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HomeMy WebLinkAboutMinutes - 2011.08.18 - 36559TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson August 18, 2011 Chairperson Middleton called the meeting of the Finance Committee to order at 10:15 a.m. in the Board of Commissioners' Committee Room A of the Commissioners' Auditorium Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton, Shelley Taub, David Woodward, Christine Long, David Potts, Jim Runestad, Kathy Crawford, Bill Dwyer, Helaine Zack, Tim Greimel COMMITTEE MEMBERS ABSENT WITH NOTICE: Nancy Quarles OTHERS PRESENT PUBLIC SERVICES Mike Zehnder, Director HEALTH DEPARTMENT George Miller, Director Kathleen Forzley, Manager HOMELAND SECURITY Theodore Quisenberry, Manager CHILDREN’S VILLAGE Jody Overall, Manager CORPORATION COUNSEL Judith Cunningham, Corporation Counsel Joellen Shortley, Attorney EXECUTIVE OFFICE Phil Bertolini, Deputy Executive/CIO Jerry Poisson, CDCE Bill Mullen, Media and Communication FACILITIES MANAGEMENT Mike Hughson, Property Mgmt. Specialist MANAGEMENT & BUDGET Laurie Van Pelt, Director PURCHASING Jack Smith, Manager FISCAL SERVICES Nancy Fournier, Chief LaVerne R. Smith, Supervisor Sheila Cox, Supervisor Shelley Cook, Supervisor Antonio Pisacreta, Analyst Monica Tinsley, Analyst HUMAN RESOURCES Nancy Scarlet, Director Jennifer Hain, Manager Karen Jones, Manager Connie Srogi, Analyst INFOR MATION TECHNOLOGY Edwin Poisson, Director PROSECUTING ATTORNEY Terri Meiers, Administrative Supervisor COMMUNITY CORRECTIONS Bob Gatt, Chief RISK MANAGEMENT Julie Sweik, Claims Analyst Andrea Plotkowski, Insurance & Safety Coordinator OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0475 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Christine Long David Potts Jim Runestad Kathy Crawford Bill Dwyer Helaine Zack Tim Greimel Nancy Quarles FINANCE COMMITTEE Page 2 August 18, 2011 ECONOMIC DEVELOPMENT Maureen Krauss, Director Karry Rieth, Manager John Almstadt, Manager CENTRAL SERVICES Todd Birkle, Manager AUDITING Pam Weipert, Manager BOARD OF COMMISSIONERS Jim Ver Ploeg, Administrative Director Harvey Wedell, Sr. Analyst Nancy Wenzel, Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Dwyer moved approval of the previous minutes o f August 11, 2011 as printed. Supported by Taub. Motion carried on a voice vote. AGENDA A draft summary of the Finance Committee Amendments and their impact on revenue and budget transition for FY 2012, FY 2013 and FY 2014 was distributed (Attached). Chairperson Middleton announced the Budget hearing scheduled for 12:30 – Board of Commissioners would be considered first. There was no objection. PUBLIC COMMENT None BUDGET HEARINGS Budget tasks are detailed in the Categorical Analysis and Budget Highlights document dated July 1, 2011. As part of the bud get hearings, elected officials and their staff were asked in advance to be prepared to respond to questions that included how they had met their task, what they would cut if further reductions were required and what would they do if additional resources were made available. BOARD OF COMMISSIONERS Commissioner Gingell stated the Board of Commissioners continues to look for opportunities to reduce expenses. By moving the Law Library to the Cooley Law School the Board created credits that have been carried forward enabling them to meet their Budget Task. Decreases in expenditures were realized in salaries, contractual services, professional services and overall internal services . Increases have occurred in fringe benefit costs, commodities , building space cost allocation and information technology operations. COUNTY EXECUTIVE Mr. Poisson explained the Administration has met their budget task and is balanced through 2014. The Administration continues to analyze service delivery and make decisions on the d egree of cuts that maybe necessary; determining what is mandated and discretionary and what would least impact the citizens of Oakland County . The operating philosophy is to plan for the worst, hope for the best and deal with reality. The County Executive’s support staff includes Corporation Counsel, Risk Management and Audit. Since 2008 the County has reduced the workforce approximately 8% or over 300 positions. FINANCE COMMITTEE Page 3 August 18, 2011 MANAGEMENT & BUDGET – Includes: FISCAL SERVICES, EQUALIZATION and PURCHASING FY 2012 revenue has decreased as a result of an adjustment to Equalization contract estimates. FY 2012 expenditures decreased by $36,075 due to staff turnover. There have been Increases in fringe benefit costs, contractual services and commodities; while there is a decrease in Mail room and Print shop costs due to outsourcing and moving the Mail room operation to the General Fund. Allocations for Maintenance Department Charges