The Board of Commissioners received the 2023 Annual Comprehensive Financial Report (audit) on Tuesday, April 9, 2024. For full transparency, the report can be found in the packet (starting on page 60).

• The County received a clean, unqualified opinion from the audit

• The County’s financial position was strengthened by approximately $14 million in 2023

• The County continues to invest in assets and infrastructure where needed

• The County’s net position is over $200 million, with a total budget of $250 million

• The County has a $74 million bottom line

• Funds are set aside for the future

• No budget overages were identified

• The County is able to handle and respond to emergencies as needed

Board Chairman Joe Moss commented that the audit shows the County is in excellent financial position, and that the information from the audit is the best possible outcome for Ottawa County and its taxpayers.

The focus on fiscal responsibility by the Board and County Administration is evident in the 2023 Financial Report.

Moss gave an update reiterating the news reported earlier in the Financial Report and also shared additional financial news.

According to the Ottawa County website, “The Ottawa County, Michigan Insurance Authority assumes financial and operational responsibility for all matters relating to risk retention, risk management, and insurance coverage (except employee benefits) for the County, including its departments and agencies, and the Ottawa County Building Authority.”

For approximately 35 years the Ottawa County Insurance Authority meetings were closed to the public. In 2023 the new Board opened the meetings to the public to increase transparency for the citizens of Ottawa County.

• In March of 2024 the Insurance Authority Board reviewed and approved the insurance renewals

• The annual cost increase was 1.3% higher than last year. The financial analyst reported that the insurance industry is seeing up to 10% increases in premiums. By comparison, the 1.3% increase for Ottawa is excellent.

• Staff’s innovative approach at managing insurance coverage and insurance risk

• The County’s strong financial position

• The Authority’s large asset portfolio

One public commenter and Commissioner Jacob Bonnema were concerned about a decrease in coverage but were told the County had been paying for excess insurance that wasn’t needed and never once used.

The Insurance Authority Board relies on staff who know the ins and outs of the happenings in the Insurance Authority. The staff provided documentation to the Insurance Authority Board regarding excess coverage.

• In the Authority’s history, no loss has ever exceeded the first layer of coverage

• With the Authority’s excess funds available, the staff recommended that the excess layer not be purchased

• For years the County has been paying for extra coverage that was never needed. Decreasing the coverage will keep costs down for the taxpayers.

• One carrier allowed a policy renewal at a zero percent cost increase

• As of December 31, 2023, the Authority portfolio increased to $42.5 million

April 9, 2024 Ottawa County Board of Commissioners Meeting

A motion was made to “reallocate excess unrestricted $1,839,314 from the Department of Public Health Fund and excess unrestricted $640,026 from the Child Care Fund for a total of $2,479,340 to the General Fund.”

• There is no policy in place for excess funds in department accounts, but Fiscal Director Karan Karasinski is working on creating a policy

• Commissioner Doug Zylstra questioned why the Board would make the transfer before there is a policy

• Commissioner Gretchen Cosby, reiterating what Karasinski had told the Finance and Administration Committee, explained that this move is consistent with good accounting principles, and historically this action had been discussed but not consistently applied

• Vice Chair Sylvia Rhodea reminded the Board and public that the excess funds have caused confusion during the budget process and that it is important for transparency that the funds get moved

• Rhodea also stated that the Board is quite capable of transferring the funds and working on a policy all at the same time

• Bonnema, in his second year as commissioner, was not understanding unrestricted funds and appeared defensive regarding the move

• Bonnema asked Karasinski if there should be zero in the fund balance. Karasinski explained that there could be funds in the fund balance, but they wouldn’t be unrestricted funds.

• Still not understanding unrestricted funds, Bonnema asked if the Health Department would have to ask for funds if these funds were now in the General Fund, implying he thought the Health Department could use the funds when they wanted to without asking to use them

• Karasinski reminded Bonnema that whether these funds were in the Public Health Fund Balance or the General Fund, Board action is always required

• The reallocation does not change any process

• The motion passed 9-2, with Commissioners Roger Bergman and Zylstra voting no

It was easy to see why the public gets confused about these funds when some of the commissioners didn’t understand them either. This move for more transparency is an effort to help bring clarity.

Commissioner Zylstra once again moved almost all items from the Consent Agenda to Agenda and Action Items.

• Information provided during Standing Committees is provided in the packet and the meeting videos are available on YouTube. Zylstra stated during a previous meeting, “I don’t think I should need to watch it online.”

• Other commissioners have not asked to redo all motions and reports given in Standing Committees

• This action by Zylstra also makes meetings substantially longer while employees must wait in the Board room, not accomplishing their work

One member of the public present at the meeting commented that Zylstra is either intentionally coming unprepared or throwing a hissy fit due to the fact he cannot sit on all committees, and that he’s punishing the public, the County employees, and wasting tax dollars all at the same time.

While many commissioners are focused on being fiscally responsible, others appear to want to waste time because they don’t get what they want.

Ottawa County Board of Commissioners
Regular Session
April 9, 2024

Ottawa County Administration Building
12220 Fillmore Street
West Olive, MI 49460