HomeMy WebLinkAboutResolutions - 2018.12.06 - 30896MISCELLANEOUS RESOLUTION #18407 December 6, 2018
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET — APPROVAL OF FY 2018 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, 2018 with three (3)
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 ollhe foregoing resolution.
arnmissioner Thomas Middleton,
District #4 Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with KowaII absent.
COAK1AND7
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COUNTY MICHIGAN
MANAGEMENT & BUDGET
December 6, 2018 DRAFT
OAKLAND COUNTY EXECUTIVE L. BROOKS PATTERSON
Lynn Sonkiss, Fiscal Services Officer I Fiscal Services
(248) 858-0940 I sonkissl@oakgov.com
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
For the fiscal year ending September 30, 2018, Oakland County reports three (3) 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 $(216,381)
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 $51,547 and the Upper Straights Lake Level
Dam Reconstruction project in the amount of $168,198.
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 $35,971 from the FY
2017 deficit of $87,518 to the FY 2018 deficit of $51,547.
Upper Straits Lake Dam Replacement - The project consists of replacing an existing lake level control
structure in West Bloomfield Township, Oakland County, Michigan. Design of the project is
approximately 90% complete. The project 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 Circuit Court schedule. Oakland County Corporation
Counsel is in the process of obtaining the court date. It is anticipated that the project will be issued for
bids and financing secured in the fall of 2019 with construction to commence during the winter of 2020.
A maintenance assessment in the amount of $146,000 will be levied in the fall of 2018. The
maintenance assessment, along with funds on deposit totaling $30,269, will be used to eliminate the
current deficit of $168,198 in the construction fund. The total estimated cost of the project is $875,750,
which will be reduced by the assessment being levied this fall, leaving an estimated amount of $715,750
to be financed by the sale of bonds or a loan.
2100 Pontiac Lake Road I County Executive Building 41W I Waterford, Ml 48328 I Fax (248) 858-9724 OakGov.00rn
2
Capital Projects Fund Drain Chapter 4 Construction $(685,486)
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. 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.
Special Revenue Fund — Lake Levels Act 146 $(77,667)
The negative unassigned fund balance in the Lake Levels — Act 146 Fund primarily reflects a timing
issue for a Duck Lake Level project. As a result, the Duck Lake Level Fund ended FY 2018 with a
deficit of $147,851. The Duck Lake Level project was initiated in the summer of 2018 to install a new
augmentation well to replace the existing well that was no longer functional. The project is nearly
complete, with only minor restoration issues yet to be addressed. A maintenance assessment in the
amount of $170,000 to be levied against the Duck Lake Level Special Assessment District was approved
by the Oakland County Board of Commissioners and will appear on the winter tax 2018 bills. When
collected, this assessment will eliminate the current deficit, cover any remaining project costs, and
provide funds for routine maintenance in the coming year.
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, 2018. 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 Waterford, Ml 48328 Fax (248) 452-9172 I OakGov.can
Resolution #18407 December 6, 2018
Moved by Kochenderfer supported by Bowman the resolutions (with fiscal notes attached) on the
amended Consent Agenda be adopted (with accompanying reports being accepted),
AYES: Crawford, Gershenson, Gingell, Hoffman, Jackson, Kochenderfer, KowaII, McGillivray,
Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (18)
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).
1 HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO IVICL 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 6,
2018, 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 6th day of December, 2018.
Lisa Brown, Oakland County