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HomeMy WebLinkAboutFinance 03-13-03 A ST. CROIX COUNTY NOTTrF nF COMMITTEE MF'F.TIN TO: Chairman Buck Malick St. Croix County Board FROM: Ralph Swenson, Chair COMMITTEE TITLE: Finance DATE: Thursday, March 13, 2003 8:30 A.M. LOCATION: Roam 1281, Government Center, Hudson CALL TO ORDER ROLL CALL ADOPTION OF AGENDA DATE OF NEXT MEETING: April 10, 2003 8:30 A.M. ACTION ON PREVIOUS MINUTES: February 6, 2003 UNFINISHED BUSINESS: NEW BUSINESS: 1. Review of Vouchers 2. Maintenance Department Report 3. Computer Services Department Report 4. Risk Management Report 5. Corporation Counsel Report a. Follow-up on Administrative Coordinator Position Research 6. Treasurer's Report 7. County Clerk Report 8. Review of Courts' Committee Assignment Options 9. Finance Department Report a. 2003 Debt Financing Options b. Finance Software Upgrade Options c. Review of Position Vacancy Status 10. Administrative Coordinator Report a. County Funds Investment Policies b. Follow-up on Job Descriptions c. Huber Project Proforma d. Review of Verbeicher Project Status e. Parks Building Project and Borrowing Status 11. Personnel Committee Contingency Fund Request: Transfer of Funds to Health and Human Services for Settlement Costs of Social Workers Union De-Certification 12. Municipal Taxpayer Commission mailing on Technical College System CORRESPONDENCE: WCA Memorandum re: 2003-05 State Budget Biennial Budget Analysis 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 Last Undated. 212712003 UNOFFICIAL FINANCE MEETING Regular Meeting March 13, 2003 Meeting called to order by Chair Swenson at 8:30 a.m. Present: Ralph Swenson, Stan Krueger, Clarence Malick, Esther Wentz. Absent and excused: Daryl Standafer. Staff present: Administrative Coordinator Chuck Whiting, Corporation Counsel Greg Timmerman and County Clerk Cindy Campbell. Others present: Judy Wiff, media. Motion by Krueger 2„ d by Wentz to adopt the agenda with the following changes: Item 8 - Review of Courts' Committee Assignment Options and Item 10.d. Review of Verbeicher Project Status will be placed on April's agenda. Next meeting is April 10, 2003. Motion by Malick, 2nd by Krueger to approve the minutes of February 13, 2003. Carried. 1. Vouchers. March vouchers were reviewed by Malick on March 10th. Motion to approve by Malick, 2nd by Wentz. Wentz will review vouchers next month. Swenson thanked Malick for reviewing the vouchers for the last two months. Carried. 2. Maintenance Department Report. No report. 3. Computer Services Department Report. Director of Computer Services Tom Boron reported the ISDN line in the Clerk of Court office has been installed for video conferencing and will run into the courtrooms. Malick asked the Administrative Coordinator to put together a pricing structure for outside users of video conferencing through the County. Boron informed the committee the finance software will be upgraded on March 14th. This software will be fully operational with Windows 2000. Boron reported County Treasurer Cheryl Slind has reconciled the first period using the software to its fullest including the cash receipt portion of the software. Swenson asked for a status on the time reporting software. Boron indicated the interface between the two systems needs to be completed. He will review with the payroll clerk and personnel department to make sure all of the program specs are correct. Swenson also asked about the status of the Echo program in Health and Human Services. Boron reported the first billing has been completed. The program does what the County needs it to do. There is nothing new to report with respect to the Visions program. The County is committed to the program but out of the obligation to the contracts. There are options to make useful improvements to the programs. 4. Risk Management Report. Risk Manager Dawn Budrow reported the total number of workers compensation claims year-to-day is ten (General County 1; Highway Department l; Human Services 0; Law Enforcement 0; Nursing Home 8). WMMIC is in place and our claims managers recently held in-service at the nursing home. Finance Committee March 13, 2003 Page 2 of 6 Budrow reported she has checked into excess coverage over and above our current liability coverage. WMMIC indicated they could line up an agent for the county. They have provided a number of $5,000 per $1,000,000 in coverage. Budrow is waiting to hear from another agent and suggested we wait until she hears from this agent. She will report on this at a later date. 5. Corporation Counsel Report. a. Follow-up on Administrative Coordinator Position Research. Timmerman reported last month the Finance Committee had expressed a desire to place some County department heads under the supervision of the Administrative Coordinator. At that meeting, Timmerman provided an opinion that he didn't believe it was permitted by state law. Timmerman emailed fifty-five corporations counsel and received seven responses. The questions asked were: "1. Can an administrative coordinator be vested with direct supervising authority? (Department heads elected by the people are not included.) 2. If the answer to question #1 is yes, can supervision be selective (over only certain departments)? 