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HomeMy WebLinkAboutFinance 10-09-08 NOTICE OF COMMITTEE MEETING AND AGENDA ST. CROIX COUNTY FINANCE COMMITTEE DATE AND TIME: Thursday October 9, 2008 — 8:30 A.M. LOCATION: Room 1281, St. Croix County Government Center, 1101 Carmichael Road Hudson, Wisconsin CALL TO ORDER ROLL CALL ADOPTION OF AGENDA DATE OF NEXT MEETING: November 6, 2008 APPROVAL OF MINUTES OF PREVIOUS MEETINGS: Septe 3 5,2008 September 17, 2008; October 2, 2008 OLD AND NEW BUSINESS: 1. Review of Vouchers 2. Treasurer Report a. Monthly Reconciliation 3. County Clerk a. Resolution Approving Reimbursement Due Listing Officials for Listing Dogs for 2008 4. Human Resources report a. Benefits Update b. Unit Clarification Review - 10:00 a.m. ** 5. Building Services Report a. Government Center Reroofing Project Status b. Government Center Chiller Project Status 6. Finance Director Report a. County Investments Report — Bob Moore 8:45 a.m. b. Review of Board Resolution Regarding Bond Issuance: RESOLUTION AUTHORIZING THE ISSUANCE AND AWARDING THE SALE OF $3,180,000 GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2008A; PROVIDING THE FORM OF THE NOTES; AND LEVYING A TAX IN CONNECTION THEREWITH c. Financial Reports 7. Risk Management Report a. Safety and Security Report 8. Administrative Coordinator Report a. 2009 Retiree Health Insurance b. Self- Insured Employee Medical Plan Policy Amendments c. FSA Lease Renewal d. Baldwin Property Sign 9. 2009 Budget Review a. Budget Status ** b. New Positions ** c. RHS Funding ** d. Review of Nursing Home Budget and Bed Alternatives ** 10. Short and Long Term Planning Goals — Follow Up to Board Goal Setting Session ADJOURN (Items may be taken in different order) * *Additions /Changes /Corrections Ttcros for Count%' Board apprOVal must be submitted to the County Clerk's office by Wednesday morning preceding a County Board meeting. 8:01 AM 10/8/2008 • MINUTES OF THE ST. CROIX COUNTY FINANCE COMMITTEE October 9, 2008 Official Meeting called to order by Chair Standafer at 8:35 AM MEMBERS PRESENT: Daryl Standafer, Esther Wentz (left meeting at 2:55 PM), Clarence Malick, Dave Peterson & Sharon Norton- Bauman. Absent: None OTHERS PRESENT: Administrative Coordinator Chuck Whiting, Finance Director Michelle Pietrick, County Clerk Cindy Campbell, Bob Moore ICM, Director Health & Human Services Fred Johnson, Human Resources Administrator Tammy Funk, Corporation Counsel Greg Timmerman, Director of IT Tom Boron, Director of Building Services Art Tobin, Sheriff Dennis Hillstead, Director of Planning & Zoning Dave Fodroczi, Director of Parks and Land and Water Bob Heise, District Attorney Eric Johnson, Register of Deeds Kathleen Walsh, Supervisor Buzz Marzolf, Supervisor Eugene Ruetz, Supervisor Dave Ostness, Loyla Waskul, Norm Matzek, Kim Dupre, Dean Winquist, Renate Mackmiller, Ted Mackmiller, Amy Sabetko, Media Present: Judy Wiff ADOPTION OF AGENDA: Motion by Wentz, 2 by Peterson to adopt the agenda, motion carried unanimously. DATE OF NEXT MEETING: Monday, October 20 at 1:30 PM, November 6, 2008 at 8:30 AM APPROVAL OF MINUTES FROM PREVIOUS MEETING: Motion by Norton- Bauman, 2nd by Wentz to approve the September 17th meeting minutes, motion carried unanimously. Changes to the October 2nd meeting minutes, change "convener to Chair" and delete "no longer" from the 2nd paragraph. Motion by Malick, 211d by Peterson to approve the October 2nd meeting minutes with the suggested changes, motion carried unanimously. OLD & NEW BUSINESS: 1. Review of Vouchers Reviewed by Malick nothing to report 2. Treasurer Report Monthly Reconciliation Report received from Shnd committee approved report as submitted. 3. County Clerk Resolution Approving Reimbursement due Listing Officials for Listing Dogs for 2008 Tags issued through County Clerk's office and municipalities and all money goes to the dog licensing fund. In September a listing is due for reimbursement to officials of $30 per dog, per WI State Statute 174.06 stating all dogs are licensed in the Clerk Treasurer's municipalities. There are 2 resolutions this year, one for those received on time and one for the municipalities received a day late. Malick moved to recommend that the County Board approve the corrected listing report, 2n by Wentz, motion carried unanimously. 