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

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October 16, 2012

CITIZENS OF BAY COUNTY

FISCAL RESPONSIBILITY EMPLOYEES

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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

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REVENUES

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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%

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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

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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

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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

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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

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EXPENDITURES

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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%

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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%

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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

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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.

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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.

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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

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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

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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

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2013 Major Transfers Out

•Health Department - $1.043M

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

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2013 Major Capital Expenditures

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

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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

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Green: Budget Stabilization Fund Blue: Assigned Fund Balance

Millions

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RECOMMENDATIONS

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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.

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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

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Questions?Thank you!

October 16, 2012

Go Tigers!