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2019 County of Otsego, Michigan Dashboard and Citizen’s Guide Citizens can obtain financial documents and other pertinent information about Otsego County by visiting www.otsegocountymi.gov ---PAGE BREAK--- Table of Contents County Dashboard 3 FISCAL STABILITY General Fund - Fund Balance 4 Budget Stabilization Fund Balance 5 Delinquent Property Tax Fund Net Assets 6 Taxable Value 7 General Fund Tax & Penalty Revenue 8 General Fund Total Expenditures 9 General Fund Total Revenues 10 General Fund Revenues vs. Expenditures 11 General Fund Expenditures Per Capita 12 General Fund Balance as % of General Fund Expenditures 13 Budget Stabilization & General Fund Balance as % of General Fund Expenditures 14 General Fund Expenditures by Category 15 Average Number of Employees by Year 16 Long Term Debt 17 Long Term Debt Per Capita 18 Percent of Pension Funded 19 ECONOMIC STRENGTH Average Unemployment 20 Percent of All Ages in Poverty 21 Estimated Median Household Income, in dollars 22 Top 10 Employers in Otsego County 23 Census Age Groups 24 Countywide Voted Millages 25 Shared 26 ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard & Citizen’s Guide Prior Current Progress Annual general fund expenditures per capita KEY: Arrows represent the change from prior to current year; The color of the arrow represents if the change was positive (GREEN) or negative (RED). A double arrow represents no change (NEUTRAL) Fiscal Stability Fund balance as a percent of annual general fund expenditures Debt burden per capita Pension Funded at % Prior Current Progress Economic Strength Average Annual Unemployment Source: MI Dept. of Tech., & Budget % in Poverty (all ages) Source: U.S. Census Bureau Prior Current Progress Public Safety Violent Crimes (Incidents) Source: MI Incident Crime Reporting Traffic Accidents Source: MI State Police, Traffic Crash Reporting System Prior Current Progress Quality of Life Number of Public Parks, Playgrounds, and Campgrounds, Source: OCPR Number of Golf Courses Source: GACTB Estimated Median Household Income Source: U.S. Census Bureau 3 Number of Employees per 1,000 Residents, Source: Otsego County Number of services delivered via cooperative venture Net Pension Liability Other Post Employment Benefits (OPEB) 5.2% 2018 7.7% 2019 46.38% 2018 50.71% 2019 $111.76 2018 $56.75 2019 5.47 2018 5.55 2019 15 2018 17 2019 66% 2018 64% 2019 $7,385,287 2017 $9,014,855 2018 $2,537,155 2014 $1,930,701 2017 Population (estimate) Source: U.S. Census Bureau 24,665 2018 24,668 2019 $51,814 2017 $51,292 2018 14.9% 2017 11.4% 2018 $328.19 2018 $342.72 2019 278 2017 307 2018 507 2018 967 2017 919 2018 Personal Property Crimes (Incidents) Source: MI Incident Crime Reporting 621 2017 41 2018 41 2019 459.48 2019 Miles of Minimum 4-Foot Paved Shoulders, Source: OCRC 458.44 2018 17 2019 17 2018 96 2019 96 2018 Miles of Groomed, Signed, Snowmobile Trails, Source: OCRC Data Source: Otsego County 2019 Audit, unless otherwise specified OCPR: Otsego County Parks & Recreation OCRC: Otsego County Road Commission GACTB: Gaylord Area Convention & Tourism Bureau ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability The General Fund is the primary fund of the County used to account for all revenues and expendi- tures of the County that are not legally restricted as to use. The primary source of funding for the General Fund is property tax revenues. Other sources of funding include fees and charges, trans- fers, and grants. Additionally, the Fund Balance is needed to assist with cash flow as the County waits for property tax revenue to be collected in the fall each year. 4 $1,173,908 $1,393,949 $1,685,596 $1,994,088 $2,497,013 $2,853,233 $3,134,100 $3,377,436 $3,753,132 $4,287,556 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund - Fund Balance ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard By statute, the purpose of the Budget Stabilization Fund is to set aside monies to assist the County in keeping with current service levels during difficult budget times. The monies can be used as an allocation in the County General Fund to keep existing programs and service levels, but cannot be used to develop new programs, add staffing, fund capital projects, or purchase equipment. In the case of Otsego County, the funds are borrowed and repaid each year in order to help with cash flow while waiting for property tax revenues to be collected in the fall each year. 5 $1,046,403 $1,159,497 $1,275,628 $1,375,683 $1,485,187 $1,485,187 $1,485,187 $1,491,239 $1,498,141 $1,503,077 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Budget Stabilization