Overview of Fiscal Year 2013 Executive Recommended Budget Bay County, Michigan

Overview of Fiscal Year 2013 Executive

Recommended BudgetBay County, Michigan

Prepared by:Thomas L. Hickner

Bay County ExecutiveKimberly Priessnitz

Assistant Finance OfficerCrystal HebertFinance Officer

October 16, 2012

2

October 16, 2012

CITIZENS OF BAY COUNTY

FISCAL RESPONSIBILITY EMPLOYEES

3

2013 Budget Highlights•A balanced budget was submitted by the statutory deadline

•Total county spending for all funds $125M

•Total General Fund expenditures $33.6 M

October 16, 2012

4

REVENUES

October 16, 2012

5

2013 General Fund Revenues

Taxes

State G

rants

Other Finan

cing

Charges

Other Reve

nue

Federa

l Gran

ts

Interest

/ Ren

t

Fund Balance

Fines / Forfe

its / P

ermits

$- $2,000 $4,000 $6,000 $8,000

$10,000 $12,000 $14,000 $16,000 $18,000 $16,033

$3,804 $3,395 $2,856 $2,723 $1,872 $1,163 $1,040 $753

Thousands

October 16, 2012

48%

6

Bay County General FundProperty Tax Collections

2005 2006 2007 2008 2009 2010 2011 2012 2013 $12.0

$13.0

$14.0

$15.0

$16.0

$17.0

$18.0

$15.1 $15.9

$16.8 $17.4 $17.5

$16.8 $16.4 $16.1 $16.0

Millions

October 16, 2012

7

General Fund Property Tax Collections

2005 2006 2007 2008 2009 2010 2011 2012 2013

-4.0%-3.0%-2.0%-1.0%0.0%1.0%2.0%3.0%4.0%5.0%6.0%

3.4%

5.3% 5.7%

3.6%

0.6%

-4.0%

-2.4%-1.8%

-0.6%

Percentage change from previous year

October 16, 2012

8

2013 – General Fund Revenues•$1,150,000 transfer to the General Fund from the Delinquent Tax Revolving Fund

•Revenue Sharing increased 5.3% from 2012

October 16, 2012

9

2013 – General Fund Revenues

•Register of Deeds: Recording and Transfer Tax Fees = $385,000

•Other Financing Sources: Transfer in $324K from Self Insurance Healthcare Fund

October 16, 2012

10

EXPENDITURES

October 16, 2012

11

2013 – General Fund Expenditures

Wages

Fringes

Other ch

rg/serv

Transfe

rs out

Supplies

Utilities

Contributio

ns

Capita

l cost

> $5K

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000 $13,752

$7,458

$4,921 $4,216

$1,151 $1,071 $832 $237

Thousands

October 16, 2012

Wages +

Fringes = 68%

12

General Fund Expenditures by Function

October 16, 2012

32.80%

25.08%

19.96%

9.24%5.08% 4.93% 2.31% 0.58% 0.03%

13

Other General Fund Expenditure Factors

•Health Insurance Active employee and retiree health insurance is $4.7M, which includes a projected increase of $328K

•Health Cost Reducing Measures - EHiM Drug Plan- Co-Pay Scale

October 16, 2012

14

General Fund Expenditures Retirement System

•As of December 31, 2011, the General Group in the retirement system has a funded ratio of 106.7%; as a result, the recommended employer contribution to the pension system is 4.08% of payroll beginning January 1, 2013. This recommendation is a result of the most recent actuarial study.

October 16, 2012

15

General Fund Expenditures Retirement System (Continued)

•As of December 31, 2011, the Sheriff Group in the retirement system has a funded ratio of 120.1%. As a result, no employer contributions to the pension system are required for 2013. Due to the funding level going below 125%, the employee contribution for 2013 will be reverted to the retirement system.

October 16, 2012

16

Retirement Fund Balances

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 41183 $50.0

$70.0

$90.0

$110.0

$130.0

$150.0

$170.0

$190.0

$210.0

$230.0

$250.0 Millions

October 16, 2012

17

Percentage Funding Level of Pension Funds

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011100%

110%

120%

130%

140%

150%

160%

170%

180%

190%

147%

136%

152%

135%132% 131% 132%

122%

112%107%

157%

172%

158% 156%151% 153%

138%134%

129%

120%

October 16, 2012

Blue(left) = General Group Red = Sheriff’s Group

18

2013 General Fund - Contributions

•Bay Arenac Behavioral Health Authority - $682 K

•Bay Futures - $50K Specific expansion/attraction efforts, $25K, provided a specific business plan is submitted and approved by the Board of Commissioners

October 16, 2012

19

2013 Major Transfers Out

•Health Department - $1.043M

•Juvenile Home - $502KNote: Other Child Care programs funded by the General Fund – $557K

October 16, 2012

20

2013 Major Capital Expenditures

•Buildings and Grounds$ 20,000•Information Systems $ 270,710•Sheriff $ 149,742•Pinconning Park (Grant funded) $ 137,000

October 16, 2012

21

General and Budget Stabilization Fund Balances

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

October 16, 2012

Green: Budget Stabilization Fund Blue: Assigned Fund Balance

Millions

22

RECOMMENDATIONS

October 16, 2012

23

Recommendations•Maintain a status quo budget.•Use approximately $970K from Fund Balance

to service the 2013 debt requirements. At the end of 2016, Bay County’s primary government debt will be serviced.

•Maintain 5%-15% reserve level in the Budget Stabilization Fund. Current reserve is at the maximum level of 15%.

•This approach strikes a balance between the needs of the citizens of Bay County and its employees, while ensuring fiscal responsibility and excellent service to the community.

October 16, 2012

24

Recent Developments in Bay County

•Uptown at River’s Edge – City of Bay City: $50M - 500+ Jobs

•Dow Corning - Williams Township: $117M Investments - 73 Jobs

October 16, 2012

25

Questions?Thank you!

October 16, 2012

Go Tigers!