4. Human Resources Report Benefits Update Open enrollment process has begun and five employee meetings will be held on both Thursday, October 9 and Friday, October 10t representatives from Preferred One are here to explain the changes in the County's Medical plans and a representative from ICMA -RC is here to explain the Retirement Health Savings Account. Open Enrollment starts next week and goes through November 14th. Memo has been sent to employees regarding rates for Medical which decreased, but Dental is increasing by 14 %. Continuing to look at a more comprehensive Employee Assistance Plan for the County that provides additional benefits for employees than the current plan. Committee asked about retirement benefits and whether or not active employees planning to retire are participating in the annual enrollment meetings. In addition the question about a notice period was discussed. The County requests that employees who plan to retire provide at least a 31 day notice if someone is retiring. Unit Clarification Review — 10:00 AM Item was not addressed 5. Building Services Report Government Center Re- roofing Project Status Tobin provided sample of new roofing structure for Cornrnittee to view. Plan design is approximately 30% complete and with the option for solar collectors this will change roof line where the drain structure is located. Part of the problem with the solar panels is the current obstruction on the roof. Roof Spec is looking at elevation of the panels up to 3 feet at a 30 degree pitch and is working with engineers to get additional information. The project is on target to bid out in February and start in April of 2009. 1 Goyernment Center Chiller Project Status On HVAC project, within 30 -45 days a final estimate will be provided to the Committee. Tobin is currently looking at the option to purchase the product up front on a pre -tax basis. Between government center and jail the proposed budget for 2009 utility expenses including electrical and gas is $377,600. With high efficiency boilers and chillers the County could potentially obtain savings up to a minimum of $60,000 on utility expenses. Additional savings of 15% with solar and Tobin has a meeting next Wednesday to discuss other savings that the County could receive from Focus on Energy. 6. Finance Director Report County Investments Report — Bob Moore 8:45 AM The County's portfolio looks very good. Using the pool on the Monthly Yield Comparison sheet as a benchmark, the County's portfolio has netted additional funds of $78,200 in interest income on an accrual basis, versus what the County would have made if invested in 2 year Treasury bonds, the County has made an additional $144,500. Information provided to the Committee and discussion surrounding market and economic conditions. Moore suggested that the County look at real estate markets and investing in agencies to assist in higher investment income, along with continuation of cash flow investment analogies. Review of Board Resolution Regarding Bond Issuance: Resolution Authorizing the Issuance and Awarding the Sale of $3,180,000 General Obligation Promissory Notes, Series 2008A; Providing the Form of the Notes; and Levying a 'fax in Connection Therewith Bids will be accepted on Monday, October 20th and interest rates will be written into the resolution after bids are received. The Resolution would then go to the Board. Bond rating call was yesterday and went well, final report from Moody's should be received on Monday, October 13 Motion by Malick to recommend resolution to County Board on October 21st, 2nd by Wentz. Committee decided to have a short meeting on the 21tit of October prior to the County Board meeting to finalize the resolution. Motion by Malick to table recommendation until the 21`r of October, 2nd by Wentz, motion carried unanimously. Financial Reports Pietrick discussed the County cash & investments and is requesting authorization to move an additional $2,000,000 with ICM. County cash flow indicates that an additional amount could be invested at this time. Motion by Malick to increase the cap on investments with ICM by $2,000,000 over the previous cap, 2"d by Wentz, motion carried unanimously. Received sales tax amount for July in September and Pietrick completed projections that show if sales tax trends stay the same, the County will be down by $100,000 - $150,000 from projected amount. Standafer asked when Pietrick would be closing out Associated Bank account & Pietrick said the account will be closed by the end of October. The County has one CD which matures in March of 2009. 7. Risk Management Report Safety & Security Report Whiting reported that on September 25 the metal detector was set up and used at the Government Center and the Safety Committee will be meeting to determine the results and how this will be used in the future. Malick stated this should be done in the future for safety reasons. Cameras in front parking lot are installed and in working order. 