County administration told the Ways and Means Committee on May 16 that Eaton County faces a structural budget gap and must identify roughly $3 million in ongoing reductions to keep the general fund within its fund‑balance policy over a multi‑year horizon.

Controller and administration staff presented updated multi‑year projections showing the county’s general fund deteriorating under current spending and revenue assumptions, a situation made more acute after the county’s recent millage proposals failed. Staff said the projection includes a $3 million placeholder for additional employer pension contributions to the Municipal Employees’ Retirement System (MERS) and added $600,000 for other post‑employment benefits (OPEB) funding as a precaution. The numbers are subject to actuarial and market variance.

In parallel with operating budget planning, the committee reviewed capital planning. Administration recommended a competitive sale of capital improvement bonds for up to $12 million on a 20‑year schedule to finance facility projects and bank in funds for county facilities. Bond counsel and the county’s financial advisor presented a timeline to market bonds in late June and close in mid‑July after the referendum waiting period.

The committee adopted a resolution delegating authority to the controller, treasurer and administrator to complete the sale, award and closing of the bonds without returning to the board once the resolution is approved by the full Board of Commissioners. The committee also adopted the county’s six‑year Capital Improvement Plan (CIP) as a guiding document; staff said the CIP will be used for project prioritization and as part of future financing requests.

Separately, the committee adopted actuarial assumptions for the county OPEB valuation and approved the county’s selection of MERS rules for military leave credits (which preserves existing practice allowing employees to purchase pension service while on military leave). Both actions passed on unanimous voice votes.

What’s next: staff requested commissioners review the detailed departmental materials, prepare questions before the next budget meeting and anticipate a series of hearings and department presentations. The bond sale and CIP adoption accelerate planned facility work if proceeds are approved and a referendum period expires without challenge.