By Rosemary Horvath
Herald Correspondent
Gratiot Commissioners were alerted to another shortcoming to the county’s personnel structure last week, on the heels of learning wages for a group of employees fall below market value.
The messenger in the new wrinkle was the county’s longtime auditor from Yeo &Yeo of Alma. Speaking during the 2023 audit presentation, which concluded with a clean opinion, CPA Ali Barnes highlighted a complex issue related to the management of the county’s 2,000 general ledger accounts.
Barnes noted that the audit required 40 adjustments impacting 240 accounts, many of which pertained to payroll accruals.
Significant transfers from the General Fund were also necessary for various departments, including Budget Stabilization, Solid Waste Planning, Public Improvement, Secondary Road Patrol, Social Welfare, Child Welfare, Child Care for Juveniles, Soldiers and Sailors, and the Animal Adoption Coordinator.
All accounts are tracked by County Treasurer Terri Ball and her office. They are responsible for safeguarding public funds, collecting and accounting for revenue, managing cash and investments, recording and depositing revenue for all county services, and collecting real property taxes.
County Administrator Chris Oosterhoff serves as finance manager and oversees budgeting, revenue and expenditures as part of his broader role in managing the county’s affairs.
While the Treasurer’s Office had contracted outside assistance over recent years to make certain records were reconciled, Barnes stressed the office still “needs ongoing assistance.”
Barnes went on to advise commissioners “You need to consider a separate finance director position or need to contract with outside help. It’s too much for the County Administrator to wear the financial hat for this county.
“County finance is complex. There are many funds and many departments and an unnecessary amount of work to put on one person. Consider it,” Barnes said.
Her suggestion failed to generate responses from commissioners at the meeting. Commissioner Steve Sopocy was absent.
Asked for his insight, Oosterhoff confirmed to The Herald he had been prepared to hear Barnes’ recommendation.
Oosterhoff took on the dual responsibility of administrator and finance manager in 2023 following the departure of Tracey Cordes who hired him as Finance Manager in 2017. He has since appointed Sheila Barnaby as Assistant Administrator who handles personnel, among other things.
Oosterhoff had two overdue audits to complete, several lawsuits associated with wind turbine assessment challenges, labor negotiations, the county’s acquisition of the community airport from the City of Alma, and more to contend with.
He admitted to being overwhelmed.
Oosterhoff plans to look into contracting with a finance company acquainted with the accounting model used by the Treasurer’s Office. If favorable, the information collected would then be shared with the county board at future meetings, he said.
Five-year Revenue Forecast
At the April 16 county board meeting, commissioners expect to receive a final wage and salary report for board action.
Oosterhoff and Equalization Director Keegan Bengal in response to a request from Finance Committee Chairman, Commissioner George Bailey, detailed a 5-year revenue forecast for the county.
Applying an Inflation Rate Multiplier to predict future property values, they concluded real estate growth will outpace wind turbine depreciation through 2029.
Figures from 2022, for example, were $602,599,203 as turbine value compared to real estate value of $1,079,048,969. General fund taxes collected amounted to $9,300,523.
Amounts projected for 2029 were turbine value at $401,394,742; real estate value, $1,456,802,037, and general fund taxes, $10,276,942.
This study does not include solar farm taxable values although tax revenues are projected to bring in more than $500,000 annually to the general fund.
Commissioner Bailey expressed satisfaction with the report.
County Recycling Regional Plan
Fulton Township Trustee Bob Baxter spoke on behalf of townships interested in having a say in the state-mandated trash and recycling program the county is partnering through the Isabella County Materials Recovery Facility.
A regional plan has yet to be realized. Oosterhoff said the county will reach out to local governments for input about a new waste management program.
Unspent American Rescue Plan Act dollars
Fulton Township Supervisor Doug Antes requested an amendment to the township’s ARPA allocation. Two of the four projects came in underbudget while two others went overbudget. Antes requested approval to amend the original agreement. The projects include a sewer lift station and a cemetery well that came in underbudget. A BS&A software upgrade and a land purchase went over. Commissioners agreed by approving an amendment.
Commissioner Bailey took the opportunity to stress recipients of ARPA funds are obligated to spend their allocations by a deadline. “Spend the money before the deadline!” he encouraged.