Oakland County recovery to take 15 years

**iheartthed** · December-08-09, 01:47 PM

Patterson: Worst is not over for Oakland County

Revenue for local government is on a downward track and likely won't return to 2007 levels until sometime between 2020 and 2025, according to Oakland County officials who sponsored a symposium on local government finance Monday morning.

More than 200 mayors, supervisors, finance managers and other local government officials filled the Oakland County Commissioners auditorium to hear a presentation by county officials on projecting what their revenues are going to be and planning their costs accordingly.

"My office is convinced that the economic decline that we're experiencing is not even close to bottoming out," County Executive L. Brooks Patterson said.

David Hieber, Oakland County's manager of equalization, showed an example of one commercial property in the county that sold for $220,000 in 2004, but only $145,000 this September. And many other property owners are contesting their assessments.

"We have about $3 billion in taxable value being contested at the Michigan Tax Tribunal," Hieber said. "Our fiscal services department has set up an accounts payable for tax tribunal cases."

Most local governments don't do that.

http://freep.com/article/20091208/NE...Oakland-County

Sounds like they are beginning to make the case for more municipal consolidations.

**ghettopalmetto** · December-08-09, 01:54 PM

Is this the same L. Brooks Patterson who, a few years ago, was so proud of all the state-subsidized sprawl development that made his county some sort of alleged economic juggernaut [[not to be confused with Detroit--egads!)? What happened, Brooks?

**iheartthed** · December-08-09, 02:22 PM

Originally Posted by ghettopalmetto

Is this the same L. Brooks Patterson who, a few years ago, was so proud of all the state-subsidized sprawl development that made his county some sort of alleged economic juggernaut [[not to be confused with Detroit--egads!)? What happened, Brooks?

Reality, I suppose. Sprawl isn't the same thing as growth.

**Det_ard** · December-08-09, 02:24 PM

Last Updated: December 07. 2009 2:12PM
Oakland County calls for peers to adopt long-term budgets

Jennifer Chambers / The Detroit News

Pontiac -- Oakland County finance experts on Monday urged more than 250 public officials from across the region to work on forecasting tax revenues more accurately to plan for long-term budgets.
"If you don't know where the bottom is in your organization, by the time you find it, it will be too late," Robert Daddow, deputy county executive for Oakland County, said in his sobering assessment on economic conditions across the state and region.
The team of experts working for Oakland County Executive L. Brooks Patterson advised leaders to follow Oakland County's lead by creating a multi-year budget cycle, moving employee taxpayer-funded pensions to a defined contribution plan and reforming funding for healthcare benefits.
Patterson, who presides over the first county in America to approve a three-budget cycle, invited local leaders from across Oakland County and a few from nearby counties to listen to lengthy sessions conducted by his staff, which outline current economic challenges and the available options.
"I work with these figures every day, but I'm still startled by some of these numbers. The economic decline has not bottomed out. ... We still have a long way to go before we can recover," he said.
The sessions were created to provide leaders with resources to take back to their local communities, including assessment data to chart the double-digit declines expected to continue in residential, commercial and industrial properties.
County Equalization Manager Dave Hieber encouraged officials to know the worst-case scenarios in their community to better plan for and manage their budgets.
"You can't do [[assessment evaluation) once in December and let it go for five or six months. We look at it every month and make revisions and make a change in our estimates," Hieber said.

http://www.detnews.com/article/20091...g-term-budgets

From the Freep article above:

Human Resources Director Nancy Scarlet said the county has made more than 24 changes to employee wages and benefits since 1985, including converting to a 401[[k)-style retirement program, replacing guaranteed retirement health care coverage for employees with health savings accounts and lengthening vesting periods.

Sound like Oakland County and LBP have been ahead of the curve and are as prepared as they can be for the coming shit storm. That's good management.

**ghettopalmetto** · December-08-09, 02:28 PM

Originally Posted by Det_ard

Sound like Oakland County and LBP have been ahead of the curve and are as prepared as they can be for the coming shit storm. That's good management.

Have you been on a remote Pacific island for the past 15 months? We're knee-deep IN the shitstorm, son!

**Novine** · December-08-09, 02:30 PM

Coming? It's already here. OC gets credit for seeing the tidal wave as it was coming in. But the cutbacks have already been happening at the county level for several years now.

**iheartthed** · December-08-09, 02:37 PM

Originally Posted by Novine

Coming? It's already here. OC gets credit for seeing the tidal wave as it was coming in. But the cutbacks have already been happening at the county level for several years now.

