May 13, 2004

A special meeting of the Chippewa County Board of Commissioners’ Finance, Claims and Accounts Committee was held on Thursday, May 13, 2004 at the Chippewa County Courthouse in Sault Ste. Marie, Michigan. Chairperson Dale called the meeting to order at 5:00 p.m. with a quorum present.

MEMBERS PRESENT: Rita Dale, Chairperson, Aaron Hopper, Richard Timmer, and Ted Postula

OTHER COMMISSIONERS PRESENT: Earl Kay and James Moore

MEMBERS ABSENT: Don Cooper

OTHERS PRESENT: Tim Dolehanty, County Controller, Hon. Nicholas Lambros, 50^th Circuit Court Judge, Hon. Lowell Ulrich, Probate Court Judge, Thelma Bosbous, Friend of the Court, Marlene Murphy, Administrative Assistant, Diane Cork, Clerk, Sharon Kennedy, Register of Deeds and Equalization Director, Marilyn McDonald, Treasurer, Jim Lucas, MSU Extension Director, Bill Carr, Surveyor, Jeff Moran, Sheriff, Dr. James Terrian, Health Officer and Medical Director, Jim Shogren, Veterans Counselor, and others

Additions / Deletions to the Agenda

Chairperson Dale called for additions or deletions to the agenda. Hearing none, the agenda was declared approved as presented.

Review of 2004 Budget

County Controller Tim Dolehanty presented information relative to the 2004 budget. He reviewed projected revenue and expenditure trends through the end of 2004 and concluded the county was facing an estimated budget shortfall of $610,000. Mr. Dolehanty said budget adjustments would be necessary, and that decisions by the Board of Commissioners would have to follow serious thought in deciding the most equitable and effective means of implementing the budget cuts. In order to balance the budget based on the projected figures, expenditures would have to be reduced by 8.05%. He then reviewed a list of constitutional and statutory functions that would receive funding priority. Mr. Dolehanty also listed several unresolved matters that could have a measurable impact on the budget including health insurance rates, City-County Building expenditures, a tax tribunal settlement, and the impact of cuts in other revenue sources.

Department Head Presentations

Circuit Court Judge Nicholas Lambros reviewed judicial responsibilities. He said the courts are an independent branch of government, but are accountable for their use of county resources. Judge Lambros said the courts have achieved and maintained high standards and will work with the Board to overcome the budgetary shortfall. He acknowledged that the most diligent efforts to conserve fiscal resources may not be enough, but the final outcome must conform to state standards. The Judge concluded by stating his belief that all departments were prepared to do what was necessary, and that current funding levels for core services should be maintained.

Probate Court Judge Lowell Ulrich discussed the importance of managing and administering funds as necessary. He said adjustments should be applied equally across the spectrum of county government, and that the courts were neither superior nor inferior. Judge Ulrich announced that the state owed the County approximately $95,400 in reimbursements to the child care fund. He added that the Probate Court and the Family Division of the Circuit Court work diligently at all times to keep costs down.

Friend of the Court Thelma Bosbous said the Circuit Court Judge designated the Friend of the Court budget. She said she would suggest budget adjustments to the Judge.

Public Defender Administrative Assistant Marlene Murphy read a statement prepared by the Chief Public Defender, Elizabeth Church. The statement included reference to budgetary line items that could be reduced and a discussion about payments received from the Department of Corrections.

County Clerk Diane Cork said the Clerk’s office was not a revenue-generating department. She said 25% of funds taken in by her office stayed in the County, and the balance was sent to the State. Ms. Cork also discussed a restructuring program now in place that was developed with the assistance of the State Court Administrator’s Office.

Controller Tim Dolehanty read a statement prepared by Prosecuting Attorney Brian Peppler. The statement reviewed the workload of the Prosecutor’s office. Mr. Peppler indicated budgetary adjustments would be made within his department to address the short-term. He suggested communicating with the public regarding the budget issues, development of five and ten-year budget plans, and that the County should consider hiring a grant writer.

Register of Deeds and Equalization Director Sharon Kennedy said the budget projection numbers were shocking. She discussed office functions she supervises, and commented on the budget adjustments that would be necessary.

Treasurer Marilyn McDonald said her office would search for additional revenue and that she recently sent a letter to the State regarding outstanding payment in lieu of taxes (PILT) monies owed to the County. Ms. McDonald said her office would generate approximately $70,000 in charge-backs for the first time in 2004, and that interest payments appear to be rising.

MSU Extension Director Jim Lucas said his office was invited into Chippewa County in 1919. He said his office provided many services with a staff of five persons employed by Michigan State University and one person employed by the County.

Surveyor Bill Carr said many expenses for his office could be transferred to the remonumentation program.

Sheriff Jeff Moran provided the Committee with a document that reviewed a number of actions he would implement in his office. He examined employee adjustments, operational costs and union contract matters.

Health Officer and Medical Director Dr. James Terrian commented on the mandatory fiscal maintenance of effort required for the Health Department. He proposed a reduction of 16% for the Health Department allocation.

Veterans Counselor Jim Shogren said the only way to reduce his budget was to reduce hours of operation.

Chairperson Comments

Chairperson Dale thanked the department heads for their presentations.

Committee Comments

Commissioner Postula said the budget situation was not the fault of anyone present, but was the result of economic conditions and state cuts.

Adjourn

It was moved by Commissioner Hopper, seconded by Commissioner Timmer, to adjourn the meeting. On a voice vote, the motion was CARRIED.

The meeting was declared adjourned at 6:24 p.m.

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Timothy J. Dolehanty, AICP, Recorder Rita Dale, Committee Chairperson