Overview of Fiscal Year 2017

Executive

Recommended Budget

Bay County, Michigan

Prepared by:

Thomas L. Hickner Bay County Executive

Kimberly Priessnitz

Assistant Finance Officer Jan Histed

Finance Officer

November 15, 2016

• Introduction

• Revenues

• Expenditures

• Recommendations

• Q & A

November 15, 2016

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2017 Executive Recommended Budget Overview

CITIZENS OF BAY COUNTY

• This budget strives to balance the needs of the

citizens of Bay County and its employees, while

ensuring fiscal responsibility and excellent

service to the Bay County community.

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FISCAL RESPONSIBILITY EMPLOYEES

2017 Budget Highlights

•A balanced budget was submitted

by the statutory deadline

•Total county spending for all funds

$132M

•Total General Fund expenditures

$35M

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REVENUES

November 15, 2016

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2017 General Fund Revenues

$-

$5,000

$10,000

$15,000

$20,000 $15,539

$4,412 $3,496 $3,300 $2,760 $2,288 $1,173 $781

Millions

November 15, 2016

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46%

Bay County General Fund

Property Tax Collections

$12.0

$13.0

$14.0

$15.0

$16.0

$17.0

$18.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$16.8

$17.4 $17.5

$16.8 $16.4

$16.1 $16.0 $16.0 $15.7 $15.9

$15.5

Millions

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2017 – General Fund Revenues

•$1.2M transfer to the General Fund from the Delinquent Tax Revolving Fund

•Revenue Sharing – 2.6M

•Liquor Tax – 371K

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EXPENDITURES

November 15, 2016

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2017 – General Fund Expenditures

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000 $14,912

$6,244 $5,792

$3,759

$1,254 $1,151 $956 $1,129

Millions

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Wages + Fringes = 60%

Other General Fund

Expenditure Factors

•Wages- No increase to base is currently included in the 2017 Executive budget, however contract negotiations were finalized as of Tuesday November 8, 2016.

+ One percent (1%) lump sum or three personal days are included in this budget.

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Other General Fund

Expenditure Factors (Continued)

• Health Insurance-Employers health insurance contributions is projected to be $3.7M (includes Active & Retirees)

• Continued Health Cost Reducing Measures - Co-Pay & Deductible Structure - Prescription Incentive Program

- Wellness Center - Wellness Programs

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General Fund Expenditures

Retirement System

•As of December 31, 2015, the General Group in the retirement system had a funded ratio of 116%; as a result, there is no recommended employer contribution to the pension system for 2017. (however, the 4% employer

contribution is currently budgeted)

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Continued

General Fund Expenditures

Retirement System (Continued)

•As of December 31, 2015, the Sheriff Group in the retirement system had a funded ratio of 123%. As a result, no employer contributions to the pension system are required for 2017.

(the 4% employer contribution for 2017 is currently

budgeted)

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100%

110%

120%

130%

140%

150%

160%

170%

180%

190%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

135% 132% 131% 132%

122%

112% 107% 105%

109% 112%

116%

158% 156%

151% 153%

134%

129%

120%

112%

119% 123% 123%

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Percentage Funding Level

of Pension Funds

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

2017 Major Transfers Out

•Health Department - $1.037M

• Juvenile Home - $619K

Note: Other Child Care programs funded by the General Fund – $947K, a $212K GF increase over the 2016 budget (the remaining increase is covered by 50% State match revenue).

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2017 Major Capital Expenditures General Fund

• Buildings & Grounds $ 437,000 (Includes County-Wide Phone System from 2016 Budget)

• Sheriff $ 195,900

• Information Systems $ 527,500

• Secondary Road Patrol $ 111,200

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General and Budget Stabilization

Fund Balances

$-

$2

$4

$6

$8

$10

$12

$14

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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Green: Budget Stabilization Fund

Blue: Assigned & Unassigned Fund Balance

* In FY 2016 1.6M will be moved to Budget Stabilization from Unassigned which will bring the reserve level to 20% based on P.A. 2016, No. 169.

Millions

RECOMMENDATIONS

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Recommendations • Use approximately $1.4M of Unassigned Fund Balance

to balance the 2017 budget.

• Continue to prioritize capital outlay projects as to reduce the level of 2017 projects based on need, Capital outlay is budgeted at 2.3M countywide.

• Finalize the negotiated union contracts for the three year period of FY 2017-2019, and adjust the budget as necessary.

• This approach services the needs of the citizens of Bay County and its employees. Additional decisions/adjustments will have to be made to the 2017 operating budget to ensure fiscal responsibility, while still maintaining excellent service to the community.

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Questions? Thank you!

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