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HomeMy WebLinkAboutMinutes - 2003.01.23 - 35784CHUCK MOSS Chairperson LAWRENCE A. OBRECHT Vice Chairperson VINCENT GREGORY Minority Vice Chairperson January 23, 2003 Chairperson Moss called the meeting of t he Finance Committee to order at 9:00 a.m., in Committee Room A, Commissioners' Wing, County Service Center, Pontiac, Michigan. COMMITTEE MEMBERS PRESENT : Chuck Moss, Chair; Lawrence A. Obrecht, Vice Chair; Vincent Gregory, Minority Vice Chair; Charles Palmer; William Patterson; Hugh D. Crawford; Peter Webster; Thomas Middleton; George Suarez; Helaine Zack. COMMITTEE MEMBERS ABSENT WITH NOTICE: None. OTHERS PRESENT : CIRCUIT COURT Pam Howitt, Deputy Administrator CLERK/REGISTER OF DEEDS G. William Caddell, Clerk/Register COMMUNITY CORRECTIONS Barbara Hankey, Manager EQUALIZATION David Heiber, Manager EXECUTIVE OFFICE Robert Daddow, Assistant Deputy Gerald Poisson, Assistant Deputy FISCAL SERVICES Tim Soave, Manager LaVerne Smith, Supervisor Joe Matkosky, Supervisor Linda Pearson Gaia Piir, Systems Coordinator MANAGEMENT & BUDGET Laurie Van Pelt, Director Ed Poisson, Deputy Director PERSONNEL Judy Eaton, Director Nancy Scarlet, Manager PROSECUTING ATTORNEY Debbie Carley, Chief Deputy Steve Lynch, Chief, Jurvenile Services Dan Cojanu, Supervisor Lori Parrish, School Violence Coordinator Tasha Hanson, Teen Court Coordinator SHERIFF Mike McCabe, Chief of Staff Dale Cunn ingham, Business Manager OTHERS/CITIZENS Eurick Crayton BOARD OF COMMISSIONERS David Coulter, District #25 Marty Knollenberg, District #13 James H. VanLeuven, Administrative Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0470 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Charles Palmer William Patterson Hugh D. Crawford Peter Webster Thomas Middleton George Suarez Helaine Zack FINANCE COMMITTEE Page 2 January 23, 2003 Palmer moved approval of the minutes of December 7, 2002, as printed. Supported by Gregory. Motion carried on a voice vote. PUBLIC COMMENT: None. 5. CONTINGENCY REPORT There are no items on today's agenda that will affect the Contingency Fund; therefore, the balance will remain at $276,274. Ms. Fournier reviewed for the committee the information included with the Contingency Report. Designated Fund Balance, Operatio nal Improvements - this fund is for projects that have demonstrated a pay back of six years or less. Mr. Middleton asked that the previous year's history be included for each of these reports. Mr. Obrecht asked that the resolution regarding the Sheriff's Law Enforcement Contract with Royal Oak Township be provided to commissioners. Palmer moved to receive and file the Contingency Report dated January 16, 2003. Supported by Patterson. Motion carried on a voice vote. CONSENT AGENDA 6a. MR #03002 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF BIRMINGHAM - FISCAL YEARS 2000, 2001, 2002 AND 2003 ALLOCATION The City of Birmingham is requesting reimbursement of its Environmental Infrastructure Fund Reimbursement annual allocat ions of $118,027.36, for Fiscal Years 2000 -2003, for expenses related to the Wallace-Stanley Corridor Relief Sewer Project. 6b. MR #03003 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF FARMINGTON - FISCAL YEAR 2001, FISCAL YEAR 2002 AND FISCAL YEAR 2003 ALLOCATION The City of Farmington is requesting reimbursement of its Environmental Infrastructure Fund Reimbursement annual allocations of $42,456.64, for Fiscal Years 2001 -2003, for expenses related to the Sanitary Sewer In terceptor Rehabilitation Project. 6c. MR #03004 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE TOWNSHIP OF HOLLY - FY 2003 ALLOCATION The City of Holly is requesting reimbursement of its Environmental Infrastructure Fund Reimbursement annual allocations of $13,284.23, for Fiscal Years 2003, for expenses related to improvement of the drainage system for the North Holly Road Improvement Project. 6d. MR #03005 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN WHITE LAKE TOWNSHIP - FISCAL YEARS 1999, 2000, 2001 2002 AND 2003 ALLOCATION White Lake Township is requesting reimbursement of its Environmental Infrastructure Fund FINANCE COMMITTEE Page 3 January 23, 2003 Reimbursement annual allocations of $94,650.95, for Fiscal Years 1999 -2003, for expenses related to a new water tower, water main extension, new well, improved water system controls, well improvements, Water System Vulnerability Assessment, wellhead protection, and water system mapping. 6e. MR #03006 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURS EMENT FOR PROJECT IN THE CITY OF FERNDALE - FY 2002 AND 2003 ALLOCATIONS The City of Farmington is requesting reimbursement of its Environmental Infrastructure Fund Reimbursement annual allocations of $82,327.39, for Fiscal Years 2002 -2003, for expenses related to its 2002 Gate Valve and Well Replacement project. 