HomeMy WebLinkAboutResolutions - 2020.12.07 - 33956MISCELLANEOUS RESOLUTION #20634 December 7, 2020
BY: Commissioner Helaine Zack, Chairperson, Finance and Infrastructure Committee
IN RE: MANAGEMENT AND BUDGET — APPROVAL OF FY 2020 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, 2020, 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 and Infrastructure Committee, I move adoption of the foregoing
resolution.
Commissioner Helaine Zack, District #16
Chairperson, Finance and Infrastructure
Committee
FINANCE AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
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AKLAN0
COUNTY MICHIGAN OAKLAND COUNTY EXECUTIVE DAVID COULTER
MANAGEMENT & BUDGET
Lynn Sonkiss, Fiscal Services Officer I Fiscal Services
(248) 858-0940 1 sonkissl@oakgov.com
December 10, 2020
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
For the fiscal year ending September 30, 2020, 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 — Drain Chapter 4 Construction $(641,231)
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
$544,446 and the Bald Eagle Lake Chapter 4 Drain Construction project in the amount of $86,785.
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. The long-term receivable is on the balance sheet to track
the collection. Collection of the special assessment has reduced the deficit by $50,472 from the FY
2019 deficit of $594,918 to the FY 2020 deficit of $544,446.
Bald Eagle Lake Chapter 4 Drain Construction Project — This project was initiated after concerns from
property owners in Brandon Township prompted an investigation of the drainage issues. Repairs were
started and it was determined that it would be more cost effective to replace the infrastructure. Also, it
was determined that a new drainage district be established to perform necessary updates to the system.
The plan to hold a public hearing in FY 2020 to redistrict the drain was delayed due to the COVID
pandemic and is now planned to occur in FY 2021. Once the district is updated and the project design is
complete, the replacement project will commence. Estimated project costs of $850,000 will be financed
by the sale of bonds or a loan. The loan will be repaid by an assessment roll over a ten-year period. The
financing for the project is planned for May 2021.
2100 Pontiac Lake Road I County Executive Building 41W I Waterford, MI 48328 1 Fax (248) 858-9724 1 OakGov.com
Special Revenue Fund — Water & Serer Act 342 S(291.120)
The negative unassigned fund balance in the Water and Sewer Act 342 fund is primarily related to the
Evergreen Farmington Sewage Disposal System Middlebelt Transport and Tunnel project. This project
is reporting a deficit of $4,540,192 as of September 30, 2020. The project fund is currently in case
evaluation for settlement and the deficit reflects an accrued liability of approximately $4.9 million for
potential costs associated with the project. The case evaluation is expected to be completed by end of
calendar year 2020 or shortly thereafter. The project was financed by a single bond issue, a S2 grant,
insurance reimbursements and a State Revolving Fund (SRF) loan. There is still almost $2,000,000 in
SRF draws that can be requested for the project, but the timing of the draws will be subsequent to FY
2020 and is dependent on actual project disbursements. Should the project go beyond the available
funding resources from remaining cash and SRF drawing capacity, another bond issue will be sought
and apportioned to the benefiting communities in order to complete the project and resolve the deficit.
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, 2020. Any questions regarding this matter should be directed to my attention at 248-858-0940, or by
e-mail at sonkissi a).oakeov.com.
Sincerely,
Lyn*Sow
Lynn Sonkiss
Manager, Fiscal Services Division
Department of Management and Budget
Oakland County, Michigan
cc: Sean Carlson, Deputy County Executive
Jim Nash, County Water Resources Commissioner
2100 Pontiac Lake Road I County Executive Building 41 W I Waterford, MI 48328 1 Fax (248) 452-9172 1 OakGov corn
Resolution #20634
December 7, 2020
Moved by Gingell seconded by Luebs the resolutions on the amended Consent Agenda be adopted.
AYES: Gingell, Hoffman, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham,
McGillivray, Middleton, Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack,
Gershenson. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted.
I HERBYAPPfuOVETHIS RESOLUTION
CHIEF DEPUTY COUNTY EXECU71VE
ACTING PURSUANT TO MCL 45.559A (7j
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,
2020, 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 Circuit Court at Pontiac,
Michigan this 7th day of December, 2020. V
Lisa Brown, Oakland County