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HomeMy WebLinkAboutMinutes - 2015.09.10 - 36923 September 10, 2015 Chairperson Middleton called the meeting of the Fina nce Committee to order at 9:08 a.m. in Committee Room A of the Commissioners' Auditorium Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton, David Woodward, Shelley Taub, Jeff Matis, Hugh Crawford, Helaine Zack and Nancy Quarles COMMITTEE MEMBERS ABSENT WITH NOTICE Eileen Kowall and Christine Long OTHERS PRESENT CIRCUIT COURT David Bilson, Deputy Court Administrator John Cooperrider, Business Manager COUNTY EXECUTIVE Pam Weipert, Compliance Officer, Comp liance EQUALIZATION Dave Hieber, Manager HUMAN RESOURCES Jordie Kramer, Director Heather Mason, Supervisor, Comp. & Class INFORMATION TECHNOLOGY Ed Poisson, Director MANAGEMENT & BUDGET Laurie VanPelt, Director FISCAL SERVICES Gaia Piir, Chief, Fiscal Services Ebru Adoglu-Jones, Supervisor II Terri Brockmiller, Financial Analyst Antonio Pisacreta, Financial Analyst Leo Lease, Financial Analyst PARKS & RECREATION COMMISSION Dan Stencil, Executive Officer SHERIFF’S OFFICE Mike McCabe, Undersheriff Dale Cunningham, Business Manager TREASURER Ross Gavin, Deputy Treasurer WATER RESOURCES COMMISSIONER Steven Korth, Manager Joel Kohn, Engineering Systems Coordinator MICHIGAN DEPT. HEALTH & HUMAN SVCS. Susan Hull, Director, Children’s Services BOARD OF COMMISSIONERS Jim VerPloeg, Administrative Director Chris Ward, Senior Analyst Pamela Worthington, Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. 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 Shelley Goodman Taub Jeff Matis Hugh Crawford Helaine Zack Nancy Quarles TOM MIDDLETON Chairperson EILEEN KOWALL Vice Chairperson DAVID WOODWARD Minority Vice Chairperson FINANCE COMMITTEE MINUTES Page 2 September 10, 2015 APPROVAL OF THE PREVIOUS MINUTES Taub moved approval of the previous minutes of August 20, 2015, as printed. Supported by Zack. Motion carried on a voice vote. PRESENTATION OF THE AGENDA The agenda stands as presented with no change s. PUBLIC COMMENT None. FY 2015/FY 2016/FY 2017 CONTINGENCY REPORT There are no items on today’s agenda that affect the FY 2015 Contingency fund balance. The FY 2016 Classification and Rate Change balance reflects a negative balance , but it will reflect a restoration of $350,000 for the new Fiscal Year, once the changeover occurs . The FY 2016 Classification and Rate Change balance will be decreased by $164,309 with the adoption of Item #6 on today's agenda. The FY 2015 Grant Match balance will be decreased by $76,568 with the adoption of Item #7 on today’s agenda . The Use of General Fund Equity During FY 2015 will be decreased by $42,348 with the adoption of Item #1 on today’s agenda for Tri -Party funds. A revised West Nile Virus Distribution Rep ort was provided to replace pages 13 and 14 in the Contingency Report. Crawford moved to receive and file the FY 2015 Contingency Report. Supported by Matis. Motion carried on a voice vote. COMMUNICATIONS A. County Executive Compliance Office/Purchasing – Contract Exception Report for the September 10, 2015 Finance Committee Meeting B. Circuit Court - Court Improvement Program Data Collecti on & Analysis Grant Application C. Sheriff’s Office – FY 2016 Secondary Road Patrol and Traffic Accident Prevention Pr ogram Grant Application D. Notice of Hearing: City of Pontiac – September 3, 2015 at 12:00 p.m. – RE: Commercial Rehabilitation District Request from Ultimate Soccer Taub moved to receive and file the Communications. Supported by Quarles. Motion carried on a voice vote. FINANCE COMMITTEE MINUTES Page 3 September 10, 2015 CONSENT AGENDA 1. MR #15235 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2015 APPROPRIATION – CHARTER TOWNSHIP OF BRANDON – PAVING OF A PORTION OF SASHABAW ROAD FROM SHERWOOD ROAD TO GRANGER ROAD – PROJECT NO. 52741 The resolution was introduced by Commissioner Spisz to approve the release of Tri -Party funds in the amount of $42,348 (Oakland County’s Third Share) for a project in the Charter Township of Brandon that consists of a preliminary engineering for the gravel road paving of a portion of Sashabaw Road from Sherwood Road to Granger Road . A Cost Participation Agreement is included. Matis moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call vote with Kowall and Long absent . REGULAR AGENDA 2. MR #15232 – CIRCUIT COURT – FAMILY DIVISION – OAKLAND COUNTY CHILD CARE FUND BUDGET 2015 - 2016 Pursuant to Public Act 280 of 1975, Oakland County is required to develop and submit a plan and budget annually to fund foster care services to the Bureau of Juvenile Justice, Department of Human Services. The resolution authorizes