8. Administrative Coordinator Report 2009 Retiree Health Insurance Rates are not determined as of today's date. The County should look at this as the last year to offer insurance for retirees over 65. This would be completed during 2009 so retirees have all of 2009 to look for additional insurance. Rates will change effective November 1, 2008. Motion by Malick to terminate coverage for retirees over 65 by the end of 2009, 2 ^d by Norton- Bauman, motion carried unanimously. Self- Insured Employee Medical Plan Policy Amendments Whiting explained that when estimating the premiums for 2009 the HRA liability was included in the medical plan fund as part of the reserve. The HRA liability is $1,400 per union employee or $462,000 and is the reserve amount in the fund. Recommendation is to keep track of the HRA liability outside of the medical plan fund. A line item will be added within the budget for the HRA causing a net change in the budget of approximately $73,000. Whiting will redo calculations for insurance premium, re -write memo and distribute to all employees. FSA Lease Renewal Discussion regarding the Federal government employees located in the County building at Baldwin. The County last signed a lease with the Federal government last year and Whiting wanted the committee to be aware that they will be asking for a 5 year lease. Baldwin Property Sign Timmerman has created an agreement and Heise, Tobin & Whiting reviewed where the sign will be placed. The sign will be placed on the North side of the lot, can be moved in the future if necessary, and there is room for building on this lot in the future. 9. 2009 Budget Review Budget Status Pietrick provided information regarding the new budget summary with the requested deductions from the last committee meeting and additional revenues. Parks submitted expense cuts of $31,225, corrected surplus supplied amount of $29,775 and with this Parks has submitted $61,000 in cuts. Revenues were adjusted for Land Information (net loss, no levy in fund), 2 Child Support & Victim Witness. Levy limit spreadsheet received and the County can now levy 2% plus 1.01% for Terminated Tax Increment District (TID). Therefore the levy percentage changed from 2% to 3.01 %. The summary sheet does not include the LAW union or increases for non -union staff. The Committee discussed the most current budget summary and Pietrick explained that property tax levy increased based on Terminated TID, revised State shared taxes amount, grant revenues and expenses changed based on re'- allocation of items between 1 iliergency Government, Emergence Communication & Medical Examiner. Victim Witness and Child Support grant revenue increased for a total revenue & surplus change of $945,000. Pietrick suggested decreasing the sales tax revenue to what is anticipated to be received in 2008 which is $5,000,000 or a reduction of 3.8 %. Motion by Malick to decrease the forecasted sales tax by 10% but not make a change to delinquent real estate taxes, 2nd by Wentz, motion carried unanimously. Budgeted expense changes include a combination of health insurance adjustments, retirement adjustments, any other changes cut in prior meetings, the requested reduction amounts sent back to departments last week and what they were able to accomplish. In addition, Swedik may be able to decrease the Emergency Communication budget by $20,000 due to negotiations for maintenance on equipment. Tobin indicated that there is the possibility to decrease the County's gas and electrical expenses due to the new roof and HVAC system by approximately $60,000, the Sheriff decreased his budget by $354,000 which includes the newly requested position and the deferral of the 3,d Security Officer position. The Sheriff is requesting the option to fill the 3 Security Officer position should he be able to decrease his budget by negotiating a cooperati\_e fuel rate. The 3 Security Officer position was budgeted and approved for in 2008. Motion by Malick that if the Sheriff is able to negotiate the appropriate cost savings that the County authorize filling the 3rd Security Officer position which was approved in 2008, 2 °d by Norton- Bauman, motion carried unanimously. With all of the adjustments to revenue and expense the budget summary now shows a deficit of $106,134. Heise was asked to decrease the Parks budget by $50,000 and came up with $31,000 and additional surplus to be applied which calculates to a 23% decrease to the Parks budget. Ruetz indicated that UW Extension reduced summer interns, postage and mailings, instructional aids, educational seminars, cut out all agent meals & are eliminating a computer purchase. Heise provided the Committee with capital outlay of $31,000 and would have come to the meeting today anyway because reaching $50,000 was going to be difficult. Heise is requesting that Parks be able to complete the chip sealing at Glen Hills Park for $11,000. Standafer requested a gentleman's agreement between the Committee and Parks department that this will be