HomeMy WebLinkAboutFinance 10-11-07 NOTICE OF COMMITTEE MEETING AND AGENDA
ST. CROIX COUNTY
FINANCE COMMITTEE
DATE AND TIME: Thursday October 11, 2007 — 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 8, 2007
APPROVAL OF MINUTES OF PREVIOUS MEETINGS: September 6,2007; September 26-28,2007
OLD AND NEW BUSINESS:
1. Review of Vouchers
2. Treasurer Report
a. Bank Reconciliation
b. Resolution to charge back municipalities due to incorrect real estate taxes.
c. 8:30 a.m. -Tax Deeded Property —Town of St. Joseph —deed back to previous owners per County
Ordinance #209(88)(1)(b)
3. County Clerk
a. Tax Deed Property Bid Opening **
b. Resolution Approving Reimbursement Due Listing Officials for Listing Dogs for 2007 **
4. Building Services Report
a. Government Center Chiller Status
b. KFI Report
5. Risk Manager Report
a. 8:45 a.m. - Closed session pursuant to Wis. Stats. § 19.85(l)(g) to confer with legal counsel who
is rendering advice concerning strategy to be adopted with respect to litigation in which the
county is likely to become involved regarding the death of a jail inmate. Reconvene in open
session.
6. Finance Director Report
a. Finance Reports
7. 2008 Budget Review
8. Review of HHS Accounts Receivables
9. Administrative Coordinator Report
a. Employee Health Insurance Review
b. Retiree Health Insurance Review
c. Star Prairie Township Request for Waterline Easement
d. Request to Acquire County Property— John Heinz, New Richmond VFW **
10. Human Resources report
a. 2008 Budget Positions Review
b. Position Descriptions
c. Policy Regarding Reimbursement Receipts for Cash Tips
d. Review of Public Protection Committee Employee Questionnaire
e. 9:15 a.m. - Closed session pursuant to Wis. Stats. § 19.85(1)(f) for preliminary consideration of
specific personnel problems relating to the county jail which, if discussed in public, would likely
have a substantial adverse effect upon the reputation of the persons involved in such problems.
Reconvene in open session.
ADJOURN
Items for County Board approval must be submitted to the County Clerk's office by Wednesday morning
preceding a County Board meeting.
2:43 PM 10/5/2007
OFFICIAL — approved 1118107
MINUTES OF THE ST. CROIX COUNTY FINANCE COMMITTEE
Regular Meeting October 11, 2007
Meeting called to order by Chair Krueger at 8:30 a.m. Present: Clarence Malick, Daryl
Standafer, Esther Wentz, and Stan Krueger. Absent and excused: Tom Caflisch. Staff present:
Administrative Coordinator Chuck Whiting, Corporation Counsel Greg Timmerman, Finance
Director Michelle Pietrick, Human Resource Administrator Tammy Funk, County Clerk Cindy
Campbell. Others present: Julie Speer. Media: Judy Wiff.
Motion by Malick, 2 by Wentz to adopt the agenda. Carried unanimously. Date of next
meeting is November 8, 2007 beginning at 8:30 a.m. Krueger stated there may be a need for a
meeting before November 8th
No action on the budget review minutes. The September 6th minutes were approved at the
September 26 budget review meeting.
1. Review of Vouchers. Malick reported he did not find anything to bring to the
committee's attention regarding voucher review. He noted he is behind in his review of
vouchers.
2. Treasurer's Report. Cheryl Slind was not present.
a. August Bank Reconciliation. August reconciliation report was reviewed. No
questions.
b. Resolution to Charge Back Municipalities Due to Incorrect Real Estate
Taxes. Per the resolution, this allows the county clerk to charge back on the 2007 apportionment
of county real estate taxes amounts specified which have been incorrectly assessed. Motion by
Malick, 2„d by Standafer to approve. Carried unanimously.