the submission of the 2015-2016 Oakland County Child Care Fund Budget to the Bureau of Juvenile Justice’s Child Care Fun d Unit, Department of Human Services, which covers the period of October 1, 2015 through September 30, 2016. The application reflects $36,550,468 in gross expenditures and $2,100,500 in offsetting revenues, with a net expenditure of $34,449,968. Upon app roval by the State, the Child Care Fund budget would reimburse $17,224,984 provided the County expends all funds listed in the application. Ms. Hull, Director, Children’s Services, indicated there are more closures than openings of foster care homes, causing a shortage of them. Ms. Hull explained that Oakland County has always met its goal for licensing foster care homes, but there has been an increase in kids coming to foster care, and many are mentally -challenged. Recently the Department of Health and Human Services and the Department of Community Mental Health have merged. As a result, there is more focus on the mentally-challenged children. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Kowall and Long absent . 3. WATER RESOURCES COMMISSIONER – 2015 LAKE LEVEL ASSESSMENTS FOR OPERATION AND MAINTENANCE RESOLUTION The Water Resources Commissioner (WRC) maintains 35 lake level control devices/structures and 7 lake augmentation pumps regulating legally established water levels of 53 lakes in Oakland County. The WRC is authorized by law to levy costs incurred for operation, maintenance and repair of Inland Lake Level Districts and is required to obtain Board approval for any proposed assessments in excess of the $10,000 limit. For FY 2016, the WRC is requesting authorization to assess, levy and collect $463,900 against all benefiting properties and government entities FINANCE COMMITTEE MINUTES Page 4 September 10, 2015 comprising the assessment rolls for 29 separate lak e level districts, for operating, maintenance and repair, including 21 in excess of the $10,000 limit. The assessments will be levied as part of the December 2015 taxes. This item was directly referred by the Planning & Building Committee. Oakland County’s share of the assessments for operations and maintenance of lake levels is $0.63 for roads at large. No budget amendments are recommended. Crawford moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall and Long absent . 4. WATER RESOURCES COMMISSIONER – 2015 CHAPTER 4 DRAIN MAINTENANCE ASSESSMENT RESOLUTION The Water Resources Commissioner is requesting authorization to assess, levy and collect $270,500.13 for the year 2015 against all benefiting properties and government entities comprising the assessment rolls for the purpose of operating, maintaining, cleaning out and repairing 42 Chapter 4 drains within Oakland County. The assessments will be levied as part of the Dec ember 2015 taxes. Oakland County is responsible for portions of some of the proposed assessments as identified on the listing of assessments attached to the resolutions for road drainage benefit; therefore, Oakland County’s share of the assessments for op erations and maintenance of Chapter 4 drains is $19,573.37 for roads at large . No budget amendments are recommended. This item was directly referred by the Planning & Building Committee. Crawford moved approval of the attached suggested Fiscal Note. S upported by Taub. Motion carried unanimously on a roll call vote with Kowall and Long absent . 5. WATER RESOURCES COMMISSIONER – 2015 CHAPTER 18 DRAIN MAINTENANCE ASSESSMENT RESOLUTION The Water Resources Commissioner is requesting authorization to asses s, levy and collect $105,500 for the year 2015 against all benefiting properties and government entities comprising the assessment rolls, for the purpose of operating, maintaining, cleaning and repairing 30 Chapter 18 drains that are located in Oakland Cou nty. The assessments will be levied as part of the December 2015 taxes. Oakland County is responsible for portions of some of the proposed assessments as identified on the listing of assessments attached to the resolutions for road drainage benefit, and Oakland County’s share of the assessments for maintenance of Chapter 18 drains is $17,983.52 for roads at large. No budget amendments are recommended. This item was directly referred by the Planning & Building Committee. Matis moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call vote with Kowall and Long absent . 