6f. MR #03007 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE VILLAGE OF OXFORD - FISCAL YEAR 2002 AND FISCAL YEAR 2003 ALLOCATION The Village of Oxford is requesting reimb ursement of its Environmental Infrastructure Fund Reimbursement annual allocations of $12,553.31, for Fiscal Years 2002 -2003, for expenses related to water main upgrades. 6g. MR #03008 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE VILLAGE OF BEVERLY HILLS - FY 2003 ALLOCATION The Village of Beverly Hills is requesting reimbursement of its Environmental Infrastructure Fund Reimbursement annual allocation of $48,520.79, for Fiscal Year 2003 for expenses related to the repair, rehabilitation and improvement of the combined sewer system. Crawford moved to recommend approval of the attached suggested Fiscal Notes for Consent Agenda items 6a. - 6g. Supported by Zack. Motion carried unanimously on a roll call vote. REGULAR AGENDA 7. PROSECUTING ATTORNEY, CIRCUIT COURT/FAMILY DIVISION AND PUBLIC SERVICES/COMMUNITY CORRECTIONS DIVISION - FISCAL YEAR 2003 JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT (JAIBG) GRANT ACCEPTANCE The Michigan Family Independence Agency has awarded Oakland Cou nty a fifth year of grant funding in the amount of $498,833, of which $49,883 is the County's match portion. Funds will be used to support: one Paralegal, one Probation Officer I, and one Social Worker for the Prosecuting Attorney's Teen Court and School Violence programs; one Youth and Family Caseworker II for the Circuit Court/Family Division's Juvenile Probation Intensive Reintegration Aftercare Program (IRAP) and a portion of the Juvenile Drug Court; and one Community Corrections Specialist II, one Su pervisor and one Case Management Coordinator for a portion of the Community Corrections' InStep program. Information regarding the Prosecutor's School Violence Program and Teen Court Program was distributed. Ms. Howlett indicated that the Court's programs have resulted in a decrease in the recidivism rate from 70% to 17%. Mr. Cojanu reported that follow -up surveys on the school violence program have reported a 10-20% drop in this type of behavior, one school had indicated a 60% drop. Mr. Obrecht congratulated staff from the Prosecuting Attorney's Office, Circuit Court/Family Division and Community Corrections for putting these programs together following a cut in state funding. He requested that Management and Budget provide the committee with the gr ants data base they had FINANCE COMMITTEE Page 4 January 23, 2003 been previously requested to develop to assist them in the committee's review of the County's grant programs. Mr. Soave replied that he would have the Grants Administrator come in and review this information with the committee. Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote. 8. PROJECTED PROPERTY TAX REVENUE Mr. Moss indicated that this item would be taken up in conjunction with t he FY 2003/2004 Budget Briefing - Communication E. COMMUNICATIONS A. Notice of Public Hearing for Industrial Facilities Exemption Certificate for TIP Properties, LLC - City of Auburn Hills B. Sheriff - Aviation Program Update C. Department of Management and Budget/Equalization Division - State Tax Commission's Review of Local Unit Assessment Administrative Practices, Procedures and Records for the City of Rochester D. Department of Information Technology/CMRS Emergency Telephone Fund Gregory moved to receive and file Communications A -D. Supported by Middleton. Motion carried on a voice vote. OTHER BUSINESS Mr. Moss appointed himself, Mr. Webster and Mr. Gregory to the Audit Subcommittee. FY 2003/2004 BUDGET BRIEFING and PROJECTED PROPERTY TAX REVE NUE Copies of the Budget Task Force Summary for FY 2004, Personnel Impacts by Department detailing personnel deletions, and a draft of the Recommended Budget Adjustments and Amendments to the General Appropriations Act for FY 2003 and FY 2004 was provided to committee members. Mr. Soave indicated that amendments to the budget would be brought before the committee on February 27 for consideration. A budget transition fund will be set up with this resolution and is expected to be temporary. Mr. Soave explained that as the state continues to address its own budget shortfall, further reductions to the County's budget will be considered. As a result, the Finance Committee will be involved in a continuous cycle of budget amendments in order to balance the FY 2004 budget. The County also expects that the FY 2003 budget, which is currently balanced, will also have to be adjusted. Ms. VanPelt stated that this process may continue for the next several years. The original budget task for FY2004 was to identify reductions to address the known $13.9 million shortfall. When this original shortfall was discovered, the County Executive met with all the other County wide elected officials to target amounts