To: Martin L. Cousineau, Finance Committee Chairperson
From: Chrystal Simpson, Chief Financial Officer
title
RE: Approval of the fiscal year 2024 Deficit Elimination Plan and directing the Department of Fiscal Services to submit the plan to the State of Michigan
recommendation
BOARD ACTION REQUESTED:
Approval of the 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 was filed timely for the year ended September 30, 2024, 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 by fiscal year ending
September 30, 2026. During the budget process for fiscal year ending September 30, 2025, the rates for motor pool were re-evaluated as the cost for vehicles and upfitting has increased significantly. As a result of the rate changes, the revenue for the use of vehicles was projected to increase 19%. This increase in revenue will aid in resolving the deficit that existed as of September 30, 2024, whereby the current assets exceeded the current liabilities in that fund by $1,647,731.
2018 Capital Improvement Bond Fund has a deficit due to the bond interest payment being due October 1st and the Fund making the payment in September before the payment is due and this should be resolved by fiscal year ending September 30, 2026.
IMPACT ON HUMAN RESOURCES:
N...
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