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.
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