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HomeMy WebLinkAboutResolutions - 2025.01.23 - 41848 AGENDA ITEM: Creation of Five (5) Accountant III Positions to Support Fiscal Services Division DEPARTMENT: Fiscal Services MEETING: Board of Commissioners DATE: Thursday, January 23, 2025 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2025-4865 Motion to approve the creation of three (3) FTE GF/GP Accountant III within Management & Budget, Fiscal Services Division; creation of one (1) FTE PR Accountant III within Management & Budget, Fiscal Services Drain Projects, to support Fiscal Services work on Water Resources Commissioner accounting; and creation of one (1) FTE PR Accountant III within Management & Budget, Fiscal Services Parks and Recreation, to support Fiscal Services work on Parks grants and to process the financial information for the new millage, passed in November 2024. Total General Fund cost for FY2025 (9 months) $244,044, WRC for FY2025 (9 months) $81,348, and for Parks for FY2025 (9 months) $81,348, or FY2026 for General Fund, WRC, and Parks, $343,176, $114,392, and $114,392, respectively; and for FY2027 for General Fund, WRC, and Parks, $358,363 $119,454, and $119,454. A detailed budget amendment will be provided in the Q1 Financial Report. ITEM CATEGORY SPONSORED BY Staffing Modification Gwen Markham INTRODUCTION AND BACKGROUND Fiscal Services manages a broad range of financial services for all County departments and divisions; including, budgeting, financial planning, accounting, payroll, and expense management, all aimed at ensuring the smooth operation of various government functions. Fiscal Services is responsible for externally reporting the County’s financial position and economic condition. This includes preparing financial statements and reports that are shared with interested parties, such as state authorities, auditors, taxpayers, and bondholders. These reports help demonstrate the County's financial health and ensure transparency. Fiscal Services aids both the County Executive and the Board of Commissioners by providing critical financial information. This assists in rational decision-making to ensure that resources are allocated efficiently and effectively to serve the public. The goal of Fiscal Services is to help promote economic efficiency in delivering public services. By managing financial resources effectively, Fiscal Services helps ensure that taxpayer money is spent wisely and that public services can be delivered in the most efficient way possible. Management and Budget is requesting to add five (5) positions to the General Fund/General Purpose and Proprietary funds as outlined above: The timing of this request is crucial to ensure we can onboard and train staff efficiently, allowing them to contribute effectively as we wrap up the ongoing annual audit and prepare for the new budget year. Additionally, we have a current pool of Accountant candidates from recent hiring efforts, which would allow us to move forward without the need for a lengthy recruitment process. BUDGET AMENDMENT REQUIRED: Yes Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Sheryl Johnson, Deputy Chief Financial Officer ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 1/23/2025 AGENDA DEADLINE: 01/23/2025 6:00 PM ATTACHMENTS 1. 2025-0109 To BOC pdf COMMITTEE TRACKING 2025-01-15 Finance - Recommend to Board 2025-01-23 Full Board - Adopt Motioned by: Commissioner Gwen Markham Seconded by: Commissioner Linnie Taylor Yes: David Woodward, Penny Luebs, Kristen Nelson, Gwen Markham, Angela Powell, Marcia Gershenson, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie Taylor (11) No: Michael Spisz, Michael Gingell, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert, Robert Smiley (7) Abstain: None (0) Absent: William Miller III (1) Passed OAKLAND COUNTY EXECUTIVE DAVID COULTER Sheryl H. Johnson, Deputy, Chief Financial Officer 2100 Pontiac Lake Road | Executive Office Building 41W | Waterford, MI 48328 | Fax (248) 452-2915 | OakGov.com TO: David T. Woodward, Chairman of the Board of Commissioners Gwen Markum, Chairperson of Finance Committee FROM: Sheryl H. Johnson, Deputy Chief Financial Officer DATE: January 6, 2025 RE: Management & Budget, Fiscal Services Staffing Levels Fiscal Services manages a broad range of financial services for all County departments and divisions. This includes budgeting, financial planning, accounting, payroll, and expense management, all aimed at ensuring the smooth operation of various government functions. Fiscal Services is responsible for internal and external reporting of the County’s financial position and economic condition. including preparing financial statements and reports that are shared with interested parties, such as the County Executive, Board of Commissioners, department heads, state authorities, auditors, taxpayers, and bondholders. These reports help demonstrate the County's financial health and ensure transparency. This assists in rational decision-making to ensure that resources are allocated efficiently and effectively to serve the public. The goal of Fiscal Services is to help the County promote economic efficiency in delivering public services. By managing financial resources effectively, the division helps ensure that taxpayer money is spent wisely and that public services can be delivered in the most efficient way possible. Summary of Fiscal Services' Current Situation and Staffing Needs Key Challenges Facing Fiscal Services: 1. Staffing Reduction: Since 2021, Fiscal Services has experienced a reduction of 20 positions or 6.5%; 10 positions due to a County Executive policy change regarding juvenile court costs and 10 positions through attrition. [While total County employment increased 343 positions or 19% increase.] 