GENESEE COUNTY, MI — The county’s newest audit report shows an old, lingering challenge — quickly increasing well being advantage expenses for retirees and really tiny in the bank to spend the bill.
The audit by Plante & Moran shows the county’s total liability for the retiree well being advantages was extra than $405 million as of Sept. 30 with just $9.four million in the bank to make payments that are anticipated to be a important public expense for the subsequent 30 years-plus.
The new numbers are the newest proof of a extended-term drag on finances in the county, which in current years has paid roughly one particular of each 3 dollars from its price range on fringe advantages for present and retired workers.
Plante & Moran presented its audit to the county Board of Commissioners on Wednesday, March 15. Commissioners have been anticipated to meet in a workshop on Saturday, March 18, to go over county finances in higher detail.
Right here are six highlights from the report:
- Retiree well being care is projected to price extra than $16 million in the present fiscal year but the expense is projected to get worse ahead of it gets improved. Annual payments for the advantages are anticipated to major $20 million in the 2028 fiscal year, reaching $25 million by fiscal year 2038, and to continue above $25 million annually for yet another six years. A reduce in the annual payments is not anticipated till 2044 and the spending is not projected to drop back to present levels till 2052.
- The county pension program, which new staff are no longer enrolled in, is in a improved monetary position than the retiree well being care program. As of the finish of 2021, the county had pension savings of extra than $254 million and liabilities of extra than $363 million, generating the plan funded at almost 70%. The funded ratio of the pension plan has elevated from 61 % in 2018 to 69.eight% on Dec. 31, 2021.
- The county’s all round fund balance — also identified as its rainy-day fund — elevated from $39.five million to $42.1 million in the fiscal year that ended Sept. 30, 2022. At the finish of the present fiscal year, the unassigned fund balance for the basic fund was $15.three million or 15.eight% of total basic fund expenditures.
- As of the close of the present fiscal year, the county’s governmental funds reported combined ending fund balances of $97.five million, an raise of $eight.9 million compared with the prior year. A important portion of the raise can be traced to the raise in home tax income and charges for solutions.
- The county employed $three million in American Rescue Strategy Act funds in its most current price range, assisting it to add $two.six million in fund balance in the most current fiscal year. Spending elevated from $106 million to $131 million, an raise of about 24%, mostly for the reason that of elevated grant funding and transfers for capital projects.
- Since of increasing expenses, $25 million of the county’s fund balance is anticipated to be employed in future years, according to the report. Amongst the suggestions in the document are that the county carry out extended-term forecasting for all funds, formal money-flow projections, and adopt a fund balance policy.
Study extra at The Flint Journal:
Flint shifts funding to get four new fire trucks. Here’s what’s on the way
Genesee County commissioners may perhaps transform exactly where they sit to break up visual racial divide
Genesee County emergency purchases include things like new roof at Crossroads Village
Snyder’s lawyer calls for Nessel to finish ‘insanity’ of continued Flint water prosecutions