looked at if the County can award the $11,000 back. Boron provided the Committee with a recommended Policy for acquiring and replacement of computers for the County. Department Head must go through IT to purchase computers and /or equipment if they will be purchased with levy dollars. The reason that the policy specifically states those using levy dollars only is because Emergency Communications & /or Emergency Management receive grants to purchase equipment. IT will make sure that the computers are all compatible with the County's system. This policy could be made a part of the budget summary and posted on the Intranet. Motion by Malick that we adopt this policy as of today's date and that it become a part of all future budget instructions, 2nd by Wentz, motion carried unanimously. Reviewed the computer requests at Government Center and New Richmond and found replacement computers totaling $37,205. With decreases in the Jail and Sheriff's department the amount for replacing computer would be approximately $27,000. District Attorney /Victiin yX'itness was asked to decrease their budget by $20,000 and able to decrease their budget by $11,50 Fees for expert witnesses will probably be low but are not expenses within their control. This department will not purchase law books for 2009. Motion by Wentz that we accept the $11,500 decrease in the levy amount that the District AttomcY pro\ ided and that the County be able to utilize the contingency fund should additional trial funds be needed during 2009, 2nd by Malick, motion carried unanimously. The Sheriff is concerned about the 11 -7 shift for the Huber facility and even though it isn't usual he is requesting to hold the position open for the employee who is going to Afghanistan. If Huber numbers do not increase then the County may have to lay someone off from the Jail in the future. There was an accident and one of the older vehicles was destroyed. Also, dropped the purchase of 2 cars, the filing system, left $5,000 in capital outlay for computers and left some laptops for the Sheriffs department. Public Protection Committee is aware of the reductions and willing to accept them. Fodroczi stated that the Planning and Zoning Committee has not had an opportunity to review the requested budget cuts but did discuss budget cuts with Ruetz and Norton - Bauman. Looking at the 10% budget cuts that were submitted earlier this department could cut $78,931from their 100% budget. Fodroczi stated that the department will meet the $100,000 requested, review them with the Planning and Zoning Committee and bring information back to the Committee by the next meeting. It is possible that additional personnel cuts will be required to meet the requested amount. Ruetz and Walsh presented cuts for Register of Deeds which eliminated new equipment, cut office supplies, eliminated the scanner, overtime, the elimination of 1 person, and put indexing project on hold. Malick made motion to accept $50,000 3 budget reduction as submitted by Walsh, 2nd by Norton - Bauman. Wentz stated that the reduction of staff was difficult for smaller departments and the Committee has not looked at additional capital outlay items, nor have all departments been asked to make cuts. In addition, Norton- Bauman stated that the Committee needs to discuss how much money the County Board members will give up to assist in decreasing the budget. Malick made a motion to table his motion until 1:15 PM until additional information and discussion be put together from other departments, 2nd by Peterson, motion carried 4 -1 with Standafer voting no. Johnson indicated that HHS will make the $350,000 in requested cuts and that this was forwarded to Pietrick. There were cuts applied to the Aging and Disability Resources center as well. Revenues were taken from the Aging and Disability budget to HHS. Norton - Bauman questioned the funds coming from ADRC to confirm that they will not impact the aging population. Johnson said the transfer of funds will be positive for the aging population to make sure that the County provides healthy menus at different centers & ADRC will be working on preventive health. The County allocation for the 2009 Nursing Home levy is currently a little over $1,000,000 and there is a carryover amount from 2007 of $191,000 for a total of $1,192,500. Johnson stated that Lester looked at 50 beds on 2 floors which would have a levv allocation of $665,920 or a reduction to the levy amount of $526,580 to the County. If staffing is too high based on 50 beds then this would require a reduction in staff services. There are staffing reductions included primarily in the area of daily patient services which is reduced from $3,500,000 to $2,500,000. Private pay patients may increase with 50 beds because