Genesee County’s enormous retiree overall health liability is amongst six takeaways in new audit report
GENESEE COUNTY, MI — The county’s newest audit report shows an old, lingering challenge — quickly increasing overall health advantage fees for retirees and really small in the bank to spend the bill.
The audit by Plante & Moran shows the county’s total liability for the retiree overall health advantages was far more than $405 million as of Sept. 30 with just $9.four million in the bank to make payments that are anticipated to be a considerable 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 every single 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 had been anticipated to meet in a workshop on Saturday, March 18, to talk about county finances in higher detail.
Right here are six highlights from the report:
- Retiree overall health care is projected to price far more than $16 million in the present fiscal year but the expense is projected to get worse prior to it gets far better. 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 one more 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 method, which new personnel are no longer enrolled in, is in a far better monetary position than the retiree overall health care method. As of the finish of 2021, the county had pension savings of far more than $254 million and liabilities of far more than $363 million, producing 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 general fund balance — also recognized 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 improve of $eight.9 million compared with the prior year. A considerable portion of the improve can be traced to the improve in house tax income and charges for solutions.
- The county applied $three million in American Rescue Program 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 improve of about 24%, mainly mainly because of elevated grant funding and transfers for capital projects.
- Since of increasing fees, $25 million of the county’s fund balance is anticipated to be applied in future years, according to the report. Amongst the suggestions in the document are that the county execute extended-term forecasting for all funds, formal money-flow projections, and adopt a fund balance policy.
Study far more at The Flint Journal:
Flint shifts funding to invest in four new fire trucks. Here’s what’s on the way
Genesee County commissioners may possibly modify exactly where they sit to break up visual racial divide
Genesee County emergency purchases incorporate new roof at Crossroads Village
Snyder’s lawyer calls for Nessel to finish ‘insanity’ of continued Flint water prosecutions
