Gratiot County administration previews 2025–26 budget, recommends $1M MERS payment and fund restructuring

County administration presented a streamlined draft of the 2025–26 budget and a five‑year capital improvement plan, recommending a series of structural accounting changes and one‑time actions intended to reduce long‑term liabilities and smooth revenue volatility.

Mary Anne (administration/finance staff) told the Board the general fund budget is largely status quo but contains accounting reorganizations intended to make departmental budgeting clearer. "This is just a short PowerPoint to start our discussion on the budget tonight," she said, describing eliminated and merged funds, a newly created finance department and changes to how retiree fringe costs are recorded.

Key recommendations and figures presented:

- Use $1,000,000 of assigned fund balance to make an additional contribution to the county's MERS defined‑benefit pension plan to reduce the unfunded liability; despite that contribution the administration projects unassigned fund balance will increase by about $295,000 in the 2025–26 budget year. - Create an assigned fund balance target equal to 25% of current expenditures (proposed target cited at about $4,500,000) to provide a reserve for potential declines in taxable value, especially given uncertainty about personal property valuations associated with wind energy. - Restructure funds and move several previously separate funds (including the road patrol millage fund) into the general fund to simplify accounting and budgeting going forward. - Capital improvement plan (2026–2030) estimated roughly $7.6 million total; priorities cited for 2026 include sheriff patrol vehicle replacements ($1.4 million over a multi‑year plan), central dispatch capital projects ($3.3 million, exceeding current millage revenue), and a Federal Aviation Administration grant‑eligible T‑hangar at the airport (estimated total cost $391,500; local match about $11,004). - A jail renovation study will begin; county staff warned the renovation could require bonding if costs exceed reserves.

Administrator Ryan and staff warned that revenue risk stems from personal property tax valuations, including wind energy, which account for a substantial portion of the county's personal property tax base. Ryan summarized that "the county is in pretty solid financial shape right at the moment" but urged caution and incremental steps to manage future volatility.

The administration also noted several program‑level changes in the draft: the sheriff's road patrol special millage will be shown inside the general fund (rather than a separate fund), central dispatch requested two additional positions that are included in the proposal, the commission on aging and agricultural economic development voted millage requests were proposed to be reduced in the tax rate request filed later on the agenda, and the opioid settlement and child welfare funds remain difficult to forecast until settlement proceeds or state payments are finalized.

Board members debated the level of commissioner involvement in line‑item review, with several saying they wanted more education and more opportunity for commissioners to review departmental budgets in working sessions ahead of final adoption. Administration said it will deliver a full budget document and a position allocation list for final review and scheduled a public hearing and final adoption for Sept. 16 (statutory deadline Sept. 30 noted).

Next steps: staff will deliver the full 2025–26 budget document and supporting materials for board review and a public hearing prior to adopting the budget. The administration asked commissioners to forward any detailed questions by email to allow staff to provide answers at the next meeting.