Fund Balance ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability In March of each year, the County pays each taxing unit in the County, such as schools, townships, and other municipalities, the balance of their property tax levy so they are made whole, totaling approximately $3 million per year. The County is then responsible for following up and collecting all delinquent real taxes plus interest and penalties. Without this fund, the County would have to borrow money annually to pay the local units their property tax levy. Only a portion of the Delinquent Tax Fund is in actual cash or investments while the remaining is made up of delinquent tax receivables. The majority of those dollars will be used to meet the cash flow needs for the $3 million settlement payout each spring. 6 $7,336,160 $7,437,629 $8,397,118 $7,723,373 $8,189,673 $7,711,687 $7,063,076 $6,957,376 $6,715,220 $6,774,934 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Delinquent Property Tax Fund Net Assets ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability Michigan’s Constitution requires that the assessed value of every property be a uniform propor- tion, not to exceed 50 percent, of the “true cash value,” referred to as state equalized value (SEV). The assessed values are equalized among the local municipalities within a county, and among the counties, by the State Tax Commission to ensure uniformity throughout the state. Source: CRC (Citizens Research Council) Memorandum No. 1058, March 2001. 7 $1,170,785,765 $1,155,363,908 $1,164,198,886 $1,141,288,013 $1,137,047,405 $1,152,385,044 $1,231,607,518 $1,258,730,002 $1,296,529,445 1,050,000,000.00 1,100,000,000.00 1,150,000,000.00 1,200,000,000.00 1,250,000,000.00 1,300,000,000.00 1,350,000,000.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 Taxable Values ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability This graph shows the activity of the General Fund property tax revenue from 2008 through 2019. 8 $5,206,694 $4,912,037 $4,403,401 $4,506,299 $4,565,004 $4,698,675 $4,377,768 $4,554,739 $4,717,049 $5,110,265 $5,161,173 $5,484,784 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Property Tax & Penalty Revenue ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability The County has consistently kept its General Fund expenditures in line with its General Fund rev- enues. This has been achieved by a variety of methods including employee reductions, privatiza- tion of services, and increased cost to employees for benefits. 9 $7,999,662 $7,727,904 $7,431,524 $7,277,539 $7,421,178 $7,541,271 $7,553,311 $7,762,287 $7,613,361 $7,953,748 $8,092,231 $8,454,245 $6,600,000 $6,800,000 $7,000,000 $7,200,000 $7,400,000 $7,600,000 $7,800,000 $8,000,000 $8,200,000 $8,400,000 $8,600,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Total Expenditures ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability The graph above illustrates an overall increase in total County General Fund revenues since 2008. 10 $8,252,760 $7,847,765 $7,378,483 $7,623,355 $7,788,495 $7,849,763 $7,930,210 $7,970,843 $7,894,228 $8,203,136 $8,474,829 $8,901,018 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Total Revenues ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability The graph above shows the success of Otsego County in reducing expenditures to match declines in revenue. The only exception was in 2010 due to higher than anticipated tax chargebacks due to challenges at the Michigan Tax Tribunal. 11 $7,378,483 $7,623,355 $7,788,495 $7,849,763 $7,930,210 $7,970,843 $7,894,228 $8,203,136 $8,474,829 $8,901,018 $7,431,524 $7,277,539 $7,421,178 $7,541,271 $7,553,311 $7,762,287 $7,613,361 $7,953,748 $8,092,231 $8,454,245 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Revenues vs Expenditures Revenues Expenditures ---PAGE BREAK--- Source: Population Data: U.S. Census Bureau 2019 County of Otsego, Michigan Dashboard Fiscal Stability 12 $338.11 $330.08 $307.55 $302.25 $308.96 $312.54 $312.66 $320.05 $311.13 $324.14 $328.09 $342.72 $280.00 $290.00 $300.00 $310.00 $320.00 $330.00 $340.00 $350.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Expenditures Per Capita ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability See the next page for a discussion on General Fund fund balance. 