HomeMy WebLinkAboutResolutions - 2023.06.15 - 38281
AGENDA ITEM: Fiscal Year 2022 Deficit Elimination Plan
DEPARTMENT: Fiscal Services
MEETING: Board of Commissioners
DATE: Thursday, June 15, 2023 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-3075 _ 23-105
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Quarterly Report Gwen Markham
INTRODUCTION AND BACKGROUND
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 a
negative unrestricted net position. Often times the negative unrestricted fund balance is a result of
the timing of the grant reimbursements. The timing difference happens often when reimbursements
for capital projects come from special assessments. The negative unrestricted fund balances will be
cleared up during the current fiscal year as outlined in the attached deficit elimination plan.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional
information.
CONTACT
Kyle Jen, Director Management & Budget-APP
ITEM REVIEW TRACKING
Gwen Markham, Board of Commissioners Created/Initiated - 6/15/2023
David Woodward, Board of Commissioners Approved - 6/15/2023
Hilarie Chambers, Executive's Office Approved - 6/20/2023
Lisa Brown, Clerk/Register of Deeds Final Approval - 6/27/2023
AGENDA DEADLINE: 06/15/2023 6:00 PM
ATTACHMENTS
1. Deficit Elimination Plan FY2022
COMMITTEE TRACKING
2023-06-15 Finance - Recommend to Board
2023-06-15 Full Board - Adopt
Motioned by: Commissioner Robert Hoffman
Seconded by: Commissioner Angela Powell
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan
Johnson (17)
No: None (0)
Abstain: None (0)
Absent: Ajay Raman, Gary McGillivray (2)
Passed
June 15, 2023
RESOLUTION #2023-3075 _ 23-105
Sponsored By: Gwen Markham
Fiscal Services - Fiscal Year 2022 Deficit Elimination Plan
Chair and Members of the Board:
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 a
negative unrestricted net position; and
WHEREAS Oakland County completed the fiscal year ending September 30, 2022, with three (3)
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.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Gwen Markham.
Date: June 15, 2023
David Woodward, Commissioner
Date: June 20, 2023
Hilarie Chambers, Deputy County Executive II
Date: June 27, 2023
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2023-06-15 Finance - Recommend to Board
2023-06-15 Full Board - Adopt
Motioned by Commissioner Robert Hoffman seconded by Commissioner Angela Powell to adopt the
attached Quarterly Report: Fiscal Year 2022 Deficit Elimination Plan.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson,
Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan
Johnson (17)
No: None (0)
Abstain: None (0)
Absent: Ajay Raman, Gary McGillivray (2)
Passed
ATTACHMENTS
1. Deficit Elimination Plan FY2022
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 June
15, 2023, 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, June 15, 2023.
Lisa Brown, Oakland County Clerk / Register of Deeds
OAKLAND COUNTY EXECUTIVE DAVID COULTER
Sheryl Johnson, Fiscal Services Officer | Fiscal Services
(248) 858-0049 | JohnsonSH@oakgov.com
2100 Pontiac Lake Road | County Executive Building 41W | Waterford, MI 48328 | OakGov.com
May 30, 2022
Michigan Department of Treasury
Local Audit and Finance Division
P.O. Box 30728
Lansing, MI 48909
For the fiscal year ending September 30, 2022, Oakland County reports three (3) 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:
Special Revenue Fund – Friend of the Court $(2,588,261)
The negative unassigned fund balance reflects the fact that this grant fund operates on a
reimbursement basis. For example, the County pays the original expenses and is reimbursed by the
grantor agency after submission of the proper support documentation. Typically, reimbursement for
year-end expenditures lags by two or three months. The negative unassigned fund balance of
$2,588,000 is slightly offset by unavailable revenue recorded of $1,267,000. Once reimbursement is
obtained, the negative unassigned fund balance will be eliminated. Should the reimbursement not be
sufficient to cover the expenditure, the county has match funds budgeted which will be transferred to
cover any remaining deficit.
Special Revenue Fund – Other Grants $(602,746)
The negative unassigned fund balance reflects the fact that this grant fund operates on a
reimbursement basis. For example, the County pays the original expenses and is reimbursed by the
grantor agency after submission of the proper support documentation. Typically, reimbursement for
year-end expenditures lags by two or three months. The negative unassigned fund balance of
$602,746 is slightly offset by unavailable revenue recorded of $368,757. Once reimbursement is
obtained, the negative unassigned fund balance will be eliminated. Should the reimbursement not be
sufficient to cover the expenditure, the county has match funds budgeted which will be transferred to
cover any remaining deficit.
2100 Pontiac Lake Road | County Executive Building 41W | Waterford, MI 48328 | OakGov.com
Capital Projects Fund - Lake Levels - Act 146 $(30,581)
The negative unassigned fund balance in the Lake Levels - Act 146 Fund relates to the Bush Lake Level
project in the amount of $24,760, and Upper Straights Lake Level Project in the amount of $9,104.
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.
Upper Straits Lake Level- Design and construction of an augmentation well to maintain the lake level
has been started. The expected completion date is sometime in 2024. In 2020, the Oakland County
Board of Commissioners approved the Special Assessment District issuance of bonds in the aggregate
principal amount of not to exceed $700,000. Full repayment of this debt by the special assessment
district is to be collected in 10 annual installments. The $9,104 deficit within the construction fund was
caused by project overruns and will be collected through additional assessments during the annual
process of assessing the maintenance fund. An assessment to be collected in the next fiscal year is
sufficient to cover this 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, 2022. Any questions regarding this matter should be directed to my attention at 248-
858-0049, or by e-mail at johnsonSH@oakgov.com.
Sincerely,
Sheryl Johnson
Manager, Fiscal Services Division
Department of Management and Budget
Oakland County, Michigan
cc: Kyle Jen, Management & Budget Director
Jim Nash, County Water Resources Commissioner