FINANCE, CLAIMS AND ACCOUNTS COMMITTEE

MEETING MINUTES

 

August 5, 2004

 

A regular meeting of the Chippewa County Board of Commissioners’ Finance, Claims and Accounts Committee was held on Thursday, August 5, 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, Don Cooper, Ted Postula (5:05), Aaron Hopper, and Richard Timmer

OTHER

COMMISSIONERS PRESENT: Earl Kay and James Moore

 

MEMBERS ABSENT:                            None

 

OTHERS PRESENT:                             Tim Dolehanty, County Controller, Hon. Lowell Ulrich, Jeff Moran, Sharon Kennedy, Marilyn McDonald, Margie Hank, Vicky Gage, Mary Sue Nelson, Tina Ojala, Ron Cross, Sue Short, Kathy Munson, Gail Shunk, Jeanne Goeschel, Elizabeth Church, Dave Jones, Marcy Wilson, Debbie Sirk, and Holly Zaborowski

 

 

Additions / Deletions to the Agenda

Chairperson Dale called for additions or deletions to the agenda.

 

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to approve the agenda as presented.  On a voice vote, the motion was CARRIED.

 

Public Comment

Chairperson Dale called for public comment.  No one in attendance asked to speak.

 

Correspondence and Information Items

The Committee received the monthly Treasurer’s report, monthly travel report, and a correspondence from the Michigan Association of Counties (MAC) concerning an early tax collection proposal and its effect on state revenue sharing.  It was noted that MAC asked that a resolution be passed in support of the early tax collection proposal.

 

It was moved by Commissioner Hopper, seconded by Commissioner Timmer, to recommend approval of Resolution 04-16 to support the proposal to collect county general fund taxes in July and to continue county revenue sharing.  On a voice vote, the motion was CARRIED, 4-1.

 

Agenda Items: Public Defender Contract

Chief Public Defender Elizabeth Church asked the Committee to consider creating a separate budget cost center for state inmate defense cases.  Ms. Church was advised to work with the Finance Director and Controller to establish the cost center.

 

Ms. Church asked about supplemental payment for the department secretary for work associated with indigent defense in tribal court. Controller Tim Dolehanty reminded the Committee of Ms. Church’s statement in May that she would not seek additional payments until matters concerning the contract were resolved.  Ms. Church said that statement applied only to payments made to her, not the secretary.

 

Commissioner Cooper stated the Board previously agreed to cancel the contract.  Commissioner Kay suggested meeting with Ms. Church in the near future to resolve this matter.

 

Title IV-D Cooperative Reimbursement Contract

The Committee received a request from the Prosecuting Attorney to renew the Title IV-D Cooperative Reimbursement Contract.

 

It was moved by Commissioner Cooper, seconded by Commissioner Postula, to recommend renewal of the Title IV-D Cooperative Reimbursement Contract, as presented.  On a voice vote, the motion was CARRIED.

 

Assisted Living Center Resolution

The Committee reviewed a draft resolution of support for the establishment of an assisted living center, as recommended by the Board of Health.  Committee members agreed on the need for more information regarding the proposal, and on the potential need for a closed session to discuss property acquisition.

 

It was moved by Commissioner Hopper, seconded by Commissioner Timmer, to schedule a meeting with Health Department officials to discuss the assisted living center concept, and to hold a closed session if necessary to discuss property acquisition.  On a voice vote, the motion was CARRIED.

 

City-County Building Invoice Allocation

Controller Dolehanty reviewed the most recent invoice for expenses associated with the City-County Building. He noted that previous discussion about the air conditioning project led to a suggestion that annex renovation cost center funds be used to pay for the project, but no motion to that effect was offered.  It was noted that this is a general fund cost center and that these funds were not earmarked for a specific purpose.

 

It was moved by Commissioner Cooper, seconded by Commissioner Timmer, to recommend approval of the use of funds in the Annex Renovation cost center to pay for the City-County Building air conditioning project.  On a voice vote, the motion was CARRIED.

 

Internal Promotion Policy

Controller Dolehanty presented a situation where an employee wished to be considered for a position at a lesser pay grade, but would like to maintain an hourly wage above the maximum for that grade.  The Committee agreed that the matter should be taken up by the Personnel Committee.

 

It was moved by Commissioner Hopper, seconded by Commissioner Postula, to recommend that the Personnel Committee consider the proposal regarding internal transfers to a lower pay grade.  On a voice vote, the motion was CARRIED.

 

HBH Funding Deferral Agreement

Controller Dolehanty presented a draft agreement from Hiawatha Behavioral Mental Health Authority (HBH) regarding deferral of mandatory payments.  He said HBH payments were included in the most recent budget projections for payment in 2004, so there was no need for a deferral agreement.

 

It was moved by Commissioner Timmer, seconded by Commissioner Cooper, to recommend the mandatory payments be made to HBH and that the draft agreement for deferred payments be rejected.  On a voice vote, the motion was CARRIED.

 

Chairperson Dale asked that the Michigan Department of Community Health be made aware of the Board’s intentions.

 

Establish Fund 502:  State Education Tax Reimbursement

Controller Dolehanty reviewed a memorandum from the Finance Director about establishing fund 502.  The County Treasurer requested that the fund be established in order to record the retention of the State Education Tax per parcel fee and related expenses.

 

It was moved by Commissioner Cooper, seconded by Commissioner Timmer, to recommend establishing fund 502 as requested.  On a voice vote, the motion was CARRIED.

 

Claims and Accounts

Controller Dolehanty reviewed the monthly claims and accounts report.

 

It was moved by Commissioner Cooper, seconded by Commissioner Timmer, to recommend the approval of general fund claims totaling $133,591.11, other fund claims of $163,115.43, payroll of $527,353.07 and health department claims of $396,053.11, total claims of $1,220,112.72, vouchers 36379 through 36586 and H-1 through H-152. On a voice vote, the motion was CARRIED.