C. 8:30 a.m. — Tax Deeded Property — Town of St. Joseph — Deed back to
previous owners per County Ordinance #209(88)(1)(b). Slind's memo to the Finance
Committee explained the previous owner of this property, Diana Demos, has agreed to pay all
delinquent years' taxes in the amount of $14,115.30 with penalty and interest, plus an
administrative cost of $1,000. Diana Demos was present. Motion by Malick, 2 by Wentz to
approve deed back to previous owner as proposed by Slind if payment totals past due taxes,
interest and penalty and an administration fee of $1,000.00. Standafer, noting he is respectful of
Demos' situation, asked if this is in the best interest of taxpayers of the county to deed back as
opposed to putting this up for bids. Discussion regarding mortgages. Timmerman stated
financial liens are eliminated. Demos explained the land was bought through an inheritance and
indicated she is now divorced which has complicated the situation. Explanation by Timmerman
of Ordinance 209(88). Timmerman confirmed that Demos was personally served with the notice
per the Affidavit of Service in the file. Campbell noted bids were received on the tax deed
parcels and she does not know if a bid was received for this parcel. The Finance Committee
agreed to determine the motion and obligation, if any, when bids are opened. Campbell opened
the bids and noted none were received for this parcel. Malick suggested it be relayed back to
Slind the owner's interest has to be balanced against any profit the county could make or troubles
the county might assume. Carried unanimously.
Finance Committee
October 11, 2007
Page 2 of 5
3. County Clerk.
a. Tax Deed Property Bid Opening. Campbell stated five parcels taken by tax deed
were advertised by the county for sale. The Town of Hammond property was dealt with at the
Finance Committee Budget Review meeting on September 26 The Town of St. Joseph White
Eagle was acted on earlier in the meeting. Campbell opened the bids.
Town of Somerset - Outlot 1 of the North Bass Lake Estates (032- 2108 -40 -000) — appraised
value $500.00. Campbell announced one bid was received. Motion by Malick, 2 by Wentz to
accept the bid from Dean and Rebecca Jantz in the amount of $550.00. Carried unanimously.
City of New Richmond — Lots 6 & 7, Oak Park Addition (261- 1082 -80 -000) — appraised value
$500.00. Campbell announced one bid was received. Motion by Wentz, 2nd by Malick to accept
the bid from Curtis and Andrea Thomassen in the amount of $510.00. Carried unanimously.
Town of St. Joseph — Lot 8 Highland Hills (030- 2093 -80 -000) — appraised value $55,000.00.
Campbell announced three bids were received. Motion by Malick, 2 by Wentz to accept the
highest bid submitted by Corey Breunig in the amount of $62,600.00 and to delete language
inserted in the offer regarding the county bearing any costs. Carried unanimously.
b. Resolution Approving Reimbursement Due Listing Officials for Listing Dogs
for 2007. Motion by Malick, 2„d by Wentz to approve. Carried unanimously.
4. Building Services Report. Present: Art Tobin and David Best
a. Government Center Chiller Status. Tobin reported on the status of two chiller
plants in the Government Center. Tobin provided a history of repairs to the chillers. He noted
the estimated cost of the latest repair was $100,000. Estimated cost to repair and replace parts
for the chillers is $133,000 to $143,000. Tobin indicated it will take three to four months before
parts are received from Japan. Tobin stated the life- expectancy on the chiller units is ten years.
Tobin recommended looking at options and move towards replacing the units as soon as
possible. Tobin explained Excel Energy rates change necessary from interruptible to firm, which
is a higher rate. Written notice and reason for the change must be submitted to Excel to avoid a
penalty to make this change. Tobin explained the gas cost increases — an approximate $200 per
month increase between April to September and $1,600 per month from October to March.
Tobin is working on a contingency plan if both units go down. Leasing a heating unit is an
option. Best stated the boilers are available for heating.
b. KFI Report. Bob Linder from KFI was present. KFI is the engineering firm
which performed the energy audit for the Government Center. Linder provided a summary of
the energy study to look at replacement of the absorbers which provide heating and cooling to
the Government Center. Option descriptions and economic comparisons were reviewed. Linder
stated the geothermal system provides the highest cost savings. Payback analysis was reviewed.
Linder indicated the geothermal system has a higher first cost but allows flexibility and is
environmentally friendly and has the highest payback. Tobin explained a 2.5 acre plot with tie in
back into building and approximately 300 wells are needed for the geothermal system.
