HomeMy WebLinkAboutResolutions - 2003.03.06 - 27220MISCELLANEOUS RESOLUTION #03043 March 6, 2003
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
IN RE: AMENDMENT TO THE FY 2003 GENERAL APPROPRIATIONS ACT AND THE FY 2003
AND FY 2004 BUDGET
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS in M.R. #02233, dated September 19, 2002, the Board of
Commissioners adopted the FY 2003 General Appropriations Act and the FY 2003
and FY 2004 Biennial Budget Plans; and
WHEREAS the adopted FY 2003 budget was balanced as required by law; and
WHEREAS the adopted FY 2004 Budget Plan included a $14 million "budget
task" (hereinafter "Phase 1 budget task"; reflecting, as of that date, the
amount of expenditure reductions and/or revenue increases Oakland County had
to secure in order to achieve a balanced FY 2004 budget; and
WHEREAS in an effort to both maintain the FY 2003 budget balance and
help reduce the FY 2004 Phase 1 budget task, the County Executive, in
cooperation with the Board of Commissioners and all County-wide elected
officials, initiated a hiring freeze for all General Fund/General Purpose
positions not requiring 24/7 staffing and authorized use of Merit System Rule
13.3.9, Administrative Leave Without Pay, for Budget Purposes provisions; and
WHEREAS in a further effort to meet FY 2004 Phase 1 budget task
targets, the County Executive proposed, and the Board of Commissioners
adopted M.R. #02236, creating the Incentive Program for Retirement; and
WHEREAS since the adoption of the FY 2003 budget, consistent with both
national and state economic trends, County employee health care costs have
substantially increased, investment income has decreased and property tax
revenue growth slowed, thereby increasing the FY 2004 budget challenge and
creating a new "Phase 2" budget task; and
WHEREAS the Uniform Budgeting and Accounting Act, 1968 P.A. 2, as
amended, requires Oakland County to maintain a balanced budget and mandates
that the County Executive, upon learning that actual revenues may be less
than estimated revenues, make recommendations to the Board of Commissioners
which, if adopted, will prevent expenditures from exceeding revenues for the
current fiscal year; and
WHEREAS the State is reporting significant additional FY 2003 and FY
2004 budget difficulties that will require reductions in State appropriations
during both FY 2003 and FY 2004, thus triggering the Executive's duty under
P.A. 2 to make budget adjustment recommendations; and
WHEREAS any future State reductions, including those necessitated by
executive orders issued in calendar 2002, affecting the FY 2003 state budget,
but not yet applied by the State to specific programs, are not reflected in
the attached proposed budget adjustments; and
WHEREAS future State budget reductions requiring remedial Oakland
County budgetary action, hereinafter designated "Phase 3 budget tasks," will
be presented to County Officials and the Board of Commissioners when
identified; and
WHEREAS in developing the attached budget recommendations, the County
Executive Administration has repeatedly met with all County-wide elected
officials, Executive Department Directors and interested County employees to
inform them of the budget challenges and to obtain their assistance in
developing plans to reduced expenditures and maintain a balanced FY 2003
budget and to achieve a balanced budget for FY 2004; and
WHEREAS all County-wide Elected Officials have cooperatively agreed to the
specific appropriation reductions and revenue enhancements attached,
including the deletion of authorized positions, some of which can be
implemented on or about April 1, 2003, as indicated infra; and
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent.
WHEREAS the agreed-upon actions detailed in the attached schedules
should help insure maintenance of a balanced FY 2003 budget, should provide
favorable variances in FY 2003 that can be used to offset the currently
unknown but certainly anticipated State reductions in FY 2003, and should
generate favorable equity reserves that will be available to assist in
meeting the FY 2004 Phase 1, 2 and 3 budget tasks; and
WHEREAS the attached detailed budget amendments primarily address the
original FY 2004 Phase 1 budget task and are recognized as an initial step in
a continuing process; and
WHEREAS it is understood that the State's budget situation will almost
certainly require further County budget adjustments in FY 2003 and FY 2004;
and
WHEREAS the County Executive recommends that any FY 2003 budget savings
realized through the specific appropriation reductions and revenue
enhancements listed on the attached schedules be transferred to a temporary
"Budget Transition Fund"; and
WHEREAS the County Executive recommends that all funds residing in the
temporary Budget Transition Fund be transferred to the General Fund on
September 30, 2003 and used by the Board of Commissioners to mitigate the
severity of budget reductions required for FY 2003-2004; and
WHEREAS the County Executive recommends that the Board of Commissioners
authorize administrative transfer of all budget savings realized through
utilization of the Administrative Leave Without Pay for Budget Purposes
Program from a General Fund non-departmental account to a departmental
Administrative Leave credit account and that the proceeds of the fund be used
to maintain a balanced budget for FY 2003 and FY 2004.
WHEREAS the County Executive also recommends that quarterly reports
detailing the status of the newly created departmental Administrative Leave
credit account be provided to the appropriate Board committees.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves amendments to the FY 2003 General Appropriations Act
and FY 2004 Budget Plan as detailed on attached schedule C (specific
personnel/position amendments) and attached schedules A, B, D and E (specific
line-item amendments).
BE IT FURTHER RESOLVED that the FY 2003 General Appropriations Act be
amended to add the following new paragraph:
"BE IT FURTHER RESOLVED that a temporary special revenue fund
titled 'Budget Transition Fund' is established to account for
appropriation reductions and revenue enhancements implemented in
FY 2003. The resources of this fund are to be transferred to the
General Fund on September 30, 2003 and shall be used to mitigate
the severity of budget reductions required to balance the FY
2003-2004 budget".
BE IT FURTHER RESOLVED that the FY 2003 General Appropriations Act is
amended to add the following section to paragraph #21:
"(i) The Fiscal Officer shall transfer salary and fringe benefit
savings resulting from use of Merit System Administrative Leave
Without Pay provisions from departmental budgets to a
departmental Administrative Leave credit account. Quarterly
reports identifying such transfers and detailing the status of
the non-departmental Administrative Leave account shall be
provided to the appropriate Board committees."
Chairperson, on behalf of the Finance Committee, I move adoption of the
foregoing resolution.
FINANCE COMMITTEE
REPORT March 6, 2003
BY: Personnel Committee, Thomas F. Middleton, Chairperson
RE: Amendment to the FY 2003 General Appropriations Act and the FY 2003 and FY
2004 Budget
TO: THE OAKLAND COUNTY FINANCE COMMITTEE
Chairperson, Ladies and Gentlemen:
The Personnel Committee, having reviewed the proposed amendments to the FY 2003
General Appropriations Act on February 26, 2003, recommends the amendments be
adopted.
Additionally, the Personnel Committee supports the attached Finance Committee
Resolution.
Chairperson, on behalf of the Personnel Committee, I submit the foregoing report.
Personnel Committee
Personnel Committee Vote:
Motion carried on unanimous roll call vote with Middleton, Jamian and Rogers absent
FOREGOING RESOL1'
I HERE
I L Brooke orison, County Executive
Resolution #03043 March 6, 2003
Moved by Moss supported by Coleman the resolution be adopted.
AYES: Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin,
Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Zack, Bullard,
Coleman, Coulter. (24)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 March 6, 2003,
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 Co nty of Oakland at
Pontiac, Michigan this 6th day of March, 2003.
‘1.4ete,
G. William Caddell, County Clerk