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HomeMy WebLinkAboutFinance 06-12-03 r ST. CROIX COUNTY NOTICE OF COMMITTEE MEETING TO: Chairman Buck Malick St. Croix County Board FROM: Ralph Swenson, Chair COMMITTEE TITLE: Finance DATE: Thursday, June 12, 2003 8:30 A.M. LOCATION: Room 1281, Government Center, Hudson CALL TO ORDER ROLL CALL ADOPTION OF AGENDA DATE OF NEXT MEETING: July 10, 2003 8:30 A.M. ACTION ON PREVIOUS MINUTES: May 8, 2003 May 20, 2003 UNFINISHED BUSINESS: NEW BUSINESS: 1. Review of Vouchers 2. Maintenance Department Report a. New Position Request** b. Chiller Repairs** c. Capital Outlay Plan** 3. Computer Services Department Report a. Department Reorganization Option** 4. Risk Management Report 5. Corporation Counsel Report 6. 9:00 a.m. Meet with Committee Chairs re: 2004 Budget Priorities a. State Budget Status b. County Issues c. Capital Outlay Planning d. Budget Instructions 7. Treasurer's Report a. 2004 Capital Outlay Plan b. Wage Adjustment Request 8. County Clerk Report 9. Finance Department Report a. Financial Reports b. Register of Deeds Budget Amendment Request c. ATM Review 10. Administrative Coordinator Report a. Appraisal of County Property Status b. Inter-County Library Use Reimbursement c. New Position Request - Purchasing Agent d. 2004 Capital Outlay Plan** 11. County Farm Plan 12. Action re: Offer on County Owned Property in Hudson 13. Response to Storm Drainage Request on County Property in Hudson** 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 Last Updated: 61912003-4:56 PM FINANCE COMMITTEE Regular Meeting June 12, 2003 Meeting called to order by Chair Swenson at 8:30 a.m. Present: Ralph Swenson, Clarence Malick, Esther Wentz and Daryl Standafer. Stan Krueger arrived at 8:40 a.m. Staff present: Administrative Coordinator Chuck Whiting, Finance Director Michelle Pietrick, County Treasurer Cheryl Slind and County Clerk Cindy Campbell. Others present: Judy Wiff, media Motion by Wentz, 2"d by Standafer to adopt the agenda. Carried. Motion by Malick, 2nd by Wentz to approve the minutes of May 8, 2003 with the following changes: Page 8, item 8: "This would increase the borrowing to approximately $3,460,000 because it needs to be in increments of $5,000. Roll call vote on amendment: Wentz - No, Malick - Yes, Swenson - No, Krueger- No, Standafer - Nok Amendment to motion fails. Roll call vote on original motion: Malick - No Swenson - YesKrueger - Yes Standafer - Yes, Wentz - Yes" Pa a 8, item 9: g "Krueger asked if the County kept all penalty and interest on delinquent tax payments. Slind replied the County keeps tftpenalty and interest charges that pertain to the delinquent tax amount,. Special assessments and other charges get paid to the municipality with interest allocated to amount delinquent and the minutes of May 20, 2003 Special Finance Committee Meeting. Carried unanimously. 1. Vouchers. May vouchers were reviewed by Krueger on May 9d' and June vouchers were reviewed by Wentz on June 10`b. Malick will review the July vouchers. 2. Maintenance Department Report. a. New Position Request. Facilities Manager Ralph Robole submitted a Maintenance Personnel Request for a full time Mechanics Helper/Groundskeeper requesting this position be in a five pay range. He also requested additional authorized hours. Standafer and Malick asked Robole to consider an outside contractor for lawn mowing and mail delivery service. Standafer requested a comparison chart for pickup service for mail delivery. Motion by Malick, 2°d by Wentz to authorize one full time position for the Maintenance Department. Canied unanimously. b. Chiller Repairs. Robole and Service Technician David Best submitted a written report regarding chiller repairs. Best recommended the second option which is to make temporary repairs now, so the machine could be pressed into service this summer, with the permanent repairs being completed this fall when the machine is able to be taken out of service. Standafer clarified the quote for the repairs, both the temporary fix and permanent, is $49,595. Best indicated he received a replacement figure in the amount of $160,000 for each machine with installation as an additional cost of approximately 20% - 30% per machine. Swenson asked what cost would be for a temporary fix. Best answered $21,000. Best indicated the machine has run well up to this point and with repairs they could continue to operation into the twenty year range. Motion by Standafer, 2nd by Krueger for temporary fix in the amount of $21,000 to start with $27,000 as full repair and request a not to exceed price and the use of a St. Croix County Maintenance Technician to assist with repairs and to be funded from the Contingency Fund. Swenson urges study regarding replacements to be placed in the Capital Outlay Plan. Carried. Malick voted no. C. Capital Outlay Plan. Robole submitted the Capital Outlay Plan (COP) for 2004. Motion by Malick, 2nd by Krueger to place the Electronic Chiller Combustion Controls ($3,000), the VAV Circuit Boards to Stock ($3,000) and Cooling Tower Drift Eliminators ($2,500) as ongoing expenses for maintenance of equipment; approve the Building Management Computer Control System ($34,000) new software to replace the present Trane Tracer software which is a DOS based program; purchase of Tractor & Ztrak Mower & Trade Skidsteer ($8,611) will be retained with a level of a dollar amount and as for the replacement of the Floor Scrubber and Burnisher ($6,790), one shall be replaced in 2004 and the other in 2005. Carried unanimously. 