to correct this problem. This is identified as Phase I of the B udget Task. New issues being identified for Phase II include the following estimates: $3.5 million reduction in property tax revenue; $4.4 million in increased health care costs; an additional $1.5 million in out - FINANCE COMMITTEE Page 5 January 23, 2003 county placement costs as a result of j ail overcrowding; an estimated $600,000 loss of revenue resulting from MCI's blocking of inmate phone calls; a $225,000 reduction in indirect costs as a result of anticipated state grant reductions; and a $325,000 decrease in state funding for Community Corrections' Probation Residential Centers. The General Fund will be assisted by an estimated $800,000 in increased Clerk/Register of Deeds document recording revenue. These fees are a result of action passed by the State Legislature. These adjustments ha ve now increased the County's shortfall to $23.6 million. Further reductions are expected. The Board of Commissioners (BOC) is requesting an adjustment to their original budget task to remove the Library Board operation and the fixed costs for 25 commis sioners' salaries and benefits. The Board of Commissioners has no interaction with the Library Board other than that the Library Board is organizationally recognized under the BOC and that appointments to the Library Board are made by the BOC. Mr. Webster asked what conditions would dissolve the Budget Transition Fund. Ms. VanPelt responded that when the state's budget shortfall was permanently resolved, the County would be in a better position to predict its own budget needs and could review its need for this Fund. Mr. Hieber provided information to the committee regarding the County's State Equalized Value and Taxable Value and Headlee Rollback Estimates. The County's FY 2003 budget included an estimated 5.50% in taxable value. This was a conservat ive estimate based on previous year's growth. This figure is now being revised to 4.00% and is included in the Phase II adjustments for a reduction of $3.5 million. Factors affecting this trend include a slowing real estate market and Tax Increment Finan cing Authorities. Additionally, the Headlee Amendment is anticipated to impact the County's millage rate. This may require the County to roll back its current 4.19 millage rate to the rate of inflation as early as 2004. Numbers will become available in April and a report will be provided to the committee for approval. Mr. Caddell stated that foreclosure activity also affects these numbers and indicated he would provide the committee with a report on that activity. Ms. VanPelt explained that taxes are le vied on an annual basis. Collections for 2004 will impact the 2005 budget. To increase the millage rate would require a vote of the people. Information explaining the Headlee Amendment (Article IX of the State Constitution) was distributed. Mr. Daddow indicated that there is a problem with the County's MCI telephone service contract. This contract allows inmates at the jail telephone access to their lawyers, bail bondsmen, etc., as required under the law. MCI has informed the County they will be blo cking as many as 7,000 call a month. This could result in a loss to the County of $600,000 a year. The problem is a result of deregulation and MCI's refusal to allow competitors to provide this service through their equipment. Additionally, MCI is includ ed in World Com's bankruptcy proceedings, which further exacerbates the problem. The County is reviewing its options. Ms. Eaton reviewed the information in the handout pertaining to Personnel Impacts by Department. A total of 155 General Fund/General Pu rpose (GF/GP) positions are being deleted to address the Phase I Budget Task. This will save the County $6.6 million. The Personnel Department is working with the Elected Officials to determine which positions can be deleted in 2003 rather than 2004. La yoffs are not anticipated as a result of Phase I. Bumping options are being reviewed for some employees. The County Executive met with the employees several months ago to review the budget situation and personnel issues. A Retirement Incentive Plan, authorized by M.R. #02236, is currently being implemented. To date, 191 employees have signed up for the plan and another 23 are considering participation. The final date to file is January 31, 2003. The plan is expected to assist the County with its curre nt budget shortfall. FINANCE COMMITTEE Page 6 January 23, 2003 An Administrative Leave Without Pay program has been implemented. This program is allowed for under the Merit System for budget purposes. This has not been factored into the budget but is expected to save several hundred thousand do llars in salaries and fringes a year. ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 11:48 a.m. ________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.