there may be more patients that request this. The 50 bed budget scenario does not include contracted Nursing Home Administrator or Director of Nursing, however, this is included in the 2009 actual budget. According to Lester there is no need to file with the State to downsize the number of beds if reductions are based on admissions and the facility stops taking new admissions going forward. To reorganize to 25 beds per floor does require State approval. This would affect the County's reimbursement because beds will be left for Medicare and Medicaid patients, however, policy is to provide beds on a first come first serve basis. Standafer asked about reimbursement rate for 50 beds and when this would be triggered. Johnson explained this is due to 50 beds and that diis may take affect once the official document is filed with the State but would need to clarify. Malick asked if remodeling expenses were included in the estimate and Johnson said no, that he doesn't believe there would be any. Whiting asked about the possibility to have HHS staff in the Nursing Home facility. Johnson said there would have to be a separate entrance and the County would have to obtain State certification to have the staff moved to the basement, this information and cost analysis is not included in the 50 bed estimate. If the County decided to have a 44 bed Nursing Home on the 2nd floor this would require capital improvements since there is a smaller dining room and may also cause some issues for staff and public. This would require State approval. In addition this would not allow for many single occupancy rooms. If the County went to a 44 bed facility on the first floor, Lester estimated that the County would lose approximately $434,000 in revenue, and preliminary staffing reductions would be less than the reduction in revenue. Another way of stating this is that the level of reduction in expenses would not be proportionate to the level of reduction in revenue. Johnson said that Lester did not reduce the Nursing Home Administrator or Director of Nursing positions in the 44 bed scenario either. Marzolf asked about population mix and how reduction of the number of beds would affect individuals who have special needs. Johnson said that they did not look at resident mix, however, there are different wings in the Nursing Home that would allow staff to handle this issue, but there is only one dining room. If the County loses Medicare and private pay patients to the Presbyterian Nursing Home facility in New Richmond this will also affect the County's revenue. Matzek asked about the reduction of staff in a 50 bed facility which reflects the reduction in staffing and Johnson said that Sarauer did not reduce the number of staff per patient per day, Sarauer reduced staff by census. Motion by Malick that previous motion which was tabled until 1:15 PM be taken off the table, 2nd by Norton - Bauman, motion carried unanimously. Motion by Malick to table prior motion until after discussion of capital items, 2nd by Norton - Bauman, motion carried unanimously. Wentz asked for a listing of which departments were not asked to make any cuts. Johnson indicated that he did not bring the information regarding per patient per day for each department in comparison to per patient per day that was submitted for the 2009 budget. Johnson said that he cannot guarantee they will be the same but Lester, Johnson and team discussed this and ran same staffing levels at reduced capacity. Standafer asked what the County has learned from this analysis. Johnson said that once the Nursing Home is able to get residents moved around and the number down to 50 beds and receive State approval for enhanced rates, the projection would be as outlined in the document provided. Putting everyone on one floor would be difficult for residents, in terms of capital improvements, revenue projections, etc This would affect residents not having private rooms which could affect Medicare and private pay revenue sources. Norton - Bauman asked if Johnson was aware of the timeline for when the Presbyterian Home would be built. Johnson and Wentz said they thought it was going to be in the Spring of 2009. Wentz said that she wasn't sure this was still on target because the other facility is the Gables and they may not be as willing to put the money forth as they were before. Norton - Bauman asked Johnson to follow up to see when the new Nursing Home facility would be built or if it is on hold. There are 9 computers being taken out of the Nursing Home capital expenditures line item and Johnson asked that the Committee consider allowing the Nursing Home to keep the funds in the budget so that items can be purchased to assist 4 with running the Home and caring for residents. Malick asked how