I give the OC credit for being honest, but they've been loathe to admit the cracks that exist in the foundation for quite some time.

**ghettopalmetto** · December-08-09, 02:50 PM

You have to wonder if Oakland County just *might* be doing a little better if the people of the county didn't have to pay salary and benefits for "200 mayors, supervisors, finance managers and other local government officials."

**artds** · December-08-09, 02:54 PM

Originally Posted by ghettopalmetto

Is this the same L. Brooks Patterson who, a few years ago, was so proud of all the state-subsidized sprawl development that made his county some sort of alleged economic juggernaut [[not to be confused with Detroit--egads!)? What happened, Brooks?

What makes you think he's no longer proud of the state-subsidized sprawl?

Are you saying that you think the sprawl was the CAUSE of OC's financial woes? If that's the case, then why are municipalities all over Michigan also in deep shit right now?

Oakland County actually appears better able/willing to deal with the current economic climate than a lot of places.

At the very least, they're one of the few counties actually admitting there's a revenue crisis, and like any addiction, admitting you have a problem is the first step toward recovery.

**gnome** · December-08-09, 03:06 PM

Several years ago, Brooks and the County Commission instituted multi-year budgeting. As a result, OC has a balanced budget for this year ... and for the next two years. Hate all you want on Brooks and Co., but they know how to run a county government.

**Detroitnerd** · December-08-09, 03:07 PM

What about addiction to SPRAWL?

**gnome** · December-08-09, 03:17 PM

to some, an addiction is just a habit.

**jackie5275** · December-08-09, 03:23 PM

Originally Posted by gnome

Several years ago, Brooks and the County Commission instituted multi-year budgeting. As a result, OC has a balanced budget for this year ... and for the next two years. Hate all you want on Brooks and Co., but they know how to run a county government.

Budgeting is not the determining factor of running of county government. Delivery of services is primary. If Oakland is so great, why did they run out of H1N1 flu vaccine while Wayne County keeps having weekly mass immunization clinics? Why does it take Oakland 3 days after a snowfall to clean the main roads when Wayne can do it in one day or less?

**Johnlodge** · December-08-09, 03:27 PM

You guys are such party poopers. Can't you see the Detroitists are trying to make themselves feel better through schadenfreude with their neighbors misfortunes? Quit pointing out those misfortunes aren't nearly as bad as they want to believe.

**Detroitnerd** · December-08-09, 03:33 PM

I don't think anybody here wants to cheer about how homeowners in Oakland County are underwater, the county is strapped for cash, or how Bloomfield Township is facing severe deficits. Sure, some of the people have been pretty smug out that way, but I feel for the people out there who are facing some pretty severe problems.

But I do think we should hold some of the boosters of the more irresponsible "growth" in OC accountable. And, better still, couldn't this be a wake-up call for the region that the whole build-new, abandon-old mentality is catching up with us? That we'll pave and finance our way out of social problems? A change finally to see the benefits of -- dare I say it? -- regionalism?

**Det_ard** · December-08-09, 03:44 PM

Originally Posted by ghettopalmetto

Have you been on a remote Pacific island for the past 15 months? We're knee-deep IN the shitstorm, son!

It's not stopping at knee-deep. Commercial RE values are poised to drop even more as commercial loan foreclosures are just starting to heat up. Assessments for both residential and commercial properties haven't hit bottom yet and won't for a few years.

Add in the fact that many thousands of residential and commercial property owners are in the process of challenging their property tax assessments. The Michigan Tax Tribunal is running about 2.5 years out for hearings now. When the tax payers win, in 2.5 years, they are refunded the overpayment for the last 2.5 years. That's why OC has set up an accounts payable line item to accrue funds for that eventuality.

So, yeah, the shit storm is coming, so far municipalities has just been experiencing a little shit drizzle.

**Novine** · December-08-09, 04:05 PM

"Several years ago, Brooks and the County Commission instituted multi-year budgeting. As a result, OC has a balanced budget for this year ... and for the next two years. Hate all you want on Brooks and Co., but they know how to run a county government."

OC isn't allowed to run a deficit so I'm not sure why "Brooks and Co." should get extra praise for that accomplishment. To the claim that the budget is balanced this year and for the next two, go back and see if the out year budgets passed a couple of years survived the financial reality check of today's economic conditions. The answer is no. They thought they had balanced budgets. Turned out they were wrong. We'll only know if the next 2 years are balanced when we get that time.

