HomeMy WebLinkAboutResolutions - 2021.12.09 - 35091OLIAKIANDRP-
COUNTYMICHIGAN
BOARD OF COMMISSIONERS
December 9, 2021
MISCELLA-NEOUS RESOLUTION #21-479
Sponsored By: Gwen Markham
IN BE: Fiscal Services - Resolution FY 2021 Deficit Elimination Plan
Chairperson and Members of the Board:
WHEREAS Public Act 140 of 1971 requires that a Deficit Elimination Plan be formulated by the local unit of
govermrrent and filed with the Michigan Department of Treasury when any govermuental fiend experiences
negative mirestricted Rind balance and when any proprietary fund experiences a negative unrestricted net
position: and
WHEREAS Oakland County completed the fiscal year ending September 30, 2021, with two (2) fiends with
negative unassigned Rind 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, the following Commissioners are sponsoring the foregoing Resolution, Gwen Markham.
6 d Date: December 09. 2021
David Woodward, Commissioner
Date: December 15, 2021
Hilarie Chambers, Deputy County Executive II
Date: December 15, 2021
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
20214 2-01 Finance - no action taken
2021-12-06 Finance - recommend to Board
2021-12-09 Full Board
VOTE TRACKING
Nlotioned by Commissioner William Miller III seconded by Commissioner Robert Hoffinan to adopt the
attached Resolution: FY 2021 Deficit Elimination Plan.
Yes: David Woodward, Michael Gingell, Michael Spisz. Karen Joliat, Kristen Nelson, Eileen Kowall,
Christine Long, Philip Weipert, Gwen Markham. Angela Powell, Thomas Kuhn, Chuck Moss. Marcia
Gershensou, William Miller III, Yolanda Smith Charles, Charles Cavell. Penny Luebs, Janet Jackson, Gary
McGillivray, Robert Hoffman, Adam Kochenderfer (21)
No: None (0)
Abstain: None (0)
The Motion Passed.
ATTACHMENTS
1. Deficit Elimination Plan 2021- DRAFT
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 9, 2021,
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 on Thursday, December 9, 2021.
Lisa Brown, Oakland County Clerk /Register• of Deeds
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40 A K I A N 6'@*
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 9, 2021
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
For the fiscal year ending September 30, 2021, 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 $(602,051)
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
$485,992 and the Bald Eagle Lake Chapter 4 Drain Construction project in the amount of $1 l 6,059.
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 $68,454 from the FY
2020 deficit of $554,446 to the FY 2021 deficit of $485,992.
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. A
hearing for a new drainage district took place in 2021 and the project is anticipated for construction in
Spring 2022. 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 around May 2022.
2100 Pontiac Lake Road I County Executive Building 41 W I Waterford, MI 48328 1 Fax (248) 858-9724 1 OakGov.com
Capital Projects Fund - Lake Levels - Act 146 $(21, 447)
The negative unassigned fund balance in the Lake Levels - Act 146 Fund relates to the Bush Lake Level
project in the amount of $24,833.
Bush Lake Level- Construction of a new lake level control structure has been completed. 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 Special Assessment for the project commenced in FY 2011.
The project cost was more than anticipated and the final collections from the long-term assessment roll
are being reviewed. The $24,833 deficit within the construction fund will be covered by additional
annual assessments to be incorporated with the Lake Level maintenance fund assessment. The district
will be assessed appropriate additional amounts to ensure the ability to eliminate the deficit within the
next five to seven years given the small district size and being mindful on the impact to residents in the
district.
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, 2021. Any questions regarding this matter should be directed to my attention at 248-858-0940, or by
e-mail at sonkisslamoakeov.com.
Sincerely,
LyvvvvSank6w
Lynn Sonkiss
Manager, Fiscal Services Division
Department of Management and Budget
Oakland County, Michigan
cc: Kyle Jen, Management & Budget Director
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.com