Finance Committee
October 11, 2007
Page 3 of 5
Discussion regarding well location and association with a retention pond. Tobin indicated the
next step is to review proposed units and move forward. Building Services recommends
geothermal because it's environmentally friendly and less maintenance. Second
recommendation is the ice storage option. Discussion regarding additional impact on
surrounding land. Krueger recommended Tobin review the Barsness report. Malick stated when
the budget is presented to the County Board an update should be included on this and
corresponding borrowing item; and asked Tobin to provide synergies that are possible with
neighboring buildings and the drawbacks and advantages of the placement of the field.
Discussion regarding reviewing systems. Tobin, Malick, Wentz and Krueger agreed to review
the systems. Whiting noted an internal loan is possible.
5. Risk Manager Report.
a. 8:45 a.m. - Closed session pursuant to Wis. Stats. § 19.85(1)(g) to confer with legal
counsel who is rendering advice concerning strategy to be adopted with respect to litigation in
which the county is likely to become involved regarding the death of a jail inmate. Reconvene in
open session. Motion by Malick, 2 nd by Standafer to move into closed session pursuant to Wis. Stats. §
19.85(1)(g) to confer with legal counsel who is rendering advice concerning strategy to be adopted with
respect to litigation in which the county is likely to become involved regarding the death of a jail
inmate. Roll call — all aye. (9:00 a.m.). Present in closed session: Timmerman, Whiting, Ziliak, Hillstead,
Funk, Speer, Ray Pollen (by phone). Motion by Wentz, 2 nd by Malick to reconvene to open session.
Carried unanimously (9:51 a.m.)
6. Finance Director Report.
a. Finance Report. No review.
7. 2008 Budget Review. Present: Fred Johnson, Jennifer Pempek, Casey Swetlik, and
Faye Strenke. Pietrick distributed the final budget reconciliation including a revised summary
showing a balanced budget. Pietrick reviewed the changes made and reported surplus applied is
$3,000,000. Pietrick explained the Enterprise software was removed from the budget to do
further research and needs assessment and $100,000 is reserved for fourth judge and $50,000 for
park grant match.
Swetlik provided a summary of what transpired from the elimination of the two 0.7 dispatch
positions from the Emergency Communications 2008 budget request and the effect on overtime.
Swetlik explained solutions include: 1) restore $37,585 in overtime budget; 2) restore the two
.0.7 dispatch positions into the 2008 budget and use them for the overtime cost savings; 3) The
budgetary impact between the staffing costs and the overtime savings is $12,209. Allow Swetlik
to prioritize the staffing needs by finding an additional $12,209 in his budget to cut. Swetlik
stated staffing is his ultimate need. Motion by Malick, 2 nd by Wentz to revise budget numbers to
reflect Swetlik's third solution to allow the hiring of the two .07 positions and find $12,209 in his
budget to offset reinstating the positions. Pietrick confirmed positions are entitled to benefits.
Carried unanimously. Pietrick stated $49,794 will be added back into the budget.
Johnson, Pempek and Strenke provided an overview of the Accounts Receivable office
responsibilities and the Financial Assistant position and requested the Finance Committee
reconsider restoring the start date from July 1 to January 1. Discussion regarding temporary staff
Finance Committee
October 11, 2007
Page 4 of 5
utilized and the need to retrain temporary help. Duties were described. Johnson would propose
other areas to re- prioritize to keep this position and adjust the HHS budget. Standafer expressed
concerns regarding the temporary firm being used. Wentz and Malick stated they change their
position and support a January 1 start date. This is a $29,000 budget change. Motion by Malick,
2 °d by Wentz to modify the budget to provide a January 1 St start date for the Financial Assistant
position providing HHS provides corresponding reductions in expenses to offset it so there is no
bottom line impact. Standafer confirmed this fulltime position will eliminate temporary staffing
and there is no budget impact. Carried unanimously.
Pietrick stated she needs to publish the budget notice in next week's newspaper. Pietrick
provided two versions, one based on a 4% increase and the other is based on a 2.475% increase.
Pietrick stated since the state budget is not finalized the new construction amount may change.
The auditors have stated the county can publish higher and always go down. Pietrick asked for
direction from the Finance Committee. Whiting suggested publishing at 4% which is the
highest. Malick suggested adding a footnote providing, "Proposals before the legislature range
from a low of zero to a high of four. At this time our estimated actual new construction is
2.475 %."
