Overview of Fiscal Year 2013 Executive Recommended Budget Bay County, Michigan Prepared by: Thomas L. Hickner Bay County Executive Kimberly Priessnitz Assistant Finance Officer Crystal Hebert Finance Officer October 16, 2012

2 CITIZENS OF BAY COUNTY FISCAL RESPONSIBILITY EMPLOYEES

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,

REVENUES October 16,

2013 General Fund Revenues October 16, %

Bay County General Fund Property Tax Collections October 16,

General Fund Property Tax Collections October 16,

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,

2013 – General Fund Revenues 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,

EXPENDITURES October 16,

2013 – General Fund Expenditures October 16, Wages +Fringes= 68%

General Fund Expenditures by Function October 16,

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,

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, This recommendation is a result of the most recent actuarial study. October 16, Continued

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 Due to the funding level going below 125%, the employee contribution for 2013 will be reverted to the retirement system. October 16,

Retirement Fund Balances Retirement Fund Balances October 16,

Percentage Funding Level of Pension Funds Percentage Funding Level of Pension Funds October 16, Blue(left) = General Group Red = Sheriff’s Group

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,

2013 Major Transfers Out Health Department - $1.043M Juvenile Home - $502K Note: Other Child Care programs funded by the General Fund – $557K October 16,

2013 Major Capital Expenditures 2013 Major Capital Expenditures Buildings and Grounds$ 20,000 Information Systems $ 270,710 Sheriff $ 149,742 Pinconning Park (Grant funded) $ 137,000 October 16,

General and Budget Stabilization Fund Balances October 16, Green: Budget Stabilization Fund Blue: Assigned Fund Balance Millions

RECOMMENDATIONS October 16,

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,

Recent Developments in Bay County Uptown at River’s Edge – City of Bay City: $50M Jobs Dow Corning - Williams Township: $117M Investments - 73 Jobs October 16,

Questions? Thank you! October 16,