 

Millage Request

Chairperson Dale asked each Commissioner to comment on the millage request proposals presented at the special Board meeting in July.

 

Commissioner Timmer stated it would be necessary to inform the voters about the next round of budget cuts.  He said if voters agreed that services should be continued at present levels, they would approve the millage request.

 

Commissioner Kay said asking for one mill for two years was the astute thing to do.  He expressed reservations about the potential for approval of the request.

 

Commissioner Cooper said he would oppose additional millage until the Board could prove it was a good steward of tax dollars.  He added that a millage request for a specific purpose was another matter.

 

Commissioner Postula stated the additional dollars would be helpful, but doubted a millage request would pass.  He added that the Board needs to decide what will be cut from the budget.

 

Commissioner Hopper stated the voters should be provided an opportunity to vote the request up or down.  He also noted that cuts would be severe if the millage request fails.

 

Commissioner Moore agreed with those who expressed doubt about the success of a millage request.

 

Chairperson Dale said approval of a millage request would allow the County to restore programs already cut.  She stated that one mill would barely cover costs, but would prevent layoffs.

 

The Committee discussed the impact of the millage request on the budget.  The Controller was asked to prepare statistical data for further consideration at the Board meeting.

 

 

Collective Bargaining Strategies

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to enter into a closed session to discuss collective bargaining strategies associated with the negotiation of a contract with Teamsters Local 328, pursuant to Section 8(c) of the Open Meetings Act, Act 267, P.A. 1976, as amended, being MCL 15.268(c).  A roll call vote was taken as follows:  Cooper - Yes; Timmer – Yes; Hopper – Yes; Postula – Yes; Dale - Yes.  Motion CARRIED.

 

It was moved by Commissioner Cooper, seconded by Commissioner Hopper, to resume the open session meeting of the Finance, Claims and Accounts Committee.  A roll call vote was taken as follows: Timmer– Yes; Hopper – Yes; Postula – Yes; Cooper - Yes; Dale - Yes.  Motion CARRIED.

 

Committee Comments

There were no additional committee comments.

 

Chairperson’s Comments

Chairperson Dale offered no additional comments.

 

Adjourn

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

 

Chairperson Dale declared the meeting adjourned at 6:15 p.m.

 

 

 

 

 

 

 

__________________________________                                     __________________________________

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


 

RESOLUTION NO. 04-16

 

 

RESOLUTION TO SUPPORT THE PROPOSAL TO COLLECT

COUNTY GENERAL FUND TAXES IN JULY AND

TO CONTINUE COUNTY REVENUE SHARING

 

 

WHEREAS, Governor Granholm, in her proposed FY 2004/2005 budget for the state of Michigan, completely eliminated $183.5 million in revenue sharing payments to counties, and proposed that the county general fund millage be collected in July instead of December, with the funds collected twice within the counties’ fiscal year to be reserved so that counties may withdraw down an amount each ensuing year equal to the eliminated revenue sharing payment plus inflation, and

 

WHEREAS, many counties and legislators voiced opposition to the July tax collection due to concern about the effect it would have on taxpayer’s escrow accounts, and many counties were skeptical that the state would actually restore revenue sharing when the reserve accounts were depleted, and

 

WHEREAS, counties worked closely with the Michigan Department of Treasury to modify the proposal to have the summer tax collection phased in over a three year period, thereby lessening the impact upon taxpayers, and

 

WHEREAS, the elimination of county revenue sharing without any method of replacement would create a shortfall of $1.1 million in the county’s 2004 Budget and $1.7 million in the 2005 Budget, and would be financially devastating to county programs and services, and

 

WHEREAS, if the amount eliminated from the state budget was spread equally among local units that receive statutory revenue sharing, Chippewa County would receive a 17% reduction, and if that amount was spread among local units according to the revenue sharing formula, Chippewa County would receive a 35.6% reduction, and

 

WHEREAS, any one of these other alternatives would threaten Chippewa County’s ability to provide many of its current non-mandated services to the residents, and the revised proposal establishes a revenue sharing reserve fund that will replace the loss of state revenue sharing dollars until approximately 2011 for Chippewa County, and

 

WHEREAS, the revised proposal to move the collection date of the county general fund millage to July would result in no annual tax increase for residents, other than that which occurs through inflation, but would require that residents pay one-third of the county general fund millage amount in July over a three year period, which would result in the early payment of $84 on $100,000 home with a taxable value of $50,000, and

 

WHEREAS, farmers and senior citizens are allowed to defer paying summer taxes until the


normal December tax collection because of existing provisions in current law, and

 

WHEREAS, the Governor’s office has made assurances that counties will continue to be included in the statutory revenue sharing formula and the appropriation for county revenue sharing will continue to be included in the general appropriations act, with the understanding that the payment will not be made to a county until the funds in its reserve account are depleted.

 

NOW, THEREFORE, BE IT RESOLVED, as follows:

 

1.                   That the Chippewa County Board of Commissioners hereby supports the revised proposal for a summer tax collection of county general fund millages, which is to be phased-in over a period of three years beginning in July, 2005, and will allow counties to withdraw amounts equal to the suspended state revenue sharing payments from a Revenue Sharing Reserve Fund beginning in December, 2004.

 

2.                   That this support is given contingent upon the inclusion of counties in the revenue sharing formula and the inclusion of an unreduced appropriation for county revenue sharing in the general appropriations act, with the understanding that it will not be paid to a county until the funds in its reserve account are depleted.

 

3.                   That a copy of this resolution be forwarded to Governor Jennifer Granholm, Senator Jason Allen, Representative Scott Shackleton, and the Michigan Association of Counties.