The County's computer maintains a running account of the overtime used, detailing it by department
and employee. $540,129 was spent for this purpose in 1972, $776,878 was spent during 1973, and $1,072,135
was spent during 1974. Also charged to this fund is the cost of Premium Pay for Legal Holidays worked
and pay .for off-duty Court Appearance by Law Enforcement employees.
EMERGENCY SALARIES
"Emergency Salaries" are amounts granted to certain departments based on previous experience and/or in
anticipation of unusual workloads and staffing problems in the coming budget year. Such funds are used
by departments to cope with fluctuating caseloads to cover vacation and sick leave absences and to
cover repetitive seasonal or special projects. The use of short term temporary employees paid from
"Emergency Salaries" is considerably less expensive than full-time staffing with a:larger number of
permanent employees to meet peak loads. "Emergency Salaries" allows departments to maintain a roster
of "on call" employees available to cope with emergencies. Permission must be obtained from the County
Administration through Personnel, before such funds can be used.
DEPARTMENT/DIVISION AMOUNT REQUESTED AMOUNT RECOMMENDED
CENTRAL SERVICES
Administration $. 2,000 , $ 1,000
Facilities and Operations
Telephone Exchange 500 500
;MANAGEMENT AND BUDGET
Equalization 5,000 - 2,000
Purchasing 500 0
HUMAN SERVICES
Camp Oakland - 21,600 20,000
Children's Village 30,000 20,000
Health Department 30,000 • 1,500
Medical Examiner 5,000 0 • Hospital 40,800 36,000
PERSONNEL • 2,000 1,000
PLANNING AND PHYSICAL DEVELOPMENT
Planning 1,500 1,500
. PUBLIC SERVICES
Cooperative Extension 800 0 •
Emergency Medical Services 350 0
Library 1,300 0
• Veterans' Affairs . 1,620 . . 1,500
CIRCUIT COURT • 8,500 1,500
CLERK/REGISTER . 7,000 4,000
COMMISSIONERS 1,000 . . . 1,000
PROBATE COURT 2,000 1,000
Juvenile Court 4,500 4,005 •
SHERIFF 3,000 .3,000
TREASURER 500 . 500
TOTALS $169,470 $100,000
.J1
SUMMER EMPLOYMENT
Oakland County has traditionally hired college and high school students to perform a variety of routine
jobs during the summer months. Summer employees help to fill an employment gap created by annual leaves,
usually taken during the summer by regular, full-time employees. The summer employment program lends
itself well to seasonal work performed in the maintenance of County grounds, the operation of County parks
and repetitive tasks accumulated throughout the year by the various County departments. Currently the
County pays $2.00 per hour for the first year and $2.25 per hour for the second year for Summer Clerical
type help. Summer Grounds help or Laborers receive $2,25 per hour for the first year and $2.50 per hour
for the second year. Placing these funds for Summer Employment in the Salaries Reserve Fund allows the
Personnel Committee to oversee summer employment distribution,
TUITION REIMBURSEMENT
Placing this allocation in the Salaries Reserve Fund allows County Administration to coordinate, and the
Personnel Committee to oversee, training activities, which have become more important as the County seeks
to upgrade present employees instead of fighting in the competitive market for the hard-to-get specialists
and technicians. The major expenditures from this fund are to finance the County's Tuition Reimbursement
Program under which tuition is reimbursed to an employee after he has successfully completed a course which
was approved by both his department head and the County Executive through the Personnel Department. The
increase from $40,000 in 1974 to $60,000 in 1975 and $80,000 in 1976 reflects the effects of inflation of
the cost of education.
CLASSIFICATION AND RATE CHANGES DURING BUDGET YEAR •
Because the County is a very complex institution which is constantly changing its scope, the duties of
many positions change during each budget year. With over 3,000 positions, it is tot possible to study
and report all such changes in time to be reflected in the County l s Annual Budget. Many changes in
classification and some rate adjustments must be made during the budget year. The creation of new
classifications and new salary rates can only be done by the Board of Commissioners, and these funds can
be used only with the approval' of the Board, '
,I1ILDREN'S VILLAGE STUDENT EMPLOYMENT
JLveral years, the County has employed students from the Children's Village in a number of County
rLNonts, The number of students available varies with the Village's caseload and the departments
Ased vary with the type of students available and the County's workload. In 1974, $5,000 was
:!.,,ted for this purpose but had to be augmented before the year was over $10,000 was allotted for
f, purpose in 1975 and again in this budget. This program has the double benefits of providing
--[1--job training, work experiences and often exposure to a different lifestyle for the students and
:,.1,ibts the County in coping with certain routine workloads.
SUMMARY - SALARIES PORTION - 1976 BUDGET - OAKLAND COUNTY MICHIGAN
Previously Approved Positions (1,895)
New Positions
• Overtime Reserve
Summer Employment
• Emergency Salaries
HTuition Reimbursement Program
Classification and Rate Changes
: Chi/dren's VillagE Student Employment
Possible Salary Adjustment
$24,771,268
00,000
200,000
100,000
TOTAL SALARIES RESERVE
ABLP, OF CONTENTS
Subje
Distribution to Departments
Salary Adjustments
New Positions - Budgeted,
New Positions -
Overtime Reserve :
,
New Positions Summary •
Emergency Salaries:
Summer Employment
Tuition Reimbursement
$26,060,072
Subject •
• Classification and Rate Changes:
Children's Village Employment
: Elected Officials .
Appointed Officials
Inactive Clasifications •
Rec. Classes to be Established
Recommended Classes to be Retitled
:Recommended:C1:,-Isss .to '7)e Delrrlted
• . . . • . • • . . . • . • • . • • •
•Comparison with Previous Budgets
Q•
SALARY ADJUSTMENTS
The $7E,804 included in this recommendation represents an amount to cover the'additional cost of new
positions and other personnel transactions recommended by the Board of Commissioners since August 28,
1975, and an amount to cover the cost of labor contracts yet to be completed.•
C