Comments on: Targeted Cuts for Washtenaw County Budget

By: Catherine McClary, Washtenaw County Treasurer

Catherine McClary, Washtenaw County Treasurer — Thu, 04 Jun 2009 13:31:54 +0000

The Washtenaw County Treasurer invests locally to help our communities while safeguarding public funds. She invests in Certificates of Deposit, up to the FDIC insurance limit per bank, in all banks doing business in Washtenaw County that meet qualifications for safety and offer competitive rates. This has increased the County’s investment from 3 local banks to 16 without any increased risk to the public. This local investment strategy enables the Treasurer to safeguard funds, support local banks, and increase the County’s return above the benchmark.

In 2008 home prices plunged, the value of retirement funds plummeted, and the credit markets collapsed. This makes a very difficult economic environment for people trying to provide for themselves and their families and makes it difficult for businesses to stay solvent, much less thrive. To recover public confidence in banking the federal government insured some money market funds and increased insurance coverage on bank deposits. The federal insurance has increased to $250,000 through December 31, 2013. In this new economic environment, the Treasurer initiated investment changes which have increased local investment.

The County Treasurer has the authority and responsibility to manage and invest surplus cash. These investments must be made in accordance with Public Act 20 of 1943 as amended and adhere to the County’s written investment policy. State law limits investments to Certificates of Deposit, Money Markets, Commercial Paper (if in the top 2 tiers of ratings), Agencies of the U.S. government, and U.S. Treasuries. As of December 31, 2008, the cash portfolio was $181,801,215. The average weighted yield was 2.22 %, ahead of its benchmark which yielded less than 1%. The value of this portfolio fluctuates with County cash flow needs, expenses, and unspent bond proceeds. It was $152,556,143 as of March 31, 2009 with a yield of 1.42%, still ahead of the benchmark.

Investments of the County’s retirement system are managed by an external portfolio manager under Public Act 314 of 1965. This State law permits investments in stocks, corporate bonds, real estate, and international securities. The Retirement Fund had assets of $152,558,497 as of December 31, 2008. The value on March 31, 2009 was $144,149,000. The 10-year annualized return is 1.7%.

By: Tom Brandt

Tom Brandt — Fri, 29 May 2009 23:04:52 +0000

What Richard (#11) said. Andy provides terrific services to County residents and officials.

By: Vivienne Armentrout

Vivienne Armentrout — Fri, 29 May 2009 22:42:10 +0000

MTC, I think you will find that many county commissioners are frustrated with the lack of news coverage of their activities. Part of this is the nature of the issues that they must deal with and their newsworthiness. If you will visit the county website (ewashtenaw.org), you will find an abundance of information and also webcasts of the meetings. Trying to compare the two units of government in this way is probably not useful. But I don't think that the number of press releases is a good measure of the quality of governance.

By: Brenda

Brenda — Fri, 29 May 2009 20:40:25 +0000

I don’t know where HuronBob got a number of 1,000,000 from, but the County lost $1.5B in taxable value between 2008 and 2009. Looking at it from a budget standpoint makes it easier. Say the County brought in $100,000,000 one year and expected property values to rise 5% as usual the next year with a resultant revenue increase to $105,000,000. This expectation is budgeted because the price of everything from copy paper to heating fuel rises as do salaries and benefits. If instead of rising 5% the taxable value falls 5% the County gets $95,000,000 in revenue. The County has to trim $10,000,000 from the budget. The County trimmed several million in 2008 in anticipation of falling values in 2009 and the value dropped more than expected even for 2009 so more cuts need to be made for 2009. In 2010 and 2011 values are expected to drop even more as housing prices continue to fall and taxable values are set based on the new, lower prices. That’s how you get $26 million.

By: Richard

Richard — Fri, 29 May 2009 15:13:26 +0000

Leave Andy alone…He may have a funny title, but he is extremly talented and a huge asset to the County.

He is also one of the nicest people you will ever meet.

By: my two cents

my two cents — Fri, 29 May 2009 01:37:54 +0000

Transparency is not only about accessibility of information but also about transmitting information (news media, press release, town halls, etc), It is more important to inform the public about issues and to give them an opportunity to provide input. How this is done and which method is better can always be debated. Nonetheless, I believe the city does a better job with transparency overall. I am more informed about what goes on in the city of Ann Arbor because of the city’s efforts to inform me. I have really limited knowledge about what goes on at the county level even though I do watch some of the meetings.

The county may respond better to document requests but that is only useful for those who are inside players who want specific information and know what to ask for. The transmittance of information to the public overall is much more important in my eyes.

By: Vivienne Armentrout

Vivienne Armentrout — Thu, 28 May 2009 21:24:26 +0000

MTC, transparency at the County is not measured by their news coverage. It is measured by the information made public on the website and by request, and by the open process during public hearings and comment. Despite Conan Smith’s placement of limits on Ways and Means public comment, it is still much more accessible than the city’s by virtue of not being limited to a reservation list. As indicated by Andy Brush’s comment, the county delivers good content that is not “watered down”.

I agree that the City has been having lots of public hearings, meetings, and makes public comment available. I am also impressed by the progress on the website. Jackie Beaudry has done an excellent job of making minutes and other documents fully searchable, and though it is cumbersome the Legistar system makes access to meeting documents good. It is much improved from a couple of years ago.

By: Andy Brush

Andy Brush — Thu, 28 May 2009 17:52:05 +0000

I am Washtenaw County's knowledge manager. My primary responsibilities are the care and feeding of the county's websites and the staff that use them to share information with their customers. The job is less about the technology, more about helping county employees, employees of other units of government, citizens and customers make best use of information sharing tools. I also spend a lot of time working with staff and helping make the flow of information be more productive, whether electronic or otherwise. If I got laid off, the county's knowledge would not go to the river. We have many systems and security measures in place to protect our waters. If you need additional information on the county's budget situation, we maintain a section with links to all relevant information on our website: County Budget - 2010/2011 Planning Process

By: Stewart Nelson

Stewart Nelson — Thu, 28 May 2009 17:03:41 +0000

My Two Cents:

I admit I am biased against the City. Years of bumping heads with them will make you that way.

Request information on anything from the DDA or the County and you get great information. Request information form the City and you get redactions by Roger Fraser.

Ask Karen Sydney, Jane Lumm, Lou Glorie, Ed Amonsen, John Floyd, or any number of other watch dogs about the transparency of the City. I suppose we all could be biased.

Stew

By: Bob Martel

Bob Martel — Thu, 28 May 2009 15:55:03 +0000

It’s disappointing to see that the still incomplete jail and the recently completed Zeeb Road facilities can be deemed surplus and expendable in a time of need. Were they ever really needed in the first place? Is the new AA City Hall really needed? When will the AA Schools start to talk about closing Pioneer High because it is no longer needed due to the recent opening of Skyline High? Where is the end to all of this bricks and mortar foolishness that our various government units have been engaged in over the past five to ten years?