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HomeMy WebLinkAboutFinance 09-24-03 ST. CROIX COUNTY NOTICE OF COMMITTEE MEETING TO: Chairman Buck Malick St. Croix County Board FROM: Ralph Swenson, Chair COMMITTEE TITLE: Finance DATE: September 24-25, 2003 8:30 A.M. LOCATION: Room 1281, Government Center, Hudson CALL TO ORDER ROLL CALL ADOPTION OF AGENDA DATE OF NEXT MEETING: October 9, 2003 8:30 A.M. ACTION ON PREVIOUS MINUTES: September 11, 2003 UNFINISHED BUSINESS: NEW BUSINESS: 1. 2004 Budget Review 2. Health Insurance Renewal Options 3. Homeland Security Grant - Building Entry/Key Management Options NOTE: This is expected to be a two-day committee meeting. Department budgets will be presented periodically over these two days. A working schedule for those presentations is available from the County Clerk. CORRESPONDENCE: ADJOURNMENT (Agenda not necessarily presented in this order) COPIES TO: County Board Office News Media/Notice Board County Clerk County Board County Departments * *ADDITIONS/CHANGES/CORRECTIONS OFFICIAL MINUTES OF THE ST. CROIX COUNTY FINANCE COMMITTEE BUDGET REVIEW SEPTEMBER 24 AND 25, 2003 Meeting called to order by Chair Swenson at 8:30 a.m. Present: Ralph Swenson, Clarence Malick, Esther Wentz, Daryl Standafer and Stan Krueger. Staff present: Administrative Coordinator Chuck Whiting, Finance Director Michelle Pietrick and County Clerk Cindy Campbell. Motion by Standafer, 2nd by Krueger to adopt the agenda to include postponing action on September 11, 2003 Finance Committee minutes until the October 9, 2003 meeting. Carried unanimously. Date of next regular meeting is October 9, 2003. 1. 2004 Budget Review. Budget Review - Wednesday September 24, 2003 Public Protection: Committee members present Supr. Julie Speer, Supr. Dan Raebel and Supr. Denise Gunderson. Medical Examiner: Cindy Litzell was present. Speer stated the budget contains only actual expenses. Autopsies have increased because of case increases. Motion by Malick, 2nd by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Sheriff & Jail: Sheriff Dennis Hillstead, Ron Volkert, Mary Martell and Jail Captain Karen Humphrey were present. Sheriff. Hillstead indicated the Sheriff's budget has an increase of 19.75% in overtime. Control of activities on the Apple River is the main reason for the overtime increase. Standafer suggested the tubing owners pay a surcharge to assist with the funding for the extra security. Another increase is staff development. Reimbursement from the state will no longer net on the staff development line. The state reimbursement will be recorded as revenue. Other professional services increase is for extraditions. Transcore is used for extraditions because it's more cost effective. Hillstead indicated they attempt get restitution for the travel expenses. Hillstead indicated they received a grant in the amount of $51,000 that runs for a three-year period or $17,000 per year, for the purchase of vests. The County gets reimbursed approximately 50% of the vests. Whiting asked the boat cost of $5,000 be placed in the Capital Outlay Plan. Motion by Malick, 2nd by Standafer to accept Sheriff's budget minus $5,000 for the boat and to move it forward into the budgeting process. Carried unanimously. Jail: Hillstead indicated overtime continues to be an issue in the jail and this is caused by turnover. Staff development also has an increase. State reimbursement for staff development is now being recorded in a revenue account. Jail population, medical and dental expenses have all increased. Meal costs in 2004 are up because of the additional inmates with the Huber facility. 2004 budget is based on 140 inmates with an average cost of $2.94 per meal. Huber beds will be available February 1, 2004. Supply increase of $25,000 includes housing inmates in other counties. Pietrick will move the housing inmate line item to Other Contractual Services. Instruction aid is part of a grant the Jail gets through OGA for illiteracy. $50,000 has been put in ' Finance Committee - Budget Review September 24 and 25, 2003 Page 2 of 8 the jail's budget for floor work in the jail (floor is cracking and buckling). Hillstead reported the steamer in the kitchen started on fire and needs to be replaced. Motion by Malick, 2nd by Wentz to accept budget with the addition of steamer replacement in the amount of $4,338.85 to be placed in the 2004 Capital Outlay, deletion of $50,000 to fix the floor, and to move it forward into the budgeting process. Carried unanimously. Child Support: Katy Kapaun was not available. Swenson indicated the 2004 budget reflected $525,910 for state and federal funds in revenues and expenses of $550,000. Motion by Malick, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. (Wentz and Whiting left to attend Huber Building Committee meeting at 10:00 a.m. and returned at 10:35 a.m.) District Attorney, Victim/Witness: District Attorney Eric Johnson, Ann Gustafson and Jane Moore were present. District