HomeMy WebLinkAboutResolutions - 1989.11.09 - 17080MISCELLANEOUS RESOLUTION # 89283 November 9, 1989
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: MANAGEMENT AND BUDGET - DESIGNATION OF FUNDS RESULTING FROM THE
COUNTY'S SUCCESSFUL LAWSUIT AGAINST THE STATE
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County Executive was successful in a suit to recover
Secondary Road Patrol funding; and
WHEREAS, said suit has made available funds from the General Fund of
$3,509,723; and
WHEREAS, to meet ever increasing demands on County services it is
necessary to make improvements in the means of providing those services;
and
WHEREAS, some of the improvements require up front investments (such
as optical storage, voice response systems, heating and cooling
improvements, drop shipment direct, etc.;) and
WHEREAS, proposed improvements would be reviewed on an individual
basis and show a payback of six or less years; and
WHEREAS, improvements must show a cost savings to current operations
not future cost avoidance, improved or expanded services; and
WHEREAS, such improvements will require Board approval.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners authorize
funds of $3,509,723 be set aside for operational improvements.
BE IT FURTHER RESOLVED the County Executive is authorized to make the
appropriate accounting transactions to close the Secondary Road Patrol
reserves and receivables previously established and to set aside the
$3,509,723 for operational improvements.
BE IT FURTHER RESOLVED operational improvements will be justified on
an individual basis showing a real cost savings from current operations
with a payback of six years or less.
BE IT FURTHER RESOLVED that all expenditures from the above mentioned
reserve require Board approval.
Mr. Chairperson, on behalf of the Finance Committee, I move the adoption
of the foregoing resolution.
FINANCE COMMITTEE
.-1 -0YE THE FORE.GC!::VC.:
aniel T. Murphy', Date
rm-mrlawsuit
N I C 1,4 0oN0(t MurOhy, Oakland County ExeCave CHICAN
Dhnie
COUNTY EXECUTIVE
t:ecwiltivo.nffienRadiria 1200 North TelegroOh Road • Puhl;oc, Michlgon d8(.Ib3 13i3) 658 0454 -
October 17, 1989
TO: Dr. C. William Caddell and
Hembers of the Finance Committee
IN RE: Reserving Recovered 416 Funds
The purpose of reserving funds won back through the 416 /awsuit is to
provide for one time expenditures which would have significant long term
coat savings. As these funds were originally expended from the Ceneral
Fund they rightfully belong to the General Fund and not be used for other
purposes. .
Given the ever increasing demands for services and the revenue
constraints the County is facing, it is prudent to invest in operational
cost saving measures. It would be imprudent to use these funds for new or
expanded services for two reasons:
- These funds represent a one time recovery (non-recurring) whereas
new or expanded services represent continuing or repeating costs;
To grant new or expanded programs would compound further budget
problems.
- The County has an opportunity to invest in or plan for its future.
"Future investments" by prior Boards have allowed the County to
afford many services that would not have been possible otherwise.
Operational improvements under thie program would have to demonstrate
real cost savings expressed in terms of cost reductions from current
operations (future cost avoidance should not be used as justification).
And, improved or expanded services should not be considered hereunder.
All expenditures from the proposed reserve would require Board
approval and be justified on an individual basis. Cost reductions would be
evaluated in terms of a six year or less pay back. (This would provide for
the equivalent of a 12% rate of return).
Utilization of these recovered funds in the manner I propose will help
ensure the County's financial position and help provide new and better
services.
I urge you to reserve these funds as proposed.
'day of November
ALLLN, CounTy-D7-eriter of
_ _ FT1iY5
4-989
.Resolution #89283 November 9, 1989
Moved by Caddell supported by Pappageorge the resolution be adopted.
Discussion followed.
AYES: Gosling, Hobart, Jensen, Johnson, R. Kuhn, S. Kuhn, Law, McConnell,
McCulloch, Moffitt, Olsen, Pappageorge, Rewold, Skarritt, Caddell, Calandro,
Chester, Crake. (18)
NAYS: McPherson, Oaks, Aaron, Ferrens. (4)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MiCHIGAN)
COUNTY OF OAKLAND)
1, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that 1 have compared the annexed copy of the attached
resolution adopted by the Oakland County Board of Commissioners at their regular
meeting held on kovember-9 1 989
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 9th