• Sat. Apr 1st, 2023

Genesee County’s substantial retiree properly becoming liability is amongst six takeaways in new audit report


Mar 18, 2023

GENESEE COUNTY, MI — The county’s newest audit report shows an old, lingering challenge — swiftly rising properly becoming benefit costs for retirees and really smaller in the bank to commit the bill.

The audit by Plante &amp Moran shows the county’s total liability for the retiree properly becoming added advantages was a lot much more than $405 million as of Sept. 30 with just $9.4 million in the bank to make payments that are anticipated to be a substantial public expense for the subsequent 30 years-plus.

The new numbers are the most present proof of a extended-term drag on finances in the county, which in present years has paid roughly 1 of just about every single three dollars from its spending spending budget on fringe added advantages for current and retired workers.

Plante &amp 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 more than county finances in larger detail.

Correct right here are six highlights from the report:

  • Retiree properly becoming care is projected to price tag a lot much more than $16 million in the current fiscal year but the expense is projected to get worse just just before it gets higher. Annual payments for the added advantages are anticipated to top $20 million in the 2028 fiscal year, reaching $25 million by fiscal year 2038, and to continue above $25 million annually for however a different six years. A reduce in the annual payments is not anticipated till 2044 and the spending is not projected to drop back to current levels till 2052.
  • The county pension plan, which new employees are no longer enrolled in, is in a higher monetary position than the retiree properly becoming care plan. As of the finish of 2021, the county had pension savings of a lot much more than $254 million and liabilities of a lot much more than $363 million, creating the technique funded at virtually 70%. The funded ratio of the pension technique has enhanced from 61 % in 2018 to 69.eight% on Dec. 31, 2021.
  • The county’s basic fund balance — also recognized as its rainy-day fund — enhanced from $39.5 million to $42.1 million in the fiscal year that ended Sept. 30, 2022. At the finish of the current fiscal year, the unassigned fund balance for the fundamental fund was $15.3 million or 15.eight% of total fundamental fund expenditures.
  • As of the close of the current fiscal year, the county’s governmental funds reported combined ending fund balances of $97.5 million, an enhance of $eight.9 million compared with the prior year. A substantial portion of the enhance can be traced to the enhance in residence tax revenue and charges for options.
  • The county utilized $3 million in American Rescue Method Act funds in its most present spending spending budget, assisting it to add $two.six million in fund balance in the most present fiscal year. Spending enhanced from $106 million to $131 million, an enhance of about 24%, mostly because of enhanced grant funding and transfers for capital projects.
  • For the cause that of rising costs, $25 million of the county’s fund balance is anticipated to be utilized in future years, according to the report. Amongst the recommendations in the document are that the county execute extended-term forecasting for all funds, formal dollars-flow projections, and adopt a fund balance policy.

Study a lot much more at The Flint Journal:

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