Attorney: Johnson indicated the increase in salaries include an additional legal secretary position. New office furniture costs were split $9,000 for 2003 and 2004. New transcribing machines are also included. Motion by Malick, 2°d by Standafer to accept budget and to move it forward into the budgeting process. Carried unanimously. Victim/Witness: Gustafson reported the biggest increase includes a telephone for $400 which is compatible with the District Attorney's office phone and a laser jet printer. Reimbursement rate from the state is approximately 62%. Motion by Malick, 2°d by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. Library: Shirley Perkins of the Deer Park Library, Eric Tommerdahl of the New Richmond Library and Jim O'Connor representing the Hudson Area Joint Library were present. $473,000 and $9,200 for out of county expenditures are totaling $482,200 for the 2004 budget. Motion by Malick, 2nd by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. 12:30 lunch break and reconvened at 1:00 p.m. i Economic Development Supr. Art Jensen, Supr. Roger Rebholz and Bill Rubin were present. Motion by Malick, 2°d by Standafer to accept budget and to move it forward into the budgeting process. Carried unanimously. Standafer commented the proposed budget is exactly what they were directed to do by using the formula. He added the formula should be future driven not past driven. Rubin indicated Economic Development is grateful for support and for being located in this building. Land & Water Conservation Supr. Art Jensen and Bob Heise were present. Heise indicated they have achieved putting together a zero balance increase. Increases were in personnel costs only. Capital Outlay contains a new van to replace Ford Contour to share with the Zoning and Parks Finance Committee - Budget Review September 24 and 25, 2003 Page 3 of 8 departments. Swenson asked Heise to work with Highway in purchasing the vehicle. Motion by Malick, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. Planning Zoning & Parks Land Records Parks: Supr. Jensen, Bob Heise and Dave Larson were present. Pietrick indicated the Parks 2004 budget includes the Wildwood and snowmobile trails. 2004 budget request is $825,722.82. 2004 projected revenue is $272,216 which includes $54,150 for snowmobile trails. Homestead Park 2004 operations estimate is $157,000 less $55,700 in revenues. Swenson asked the proposed truck purchase be done with the assistance of the Highway Department. Motion by Malick, 2°d by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Swenson indicated he appreciated budget not going up. Register of Deeds: Kay Walsh was present. Malick asked about the forecasting method of revenues regarding refinancings and transfer return tax. Of the total real estate tax collected, eighty percent goes to the state and twenty percent to the county. Walsh indicated $320,000 is a conservative estimate for transfer fees. Finance Committee requested this be increased to $360,000. Register of Deeds fees shows a decline of $200,000 for 2004. Walsh indicated there will be a fifty percent increase over the 2003 budget. She based the 2004 budget of $585,000 on 2002 numbers. The three part-time positions include an office aid, person for data entry and the as needed help person. One part time salary was in the Register of Deeds budget twice in the amount of $5,500. 2004 overtime budget is $8,000. Krueger indicated if she is using 2002 numbers the overtime should decrease and suggested this figure be reduced to $4,000. Motion by Malick 2nd by Krueger to accept a budget raising transfer fees to $360,000; reducing overtime help to $4,000; and less duplicate salary entry of $5,500 and to move it forward into the budgeting process. Carried unanimously. Land Records: Dave Fodroczi was present. Fodroczi indicated the basic account accrues at $4.00 per document; a separate sub-account is used for public access activities and the County receives $1.00 per document; the third sub-account is for grant funds coming back from the state. 2004 projection is $152,000 from the basic account and $38,000 from the public access sub- account. Fodroczi indicates this is conservative because this is a segregated, dedicated account. This source of funds is used for offsetting Highway Department GPS equipment, funds to pay for internal or external staff to convert paper documents to digital, and funds to implement the web application for land information records. A portion of this fund will also pay for the plotter/scanner/copier (found under new equipment). Motion by Malick, 2"d by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Planning: Fodroczi reported this budget reflects basic personnel increases. The large item is half of the plotter/scanner/copier equipment. Fodroczi suggested the Planning Office revenue be modified from $33,500 to $48,500. Motion by Malick, 2°d by Wentz to accept budget with correction of the $48,500 for the revenue account and