3. Computer Services Department Report. a. Department Reorganization Option. Director of Computer Services Tom Boron requested reorganization for the Computer Services Department for 2004. There are currently five Information Systems Analysts who report to Boron, one Programmer/Analyst and one Operations Specialist. Dave Schatz has become the lead contact of the technicians. Boron indicated the proposed new position title would be Network Administrator. This position would move to a management position, which moves him out of the union. Boron added he believes no one currently working here could post into Annette Massie, the Programmer/Analyst's position so her position should also be taken out of the union. Swenson in favor of title Network Administrator because this would could not be replicated around the County. Motion by Standafer, 2"d by Krueger to approve the concept to proceed with the process of reorganization and to proceed to Personnel Committee. Carried unanimously. 4. Risk Management Report. No Report 5. Corporation Counsel Report. No Report 6. 9:00 a.m. Meet with Committee Chairs re: 2004 Budget Priorities. Committee Chairs and Department Head attending: Chris Bethke, Art Jensen, Ron Raymond, Julie Speer, Art Jacobson, Linda Luckey, Tim Ramberg a. State Budget Status. Whiting distributed a 2004 Budget Forecast Data worksheet showing what appeared to be coming to the County mostly from the State budget situation. Whiting explained he attempted to quantify what the history of the County would have been had it been limited in its ability to raise the levy by the growth of new construction value in the County. The percentages of total value equate to what the percentage increase of overall new valuation can be attributable to new construction. It also can be the percentage increase that the County's levy could increase if the County were going to attribute increases only to new construction. Actual percent levy increases range from 0.00% in 1999, 14.51% in 2000, 20.33% in 2001 and 14.63% in 2002. Knowing the legislative budget has a levy limit for the next three years the County will be looking at increases from four to seven percent as a limit on what St. Croix County can levy. 2 b. County Issues. The data sheet provided 2003 YTD Sales Tax Revenue for St. Croix County. The monthly average is $336,375. The New Levy Commitments for 2004 are 1994 Government Center Bond payment, Pension Liability Notes, Huber/Microwave/Park Bonds and the Jail Assessment Contribution estimate. Other Budget Commitments include 3% wage increases, three to five new position requests and health insurance increase calculated at 10% each year. Additional considerations include $775,000 unused from 2003 Building Fund. This money comes off the levy. $244,000 for health insurance commitment and this amount is yet to be determined for 2003 and 2004. Notable capital improvement items include remodeling the Nursing Home, Baldwin Communications Center and optical imaging. The County also needs to consider the anticipated loss in Shared Revenue between $300,000 and $365,000 and the surplus applied, yet to be determined, leftover from 2003. Whiting noted it's not a one-for-one draw of levy; it's a 30% draw of the levy because the County levies roughly $18.5 million but we have a $69 million budget. There are other revenues that factor into this. Swenson asked the major subsections show the levy impact from 2002, the proposed levy impact in 2003 showing a dollar and percentage increase in the levy impact and incorporate it in the budget instructions. C. Capital Outlay Planning. Highway Commission Tim Ramberg indicated the Highway Department is looking into what projects to do and when and to stay steady with budget needs. State contracts are reviewed annually by the Transportation Committee. Swenson indicated last year's budget instructions asked departments to go with 0% increase in operational expenses, looking for offsets in productivity and other issues. Raymond noted the workload increase in the Zoning office and increase in gas prices. Swenson indicated last year's instructions included the Finance Committee being supportive of fee and expense increases. He added the intent is to not make the numbers different, but to make them realistic. Malick informed deadline for submitting budget requests is mid-August. Jacobson asked the current pension liability be reviewed. Pietrick will do this. Standafer indicated postage and gasoline items should not be individual department options, but rather cast across the whole budget. For example, if gas is priced at $1.59 per gallon, everyone should use the same number and determine mileage. Ramberg noted appreciation of the