ADOPTED - JULY 24, 2001

Agenda Item No. 28



Introduced by the Finance Committee of the:



INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION ADOPTING YEAR 2000 DEFICIT ELIMINATION PLANS FOR THE REGULAR DRAIN CAPITAL PROJECTS FUND AND THE CAPITAL PROJECTS CMH PROBATIONARY RESIDENTIAL FUND



RESOLUTION #01-228



WHEREAS, the Ingham County Regular Drain Capital Projects Fund had a $973,237 deficit fund balance on December 31, 2000; and



WHEREAS, the Capital Projects CMH Probationary Residential Fund had a $89,498 deficit fund balance on December 31, 2000; and



WHEREAS, Act 275 of the Public Acts of 1980 requires that a Deficit Elimination Plan be formulated by the County and filed with the Department of Treasury.



THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners adopts the attached Deficit Elimination Plans.



BE IT FURTHER RESOLVED, that the Ingham County Controller submit the Deficit Elimination Plans to the Department of Treasury for certification.

FINANCE: Yeas: Czarnecki, Hertel, Schafer, Swope, Lynch, Krause Nays: None

Absent: Minter Approved 7/18/01

INGHAM COUNTY MICHIGAN

DEFICIT REDUCTION PLAN

Fiscal Year Ended December 31, 2000







CAPITAL PROJECTS FUND

CMH Probationary Residential Fund - This fund had a deficit fund balance of $89,498 at December 31, 2000. The project involved the renovation of a vacant building under a lease agreement with the Community Mental Health (CMH) Board of Clinton-Eaton-Ingham Counties. Funding for the renovations is provided by State grants and advance from the General Fund.



Renovations were completed in 2001. The capital projects fund will be closed and the negative equity and related General Fund advance will be transferred to a Building Authority internal service fund. The internal service fund will administer the operating lease. The lease agreement with CMH provides for a twenty-year amortization of the General Fund Advance. Meanwhile, the internal service fund has sufficient fund equity to absorb the negative equity transfer. (Copies of selected portions of the lease agreement are enclosed.)





DISCRETELY PRESENTED COMPONENT UNIT

Regular Drain Capital Projects Fund - This fund had a deficit fund balance of $973,237 at December 31, 2000. A significant portion of the deficit is related to expenditures on petitioned projects. The engineering and legal fees associated with evaluating the petition cannot be assessed until after an apportionment hearing. The evaluation and apportionment process may take several years. The Drain Office is committed to moving several existing petitioned projects through hearings and assessment during 2001.



Short term financing on multi year assessments also contributes to the deficit because the current construction costs are reflected on the operating statement but a portion of the offsetting special assessment revenue is deferred. The eventual recognition of this deferred revenue will reduce the deficit.