to move it forward into the budgeting process. Carried unanimously. Finance Committee - Budget Review September 24 and 25, 2003 Page 4 of 8 Regional Planning Commission: Fodroczi indicated they broke down what they have done for St. Croix County and local units within St. Croix County. The Commission is authorized by statute to levy a small mill rate. $52,908 is based on a formula. Motion by Wentz, 2nd by Standafer to accept budget and to move it forward into the budgeting process. Carried unanimously. Real Property Lister: Fodroczi indicated they are planning to convert Real Property's software from DOS to Windows. Staff development includes an increase for professional services. New equipment includes three new workstations and three production level laser printers. When the conversion is made, Real Property will be printing most of the tax bills and forms on conventional copy paper rather than using forms which they currently are required to order. Fodroczi added this may reduce the supply cost for 2005. Motion by Malick, 2nd by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Rec cog: Fodroczi reported $237,016 is projected grant receipts for 2004 and $9,700 is projected fees for tire recycling projects. The Recycling Efficiency Grant is driven by how many communities apply. Fodroczi has projected $2,950 for 2004 which is part of the $237,016. The Wasteline newsletter is split between the recycling budget (74%) and hazardous waste budget (25%). Motion by Wentz, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. Hazardous Waste: Fodroczi indicated they have confirmed all of the 2004 revenue projected in the amount of $27,707. Other professional services were increased to cover agriculture disposal costs $15,000 for household portion and $13,000 for agriculture clean sweep. Motion by Malick, 2°d by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Fodroczi added a separate account was set up for recycling cell phones. There is a private nonprofit national organization that will take them, refurbish them and provide them to places such as domestic abuse shelters. St. Croix County gets $1.00 per phone. Zoning: Supr. Art Jensen and Steve Fischer were present. Fischer provided detailed revenue report and a two-page summary indicating operations budget will decrease 5% when excluding the new charges against Zoning Department-from Highway for Surveyor time, increase from Capital Outlay items, increase from Land &Waer Conservation Department and Highway Department for inspection, and contracted septic services charges. Capital Outlay items include $35,000 for digital imaging. Septic personnel costs have been placed in its own account. Impact on levy for Zoning (including septic) is $481,258 (net) and in 2003 it was $294,940 (net), approximately $185,000 difference. Fees were raised in July with exception of subdivision fees. To increase subdivision fees, the County will need to go through a public hearing process. Fischer indicated the average rezoning process cost is estimated to be $1,300. The fee was increased to $700 in July of 2003. Motion by Krueger, 2nd by Wentz to accept budget with modification of a subdivision fee increase for additional revenue with an effective date of January 1, 2004 and to move it forward into the budgeting process. Carried unanimously. Finance Committee - Budget Review September 24 and 25, 2003 Page 5 of 8 Finance Committee wants a change in the subdivision ordinance so that the Parent Committee can implement fee changes outside the umbrella ordinance. This will need to be presented at a public hearing. A Finance Committee member should attend the Planning, Zoning and Parks Committee meeting on October 14. 3. Homeland Security Grant - Building Entry / Key Management Options. Memo distributed from Risk Manager Dawn Budrow regarding electronic access to County buildings. The memo indicated in August she was notified that a grant for monies to install electronic access controls on doors at the Government Center and Health and Human Services building was approved and the County would receive a $62,089 grant to purchase and install the system. This system would replace the current lock and key system with card readers and swipe access cards. The money must be spent by November 1, 2003. Bids must get out immediately. Motion by Wentz, 2" by Malick to approve request and support the Security Committee to move forward with seeking bids and installing an electronic access control system with start-up costs not to exceed the amount being made available through the grant. Carried unanimously. Wentz moved to adjourn September 24, 2003 Budget Review at 4:55 p.m. Budget Review Continued - Thursday, September 25, 2003 Meeting called to order by Chair Swenson at 8:30 a.m. Present: Ralph Swenson, Clarence Malick, Esther Wentz, Daryl Standafer and Stan Krueger. Staff present: Administrative Coordinator Chuck Whiting, Finance Director Michelle Pietrick and County Clerk Cindy