**softailrider** · December-08-09, 05:02 PM

Originally Posted by jackie5275

Budgeting is not the determining factor of running of county government. Delivery of services is primary. If Oakland is so great, why did they run out of H1N1 flu vaccine while Wayne County keeps having weekly mass immunization clinics? Why does it take Oakland 3 days after a snowfall to clean the main roads when Wayne can do it in one day or less?

Maybe in the more rural, outlying areas it takes that long to clear the snow, around where I live [[ Somerset Mall area ) the snow is gone just about the time it hits the ground.

**mwilbert** · December-08-09, 06:12 PM

Up until very recently, while parts of Oakland county have had to deal with a declining populations and tax base, the county as a whole has not. Now it does. The resources exist in the county to do that, but it is a different game, and if previously your solution to everything was growth, it requires a change of mindset.

Are you saying that you think the sprawl was the CAUSE of OC's financial woes? If that's the case, then why are municipalities all over Michigan also in deep shit right now?

Pretty much all of non-rural Michigan is sprawl, with an occasional town surrounded by sprawl, so you can't really distinguish between how well/badly different parts are doing based on sprawl--it would be like distinguishing between parts of Lake Michigan on the basis of wetness. I doubt that sprawl is the cause of Oakland County's problems, but it may make it harder to deal with some of those problems.

Retroit · December-09-09, 10:35 AM

Originally Posted by ghettopalmetto

You have to wonder if Oakland County just *might* be doing a little better if the people of the county didn't have to pay salary and benefits for "200 mayors, supervisors, finance managers and other local government officials."

Yeah, too bad they are not run as efficiently as Detroit.

[[sarcasm)

**jackie5275** · December-09-09, 12:52 PM

Originally Posted by softailrider

Maybe in the more rural, outlying areas it takes that long to clear the snow, around where I live [[ Somerset Mall area ) the snow is gone just about the time it hits the ground.

OCRC concentrates its efforts in the I-75 Troy corridor & surrounding area which works out well for you. I've had many snowy drives from work in Livonia to home in Pontiac along Telegraph, Orchard Lk Rd, Middlebelt, etc. These are developed areas. It is like night & day crossing over 8 Mile.

**tallboy66** · December-09-09, 01:44 PM

They've always thought that 8 mile is the border for economic woes.

The definition of insanity is doing the same thing over and over and expecting different results, keep sprawling and people will buy more cars to get to "new" jobs which are the same old jobs just in new locations...

**English** · December-09-09, 02:03 PM

Oakland County's problem is that it often uses Detroit as its measuring stick, and feels very smug indeed. That is insane. It is to compare apples to oranges. Oakland County ought to be looking at affluent suburban counties all over the nation to assess its comparative economic standing. Such communities all over the country are suffering, though the semantics of "suffering" in those contexts are quite different than anything in either urban or rural America.

**iheartthed** · December-09-09, 02:23 PM

Originally Posted by English

Oakland County's problem is that it often uses Detroit as its measuring stick, and feels very smug indeed. That is insane. It is to compare apples to oranges. Oakland County ought to be looking at affluent suburban counties all over the nation to assess its comparative economic standing. Such communities all over the country are suffering, though the semantics of "suffering" in those contexts are quite different than anything in either urban or rural America.

THANK YOU! I totally agree.

While it might be good political strategy for Oakland to use Detroit as a measuring stick, it still doesn't address the fact that Detroit and Oakland County are barreling towards the edge of the same cliff. There are several members of this forum who refer to Oakland County as the economic center of Metro Detroit. And if this is true, then Oakland County needs to own up to being a complete failure. Because this means that Oakland County has played the heaviest hand of anyone in making Metro Detroit a complete economic failure.

**R8RBOB** · December-09-09, 03:42 PM

Originally Posted by iheartthed

THANK YOU! I totally agree.

While it might be good political strategy for Oakland to use Detroit as a measuring stick, it still doesn't address the fact that Detroit and Oakland County are barreling towards the edge of the same cliff. There are several members of this forum who refer to Oakland County as the economic center of Metro Detroit. And if this is true, then Oakland County needs to own up to being a complete failure. Because this means that Oakland County has played the heaviest hand of anyone in making Metro Detroit a complete economic failure.

It's too bad what happening in Oakland County but like every other municipality in the United States OC is suffering because of its own arrogance. Believing that the auto industry will stay the same forever, building walls to isolate and insulate themselves from Detroit and too much sprawl will kill your resources in the end. Add the lost of jobs, foreclosures and companies fleeing Michigan I can see why L. Brooks is predicting 15 years of hard times for the OC.