3. Can the corporation counsel be directly supervised by the administrative coordinator?" The responses to question #1 were five "yes, by county board" and two "no". Timmerman indicated an ordinance would need to be presented to the County Board setting the responsibilities and supervisory duties for the administrative coordinator. Malick requested an ordinance be drafted. Wentz requested an organizational chart be prepared showing who reports to whom. It was confirmed the Corporation Counsel position is statutory. This matter will be referred to the Administration Committee because it could change the County Board Rules and Bylaws. Motion by Malick, 2nd Swenson to recommend to the Administration Committee for subsequent approval by County Board that an ordinance be passed which amends the responsibilities of the Administrative Coordinator to include supervision of the Facilities Manager, Director of Computer Services, Corporation Counsel and Finance Director; and as to the Facilities Manager, Director of Computer Services and Finance Director positions, the duties of the Administrative Coordinator would include the full range of supervisory duties except that hiring and termination would be subject to concurrence of the Finance Committee; and as to the Corporation Counsel position, it would include the full range of supervisory duties except hiring and termination would be subject to concurrence of the County Board. Swenson clarified all other department heads report to their parent committee. Krueger requested the Administration Committee look at the County as a whole and put together a supervisory organizational chart. Carried unanimously. b. Tax Deed Property - Helmer Severson Property, Town of Cady. Timmerman reported he received a phone call from an individual interested in purchasing the Helmer Severson property in the town of Cady. The Severson property is eligible for tax deed, but was put on hold by the Finance Committee in November 2002 because the site was found to contain hazardous waste. The DNR spent approximately $4,000 to clean up that part of the property. There was concern expressed that it would be a potential hazardous waste site. Timmerman indicated there is a statute which makes it possible for the County to take the property on a tax deed as long as we are not aware of any contamination at the time of the tax deed. The statute provides the County does not become liable for cleanup costs on a piece of property subsequent to the sale of the tax deed property to another person. The person that purchases the property would become liable. Timmerman recommends the County take a tax deed on this property, have it appraised and put it out for bids. The deed will note the property was subject to a cleanup for hazardous waste and the county is not aware of any other hazardous waste being present at Finance Committee March 13, 2003 Page 3 of 6 this time. Motion by Krueger, 2nd by Wentz to proceed with tax deed on the Helmer Severson property in the town of Cady and to advertise it for bids and sale. Carried. 6. Treasurer's Report. County Treasurer Cheryl Slind submitted a written report. Resolution Requesting Waiver from the State Mandate Administrative Code, Chapter 20 Regarding Lottery & Gaming Tax Credit Process. The state mandate requires Wisconsin counties to re-certify all of the lottery credits in 2004. County Treasurers' offices would need to physically go into the GCS Tax and Assessment System and remove all lottery credits from all qualifying parcels in the County. St. Croix County would send postcards to all landowners to complete and return. The Treasurer would re-enter the information from the cards and lottery credits claimed by the property owners in St. Croix County. Slind's report indicated the current system works. Passing the resolution would save the state and county time and money. Motion to approve resolution by Malick, 2nd by Krueger. Carried. Slind's report noted she is currently receiving title reports on the delinquent 1999 tax properties and forwarding notices to delinquent property owners, including the dog track. The process for the 2000 tax deeds has begun as well. 7. County Clerk Report. County Clerk Cindy Campbell reported she is preparing for the April 1, 2003 election. Printing Plus of New Richmond is printing the ballots. GBS had given a price of $32 per ballot. Having Printing Plus print the ballots provides a cost savings of approximately $1,500. A new cassette recorder has been purchased and installed in the County Board Room. 8. Review of Courts' Committee Assignment Options. Tabled until April. 9. Finance Department Report. a. 2003 Dept Financing Options. Whiting indicated he added this item to the agenda for discussion purposes. Springstead is suggesting we be prepared to present financing options at the May 8, 2003 meeting and follow-up with action in June by setting June 16 as the day the County would receive competitive bids for both current refunding and new money. Discussion was held regarding continuing with Springstead's services or check with other similar companies. Malick suggested we invite two or three financial advisory companies to give us a presentation. Swenson said it may be better to wait until we have a Finance Director in place. Malick asked that a limited inquiry be conducted by Whiting to ask other County Administrators or Administrative Coordinators who have recently