and Information Te chnology have decreased as appropriations are budgeted in a Non-Departmental account and transferred to departments as needed. Building sp ace cost allocation has decreas ed due to a reallocation of estimated costs between buildings. A savings has been generated by advertising in MITN, not in newspapers . Vendors should reg ister with Purchasing; they will be identified by industry; when there is a bid opportunity they will be notified by email. HUMAN RESOURCES The Human Resources Department has met its budget task through position reduction s and various line item reductions. In 2007 the department had 46 FTE and 7 PTNE employees; by FY 2112 positions will be reduced to 40 FTE and 6 PTNE. Further decreases have occurred i n Miscellaneous Capital Outlay and internal services . However, costs have increased for fringe benefits , contractual services, and Information Technology Operations. A question was raised concerning what types of professional services are required by Human Resources. These costs are for arbitra tors, labor attorney expenses, document delivery and expert witnesses. Legal services are a separate line item. The Wellness Program has attained a 60% participation rate and is considering adding a smoking c essation program and will continue to look at things to add to the program. CENTRAL SERVICES Mr. VanderVeen indicated their budget task has been achieved. Due to outsourcing of printing to Oakland Schools and moving printing of municipality’s water bills and mailroom operations to General Fund there has been an increase of revenue for FY 2012 . Under expenditures there is a reduction in salaries due to department reorganization. There is a n increase in fringe benefits, Contractual Services and Commodities plus Internal Services, Information Technology and Building Space Cost Allocation. Allocations for Maintenance Department Charges and I.T. Development are budgeted in a non - departmental account and will be reappropriated to the department as needed. Mr. VanderVeen invited the Commissioners to attend the Open House Dedication for the Oakland County International Airport on Tuesday, August 23rd at 2:00. PUBLIC SERVICES Mr. Zehnder stated the Public Services D ivision has met their budget task. FY 2012 revenues have increased by $80 ,423. Expenditures have also increase d in the areas of salaries, fringe benef its, printing, commodities, internal services and building space cost allocation ; while there is a decrease in contractual services , soldier burial, car allowances, profession al services, travel and conference and Medical Examiner laboratory fees. Information Technology Development and Maintenance Department charges are also decreased as appropriations for these areas are budgeted in a non - FINANCE COMMITTEE Page 4 August 18, 2011 departmental account and transferred to departments as needed . If requested to make further cuts Mr. Zehnder indicated he would have discussions with the individual managers and determine what would be the least critical services, however ,he feels they are “at the bone: in a lot of departments. Department managers were available for questions. Commissioner Taub inquired what Line Item 630686 –“Fee Income” consisted of. These are fees collected by the various Departments; Community Corrections is the largest area of collections. Medical Examiner Line Item 702140 – “Other Miscellaneous Salaries” – is designated for a bonus when a doctor becomes Board Certified. Laboratory fees are paid to outside labs when the analysis cannot be performed in -house, i.e. DNA. The Transportation service line item is for the delivery of bodies to the morgue. Commissioner Woodward asked in view of required budget reductions if the Veterans Services counselors would be able to accommodate the growing caseload of returning veterans. At this time all Veterans are receiving attention, while the workload has gone up , through the use of technology and hiring of full time counselors instead of part time , the services should remain at an a cceptable level. The Medical Examiner reports no backlog, toxicology done in 30 days or less, th ere are always some exceptions. Animal Control is expanding to county-wide services. The dog license statue does not address cats; feral cats are a growing problem in numbers and health issues . Animal Control does not respond to reports of lost/found cats but will accept those delivered to the office , unfortunately a large number of cats are euthanized daily. MSU Extension – student positions have increased in this area at the request of the Human Resources Department. Revenues connected to the Master Gardener program have covered the costs involved. A number of part time positions are being eliminated the responsibilities involved will