Campbell. Emergency Communications, Emergency Government Supr. Chuck Mehls was present. Emergency Communications: Gary Kollman was present. Kollman noted the entire telephone budget is being moved to Emergency Communications from Building Services. Cell phones should also be included in Emergency Communications budget. All County AT&T calling cards will be discontinued and the Finance Committee supports this action. There is a $1,500 increase for the Communications Van maintenance needs. The Finance Committee instructed Kollman to use the Sheriff's Department fuel then to have the Sheriff's Department bill this to Emergency Communications. Krueger suggested an increase in the Communications Van usage fee. The current rate is $375 per day. Capital Outlay items include a generator to replace the generator in Hammond on the tower facility; the radio consoles ($250,000) replace the current consoles in Emergency Communications and increase from three to four consoles; and radio base stations. Kollman indicated there is a possibility of help through the Homeland Security Grant. Supr. Mehls indicated they could get $56,000 from the grant to be used for communications equipment, but no radio base stations. Jack Colvard added there is approximately $300,000 coming in 2004 for Homeland Security. Kollman reported there is currently 288 phone numbers issued to the Government Center and there are eight ports for the voice mail system. The voice mail system gets hung up and is no longer supported by Mitel. It is possible to expand the voice mail system by adding eight more ports for $8,000 or a new system for 12 ports would cost $24,000. A total of $193,000 may be taken out of the 2004 budget due to grants. Motion by ' Finance Committee - Budget Review September 24 and 25, 2003 Page 6 of 8 Malick, 2nd by Krueger to accept budget less $56,000 (44,000 plus 12,000) for grants; less $6,000 for computer (under a grant); less remainder for base station at this point and to move it forward into the budgeting process. Carried unanimously. Emergency Management: Jack Colvard indicated operations have remained steady. The largest expenditure is software upgrade. Motion by Malick, 2nd by Wentz to accept budget and to move it forward into the budgeting process. Carried unanimously. Personnel: Standafer reported there is no operations increase only employee increases. Motion by Krueger 2nd by Malick to accept budget and to move it forward into the budgeting process. Carried unanimously. Veterans Services: Lorin Sather was present. Sather indicated Other Professional Services increase is used for transporting vets to Veterans Hospital and funding for temporary help for data entry into an upgraded software program and for digital imaging. Motion by Wentz, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. Wentz commended Sather on his work in the Veterans Service Office. Department on Aging: Sandy Gehrmann, Tracey Davis and Richard Peterson were present. Gehrmann explained the Federal and State grants increase of $18,586 comes in two programs: Department of Transportation (vehicle program) and Caregivers Support Program (increased from $3,000 to over $16,000). Total expenditures are $749,963. County money is used for Congregate Nutrition Program, Service Managed Program and DOT match. Motion by Wentz, 2nd by Standafer to accept budget and to move it forward into the budgeting process. Carried unanimously. Fair Board: Greg Warner, Dick Sullwold and Sheri Stoddard were present. Warner indicated approximately 15,000 people attended the 2003 County Fair. Warner indicated two years ago the Fair Board proposed a five-year plan ($25,000 per year) to the Finance Committee to build a multiple purpose building which will be mainly used for horses. The County has paid a total of $50,000, of which $25,000 was used for other funding. The Fair Board is requesting $25,000 again for 2004. Motion by Wentz, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried unanimously. 12:30 break. Reconvened at 1:00 p.m. Health & Human Services, Nursing Home: John Borup and Judy Ziegler were present. Health & Human Services: Borup reported the department budget increases from $21 million to $24 million for a 13% increase. This is a County levy increase of 15.9%. Salary/Fringe increase is $646,290 less the prior year carryover of $575,000. Add to that the Liability Insurance of $66,297. The budget also includes social workers leaving the union, adding a $100,000 increase versus 2003. ` Finance Committee - Budget Review September 24 and 25, 2003 Page 7of8 Administration budget now includes a position transfer from Mental Health. The state reduced some programs in Economic Support such as food stamps and medical assistance. Swenson asked to Ziegler prepare a summary of the operation increase (salaries) in Public Health. Capital acquisitions include ECHO software upgrade, two servers, optical imaging and traded cost of two new cars for a total paid for