County Board Gets 1Q Budget Update

Tina Gavalier, Washtenaw County’s finance analyst, briefed the board of commissioners at their May 16, 2012 meeting, giving a first-quarter financial update that contained mixed news. The county’s fiscal year is based on a calendar year – the update covered the first three months of 2012, through March 31. [.pdf of chart showing general fund projections]

Revenues for the general fund are now projected to be about $1.165 million more than budgeted – thanks in large part to about $2.5 million more in property tax revenues than originally anticipated. Total revenues for the 2012 general fund are expected to reach $99.9 million. [The board had received the news about the higher property tax revenues at its April 18, 2012 meeting, when the county equalization report was presented.]

But expenditures are $893,527 more than budgeted for the general fund, primarily due to $669,000 in higher-than-expected costs in the sheriff’s office from greater use of part‐time temporary workers and overtime, operating supplies, and jail medical/food contracts.

The 2012 budget had anticipated a surplus of $1.889 million, but the administration is now projecting a surplus of just $272,238. That surplus is intended to carry over into the 2013 fund balance – so the county faces a $1.617 million shortfall in the amount it had budgeted for the fund balance contribution. Currently, the county has a $14.5 million fund balance.

Gavalier listed out several areas that the administration intends to monitor closely, including medical costs, state revenue-sharing, personal property tax reform, and annual actuarial valuations for the retirement plan and retiree health benefits. Commissioners will get a second-quarter budget update at the board’s Aug. 1 meeting.

This brief was filed from the boardroom of the county administration building, 220 N. Main in Ann Arbor. A more detailed report will follow: [link]