researched other financing advisory companies and to report back to the Finance Committee in April. Whiting suggested we have Springstead explain to St. Croix County what they do. Swenson noted if the bids are to be reviewed June 16 with approval by the County Board the following day, a resolution of recommendation should be prepared. A special meeting would need to be set for June 16 or would Springstead be comfortable with the Finance Committee reviewing the bids at the scheduled June 12 meeting. Whiting will discuss the timing issue with Springstead. Finance Committee March 13, 2003 Page 4 of 6 b. Finance Software Upgrade Options. Boron reported this program pertains to budgeting and salary administration. When the County purchased this program it did not purchase the salary administration module or budget module. The generic version was purchased. Adding these modules provides automating the system to enable automatic salary increase calculations and budgeting. The cost of the modules is approximately $15,000. Whiting indicated he felt we should move forward with getting these components set up before we get into the budget season. Motion by Malick, 2nd by Wentz to authorize the "go ahead" and table the question of transferring funds from the contingency fund to pay for the upgrade until September. Motion carried. C. Review of Position Vacancy Status. Whiting reported the Finance Director position was advertised. Seventeen applications were received. Whiting met with Deb Kathan and narrowed the applicants to four finalists with possibly three more to be considered. Interviews are set up for March 20, 2003. Wentz and Krueger will attend the interviews. 10. Administrative Coordinator Report. a. County Funds Investment Policies. Whiting presented a revised draft of the County Investment Policy. Whiting feels this is a solid policy to have in place for the new Finance Director and the institutions used for holding County Rinds. Revisions were discussed. Whiting will make corrections and bring it back to the Finance Committee. b. Follow-up on Job Descriptions. Whiting reported he had not proceeded with this matter as Timmerman was doing research on the Administrative Coordinator's position. The Finance Committee will ask Daryl Standafer to discuss this matter with the Administration Committee at their April 1 meeting. C. Huber Project Proforma. Whiting presented spreadsheets providing information on project financing and projected cash flow of the Jail Assessment Fund with respect to the Huber building project. The proforma will give some idea how the revenues generated will pay for part of the operation of the Huber facility. Swenson indicated Public Protection needs to define what is needed when it comes to capital spending to be funded out of the Jail Assessment Fund. Swenson requested a second version of the proforma for the April Finance Committee meeting. The Finance Committee could meet jointly with the Public Protection Committee on May 8, 2003. Swenson, on behalf of the Finance Committee, formally thanked Whiting for the extra work in putting together the proforma, cash flow and operating expense layout on the proposed Huber addition. d. Review of Verbeicher Project Status. Tabled to April, 2003 agenda. e. Parks Building Project and Borrowing Status. Supervisor Art Jensen and County Conservationist Robert Heise appeared on behalf of the Planning, Zoning and Parks Committee and Parks Department (PZP) requesting to borrow $40,000 for the maintenance building for Homestead Parklands. Swenson indicated this was incorporated in the budget as a suggested item of one of the three major items the County could potentially borrow for. PZP has moved to accept a bid from Bauman Construction in the amount of $34,258 and to spend up to but not to exceed $40,000 for the maintenance building and site preparation. Whiting recommends during Finance Committee March 13, 2003 Page 5 of 6 the interim the funding come out of the Building Fund that was raised for the 2003 budget with the understanding when the borrowing options are reviewed, a decision be made either to leave it with the Building Fund or replenish that amount when we do the borrowing. Motion by Malick, 2°d by Wentz to recommend to the County Board approval of the building and the funding from the Building Fund not to exceed $40,000. Carried three to one - Swenson, Malick and Wentz voted yes; Krueger voted no. f. Review of County Unfunded Wisconsin Retirement System Liability. Whiting reported past legislative actions changing Wisconsin Retirement System (WRS) payouts create an "unfunded actuarial accrued liability" As of December 31, 2001 St. Croix County stood at $4.2 million. WRS allows municipalities to pay more into WRS to catch up. The system factors in two calculations. First, the County will annually be increasing wages by 4.5%, and second, 8% interest on the County's unpaid balance is fair to the system. This plan means the County will not pay off its liability until 2024 and would have paid over $5.5 million in interest. Whiting indicated other counties have paid their liability off early or have borrowed at a lower rate of interest. Whiting said this is the time to look ahead now since we are considering additional borrowing and refinancing of the Government Center bonds. This matter will be