HomeMy WebLinkAboutResolutions - 2014.12.11 - 21619MISCELLANEOUS RESOLUTION #14293 December 11,2014
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET APPROVAL OF FY 2014 DEFICIT
ELIMINATION PLAN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS Public Act 140 of 1971 (the General Revenue Sharing Act) and Public Act 34
of 2001 (revised Municipal Finance Act)required local units of government submit a "deficit
elimination plan" when any governmental fund experience negative unrestricted fund balance and
when any proprietary fund experiences negative unrestricted net assets; and
WHEREAS Oakland County completed the fiscal year ending September 30, 2014 with
two (2) funds with negative unassigned fund balances, which required submission of a deficit
elimination plan.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves submission of the attached deficit elimination plan to the Michigan
Department of Treasury.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing
resolution.
EJMNCE COMDAT EE
II iLeyeA,-Is-z- "WIMP'
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Long and Quarles absent.
COUNTY MICHIGAN
MANAGEMENT & BUDGET
OAKLAND COUNTY EXECUTIVE L. BROOKS PATTERSON
Lynn Sonkiss, Manager J Fiscal Services
(248) 858-0940 I sonkissl@oakgov.com
December 11,2014
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
DRAFT
For the fiscal year ending September 30, 2014, Oakland County reports two (2) funds with a negative
unassigned fund balance (e.g. a "deficit). Below, please find a listing of those funds, the amount of the
deficit, and a deficit elimination plan:
Capital Projects Fund - Lake Levels - Act 146 $(190,739)
The negative unassigned fund balance in the Lake Levels - Act 146 Fund primarily reflects costs that are
related to the Bush Lake Level project in the amount of $154,875 and the Upper Straights Lake Level
Dam Reconstruction project in the amount of $41,951.
Bush Lake Level- Construction of a new lake level control structure has been completed and a Long
Term Special Assessment for the project commenced in FY 2011. In 2010, the Oakland County Board
of Commissioners authorized a loan in the amount of $300,000 from the County's Long Term
Revolving Fund to the Bush Lake Special Assessment District to be collected in ten annual installments.
The long-term receivable is now on the balance sheet to track the collection of the Long Term Special
Assessment. Collection of the annual special assessment has reduced the deficit by $37,185 from the FY
2013 deficit of $192,060 to the FY 2014 deficit of $154,875.
Upper Straits Lake Dam Replacement - The project consists of replacing an existing lake level control
structure in West Bloomfield Township, Oakland County, Michigan. The project is currently in the
design phase. When the design phase is completed, the estimated project cost will be determined. It is
planned that the project will be financed with a loan from the Oakland County Board of Commissioner's
Long Term Revolving Fund. The loan will be repaid by an assessment to the Upper Straits Lake Level
Special Assessment District over a proposed ten year period. The Special Assessment District must be
updated prior to requesting the loan. Updating the district requires Circuit Court action and therefore, the
project schedule is directly affected by the Court schedule. Any delays in receiving the Court judgment
on the district update will be reflected in the timing of receiving loan money and approval of special
assessment.
2100 Pontiac Lake Road County Executive Building 41W I Waterford, MI 48328 I Fax (248) 858-9724 I OakGov.com
Capital Projects Fund — Drain Chapter 4 Construction $(400,234)
The negative unassigned fund balance in the Chapter 4 Drain Construction Fund reflects costs that are
related to the Lower Pettibone Lake Sanitary Chapter 4 Drain Construction project in the amount of
$400,234. A loan from the Long-Term Revolving Fund was approved by the Oakland County Board of
Commissioners via Miscellaneous Resolution 414136 adopted June 11, 2014 to provide up to
$1,200,000 in funding for this project. A 20 year assessment against each of the benefiting properties in
the District has been approved to repay the loan with first payment due December 2014. The
construction of the sewer is approximately 75% complete and is expected to be fully operational by the
end of January 2015.
We trust that the above demonstrates that Oakland County has sufficient plans in place to eliminate the
negative unassigned fund balance reported in the financial records for the fiscal year ending September
30, 2014. Any questions regarding this matter should be directed to my attention at 248-858-0940, or by
e-mail at sonkisslgoakgov.com ,
Sincerely,
Lynn Sonkiss
Manager, Fiscal Services Division
Department of Management and Budget
Oakland County, Michigan
cc: Robert Daddow, Deputy County Executive
Laurie Van Pelt, Director, Management and Budget
Jim Nash, County Water Resources Commissioner
2100 Pontiac Lake Road I County Executive Building 41W I Waterford, MI 48326 I Fax (248) 452-9172 I OakGov.com
Resolution #14293 December 11, 2014
Moved by Crawford supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis,
McGillivray, Middleton, Runestad, Scott, Spisz, Taub, VVeipert, Woodward, Zack, Bosnic,
Crawford, (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December
11 th, 2014, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 1 1 th day of December 2014,
Lisa Brown, Oakland County