Review of HHS Accounts Receivables. Johnson indicated the amount the HHS Board agreed
to write off was $327,468 basically on Medicaid and Medicare accounts. After allowable
adjustment of what they would actually pay on the books an additional $480,000 was determined
above and beyond that amount. Pempek stated many of the accounts were older than 2002 and
uncollectible debts. Some were also from 2003, 2004 and 2005. Pempek noted when a software
conversion occurred in 2002 some records were written -off at that time but were not taken off
the system.
Johnson stated in April 2007, HHS contracted with an independent firm to review workflow and
increase checks and balances and efficiencies in the accounts receivable department. The HHS
Board felt it needed a more independent review and review of fraud accounting in case there was
any misappropriation of funds. Timmerman and WIPFLI worked with the contract and in
September an agreement was reached after an aged write -off was given. Pempek stated the
recommendation to the HHS Board was to write -off aged Medicare and Medicaid claims in the
approximate amount $658,000. Pempek stated Medicare claims have an eighteen month window
and Medicare has a twelve month window. The HHS Board approved a write -off in the amount
of $347,000 on Medicaid and Medicare accounts. Pempek reported the total from reviewing the
records of potential write -off was $2.7 million dollars. Krueger expressed concerns that this did
not show up in the auditor management letter. Pempek stated it was not in the management letter
but a statement was made with regard to the reporting. Timmerman stated there was a fraud
investigation and the final report concluded it was most likely poor performance and not fraud
and it made no sense to spend time or money to pursue further investigation. There were
recommended modifications to the system and checks and balances.
8. Administrative Coordinator Report.
a. Employee Health Insurance Review. Whiting will send a health insurance
memo to employees. Whiting noted there are other options available. Rates were reviewed.
Finance Committee
October 11, 2007
Page 5 of 5
b. Retiree Health Insurance Review. Pietrick provided revised rates for retirees to
make the committee aware of the changes in monthly health insurance premiums for retirees.
Pietrick noted the county could consider not providing county health insurance for anyone over
65 as they could get it cheaper elsewhere.
C. Star Prairie Township Request for Waterline Easement. Whiting stated this is
not ready for action.
d. Request to Acquire County Property — John Heintz, New Richmond VFW.
On behalf of the New Richmond VFW Post 10818, John Heintz requested a piece of county -
owned land as a donation from the county farm property. Heintz described the parcel the VFW
is interested in acquiring. Standafer stated the Finance Committee has been consistent with the
numerous requests received for the donation of land that from a fiduciary standpoint in terms of
the value of the land for the county taxpayers any consideration of a land transfer has always
been a consideration at market value. No action.
9. Human Resources Report.
a. 2008 Budget Position Review. Whiting stated this is a separate resolution
prepared in draft form by HR Administrator Tammy Funk. He noted changes will be
incorporated to include the HHS Financial Assistant to January 1 and two Emergency
Communications 0.7 positions. Motion by Wentz, 2 nd by Malick to approve all new positions as
approved. Carried unanimously. (Standafer was not present for this action.)
b. Position Descriptions. No action due to lack of quorum.
C. Policy Regarding Reimbursement Receipts for Cash Tips. Pietrick quickly
reviewed what she intends to bring back to the committee regarding reimbursement for tips. No
action.
d. Review of Public Protection Committee Employee Questionnaire. No action
due to lack of quorum.
e. 9:15 a.m. - Closed session pursuant to Wis. Stats. § 19.85(1)(f) for preliminary
consideration of specific personnel problems relating to the county jail which, if discussed in public,
would likely have a substantial adverse effect upon the reputation of the persons involved in such
problems. Reconvene in open session. Motion by Wentz, 2 by Standafer to move into closed session
pursuant to Wis. Stats. § 19.85(1)(f) for preliminary consideration of specific personnel problems relating
to the county jail which, if discussed in public, would likely have a substantial adverse effect upon the
reputation of the persons involved in such problems. Roll call vote — all aye (9:57a.m.) Present in closed
session: Timmerman, Whiting, Ziliak, Hillstead, Funk, Speer, Ray Pollen (by phone). Motion by Wentz,
2nd by Standafer to reconvene to open session (10:42 a.m.) Carried unanimously.
Standafer left at 12:30 p.m. He was not in attendance for items 3. a. and b., 9. a. and b. and 10. a.
Meeting adjourned at 1:19 p.m.
Esther Wentz, Secretary
Cindy Campbell, Recording Secretary