budget process. Budget instructions are to be sent to Department Heads and Committee Chairs. d. Budget Instructions. Swenson reviewed budget instructions. Mileage rate will remain at $36 per mile. Whiting reminded the IRS typically changes the rate at the end of the year and suggested the County be at the IRS rate. Postage rates will remain at $37 and motel/hotel rates will remain at $62.00 per night. Question if the cost of telephone operation will 3 not be included. Pietrick and Whiting will review further. Change contact for telephone operations from Robole to Communications Director Gary Kollman. Swenson asked the County maintain a zero percent operational cost. However, Finance Committee will recognize efforts to raise appropriate department revenues. Swenson indicated we are talking about budgets for fiscal year 2004 and we do not have the audit for fiscal year 2002. Equalized budget for computer equipment maintenance has a central fund; this must be reviewed to see if this makes sense to do it this way. Swenson added to ask each department to summarize their levy dollars for 2004 vs. 2003 with a dollar percentage change and summarize what their proposed budget in 2004 is and what is dependent for grant support. Pietrick is to review gas prices with Highway Department, Sheriff's Department and Health and Human Services. 7. Treasurer's Report. County Treasurer Cheryl Slind provided a Reconciliation Report for April 2003. Balance as of April 30, 2003 is $1,164,409.40. Appreciation expressed by Finance Committee of current reports. Slind indicated she recently attended the WACO Treasurer's Conference. Discussion regarding collecting taxes via e-checks or credit card. The cost for using this method of tax collecting would be a cost to the taxpayers. a. 2004 Capital Outlay Plan. Tax System Update Windows Version, Training Windows Version Tax System, two computers and two receipt printers are items included for upgrading the current programs from DOS to Windows. The Annual Support License is paid to the company for updates and training. Swenson noted this item was included, but may revisit this because it is not a Capital Outlay item. Slind added the Fax/Copy machine could possibly be put on hold. Her current copy machine is 15 years old. Motion by Wentz, 2°d Krueger to put the County Treasurer's Capital Outlay Plan into the forecast on a preliminary basis subject to the formal process it will later go through. Carried unanimously. b. Wage Adjustment Request. Slind indicated approximately one year ago the Finance Committee decided to decrease the Treasurer's salary for 2003 by $700 based on the issues of the non-completion of the Treasurer's Reconciliation. Slind added she has completed this task since December 2002 and has accomplished it on a monthly basis. Motion by Wentz, 2°d by Malick to raise the County Treasurer's salary $700 per year, effective from the time of taking office in 2003. Standafer stated the Finance Committee does not determine merit of elected officials. The compensation level is set prior to an election and the person running for that office is aware of the level set. If an adjustment is required at some point, it would be the next time salaries are set for elected officials. Wentz noted Finance Committee took position to decrease the salary when work was not being done, it set up the statement that when the work is being done, the County needs to pay for it. Standafer clarified there was a reduction in the Treasurer's salary, but it was at the next time the person runs for office. The incumbent, prior to running for that office, knew what the salary would be. Whiting stated he would not like to see check reconciliation back to the Finance Department. Vote: Yes - 2; No - 3; motion fails. 8. County Clerk's Report. County Clerk Cindy Campbell reported she will be attending the Wisconsin County Clerk's convention in Kenosha on June 22°d through the 25d`. Title transfers and marriage license applications have increased. Items included in the County Clerk's 2004 Capital Outlay Plan are: 1 computer, office remodeling to move workstations to service counter, switchboard upgrade, backup AccuVote Scanner for elections, audio and video upgrades for the 4 County Board Room and for 2005 a copy machine. Whiting sug ested adding a computer link in the upgrade for the County Board Room. Motion by Malick, 2° by Wentz to approve video and audio improvements not to exceed $5,000 and get back to Hudson's Community Access and cover the following points: 1) Hudson Community Access would handle contracting; 2) pay everything above that cost; 3) get back to the County with regard to enhancements to the sound system in the County Board Room; 4) add a station for a projector; and 5) provide the County with a plan for how the video tapes would be made accessible to other communities which have community access cable. Swenson confirmed this is a preliminary/soft estimate to be put into the planning process on a preliminary basis and not constitute final approval. Carried unanimously. 