Overview of Fiscal Year 2013 Executive Recommended Budget Bay County, Michigan

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

2. CITIZENS OF BAY COUNTY FISCAL RESPONSIBILITY EMPLOYEES

3. 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

4. REVENUES

5. 2013 General Fund Revenues 48%

6. Bay County General FundProperty Tax Collections

7. General Fund Property Tax Collections

8. 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

9. 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

10. EXPENDITURES

11. 2013 – General Fund Expenditures

12. General Fund Expenditures by Function

13. 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

14. 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, 2013. This recommendation is a result of the most recent actuarial study. Continued

15. 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 2013. Due to the funding level going below 125%, the employee contribution for 2013 will be reverted to the retirement system.

16. Retirement Fund Balances

17. Percentage Funding Level of Pension Funds Blue(left) = General Group Red = Sheriff’s Group

18. 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

19. 2013 Major Transfers Out • Health Department - $1.043M • Juvenile Home - $502K Note: Other Child Care programs funded by the General Fund – $557K

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

21. General and Budget Stabilization Fund Balances Millions Green: Budget Stabilization Fund Blue:Assigned Fund Balance

22. RECOMMENDATIONS

23. 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.

24. Recent Developments in Bay County • Uptown at River’s Edge – City of Bay City: $50M - 500+ Jobs • Dow Corning - Williams Township: $117M Investments - 73 Jobs

25. Questions? Thank you! Go Tigers!