1. Benzie County Proposed Fiscal Year Budget 2019-2020 Part II

2. 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

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

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

5. 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

6. 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

7. 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 $
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

8. 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 $
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 $31,200

9. 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

10. 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 $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)

11. Continued Health Insurance Discussion
Projected Health Insurance Cost $960,582 (4.24% $42,576 reduction from /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

12. 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

13. Mandated and Non-Mandated Services
See attached documents

14. 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.