9. Finance Department Report. a. Financial Reports. Finance Director Michelle Pietrick distributed a Health and Human Services financial report for January through April 2003. Nursing Home expenditures as of April 30, 2003 were $2,143,637.63; Nursing Home revenues as of April 30, 2003 were $2,088,549.08; Excess Nursing Home expenses over revenues: ($55,088.55). Swenson requested summary of expenditures by department on a year to date basis versus their budget and a report showing line item expenditures. Pietrick indicated we cannot get 2003 information until the 2002 books are closed. Auditors will begin next week. Contingency Fund 2003 Appropriation running balance is $250,000.00. Pietrick reported the 2002 Sales Tax Progress, the amount reflected on the 2003 receipts for January in the amount of $269,500 was the November sales tax and the February 2003 receipts in the amount of $291,400 were the December 2002 sales tax. Pietrick decided to cease receiving cancelled checks from Bank. The County can get a CD containing images of cancelled checks. One disk holds three months worth of data. The County Treasurer needs this on a monthly basis. Pietrick has asked the bank to provide this information monthly for a reduced fee. The auditors requested approval by the Finance Committee of this procedure of not receiving cancelled checks. Motion by Standafer, 2°d by Krueger to support the decision of the Finance Director to cease receiving the County's cancelled checks from the bank. Carried unanimously. b. Register of Deeds Budget Amendment Request - Supr. Art Jensen and Register of Deeds Kay Walsh appeared before the committee to request a minimum of $30,000 be added to the Register of Deeds 2003 budget from the Register of Deeds revenues to meet the cost of additional overtime, part-time staff and training of new staff person. Walsh indicated the office of the Register of Deeds has processed 4,459 more documents the first quarter of 2003 than the first quarter of 2002 (a 41% increase). The County share of revenue from the Register of Deeds in the first quarter of 2003 is $411,630, a37% increase over first quarter of 2002. Standafer and Malick indicated a part-time person would less expensive than paying existing employees time and one-half. Krueger indicated a part-time staff person would eventually be needed and something needs to get going on it now. He added the revenue is coming to support the part- time person. Finance Director Michelle Pietrick indicated the Register of Deeds is near being out of budget because there was no way to factor in the amount of business. Motion by Krueger, 2nd by Wentz to approve $30,000 increased to the Register of Deeds budget to cover expenses for 5 part-time staff, overtime or the training of a new staff person to come from the Register of Deeds revenues. Carried. Malick voted no. C. ATM Review. Pietrick had compiled information from the Clerk of Court, Sheriff and Jail regarding number of transactions, dollar of transactions and times of business. Pietrick has emailed the information to vendor and has not heard back. Swenson thanked Standafer for his assistance and input with respect to the ATM machine. 10. Administrative Coordinator Report. a. Appraisal of County Property Status. Whiting reported he offered the appraisal work to an appraiser but had run into some questions with the WisDOT regarding the appraiser. Since then, he secured the services of a new appraiser, Ted Morgan from Chetek. b. Inter-County Library Use Reimbursement. Whiting reported in September 2002 the Finance Committee passed a motion to put the County into reimbursing and seeking reimbursement from other counties for rural library use. A proposed amendment to the County Library Plan regarding Inter-County Resident Usage Reimbursement was handed out. The amendment provides libraries outside of St. Croix County requesting reimbursement for usage by St. Croix County residents must present acceptable methodology for measuring St. Croix County residents' circulations and registration. Application must be made to the St. Croix County Clerk by July 1. Once the methods and number have been verified, those libraries will be reimbursed at 70% of the cost for provision of service or at the level the other libraries' county(ies) has determined for reimbursement of out-of-county usage, whichever is less. If the language is acceptable it would go from the Finance Committee to the Administration Committee to pass in a resolution as an amendment to the plan for County Board's consideration in August. Wentz indicated for some libraries this provides quite a bit of money for them because they send out many books outside of the county to other counties. This came about when the libraries went online giving the ability to order books from anywhere in the State of Wisconsin to be shipped to the requester. The libraries are looking to get reimbursed for these costs. There is currently no mutual agreement with libraries outside of St. Croix County. Wentz added Act 150 does not reimburse for out-of-county people. This matter will be postponed to July Finance Committee meeting. Whiting will ask librarians to meet with the Finance Committee at July meeting. C. New Position Request -Purchasing Agent. Whiting indicated he received a job description for this position from Eau Claire County and would consider including fixed asset management capability into the position. Malick suggested try this as a Capital Outlay item and put position description into the process but suggest timing that position not be filled until the fourth quarter of 2004. Whiting indicated the County needs a way to keep track of purchases through the network and vouchering. Pietrick added she has not seen a policy that directs staff with a purchasing process. Motion by Wentz, 2°d by Standafer to put a Purchasing Agent position in the preliminary planning process with start date of July 1, 2004. Carried unanimously. 