The Eaton County Ways and Means Committee on Wednesday authorized county administration to review and, if acceptable, finalize a proposed contract with Delta Township and approved an amortization-extension (reamortization) plan for most county pension groups aimed at lowering near-term pension costs.

County Deputy Administrator and Human Resources Director Ben (first name on record) told commissioners the financial projection in staff materials was based on a $2.2 million one‑time injection into the county pension fund. He said Delta Township was then considering a $2.0 million commitment and the county would provide roughly $1.0 million in the scenario staff modeled. ‘‘If we make a $3,000,000 injection today, it will immediately adjust that,’’ Ben said, adding the injection targets sheriff’s office pension groups that support services under the proposed Delta contract.

The committee unanimously approved a motion to send the Delta contract back to county administration for final review and to authorize follow-up steps if the terms presented to the full board are acceptable. Commissioners also passed an action to pursue a five‑year extension to the amortization schedule for eligible pension groups; staff said that change would lower required contributions in the first year by approximately $800,000 under the modeling shown to the committee.

Why it matters: The Delta contract and pension changes are linked. Staff said the contract includes a one‑time contribution and an ongoing administrative fee; a portion of that fee would be set aside for pension funds. That combination, staff said, could reduce the county’s long‑term pension burden and lower the personnel cost of any contracted public safety presence in Delta Township. Commissioners asked how the contract would protect the county if Delta could not meet its commitments; Ben said the contract contains a three‑year provision and other mechanisms to adjust staffing levels if funding falls short.

Key details from staff presentations:
- The MERS (Municipal Employees’ Retirement System of Michigan) valuation in the packet showed a funded ratio of about 60 percent, down marginally from the prior year because of smoothing of prior market losses. Ben described how smoothing spreads losses over multiple years and said additional one‑time funding and amortization changes would change future required contributions.
- Staff said all but three county pension groups qualified for a five‑year amortization extension under the actuaries’ tests used in the report. The proposed implementation date was October 1.
- The Delta contract, as described to the committee, would include a one‑time contribution and a commitment that 5 percent of the contract’s administrative fee would be directed into specified pension groups during the contract term.

What commissioners asked: Commissioners asked how the county would be protected if Delta Township later could not afford the contract and whether planned county positions to support out‑county coverage would remain open if the contract did not proceed. Ben said the agreement contains renegotiation points and a three‑year provision; he also noted that filling deputy positions takes time because of academy and field‑training timelines.

What passed on motions: The committee voted to authorize county administration to evaluate and move forward with the Delta contract if final terms are acceptable, and it voted to move a reamortization (amortization‑extension) proposal to the full board for approval. Both motions passed by voice vote.

Next steps: Staff said a finalized contract would be presented to the full board and then to Delta Township’s board. If the county adopts the amortization extension and receives Delta funding as modeled, staff said the combined effect would be a near‑term reduction in required pension contributions and a lower personnel cost for the sheriff’s office components tied to the contract.

Ending: The committee scheduled full‑board consideration of the contract and the reamortization request next week; commissioners who want to see the final contract were urged to review the packet once it is circulated prior to that meeting.