6. MANAGEMENT & BUDGET/EQUALIZATION – REMOVE EQUALIZATION APPRAISER CLASSIFICATION SERIES FROM THE SALARY ADMINISTRATION PLAN, RETITLE MANAGER- EQUALIZATION, DELETE CLASSIFICATION AND PROVIDE BONUS FOR ADVANCED CERTIFICATION Since 2012 statistics have shown a decrease in the pool of interested and qualified applicants for Equalization Appraiser positions state -wide, and competition for qualified positions is very high. FINANCE COMMITTEE MINUTES Page 5 September 10, 2015 The current qualifications for these positions are a required certification and a Bachelor degree. The Department of Human Resources conducted a salary survey and found that salaries for Master Appraiser positions have increased , putting the County below the market average salary. The resolution authorizes the creation of a new classification titled “Equalization Officer ”, exempt from overtime, with a base salary of $92,091. The Manager -Equalization classification will be retitled to Equalization Officer. The Chief Equalization Field Services classification will be deleted. All current and future Equalization Appraiser II’s who possess a Michigan Advanced Assessing Officer Certification from the State of Michiga n will receive a two percent (2%) bonus. The following classifications will be removed from the Salary Administration Plan: Real Estate Appraiser Trainee I, Real Estate Appraiser Trainee II, Equalization Appraiser I, Equalization Appraiser II, Equalizati on Appraiser III, Equalization Field Supervisor, Chief Equalization and Equalization Officer. Salaries will be revised as detailed in the resolution. A revised resolution was presented at today’s meeting to reflect some corrections in the salary range fo r the Equalization Field Supervisor. Ms. VanPelt indicated that there were only 122 Level 4 Assessors in Michiga n. Mr. Hieber stated that in December of 2013 no applicants had applied for the Real Estate Appraiser position. They then hired entry-level people, and two individuals had appli ed, but they were not qualified. As a result, this resolution will change the Real Estate Appraiser position from a 5 -year step to a 3-year step. Commissioner Woodward asked for information with regard to the number of salaries at the County that are out of the Salary Administration Plan. Ms. Mason indicated that she did not have the information with her today, but she would provide that information to Commissioner Woodward. Matis moved approval of the attached suggested Resolution. Supported by Quarles. Motion carried unanimously on a roll call vote with Kowall and Long absent. 7. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2015 THIRD QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS A revised Schedule B , page 21 of the meeting packet, was provided to reflect a change in fund name from Health – PHEP – PHASE II (#28610) to Ebola Virus Disease – PHASE II (#28614). Ms. Sonkiss gave a brief overview of the FY 2015 Third Quarter Report. There is a projection of overall favorability of about $24.7 million, which is made up of about $3.8 million more revenue than anticipated and favorability in expenditure line items of about $20.9 million. The transmittal letter provides more detail for revenues and expenditu res such as taxes, which reflects about $2.7 million unfavorability due to the millage rate reduction, which is partially offset by $327,000 of payment in lieu of taxes in the Treasurer’s Office to reflect payments by Department of Natural Resources (DNR) properties. State Grants is predicted to be unfavorable in the amount of about $1.4 million for Child Care Fund expenses. The County receives 50% reimbursement from the State of Michigan for Child Care expenditures, and the FY 2015 budget was set for a n anticipated greater number of expenses for the Child Care Fund. Other Intergovernmental Revenue is projected to be favorable by about $4.2, which is primarily made up of Convention Facility Liquor Tax and revenue sharing payments received to date from the State. Charges for Services is favorable by about $3.3 million as a result of some recent land sale activities in the amount of $2.5 million, $1 million in Land Transfer Tax in the County Clerk budget, and they are still showing a favorable amount of ab out $500,000 for the Public Telephone Commissions in the County Jail . There is favorability in Investment Income by $130,600, which is due to favorable interest on investments in the Clerk/Register of Deeds Office FINANCE COMMITTEE MINUTES Page 6 September 10, 2015 and favorable income from investments in the Treasurer’s Office from the reallocation of interest income for land sale activity. There is favorability of $140,521 in Other Revenues, which is primarily due to a refund of prior y ears’ expenditures in the Sheriff’s Office for Federal overtime reimbursement and prior years’ revenue in the Health Division from a FY 2014 adjustment of administrative overhead cost distribution for grants. Expenditures are