6 d. 2004 Capital Outlay Plan. Whiting has had a suggestion to have a copy machine that makes colored copies. Wentz suggested leasing it. This will be left for Whiting for further thought and until the COP finalization. 11. County Farm Plan. Malick indicated three elements. First, after the County has the limited appraisal to be done at WisDOT expenses, get an extended appraisal, hopefully from the same appraiser to be done at WisDOT expense. Second, get input from the full County Board on what proportion of land uses they think makes sense, and then have the appraiser do an appraisal of the land which would enable the third step, to do an internal estimate of contribution to property tax revenue stream, based on the percentage of land use. Standafer added we need to be proactive in the planning process for the land use. Wentz indicated we need to take everything into consideration for the land use options. Motion by Malick, 2nd by Standafer to approve with appraisal, providing initial road access is completed, following input from the full County Board on proportion of land uses and an internal estimate of contribution to property tax revenue based on the land use percentage. Appraisal fee will be paid from the Contingency Fund. Carried unanimously. 12. Action re: Offer on County Owned Property in Hudson. Malick transmitted an offer from the St. Croix Valley Professionals, Inc. Malick indicated he has represented the St. Croix Valley Professionals as a group and the individuals from time to time as their lawyer. Thus, he could not participate in the discussion or voting. Standafer indicated he is not independent from this and would not vote on any action. Whiting indicated the position of the County Board is there are no offers to be taken based on a discussion held two years ago. Swenson suggested we've had a consensus the County does not have a plan for the property surrounding the Government Center and the County agreed the plan would follow the New Richmond plan. Motion by Wentz, 2nd by Krueger to have Whiting write a letter to St. Croix Valley Professionals, Inc. indicating the County is not entertaining offers at this time and to thank the interested parties for their inquiry. Carried unanimously. 13. Response to Storm Drainage Request on County property in Hudson. Whiting received request from Patrick Carpenter of James R. Hill, Inc. of Burnsville, MN asking if the County would be open to discussion on having storm water drainage retention on the County's property because of the development which will take place on the Hanson property east of Carmichael Road. Whiting has talked to County Conservationist Robert Heise regarding this matter and asked if the County is obligated to have some storm water retention because we have property. Standafer stated he is not independent of this transaction. Malick added he has represented Robert and Marsha Hanson in the past. Standafer noted the County is now receiving water from the property via a 12" culvert under the road. The issue being raised as the property develops it will create more water. The additional water will have two alternatives; one being a retention area is located on the site which means the property on that development becomes more or less economically viable; or two, is additional water to be generated by the surface available to come onto this property which would require no investment just more water to this property. Standafer added he is not speaking for or against this matter. Whiting indicated research needs to be done. If the County rejects or restricts to what it current is this may potentially change amount of flow which could include public improvements or assessments. Whiting noted if we wanted to entertain this matter, it would need County Board approval, but absent of a plan for the property 7 it's difficult to say what the cost effective solution is. The County needs to find out what it is responsible for with respect to drainage issues. Swenson asked information be prepared by Heise and Corporation Counsel Greg Timmerman as to what the County is responsible for with respect to storm water drainage and have Whiting report at the Finance Committee in July. Matter postponed to July meeting with no action until further information is received. Motion to adjourn by Wentz, 2°d by Krueger. Meeting adjourned at 1:05 p.m. 8