A new memo from accounting firm Rehmann Group aims to reconcile conflicting estimates of Grand Traverse County's general fund deficit in 2017.

A November 2015 estimate provided by Rehmann Group projected a $4.1 million deficit next year. But at the request of officials including Sheriff Tom Bensley and Thirteenth Circuit Court judges Philip Rodgers and Thomas Power, County Treasurer Heidi Scheppe reviewed the numbers this fall and calculated her own projected shortfall of just $671,000. County Administrator Tom Menzel asked Rehmann Group Principal Steve Peacock to work with Scheppe to reconcile the differences in their projections.

After consulting with Scheppe, Peacock sent a memo to Menzel outlining his findings. Peacock first noted that Rehmann Group's inital estimate was made "based on facts and circumstances that existed at that point in time," and that it included - or excluded - several key figures based on information provided by former County Finance Director Dean Bott. Peacock identified several differences between his firm's and Scheppe's projections, including:

> Convention/liquor tax revenue of over $667,000 was included in Scheppe's analysis and not Rehmann Group's. Discussions with Bott indicated "that this revenue would not be received/available in 2017," Peacock wrote.
> Revenue of $1.7 million in state-revenue sharing was included in Scheppe's analysis and not Rehmann Group's. Bott indicated the revenue would not be received/available in 2017.
> OPEB Plan costs were estimated at $688,000 in Rehmann Group's analysis, "based on actual amounts from the actuary study," while Scheppe estimated costs at $255,000 based on the "2016 budget plus an increase of 2 percent."
> Dam removal costs were estimated at $500,000 by Rehmann Group based on figures provided by Bott, while Scheppe put the costs at $340,680.
> Rehmann Group estimated a 2017 required pension plan payment of $5.2 million based on the actuary study, while Scheppe estimated $4.9 million based on the 2016 budget plus a two percent increase.

The total amount of the differences equaled $3.3 million, Peacock wrote, which when combined with Scheppe's initial estimate of $671,000 totaled over $4 million - close to Rehmann Group's initial $4.1 million deficit projection. Peacock wrote that based on his conversations with Scheppe, he still believes $4.1 million to be "the most reasonable estimate of the county's deficit, especially considering the factors discussed above."

Peacock said that at Menzel's request, Rehmann Group had agreed to waive billing costs for the 17.7 hours of work it incurred comparing the deficit projections.