Benzie County Proposed Fiscal Year Budget 2019-2020 Part II

Big Picture The 2019-2020 Budget is part of a larger plan. Five simple words, financial STABILITY rather than INSTABILITY. Focus on the overall budget rather than smaller dollar amounts or individual line items. Significant BOC decisions Use of General Fund Balance Reduce (suspend) services to public Increase cost’s to employees (health insurance, etc.) Combination of all the above

Possible Future Path to Financial Stability Timeline September 24, 2019 Approve 19/20 FY Budget Oct/Nov 2019 Develop and approve MERS Long Term Plan Oct/Nov 2019 Establish BOC/Employee Health Ins. Team November 2019 Prepare Millage Consultant RFQ/RFP Dec/Jan 2020 Appoint Blue Ribbon Citizen Millage Committee Jan/Feb 2020 Interview & Select Millage Consultant Mar/June 2020 Determine Future Headlee Override Millage Limit Summer 2020 BOC/Employee Health Ins. Team Recommendations Fall 2020 Draft Override Millage Language September 22, 2020 Approve 20/21 FY Budget Fall 2020/Winter 2021 Educational Symposiums for Benzie County Citizens Winter/Spring 2021 Sample Polling August or November 2021 Headlee Override Vote

Pending Changes Discussed at 8/22/19 BOC Meeting Current General Fund Variance ($223,256) 101-172-620.00 Administration Admin Fee $ 500 VA 101-265-667.01 Bldg.& Grounds Rent Revenue $ 7,650 Rent 911 101-266-800.00 Contracted Ser. EDC $20,000 101-285-727.10 Central Ser. Paper Supplies $ 1,000 Paper Vendor 101-649-836.00 Mental Health Appropriations $ 1,854 CW 101-172- Planning Dept. Eliminate $ 9,850 Suspend PC ($180,116)

Other Options To Consider Administrative Fees 17/18 FY Administrative Fee $42,000 18/19 FY Administrative Fee $33, 913 % Allocation Used Increase Administrative Fee (see attached sheets) $42,500 $45,000 $50,000

Other Options To Consider Combine EM Manager and 911 Director Recently Hired New Emergency Management Manager July 2019 Central Dispatch Director Retiring October 31, 2019 New Emergency Management Manager Experience: 21 Years Conservation Officer (MCOLES Certified) 18 Months as Benzie County dispatcher Law enforcement career required her to work with Central Dispatch There would be a learning curve for her to come up to speed, additional training Central Dispatch has a Emergency Communication Supervisor position, oversees scheduling & training This concept needs more discussion, including with emergency management community (fire, ems, law enforcement, etc.) Could use the next FY as a trial run, if it works great, if it does not hire a 911 Director

EM Manager / 911 Director Position Potential Cost Impacts General Fund Base Salary EMM $51,000 Proposed Salary Increase $ 4,000 Employer Expense P/R Taxes $ 4,208 Health/Dental (2 person) $13,587 MERS Expense $ 6,749 Life/Disability/Other $ 400 Total salary & Benefits $79,943 Less 50% Central Dispatch ($39,971) Projected Savings to General Fund $39,971 Less Decrease in Region 7 Funding ($ 9,250) Projected Savings to General Fund $30,721

EM Manager / 911 Director Position Potential Cost Impacts 911 Central Dispatch (Dept 261) Base Salary EMM $51,155 Employer Expense P/R Taxes $ 3,913 Health/Dental (2 person) $13,587 MERS Expense $ 6,277 Life/Disability/Other $ 400 Total salary & Benefits $75,332 Less 50% Emer. Man. Allocation ($39,971) Projected Savings to General Fund $35,360 Possible Add. Wages to Lead (2/hr.) ($ 4,160) Projected Savings to Dept 261 $31,200

Options Discussed at 8/22/19 BOC Special Budget Meeting Use some or all of fund balance to balance the general fund budget. Reduce eligible cost across the board 2% equates to $5,452. Eliminate Services MSUE $54,338 (120 day notice required) (offering an additional $500) B/L Health Dept. $239,702 (60-90 day notice, 45% of services are mandated) Eliminate all Training approximately $20-25,000 Economic Development $10,000 Eliminate Planning Commission $11,450 ($9,850) Eliminate Parks and Recreation $11,000

Options Discussed at 8/22/19 BOC Special Budget Meeting Increase Administrative Fees (must be justifiable to Auditor, previous slide) Charge Central Dispatch Rent (7,650) Reduce Jail Appropriations (FY18-19 $324,000, requested FY 19-20 $359,000) Reduce Sheriff OT (if contract with new Dr., results in fewer ER visits) Increase DHHS Rent (subject to negotiations with State, seems highly unlikely) Employee pay % of monthly health insurance premium (future slide) Increase opt out for health insurance, if we could get more employees to opt out (employees responding back to 50% cost sharing up to $500/month, not interested) Reduce or suspend contract attorney’s cost in Circuit and District (conflict and Neglect & Abuse representation will be an issue in Benzie County) Reduce or suspend road patrol (would need to result in loss of positions)

Continued Health Insurance Discussion Projected Health Insurance Cost $960,582 (4.24% $42,576 reduction from 18/19 FY) Employee Cost Share 5% $ 48,029 GF 50% $24,014 Employee Cost Share 10% $ 96,058 GF 50% $48,092 Employee Contribution Per Pay 5% 10% Single $10 $21 Double $24 $48 Family $30 $60

Pros and Cons With Transferring More Costs to Employees 1. Reduces the cost to Benzie County 2. Additional funds can be used to ensure services are maintained Cons May impact our competitiveness in the recruitment of quality employees (Corrections, EMS, MERS, etc.) May lose some quality employees, due to lack of competitiveness in wages, and the potential increasing of employees health insurance costs By not continuing with 18/19 total compensation wage analysis, some non-union employees will fall further behind 10 County NN average Recent exit interviews show a trend of long term employees leaving due to competitiveness of wages and a general feeling of being undervalued

Mandated and Non-Mandated Services See attached documents

Next Step 1. Majority of BOC agrees on the tentative 19/20 FY budget and directs staff to set the budget at the September 10, 2019 BOC meeting. 2. Majority of BOC unable to agree upon the terms and conditions of the tentative FY 19/20 budget at this special meeting, another special meeting needs to be scheduled before September 10, 2019 BOC meeting. Direction on what changes need to be made by BOC. 3. BOC needs to approve the Health Insurance plan at this meeting, current plan that is incorporated in the proposed budget is a 4.24% reduction from last year and saves the County $42,576. The decision on whether or not to implement an employee cost sharing % does not need to be made today.