HomeMy WebLinkAboutFinance 05-25-07 NOTICE OF COMMITTEE MEETING AND AGENDA
ST. CROIX COUNTY
FINANCE COMMITTEE
DATE AND TIME: Friday May 25, 2007 — 3:00 P.M. or thereafter
(Meeting to start after Nursing Home Proposal Review Committee meeting)
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: June 7, 2007
APPROVAL OF MINUTES OF PREVIOUS MEETING: None
OLD AND NEW BUSINESS:
1. Committee Preparation for June Meeting on 2008 Budget Discussion with County Committee Chairs
2. Preliminary results of IRS audit **
3. Personnel Items
a. Notice from AFSCME Representative to Reopen Labor Agreements for Negotiations
b. Closed session per WI Stat. 19.85 (1) e for the purpose of discussing bargaining strategy.
Reconvene into open session to complete other agenda items
ADJOURN
(Items may be taken in different order)
* *Additions /Changes /Corrections
Items for County Board approval must be submitted to the County Clerk's office by Wednesday morning
preceding a County Board meeting.
11:12 AM 5/18/2007
• OFFICIAL — approved 617107
MINUTES OF THE ST. CROIX COUNTY FINANCE COMMITTEE
Special Meeting May 25, 2007
Meeting called to order by Chair Krueger at 3:45 p.m. Present: Clarence Malick, Daryl
Standafer, Esther Wentz, Tom Caflisch and Stan Krueger. Staff present: Administrative
Coordinator Chuck Whiting, Finance Director Michelle Pietrick, and County Clerk Cindy
Campbell. Others present: Julie Speer, Gordon Awsumb, Dick King.
Motion by Standafer, 2 nd by Caflisch to adopt the agenda. Carried unanimously.
1. Committee Preparation for June Meeting on 2008 Budget Discussion with County
Committee Chairs. Discussion regarding capital outlay items. Whiting distributed health
insurance trend information for committee members. Pietrick will provide a budget summary for
the past five years to Whiting for the June 7 th meeting.
Preliminary results of IRS Audit. Pietrick stated St. Croix County was selected for an IRS
audit. Pietrick was notified of the audit last September and last week she met with the IRS after
conclusion of the audit. There are two issues as a result of the audit. The first issue deals with
respite care providers. The county currently pays these providers through the vendor system and
issues 1099s. Pietrick stated from the IRS point of view the county is the administrative
employer and a W -2 should be issued to these providers. The IRS will send an agreement in
which the county agrees to be compliant with this matter in 2008. Pietrick is taking steps
necessary to apply for new employer identification number for Health and Human Services as
the county will need to issue W -2s to the providers and withhold taxes. Pietrick confirmed the
county will not be charged for past withholding taxes
Pietrick stated the second issue relates to retiree health insurance and use of the long -term sick
bank to pay the premium. The county has been issuing 1099s for the annual premium used by
each retiree from the long -term sick bank. Prior to 2002 the county issued W -2s then in 2002
switched to 1099s. Pietrick stated the issue with the IRS is our employees have a choice of
converting one hundred percent of their long -term sick for health insurance premiums or a
payout of half of their long -term sick bank to a maximum of 360 hours. Pietrick stated the
county should have been issuing a W -2, paying FICA and Medicare taxes and withholding
employees share of FICA and Medicare if an employee has constructive receipt of that money.
This is a result of the audit for 2004. The IRS opened 2005 and 2006 books for this item only.
Pietrick confirmed because the county issued 1099s it will not be penalized or charged back
taxes. Once the 2005 and 2006 audits are complete the county will be sent a final ruling stating
it owes employee and employer share of FICA and Medicare. Pietrick estimates the amount due
for 2004, 2005 and 2006 to be $28,780.00. Pietrick stated if the IRS letter is received this year
the funds may need to be paid out of the Contingency Fund. If received next year, it will need to
be place in the budget. The Finance Committee agreed the county has to pay it. Pietrick
indicated she has made the appropriate changes for 2007. Pietrick provided an estimate of
$128,000 for the 2007 levy for the retiree long -term sick bank use.
• Finance Committee
May 25, 2007
Pietrick stated the total financial impact relating to the long -term sick bank is $2.1 million for all
county employees as of December 31, 2006. Thirty -seven percent belongs to employees 55 or
older that can retire. The amount on the levy for annual use is going to continue to increase per
Pietrick. Pietrick stated that funding alternatives should be looked at, rather than putting this on
the operating levy which results in cutting current operations to balance the budget. One option
is to create a separate fund and transfer General fund balance to this fund. Krueger asked
Pietrick to come bank with more recommendations.
2. Personnel Items.
a. Notice from AFSCME Representative to Reopen Labor Agreements for
Negotiations. Whiting stated he received a notice to reopen labor negotiations. Whiting stated
his desire is to get into negotiations very soon.
b. Closed session per WI Stat. §19.85(1)(e) for the purpose of discussing
bargaining strategy. Reconvene into open session to complete other agenda items. Motion
by Malick, 2 by Standafer to move into closed session pursuant to Wis. Statutes §19.85(1)(e)
for the purpose of discussing bargaining strategy. Roll call: All ayes (4:19 p.m.). Present in the
closed session: Whiting, Suprs. Speer, King, and Awsumb. Motion by Wentz, 2nd by Caflisch to
reconvene into open session (4:50 p.m.). Carried unanimously.
Meeting adjourned at 4:50 p.m.
Esther Wentz, Secretary
Cindy Campbell, Recording Secretary