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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
October 16, 2012
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REVENUES
October 16, 2012
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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
October 16, 2012
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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
October 16, 2012
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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
October 16, 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
October 16, 2012
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EXPENDITURES
October 16, 2012
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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
October 16, 2012
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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.
October 16, 2012
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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.
October 16, 2012
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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
October 16, 2012
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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
October 16, 2012
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2013 Major Transfers Out
•Health Department - $1.043M
•Juvenile Home - $502KNote: Other Child Care programs funded by the General Fund – $557K
October 16, 2012
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2013 Major Capital Expenditures
•Buildings and Grounds$ 20,000•Information Systems $ 270,710•Sheriff $ 149,742•Pinconning Park (Grant funded) $ 137,000
October 16, 2012
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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
October 16, 2012
Green: Budget Stabilization Fund Blue: Assigned Fund Balance
Millions
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RECOMMENDATIONS
October 16, 2012
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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.
October 16, 2012
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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
October 16, 2012
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Questions?Thank you!
October 16, 2012
Go Tigers!