13 13.84% 15.88% 15.80% 19.15% 22.71% 26.44% 33.06% 36.73% 41.17% 42.46% 46.38% 50.71% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Fund Balance as Percent of General Fund Expenditures ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability Historically, the County’s property tax billing date had been December 1st. Between 2005 and 2007, the State of Michigan shifted that tax billing date to July 1st, delaying the arrival of revenue needed to operate the County General Fund. A common rule of thumb in the past has been that a fund balance of 15% of operational expenditures is needed for operations and contingency. As a consequence of the tax shift, the County must have cash resources on hand to pay bills until the property tax revenue is actually collected in the fall of each year. These July tax billings are due on September 15. So, despite having a fund balance of approximately 60%, the County still has to find other sources of cash to draw from in order to operate through almost three-quarters of the year. before the tax revenues are collected. 14 23.78% 27.92% 29.88% 35.09% 39.90% 44.68% 52.72% 55.87% 60.67% 61.21% 64.89% 68.49% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Budget Stabilization & General Fund Fund-Balance as % of General Fund Expenditures ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability The chart above shows that approximately (61%) of the County General Fund Expenditures in 2019 went towards funding Public Safety and the Court System, while General County Functions (Building & Grounds, Clerk/Register of Deeds, Prosecuting Attorney, Equalization, and Information Technology) accounted for 22% of the Expenditures. 15 3% 27% 22% 34% 8% 1% 5% General Fund Expenditures by Category - 2019 Legislative Judicial General Gov Public Safety Health & Welfare Community & Economic Development Other ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability 16 150 135 136 136 132 142 150 143 135 137 120 125 130 135 140 145 [PHONE REDACTED] 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Number of Employees by Year ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability Long Term Debt includes debt incurred by the County and its Component Units. Funds used to pay for debt comes from a variety of sources including Component Unit Revenues and dedicated Extra-voted Millages. The only remaining debt payments are for the University Center/M-TEC and an extra-voted millage for the Library Ex- pansion Project. All debt is expected to be paid off by the end of 2022. 17 $3,092,550 $2,885,926 $3,465,926 $3,120,926 $2,845,926 $2,523,879 $2,279,964 $1,867,313 $3,398,335 $2,756,563 $1,400,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Long Term Bond Debt ---PAGE BREAK--- Source: Population Data: U.S. Census Bureau 2019 County of Otsego, Michigan Dashboard Fiscal Stability 18 $132.09 $119.43 $143.95 $129.93 $117.95 $104.47 $94.01 $76.31 $138.49 $111.76 $56.75 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Long Term Bond Debt Per Capita ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Fiscal Stability Otsego County is a member of MERS (Municipal Employees Retirement System of Michigan). MERS calculates the unfunded liability in member retirement plans based on a variety of assump- tions, which are updated annually. Changes in actuarial assumptions and a decrease in invest- ment earnings resulted in the drop for 2019. Additional payments into MERS resulted in the im- proved funding percent. The County has adopted changes to its retirement plan migrating most employees to a hybrid of defined benefits and defined contributions, which should eventually decrease the County’s un- funded liability. Beginning in 2020, all new hires will be participating in a defined contribution plan. The County has also begun making extra payments to MERS as well as implementing an employee contribution toward the defined benefit plan. 19 73% 72% 72% 71% 71% 64% 65% 66% 66% 64% 58% 60% 62% 64% 66% 68% 70% 72% 74% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Percent of Pension Funded ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Economic Strength Source: MI Dept. of Technology, Management, & Budget While the unemployment rate for Otsego County is historically higher than that of the State of Michigan, the rate for the County has been generally decreasing since 2011. 20 12.4% 10.8% 10.4% 8.1% 5.9% 6.1% 6.1% 5.2% 4.9% 10.3% 9.1% 8.8% 7.3% 5.4% 4.9% 4.6% 4.1% 4.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average Unemployment Otsego Michigan ---PAGE BREAK--- Source: U.S. Census Bureau, Small Area Income and Poverty Estimates 2019 County of Otsego, Michigan Dashboard Economic Strength The graph shows that the Percent of All Ages in Poverty in Otsego County has been consistently lower than that experienced by the State of Michigan over the last several years. 21 13.6 14.0 13.6 13.2 12.1 14.0 14.9 11.4 17.5 17.4 17.5 16.2 15.7 14.9 15.6 14.