from farm transfer of $67,500. Borup indicated the recommended carryover to the 2004 budget is ($200,000) leaving a fund balance available for emergencies of $162,934. Health and Human Services Salary/Fringe benefit analysis for 2004 totals $9,426,409, an increase from 2003 of $646,290. Borup indicated they have budgeted on a most probable basis. Long Term Support would be the area where he could possibly make adjustments. Borup estimated $4.2 million is overmatched in Public Health. Motion by Wentz, 2nd by Krueger to accept budget and to move it forward into the budgeting process. Carried with one no vote (Malick). Swenson clarified Ziegler and Pietrick will put together a clarification on the Public Health operations budget. Pietrick later pointed out under the Health and Human Services budget there is a $98,300 duplication of salaries in the Public Health budget. Pietrick will contact Ziegler with any other comments. Nursing Home: Borup indicated the County levy for operations is set at $1,147,234 and the County levy for Capital is $342,050 for a total levy request of $1,489,284. The decrease in revenue is driven by reduction in the census to 70.5, decrease in IGT of $233,681, and decrease in Medicare Part B. Total 2004 revenue decrease is $997,096. Expenses: salaries/fringes decreased $657,263 consistent with downsizing, operation costs decreased per patient day, but increased due to inflation and energy costs. Capital acquisition total request is $342,050 for remodeling dining areas ($235,900 plus architect fees of $22,800); equipment replacement of $10,500; and remodeling of nurses station in the amount of $62,500. Motion by Malick, 2nd by Wentz to accept budget with removal of nurses station ($62,500) adding $23,600 contingency factor, and removing boiler room remodeling of $4,250 and move it forward into the budgeting process. Carried unanimously. Miscellaneous Budgets and Revenues Unemployment Compensation has revenue of $15,000, the amount Finance can charge back to the departments. Pietrick put $30,000 in 2004 budget. Malick suggested this be billed back 100%. Pietrick will increase revenue to equal expenses and net effect on levy will be zero dollars and next year she will bill it back. Vine Street Special Assessment is completed. Indirect Cost Study is done every year and should be a part of the Finance Department. Independent Auditing has increased by $6,000. Pietrick is assuming there will be additional audit work charged by Tracey & Thole based on GASB 34. Tracey & Thole audit all Federal and State grants and a report will be issued shortly. Finance Department budget includes a purchasing agent totaling salary and benefits of $67,000 plus a computer. Discussion regarding direct deposit of payroll checks. Whiting indicated the Finance Committee - Budget Review September 24 and 25, 2003 Page 8 of 8 Personnel Department needs to be in the discussion regarding direct deposit. Swenson confirmed the Finance Committee supports mandatory direct deposit. Motion by Malick, 2nd by Wentz to accept Finance Department budget excluding Prior Year expenses of $15,000 and Sundry Unclassified of $25,000 and to move it forward into the budgeting process. Carried unanimously. Investment and Revenue Items: Pietrick indicated other taxes are the same the last four years. UW Extension estimated sales tax of $4,469,000 was used for the 2004 budget. The Department of Revenue estimates the County will receive $664,389 in State shared taxes for 2004. The $260,000 of State mandate relief has been eliminated for 2004. September 25, 2003 discussion continued. Revenues: $175,000 of interest income is estimated for 2004. Miscellaneous items include copies and rent of the Baldwin building from the Federal Government. Surplus Sup lp ied: Jail Assessment Fund can be used to pay the Huber share of the principal that will be paid in 2004 and will still leave $50,000 in the Jail Assessment Fund for the Sheriff's Department. Discussion by Finance Committee to establish a list of priorities if downward adjustments have to be made in requested spending. 2. Health Insurance Renewal Options. Whiting indicated the 2004 budget reflects health insurance calculated at a 10% increase. One option is to change carrier, providers and network. With thirteen fewer employees the overall cost increase would not be that large and we could stay within network and insurer and switch re-insurers. Whiting reported on two options, Preferred One as administrator with Allianz as the re-insurer, and Medica as administrator, network and re-insurer. The internal premiums are calculated and the County has to cover 125% of anticipated claims. Medica involves a difference in plan benefits however. Later that day, Whiting learned from Sarah Haines that Medica cannot duplicate the current plan the County has in place. Finance Committee agreed to meet September 30th at 1:00 p.m. to continue budget review. Wentz moved to adjourn by meeting at 5:08 p.m.