many offices could be set up in the basement of the Nursing Home facility. Johnson said that no analysis was done regarding this and he could look back on estimates from Derrick Construction to get additional information for the Committee. Mackmiller asked if the County was looking at dropping or discouraging Medicare and Medicaid admittance at the Nursing Home. Johnson explained that the County is not changing the admission policy, it is on a first come first served basis. Mackmiller asked why the County is thinking about reducing the number of beds in the Nursing Home. Wentz said that once you decrease the number of beds they cannot be increased, it's a State law. Norton - Bauman asked Johnson to explain the role of the Family Care Plan as it pertains to the ADRC. Family Care started to roll out in the County with current consumers September 1St and 2 or 3 individuals on a waiting list who transitioned in as of October 1St. All case loads move from a County administered waiver- supported program to support consumers outside of Nursing Homes and other institutions, and in their homes. All consumers will be transferred to private care organizations starting January 1, 2009. At this point individuals on wait lists will be reduced by 1 /24th of the case load and beyond this the Plan is to have no wait lists in 2 years, rather than have an entitlement to participate in the program. Matzek asked if there is a way to purchase 24/7 care through the ADRC program. Johnson explained that the ADRC does not provide 24/7 care. ADRC does assist with community based services for those who are financially and functionally able to get home care. Larson Allen study indicated the need for additional number of beds in the future, but one other thing they also said is that they did not know the impact of Family Care on those numbers. Johnson receives a bed availability report each month which indicates the number of extra beds available in the County at this time, which is approximately 60. Matzek brought up Wentz' point about reducing the number of beds and the State not allowing the County to increase the number at a later date due to the moratorium. Johnson explained that Lester said the moratorium could be waived should additional beds need to be added at a later date; this has happened in the Milwaukee area. Malick made recommendation that this information be brought to the County Board. Marzolf asked for an understanding regarding why the Nursing Home is singled out regarding the levy dollar expense and Standafer explained that the Nursing Home is not something the County is mandated to provide. The County is mandated to provide Public protection, the Highway department, among others. Wentz asked which departments have not taken any cuts and Pietrick stated that nothing has been cut from Nursing Home, Dept. on Aging, Veterans, Child Support, Medical Examiner, Fair Board, Emergency Communications, Emergency Management, Human Resources, Finance, Treasurer, Information Technology, Corporation Counsel, Clerk of Courts, Drug Court, Circuit Court, Election Committees & Commissions, County Board, County Clerk or Administrative Coordinator. Sales tax revenue reduced by $520,000, tentative agreement to give Parks back $11,000 & agreed to Boron's computer recommendation which puts the County deficit at $106,000. The Committee discussed a place holder amount for the LAW union. The Committee discussed and took action on capital items and eliminated the following items: Copier in Administration Suite $4,285, Eliminate County Board meetings in February and July which would decrease the deficit by $4,170, $3,720 per diem + $450 for estimated mileage, Building Services savings for utilities due to new roof and HVAC system $40,000, Emergency Communication savings of $20,000, AV'biting will follow up on 2 retirements. There are still 2 new positions in this budget, 1 for Economic Support and 1 for Department on Aging for a Nutritionist. Eliminated were: LUCC ionic door access in Baldwin $28,600, Floor burnisher $1,800, Paint at the Government Center decreased by $10,000, $34,000 from air conditioner condenser moved to 2010, approved Boron's list of computer purchases for 2009, County Fair capital outlay reduced by approximately $28,000, Information Technology expenses for Exchange 2007 by $23,642, plus additional $2,000 for consulting fees. Committee discussed looking at the departments who have not had cuts applied for the additional deficit amount. Add into the budget an $11,000 expense for NACO fees which were not included previously. 10. Short and Long Term Planning Goals — Follow up to Board Goal Setting Session —No discussion Meeting adjourned at 3:00 PM. Sharon Norton - Bauman, Secretary Amy Sabelko, Recording Secretary 5