For Wayne County, little but meaningful changes are adding up to bit improvements for the municipality.

In other words, bond ratings, budget surpluses and a stronger fiscal standing may not seem exciting on the surface. But these fixes in the county’s fiscal year are going to be significant in both the short and long term, officials said recently.

Here’s the biggest news from Wayne County and its 2015-16 financial review: For the second year in a row, the county says it will have a general fund operation budget on the plus side. In fact, it will have a budget surplus of about $44 million based on early figures from its Department of Management and Budget, the county said.

Wayne County Executive Warren Evans is moving the needle on critical initiatives, inching public perception and headlines away from a “floundering” moniker to a more positive “flourishing” status as evidenced by Moody’s third consecutive bond rating since Evans took office.

Wayne County Executive Warren Evans says he hopes his staff is moving the needle on critical initiatives, inching public perception and headlines away from a “floundering” moniker to a more positive “flourishing” status as evidenced by Moody’s third consecutive bond rating since Evans took office.

Wayne County Executive Warren Evans says he hopes his staff is moving the needle on critical initiatives, inching public perception and headlines away from a “floundering” moniker to a more positive “flourishing” status as evidenced by Moody’s third consecutive bond rating since Evans took office.

“Our Recovery Plan calls for creating surpluses through good fiscal management so that we can finish the jail and pay down our remaining unfunded liabilities, which are substantial,” Wayne County Executive Warren C. Evans said in a statement. “The better the County sits financially when we finance the jail project, the less it’ll cost us to borrow to complete it.”

Another big piece of news is that the big bond-rating company has upgraded the county’s rating. In specific, Moody’s boosted Wayne County’s general obligation limited tax bonds from Ba2 to Ba1. A better bond rating means the county can borrow money and do other financial things for less money, saving taxpayers as well.

This is the third upgrade in less than two years, a sign of confidence from Moody’s. These surpluses and bond-rating improvements “reflect the continued progress” that Wayne County is enjoying, Evans noted in a press release.

It has been a combination of fiscal discipline and cooperation between the Evans administration and the Wayne County commissioners that also has been helpful, Evans noted. He especially thanked Wayne County Commission Chair Gary Woronchak and the other commissioners.

This is the third upgrade in less than two years, a sign of confidence from Moody’s.

“The Commission and administration have done a good job enacting budgets that recognize the future needs of the County, and we’re seeing the results,” Woronchak said in a statement. “We’ll never see eye-to-eye on everything, but there’s been a good collaborative approach and shared commitment to the County’s long-term viability.”

But there is still much work to do, county officials agree. What is on top of the agenda is getting the county’s cash reserves where they should be when it comes to the General Fund. In other words, the Government Financial Officers Association wants and expects the county to have more in savings, officials noted.

“We need about 15 to 18 percent of annual expenditures in reserves in the General Fund at all times just to be stable over the long term. We’re not there yet,” Chief Restructuring and Chief Financial Officer Tony Saunders said in a statement. “This doesn’t go as far as a rainy day fund, but it helps move us closer to a basic threshold for financial practices that is critical for any municipal government over the long term.”

Having those savings will likely result in additional ratings boosts from Moody’s and other bond-rating agencies, officials said. It also helps Wayne County when it comes to getting through any economic downturns now or in the future.

Finally, the county is working on strengthening pensions and other unfunded areas within its budget, Evans said. The County had already allocated an additional $7.5 million to protect pensions beyond the Annual Required Contributions in the 2016-17 budget. If surplus projections hold true, the administration intends to add up to an additional $2.5 million to fund pensions this fiscal year, bringing that total to $10 million. The County’s pension system still has $636.5 million in unfunded liabilities and is only funded at 54 percent, up from 45 percent.

“I’m not going to even think about getting comfortable until our pensions are more than 80 percent funded, which is more in line with industry practices,” Evans said in a statement. “We’re walking a difficult balance right now, complicated by the Gratiot jail and several other challenges with facilities. We are operating a fiscally sound government that delivers the services people depend on, while taking the steps necessary to protect the pensions our employees worked so hard for over the years.”

Photos courtesy of Wayne County Executive Office of Communications.

  budget, Gratiot jail, Warren Evans, Wayne County