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REPORT (misc. 106131) July 20, 2006
BY: General Government Committee, William R. Patterson, Chairperson
IN RE: MR #06131 - BOARD OF COMMISSIONERS — SUPPORT FOR
AMENDMENTS TO THE REVISED MUNICIPAL FINANCE ACT (P.A. 34 OF
2001)
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee, having reviewed Miscellaneous
Resolution #06131 on July 10, 2006, reports with a recommendation that the resolution
be adopted.
Chairperson, on behalf of the General Government Committee, I move
acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
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General Government Committee Vote:
Motion carried on a roll call vote with Hatchett absent.
n T. Kowall, District #6
Dist. #13
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Commissioner, Distric
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Eric S. Wilson, District #3
Thomas District #4 F. Middleton,
MISCELLANEOUS RESOLUTION # 06131
BY: Commissioners Eileen T. Kowall, District #6; Thomas F. Middleton, District #4;
William D. Molnar District #13 and Eric S. Wilson, District #3
IN RE: BOARD OF COMMISSIONERS — SUPPORT FOR AMENDMENTS TO
THE REVISED MUNICIPAL FINANCE ACT (P.A. 34 OF 2001)
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS the cost of public employee retiree health care is one of the fastest
growing components of governmental budgets; and
WHEREAS with the implementation of new financial reporting standards, the
cost of this benefit is becoming more apparent; and
WHEREAS in order to continue to fund this expense and maintain sufficient
budget flexibility to provide for necessary public services, local governments need
innovative financial tools; and
WHEREAS one such tool is the ability to issue debt in the form of municipal
bonds to fund retiree health care obligations so that a consistent debt service obligation,
at a lower annual cost, funds the projected retiree health care cost; and
WHEREAS the Revised Municipal Finance Act (P.A. 34 of 2001) does not
provide a mechanism to issue debt in the form of municipal bonds for this obligation,
limiting local governments to issue debt only in the form of Trust Certificates; and
WHEREAS because of their cumbersome nature and market unfamiliarity, Trust
Certificates would cost local governments additional debt service over the life of the
issue; and
WHEREAS a change in P.A. #34 of 2001, allowing local governments to issue
municipal bonds for this type of obligation would save on annual debt service allowing
more resources to be used to support public services.
NOW THEREFOR BE IT RESOLVED that the Oakland County Board of
Commissioners supports amendments to P.A. 34 of 2001 (The Revised Municipal
Finance Act), to allow local governments the option of issuing debt in the form of bonds
to pay the cost of retiree health care.
BE IT FURTHER RESOLVED that copies of this resolution be sent to Oakland
County's State Representatives and Senators and to the Michigan Association of
Counties.
Chairperson, I move adoption of the forgoing resolution.
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Resolution #06131 June 15, 2006
The Chairperson referred the resolution to the General Government Committee. There were no
objections.
Ruth J-604606ounty Clerk
Resolution #06131 July 20, 2006
Moved by Moss supported by Jamian the resolutions (with fiscal notes attached) on the Consent Agenda,
be adopted (with accompanying reports being accepted).
AYES: Coleman, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII,
Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Potter, Rogers, Scott, Suarez, Wilson,
Woodward, Zack, Bullard. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda, were adopted (with accompanying reports being accepted).
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I NEW APPROVE THE FOREON _EOM
'7/2-1 /a 4
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, 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 July 20, 2006, 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 20th day of July, 2006.