Macomb County finance staff project 2024 surplus; committee approves year-end budget adjustments and policy updates 10-0

Macomb County Finance, Audit and Budget Committee members were told Tuesday that county finances are tracking ahead of projections and staff recommended several year-end adjustments; the committee recommended each item to the full board by unanimous votes.

Steve (finance staff) presented the county’s quarterly report for the quarter ending Sept. 30, 2024, and told the committee he is projecting another surplus for 2024. Steve said revenues are "very healthy" and that personnel expenses are tracking about 2.5% under budget, producing projected savings.

Why it matters: committee members asked how projected increases in property values and the county’s revenue picture would translate into dollars the board can budget. Staff estimated that each 1 percentage point increase in taxable value would add roughly $1.7 million in revenue.

Actions approved or advanced - The committee voted 10-0 to receive the Finance Department third-quarter report. - The committee voted 10-0 to receive the Department of Equalization’s 2024 study report for 2025 equalized values (presented by Kristen, equalization staff). Kristen reported an overall real property assessment increase of 6.3% and a residential assessment increase of 6.7%; she explained the role of equalization ratios and how the Consumer Price Index (CPI) factors into taxable value changes. - The committee voted 10-0 to recommend the 2024 amended Macomb County Apportionment Report to the full board. Kristen said the amended report corrects an error that had inadvertently included six state education tax mills in the industrial personal property column; that six-mill amount was removed and adjusted for every affected school district. - The committee voted 10-0 to recommend the Macomb County cash accounting and receiving policy (amended) to the full board after staff, the treasurer’s office and corporate counsel reviewed redlines. - The committee voted 10-0 to recommend a budget amendment totaling $6,256,057 to the full board. Steve said the amendment adjusts revenue and two expenditure line items, uses projected personnel savings and transfers from the Capital Improvement Fund to support capital projects approved during 2024. Staff said the net result will increase the county’s fund balance by just under $6 million and that, if projections hold, the county could end the year with a fund balance near $128–129 million.

Equalization and property values Kristen (equalization staff) walked commissioners through the 2025 equalized value study, describing a 20% review of ag, commercial and industrial appraisals and a sales study for residential properties. Kristen said assessors performed an unusually large reappraisal effort this year, reporting the staff "did about 43 100 appraisals" (as spoken in the meeting) and that residential class assessments are driving the countywide value increase. She explained how equalization ratios are calculated and said the statewide target assessment ratio is 50%.

Ballot results and apportionment adjustments Kristen told the committee two November ballot proposals affected the apportionment report: one failed (Elmont Schools) and another (Warren School District) passed, allowing the district to levy additional operating mills up to the statutory maximum. Separately Kristen said she corrected an internal reporting error that had placed six state education tax (SCT) mills into industrial personal property totals; she removed the six mills from those fields and adjusted totals for all impacted school districts.

Policy housekeeping Commissioners approved, 10-0, a revised county cash accounting and receiving policy that staff and county counsel had redlined and circulated. Committee members thanked Commissioner Kraft and staff for leading the review and updates.

Vote at a glance (items moved to full board) - Receive Finance Department quarterly report: committee vote 10-0 (recommend receive file) - Receive 2024 Study Report for 2025 Equalized Values: committee vote 10-0 (recommend receive file) - Recommend 2024 Amended Macomb County Apportionment Report to full board: committee vote 10-0 - Recommend Macomb County cash accounting and receiving policy (as amended) to full board: committee vote 10-0 - Recommend budget amendment totaling $6,256,057 to full board: committee vote 10-0

Ending Staff said they will return with a fuller year-end accounting in the spring; the committee advanced all items to the full Macomb County Board of Commissioners for final action.