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Ways & Means adopts fund-balance policy; sets money aside for pension/OPEB and countywide pay study
Summary
Committee approved a revised unassigned fund-balance policy and recommended allocations including funds to MERS, retiree health reserves, a local tax-defense pool and a countywide compensation study; administrators said detailed implementation steps and an RFP for the study will follow.
The Eaton County Ways & Means Committee adopted a revised unassigned fund-balance policy and recommended an initial allocation of reserves to accelerate pension and benefits work and to fund a countywide compensation study.
Administration presented a redlined policy and a recommended distribution of the county's unassigned fund balance (approximately $1.8 million at the time of the report). Under the framework the committee approved, staff will:
- Direct up to $300,000 toward MERS (pension funding) and up to $300,000 toward retiree-health/OPEB reserves; - Establish a $100,000 local tax-defense fund (policy to be developed) to help local units respond to legal or technical threats to tax bases in $50,000 increments; - Reserve $1.0 million to $1.5 million for a comprehensive compensation (wage) study and initial implementation funding, with the intention of using the study to inform union negotiations and future budgets.
"Putting funds into MERS and committing to a compensation study signals that we're serious about addressing retention and market competitiveness," administration said, noting the public defender office and other departments have faced recruitment and retention challenges.
Commissioners discussed whether some of the discretionary 5% set-aside in the fund-balance policy could be shifted to pensions now; staff said the board retains discretion to move additional funds into MERS during the regular budget process and that committed funds would continue to earn investment returns while reserved.
The committee passed the policy and the recommended allocation framework and directed administration to issue an RFP for the compensation study, to consult with bargaining units, and to return with firm cost estimates and an implementation timetable.
The committee also approved moving $500,000 from the delinquent tax revolving fund recommendation toward the county's unfunded pension liability after a separate motion by a commissioner.