2. Increased Workload: Despite a reduced workforce, the number of funds, projects, and responsibilities has increased significantly. This has led to operational challenges such as delays, employee fatigue, and inefficiencies. Staff has to be reactive to daily challenges not allowing time for research and proactive solutions. 3. Compliance Risks: Insufficient staffing may impact the ability to meet regulatory or reporting requirements, posing a risk to the County’s bond rating and financial standing. 4. Employee Morale and Burnout: Remaining staff face increased pressure, which can lead to burnout and decreased job satisfaction. 5. Operational Inefficiencies: Loss of institutional knowledge due to attrition, combined with the increased workload, may result in inefficiencies in financial management. 6. Business Continuity: Current workload does not allow for cross training of employees to be retained within Fiscal Services, nor does it contribute to business continuity. David T. Woodward, Chairman of the Board of Commissioners Gwen Markum, Chairperson of Finance Committee January 6, 2025 | Page 2 of 3 2100 Pontiac Lake Road | Executive Office Building 41W | Waterford, MI 48328 | Fax (248) 452-2915 | OakGov.com New Funds, Projects, and Millages Introduced: 1. Oakland Transit Fund (FND20288): o Estimated Revenues: $78.6 million for tax year 2025. o Staffing Impact: No new Fiscal support staff initially planned. However, with growing revenues and the complexity of managing this fund, additional staff might eventually be necessary. 2. Housing Trust Fund (FND21400): o Established: April 2022. o Staffing Impact No new Fiscal support staff created. Given the fund's nature and potential for growth, this could eventually require additional resources. 3. Opioid Settlement Fund (FND21280): o FY2024 Unaudited Fund Balance: $10.8 million. o Staffing Impact: Although no direct impact is mentioned, managing this fund with its potential for restricted use and required reporting could require dedicated financial personnel in the future. Major Projects and Staffing Needs: 1. Pontiac Project: o State Grant: $50 million. o Staffing Needs: Dedicated staff are required for invoicing, tracking, and reporting on this grant. o Staff Impact: Likely requires a grant accountant and potentially an additional supervisor to manage the grant effectively and meet grant reporting requirements. 2. WRC Debt and General Expansion: o Staffing Increase: 71 additional staff in the General Government area of WRC. o Staffing Needs: While staffing increased within WRC, the Fiscal Services team will need to support this growth with additional accountants to handle increased financial transactions, debt management, and reporting. 3. Sheriff Billing and Reconciliation: o Objective: Ensure local communities are reimbursed if charges exceed actual costs and to ensure timely billing and oversite of the Oakland County Safer Communities Fund (MR2023- 3157 (23-125) as established in July 2023. o Staffing Needs: Creation of one (1) FTE Accountant III (General Fund) to manage this reconciliation and billing process. 4. Parks Millage (MR2024-4191): o Millage Increase: Passed in November 2024, increasing funding by $24.7 million annually (from $27.4 million to $52.1 million). o Staffing Needs:  Creation of one (1) Accountant III position to handle increased transactions, manage grant accounting, and support the larger budget.  Fiscal Services Supervisor for Parks should be upgraded to 100% of their duties in managing the increased Parks-related workload. This will require additional staffing to cover facilities management, including accounting functions. David T. Woodward, Chairman of the Board of Commissioners Gwen Markum, Chairperson of Finance Committee January 6, 2025 | Page 3 of 3 2100 Pontiac Lake Road | Executive Office Building 41W | Waterford, MI 48328 | Fax (248) 452-2915 | OakGov.com New Departments: • Indigent Defense • Diversity, Equity & Inclusion • Office of Sustainability • Capital Planning and Design • Department of Public Communications Each new department requires additional financial staff time to manage their respective budgets and ensure proper financial oversight. This could include accountants, financial analysts, and grant accountants, depending on the nature of their funding. Fiscal Implications and Resource Allocation: Given the increasing demands of these funds, projects, and departments, Fiscal Services will need to: 1. Increase Staffing: To ensure compliance with regulations, manage the growing volume of transactions, and meet reporting requirements for the new funds, millages, and projects. 2. Enhance Oversight of Grants: The focus on grant accounting is critical for managing the large-scale projects (Parks Millage, Pontiac Project) and ensuring timely and accurate reporting to external stakeholders. 3. Address Potential Operational Inefficiencies: Reducing operational inefficiencies requires restoring staff levels to pre-2021 numbers or even increasing staff due to the growing complexity of the County’s fiscal management needs. 4. Maintain Bond Rating: By ensuring proper reporting and compliance, staffing increases are crucial to safeguard the County’s bond rating and overall fiscal health. These staffing enhancements are essential to maintaining the County's ability to manage public funds efficiently and transparently, supporting the County’s goal of Organizational Excellence. Request: We are requesting five (5) additional Accountant positions to be added to the following funds as outlined: General Fund (3), WRC (1), and Parks (1) to maintain Organizational Excellence in the Fiscal Services area. The annual costs by fund are outlined in the table below: Annual Cost Summary Request: Thank you for your time and attention to this matter.