be reallocated to students funded in the budget. FACILITIES MANAGEMENT Facilities Management has met their budget task; if further cuts are required it is hope they can be achieved through attrition. There is a list of things Facilities would like to do that are on an “if” basis. Expenditures have been reduced in salaries and internal services while fringe ben efit and contractual services costs have increased. HEALTH AND HUMAN SERVICES Mr. Miller stated they have met their tasks and are continually looking at various programs and othe r ways to find funding. Federal grants are a large portion of funding for Homeland Security, Children’s Village and the Health Division. They are constantly looking at costs and ways to sa ve; technology has been a big help in this effort. Funding was found to help Children’s Village provide snacks and meals cutting provision costs. Revenues from Federal and other Intergovernmental grants have generally decreased while Charges for Services re venues have increased. Expenditures have increased in the areas of salaries, fringe benefit costs, and commodities . Reductions have resul ted in contractual services, internal services and some “Transfers Out” of $364,315. Commissioner Runestad expressed a concern regarding Children’s Village and continuity of contact between staff and children. Mr. Miller indicated that staff interacting within the neglect and abuse unit , 44 children, are limited while o ther staff rotates between residential and detention. FINANCE COMMITTEE Page 5 August 18, 2011 Mr. Miller announced the “Funfest” at Children’s Village begins at noon . This event is sponsored by the Children’s Village Foundation and is a great event for the children. INFORMATION TECHNOLOGY Mr. Bertolini stated the IT Department presents quarterly reports to the Fina nce Committee detailing billing for work provide by IT and a master plan. Charges for Servic es have increased and decreased in several areas. Investment Income and other revenues have decreased. A one-time appropriation transfer to the Health Division of $607,751 occurred. Exp enditures have decreased in the areas of salaries, contractual serv ices, commodities, depreciation, internal services and transfers out while there has been an increase in fringe benefit costs. ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS Their budget task has been met through 2014 . If additional funds were available several options are available. Through technology and partnerships the small business techno logy center has been successful, actually adding additional services to prov ide programs to the public. Small business’s used to have an 80% failure rate the goal through the microloan program is to h ave an 80% success rate by counseling small business loan applicants before granting the loan. Revenues are expected to decrease for 2012. Expenditures will be reduced in the area s of salaries, contractual services, internal services and transfers out. Fringe benefit costs have increased. CLERK/REGISTER OF DEEDS Mr. Bullard indicated the budget tasks have been met and is looking to go above and beyond the requirements. If additional cuts are required they will have to be made by cutting personnel, but through the use of technology will be able to maintain the present level of service to the public. The e- filing program has streamlined that process saving staff and customer time . If additional funds were available a permanent office in southeast Oakland County would be a priority. Revenues have increased in charges for services . Expenditures have decreased in salaries, contractual services and internal services. The fringe benefit cost has i ncreased along with commodities. The Court of Appeals has ruled that MERS did not have legal standing to assign mortgages to other institutions and a second Court of Appeal opinion indicated if MERS didn’t have the righ t to foreclose then the assignee does not either. If the Supreme Court upholds these two decisions hundreds of thousands of foreclosures will ha ve taken place illegally and will result in a very, very messy situation. OTHER BUSINESS Mr. Poisson stated over the next five years approximately one third of county employees will qualify for retirement. The impact of changes to the law that will occur in the next month or so is unknown, a lot of people might retire if their health care costs are substantially affected. Mr. Poisson will come back before the Finance Committee when more details are known. ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 12:06 p.m. ________________________ _______________________________ Nancy Wenzel Jim VerPloeg FINANCE COMMITTEE Page 6 August 18, 2011 Committee Coordinator Administrator Director NOTE: The foregoing minutes are subject to Committee approval.