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 2011 2012 2013 2014 2015 2016 2017 2018 Percent of All Ages in Poverty Otsego Michigan ---PAGE BREAK--- Source: U.S. Census Bureau, Small Area Income and Poverty Estimates 2019 County of Otsego, Michigan Dashboard Economic Strength 22 $44,129 $48,242 $47,016 $44,693 $50,420 $50,061 $51,814 $51,292 $45,931 $46,793 $48,200 $49,755 $51,063 $52,436 $54,840 $56,640 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2011 2012 2013 2014 2015 2016 2017 2018 Estimated Median Household Income, in dollars Otsego Michigan ---PAGE BREAK--- Source: Otsego County Economic Alliance 2019 County of Otsego, Michigan Dashboard Economic Strength 23 Top 10 Employers in Otsego County Company Number Employed Otsego Memorial Hospital 806 Treetops Resort 500 Gaylord Community Schools 308 Meijer 205 Cooper Standard Automotive 185 Johnson Oil and Propane 160 Otsego County 139 Tendercare 96 Lowe's Home Improvement 120 Mayfair Plastics 109 Total Employed by Top 10 2,628 ---PAGE BREAK--- 2019 County of Otsego, Michigan Dashboard Economic Strength Source: Population Data: U.S. Census Bureau, 2010 Census 2,927 3,223 2,336 2,570 3,559 3,819 2,875 1,775 935 145 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90 + Age Groups The 2010 U.S. Census shows the distribution of age groups in Otsego County. The chart above illustrates the smaller than expected number of residents in the 20 to 29 age range, as well as the 30 to 39 age range. This is thought to be a result of an insufficient number of jobs being available for those age ranges. 24 ---PAGE BREAK--- 25 2019 County of Otsego, Michigan Dashboard Economic Strength Countywide Voted Millages as of Tax Year 2018 Year/Mills Voted on Duration 4.0502 County Operating August 7, 1978 Fixed Roll Back, 1993, 1999 0.3000 Animal Control 5 Years - 3/10 Mill August 7, 2018 2019 Thru 2023 0.6000 Bus 5 Years - .6 Mill August 6, 2019 2019 Thru 2023 1.0000 Commission on Aging 5 Years - 1 Mill August 6, 2019 2020 Thru 2024 0.2500 County Parks& Recreation 5 Years - 1/4 Mill August 3, 2016 2017 Thru 2021 0.7800 EMS (Ambulance) 5 Years - .78 Mill November 4, 2014 2018 Thru 2021 0.4000 Library 6 Years - 4/10 Mill November 3, 2020 2020 Thru 2024 0.3750 Library Extra Voted 6 Years - .3750 Mill November 8, 2016 2016 Thru 2021 0.6464 M-TEC/University Center 20 Years - .65 Mill December 7, 1999 2000 Thru 2019 0.3500 Recycling 5 Years - .35 Mill August 7, 2018 2018 Thru 2022 1.0000 Road Commission 10 Years - 1.0 Mill November 4, 2014 2014 Thru 2023 0.2500 10 Years - 1/4 Mill November 2, 2010 2011 Thru 2020 0.1875 Building Repair 5 Years - 3/16 Mill November 4, 2014 2014 Thru 2018 10.396 Total ---PAGE BREAK--- 26 2019 County of Otsego, Michigan Dashboard Economic Strength Otsego County Shared Services 9-1-1 Dispatch - Otsego County and the State of Michigan have historically shared a dispatch center. The building is owned by the State of Michigan, and the property is owned by Otsego County. The County began contracting with the State of Michigan in 2013 to provide 9-1-1 dispatch services including taking over the Dispatcher positions. Building Inspections - Otsego County provides building inspection services for the entire county. Forensic Autopsy Services - Otsego County has an Interlocal Agreement in place with a regional firm for forensic au- topsy services for its Medical Examiner’s Office. Health Department - Otsego County is a member of the Health Department of Northwest Michigan, along with Antrim, Charlevoix and Emmet Counties. Trail System - Otsego County is partnering with Bagley Township, Otsego Lake Township, and the Michigan Depart- ment of Natural Resources to extend the North Central State Trail south and to create a trailhead in downtown Gaylord. Office Space - Otsego County provides office space and support for MSU-Extension, Conservation District, and the Otsego County Economic Alliance at no charge to those agencies. Planning and Zoning - the Otsego County Zoning Ordinance covers all nine townships in Otsego County, with funding coming from the township governments. County staff support the County Planning Commission and perform all zoning work including ordinance enforcement. Additionally the county partners with the townships to pay for the service. Recycling - Otsego County worked over a period of four years with the City of Gaylord, the Village of Vanderbilt, the nine townships located in Otsego County to create a plan for countywide recycling, which was then implemented upon the passage of a millage in 2012. Trailhead Project - Otsego County is partnering with the City of Gaylord, DDA, Tourism Bureau for the construction of a trailhead in downtown Gaylord.