To: Martin L. Cousineau, Finance Committee Chairperson
From: Chrystal Simpson, Chief Financial Officer
title
RE: Approval of the fiscal year 2023 Deficit Elimination Plan and directing the Office of Fiscal Services to submit the plan to the State of Michigan
recommendation
BOARD ACTION REQUESTED:
Approval of amended deficit elimination plan to be submitted to the State.
BACKGROUND:
In accordance with Public Act 140 of 1971, a local unit of government ending its fiscal year in a deficit condition shall formulate and file a Deficit Elimination Plan (DEP) with the Department of Treasury within 30 days of receiving a letter after the filing of the County's Annual Comprehensive Financial Report (ACFR).
DISCUSSION:
The county's ACFR will be filed timely for the year ended September 30, 2023, as required, with the Michigan Department of Treasury. The DEP must be certified by Treasury for the County to obtain "qualified status". Qualified status is required before the County can issue bonds or notes, such as the annual delinquent tax notes issue.
The deficit elimination plan is outlined in the resolution which includes the following Funds: Vehicles and Equipment Fund which should be resolved in fiscal year ending September 30, 2024. Genesee Health System Millage which is the result of a property tax chargeback that will be resolved in fiscal year ending September 30, 2024. 2018 Capital Improvement Bond Fund and the Hughes & Hatcher Center Debt Service Fund have a deficit due to bond interest payment being due October 1st and the Fund making the payment in September before the payment is due and these should be resolved by fiscal year ending September 30, 2028.
IMPACT ON HUMAN RESOURCES:
N/A
IMPACT ON BUDGET:
N/A
IMPACT ON FACILITIES:
N/A
IMPACT ON TECHNOLOGY:
N/A
CONFORMITY TO COUNTY PRIORITIES:
Monitoring of funds with deficits aligns with the Long-Term Financial Stability priority.
rTO THE HONORABLE CHAIRPERSON AND MEMBERS O...
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