HomeMy WebLinkAboutResolutions - 2017.12.07 - 23194MISCELLANEOUS RESOLUTION #17324 December 7, 2017
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET — APPROVAL OF FY 2017 DEFICIT
ELIMINATION PLAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Public Act 140 of 1971 requires that a Deficit Elimination Plan be formulated by the
local unit of government and filed with the Michigan Department of Treasury when any
governmental fund experiences negative unrestricted fund balance and when any proprietary
fund experiences negative unrestricted net position; and
WHEREAS Oakland County completed the fiscal year ending September 30, 2017 with two (2)
funds with negative unassigned fund balances, which requires 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.
Commissioner Thomas Middleton
District #4 Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Bowman absent.
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COUNTY MICHIGAN
MANAGEMENT & BUDGET
OAKLAND COUNTY EXECUTIVE L. BROOKS PATTERSON
Lynn Sonkiss, Manager I Fiscal Services
(248) 858-0940 I sonkissl(goakgov.com
November 16, 2017
DRAFT
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
For the fiscal year ending September 30, 2017, 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 $(203,015)
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 $87,518 and the Upper Straights Lake Level
Dam Reconstruction project in the amount of $122,076.
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 $18,947 from the FY
2016 deficit of $106,465 to the FY 2017 deficit of $87,518.
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 still in the design
phase. The total estimated project cost of $725,000 will be financed by the sale of bonds or a loan. The
loan will be repaid by an assessment to the Upper Straits Lake Level Special Assessment District over a
likely ten year period. The Special Assessment District must be updated prior to project assessment and
financing of the project. Updating the district requires approval by the Oakland County Circuit Court.
Therefore, the project schedule is directly affected by the Court schedule. It is anticipated that the
project will be issued for bids and financing secured in the fall of 2018 with construction to commence
during the winter of 2018. There have been some delays on the project and related court proceedings
due to critical infrastructure improvements needed for other systems under the responsibility of the
Oakland County Water Resources Commission's office.
2100 Pontiac Lake Road I County Executive Building 41W I Waterford, MI 48328 I Fax (248) 858-9724 I OakGov co2
Capital Projects Fund — Drain Chapter 4 Construction $(775,336)
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
$775,336. A loan from the Long-Term Revolving Fund was approved by the Oakland County Board of
Commissioners via Miscellaneous Resolution #14136 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 was completed and became operational as of January 2015 and the deficit for
this specific project will be eliminated when the long-term assessment roll collection is completed.
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, 2017. Any questions regarding this matter should be directed to my attention at 248-858-0940, or by
e-mail at sonkissl@oakgov.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 48328 I Fax (248) 452-9172 I OakGov.c3n
Resolution #17324
December 7, 2017
Moved by KowaII supported by Jackson the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Fleming, Gershenson, Gingell, Hoffman, Jackson, KowaII, Long, McGillivray,
Middleton, Quarles, Tietz, Weipert, Woodward, Zack, Berman, Crawford. (17)
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).
GERALD D. POISSON
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 7,
2017, 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 7th day of December, 2017. • PP/Yei2.—
Lisa Brown, Oakland County