projected to be favorable by about $20.9, and that consists of salaries, fringes and general opera ting line item costs. The Water Resources Commissioner department is projecting to be unfavorable by about $46,000 due to the Collaborative Asset Management System (CAMS) maintenance costs that was more than budgeted for, however, the costs will be more t han offset by the Soil Erosion Fee Revenue of $70,000. Taub moved approval of the attached suggested Resolution. Supported by Matis. Woodward moved to add a BE IT FURTHER RESOLVED paragraph in the resolution, as follows: “BE IT FURTHER RE SOLVED to transfer $10,000,000 from the FY2015 budget Planned Use of Fund Balance line within the Non -Departmental budget into a new line item in the Non-Departmental budget titled “Rebuild Oakland Fund ” which shall be utilized as a matching grant program offered to Oakland County townships, cities and villages for preventative maintenance and preservation of roads, within the following guidelines: 1. Funds shall be allocated to participating jurisdictions based upon the combined average of each municipality’s share of the county population as of the 2010 Census and their share of total public road miles located within the county and shall be subject to terms and conditions to be established by the Board of Commissioners; 2. Allocations for municipalities with ro ad miles within the jurisdiction of the Road Commission of Oakland County (RCOC) may be matched by RCOC and/or the local government where the public road miles are located; 3. Municipalities shall have up to 5 years from the commencement of the program to participate in the program and utilize their allocation; 4. The procedures and policies of the matching grant shall specify that matching funds must supplement the participating entity’s current budget for annual road preventative maintenance and shall repr esent a net increase in spending for this purpose.” Discussion followed. Ms. VanPelt indicated that the Michigan Association of Counties (MAC) has indicated that the State is considering reducing revenue sharing to the local governments, and as a result Oakland County may indirectly contribute more to the roads . FINANCE COMMITTEE MINUTES Page 7 September 10, 2015 FINANCE COMMITTEE VOTE: AYES: Woodward, Zack, Quarles (3) NAYS: Taub, Matis, Crawford, Middleton (4) ABSENT: Kowall and Long Motion to amend failed by roll call vote. Main motion carried on a roll call vote with Woodward, Zack and Quarles voting no and Kowall and Long absent . 8. BOARD OF COMMISSIONERS – 2015 HURON-CLINTON METROPOLITAN AUTHORITY TAX LEVY The Huron-Clinton Metropolitan Authority (HCMA) has requested that the Oakland County Bo ard of Commissioner apportion a 0.2146 mill property tax rate, consistent with the Headlee Amendment. This rate would produce an estimated levy of $11,116,960, based on the final 2015 Taxable Value of $51,803,169,207. The resolution authorizes each Super visor of the various townships and Assessing Officers of the several cities of Oakland County to spread on their respective township or city tax rolls for the year 2015 a tax rate of 0.2146 mills for the Huron -Clinton Metropolitan Authority, to be applied to the 2015 Taxable Value of all property located within their respective jurisdictions. Crawford moved approval of the attached suggested Resolution. Supported by Matis. FINANCE COMMITTEE VOTE: AYES: Matis, Crawford, Middleton (3) NAYS: Woodward, Taub, Zack, Quarles (4) ABSENT: Kowall and Long (2) Motion failed for lack of a majority vote. Taub moved to reconsider the resolution with the caveat that the Board of Commissioners sends a message to the HCMA that the Commissioners struggled with obtaining a majority vote to support the continuation of the HCMA prop erty tax millage. Supported by Crawford. FINANCE COMMITTEE VOTE TO RECONSIDER: AYES: Taub, Matis, Crawford, Middleton (4) NAYS: Woodward, Zack, Quarles (3) ABSENT: Kowall and Long (2) Motion carried on a roll call vote. Crawford moved approval of the attached suggested Resolution. Supported by Matis. Motion carried unanimously on a roll call vote with Kowall and Long absent. OTHER BUSINESS/ADJOURNMENT Ms. Sonkiss informed the Commiss ioners that the Public Hearing notice was published today for the FINANCE COMMITTEE MINUTES Page 8 September 10, 2015 approval of the FY 2016 – FY 2018 budget, as required. There being no other business to come before the committe e, the meeting was adjourned at 10:42 a.m. ______________________________________ _________________________________ Pamela L. Worthington, Committee Coordinator Jim VerPloeg, Administrative Director NOTE: The foregoing minutes are subject to Committee approval.