discussed further with Springstead at the April 10th Finance Committee meeting. g. Update on State Budget. Whiting indicated Governor Doyle's budget plan calls for shared revenue cuts this year. The plan proposes a cut of $63,226 for St. Croix County. This means St. Croix County would receive $854,251 in shared revenue. The 2004 proposal also cuts $63,226, besides the cut already built into the state budget. Swenson indicated we need to think about what adjustments we need to make and to deal with priorities. Whiting noted the Legislature's Joint Finance Committee is holding meetings around the state and is scheduled to be in River Falls on April 3rd. Malick will communicate to Sheila Harsdorf and Kitty Rhoades indicating the County's appreciation that they have come to our area to hear from our citizens, and understand we mean no disrespect, but we have no mandate from the County Board to deliver any message and therefore lest it be misinterpreted, we do not plan to send a representative to attend the April 3rd meeting. Malick will not authorize County Board members per diem to attend. Malick will explain this to the County Board at the March 18 meeting. Swenson suggested we continue to reflect on the figures provided by Whiting and think about this in concert with contemplated plans to borrow which will raise our debt service costs. We have three issues to deal with: 1. more debt service, 2. less revenue coming from the state, 3. increasing demands coming from a growing population. We will not provide any direction to the Department Heads at this time but continue to monitor carefully. 11. Personnel Committee Contingency Fund Request: Transfer of Funds to Health and Human Services for Settlement Costs of Social Workers Union De-Certification. Supervisor Speer appeared on behalf of the Personnel Committee. Whiting explained the social worker union at the Health Center de-certified this winter and in doing so, moved to the pay grid for the non-union social workers. This, along with back wages going to 2001, generates an unbudgeted expense of $77,187.26. The Personnel Committee recommends this unanticipated cost be made up out of the Contingency Fund. Swenson commented he believes the costs should be where the people are (Health and Human Services). Secondly in 2004 these people will be paid at a higher rate and third, is this what the Finance Committee wants to do with the Finance Committee March 13, 2003 Page 6 of 6 Contingency Fund given there are numerous other illustrations where there are no fault situations which do not run through the Contingency Fund. Malick proposed to table the request until September and make this the Finance Committee's policy for all other requests similar to this one. Whiting explained the costs always have to be accounted for; it's whether or not we transfer any revenues to offset the costs. Motion by Wentz, 2"d by Malick to recognize the request and to table it for not later than September 11, 2003 to encourage Health and Human Services to try to absorb this unbudgeted expense, otherwise the Contingency Fund can be reconsidered. Carried unanimously. 12. Municipal Taxpayer Commission mailing on Technical College System. Swenson indicated this was a study and objection to how the technical college system is financed which is based on the assessed valuation. As the assessed valuation climbs the technical college system gets more money. No action by the Finance Committee. 13. Review of EDC Funding Formula. Bill Rubin, Director of St. Croix Economic Development Corporation submitted a suggested formula based on growth in property tax base. Rubin indicated EDC is a membership driven not for profit business league that operates in and around the county. Membership is from the private and public sector. Cities and villages are assessed a formula of $1.25 per person; towns are assessed a formula at $.50 per person. For purposes of establishing the 2003 funding base, the county's 2001 population estimate of 64,752 persons was used, to wit: $.75 per capita times 64,752 residents equals $48,564 less $2,000 for donated office and telephone equals $46,564. Rubin indicated they would request up to half of the counties' percentage increase of manufacturing real estate values, but will not exceed a population percentage increase on any given year. In the event real estate values decline EDC would try to maintain a funding floor from the previous year's funding so EDC is willing to accept a flat contribution through membership of the county if manufacturing values go down. 2003 funding level is being used as the base year. Malick made three points: 1. Include manufacturing personal property; 2. Delete population incentive; 3. County cannot guaranty a funding floor because it's subject to budget constraints. Malick also noted that EDC should strive to create good jobs for St. Croix County. Rubin indicated they tried to put some steady, predictable indicator to set their budget. Rubin said he would take these ideas to the EDC Board. 14. Fair Board line item transfer for fund raising planning. Malick indicated the request was made to him. No one appeared on behalf of the Fair Board. This matter was tabled. Correspondence: WCA Memorandum re: 2003-05 State Budget Biennial Budget Analysis Adjournment. Meeting adjourned at 12:55 p.m. Esther Wentz, Secretary