HomeMy WebLinkAboutFinance 10-16-01
ST. CROIX COUNTY
NOTICE OF COMMITTEE MEETING
TO: Chairman Thomas Dorsey
St. Croix County Board
FROM: Tom O'Connell, Chair
COMMITTEE TITLE: Finance
DATE: Tuesday, October 16, 2001 8:30 A.M.
LOCATION: Goven invent Center
CALL TO ORDER
ROLL CALL
ADOPTION OF AGENDA
DATE OF NEXT MEETING: November 9, 2001 8:30 A.M.
ACTION ON PREVIOUS MINUTES
UNFINISHED BUSINESS:
NEW BUSINESS:
A. Continuation of 2002 Proposed Budget Review
CORRESPONDENCE:
ADJOURNMENT
Date: October 11, 2001
COPIES TO: County Board Office News Media/Notice Board
County Clerk County Board
County Departments
*ADDITIONS/CHANGES/CORRECTIONS
UNOFFICIAL RECORD
Special Finance Meeting October 16, 2001
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FINANCE COMMITTEE
Special Meeting October 16, 2001
Meeting called to order by Chair O'Connell at 8:30 a.m. Present:
O'Connell, Tom Dorsey, Ralph Swenson, Nancy Bieraugel and Stan
Krueger. Staff: Administrative Coordinator Chuck Whiting,
Finance Director Rich Loney and County Clerk Sue Nelson. Others:
Supr. Einar Horne.
October 10th minutes will be officially approved at the November
meeting but Swenson suggested changing the wording of "co-pay" in
regard to health insurance to "share of premium" paid by
employee.
O'Connell reviewed the budget status from the Oct. 10 Finance
meeting for Bieraugel. She requested salary increase figures for
2002.
Nursing Home: Whiting said the Nursing Home levy request as
submitted by Administrator Carolyn Krieger is $1,532,965. He
recommended accepting this number and making the Board aware of
Finance Committee's concerns. Some departments feel they have no
control over some things and take no responsibility for budgets.
Swenson stated the levy request for the Nursing Home is raising a
number of questions: 1) When the management and staff have
presented multiple levy requests ($551,000; $859,000; $1,000,000;
$1,200,000 and now $1,532,965 - the latter including the health
insurance plus unknown adjustments) is there a question as to how
well management understands the nursing home business process and
the related financial impacts? 2) Why was there no communication
prior to an end-of-September budget presentation that the 2001
estimated "Net from Operations" will be a loss of $527,311 which
is over and above IGT, the 2001 levy of approximately $535,000
and transfers of $75,000 from the farm account. 3) Can we have
adequate confidence in the 2002 budget given that there appear to
be no operational indices by which to judge how well the nursing
home is being operated? 4) The estimated 2001 cash deficit will
be $352,295 which must be added to the existing deficit of
$418,000. Assuming the 2001 estimate is not understated, how
will we recover this cash overdraft of $780,295? 5) Given a
2001 estimated Net Loss from Operations of $1,877,610 (before
IGT, the 2001 levy and farm account transfers), why is there no
stated plan to at least reduce the rate of loss?
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Special Finance Meeting October 16, 2001
Budget Discussion: Health and Human Services made the $300,000
requested reduction but had to add in the increased Health
Insurance premiums.
The figures presented on the preliminary levy requirements equal
a 10.92% levy increase. Capital Outlay borrowing items total
$351,195. Loney reported the 2001 Contingency Fund has a current
balance of $197,000. The $85,000 Perch Lake loan and $66,000 for
Keefe nursing home study could be paid from this fund.
Discussion on timeliness of reclassification of positions and
effect on the budget. Whiting said the Personnel Committee
doesn't worry about cost of reclasses, they only determine fair
wages for employees based on the Hay evaluation. Bieraugel
suggested a deadline date be put in the budget instructions so
reclassifications are included in the budget.
Proposed Personnel Study by Springsted. Whiting said the Hay
system does work but is not understood by affected employees.
Department or Committee level determines if reclassification
request is addressed. Whiting believes the Springsted study
would make employees more proficient.
Supr. Horne distributed a proposal for the 147 non represented on
the health insurance plan pay 25% of the premium or $202.59 per
month. This would be a $314,345 savings to the County.
Employees are scheduled to pay $24.39 in 2002. No action taken.
Moved by Swenson, 2nd by Bieraugel to move these items from the
levy to the borrowing list: $25,000 for time and attendance
software, $18,000 for stone facing for building and $35,000 for
Park playground equipment (all tangible items) and remove
Personnel Study from borrowing list to the levy. Carried.
Budget Presentation: Whiting displayed graphs and charts showing
objectives, growth in County evaluation, top priority of the
Nursing home, health insurance, capital outlay example, personnel
costs for new and modified positions and the Personnel Study.
The site manager for Homestead Park would have to be added to the
levy if funds are borrowed to finish the Park and if Park was
opened on August 15, 2002.
O'Connell suggested a joint meeting with the Personnel Committee
regarding the proposed Personnel Study by Springsted.
Board should be made aware the starting point of the levy request
was nearly a 40% increase and after reductions is down to 19.92%.
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• Special Finance Meeting October 16, 2001
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Swenson will back the $1,532.965 for the Nursing Home if there is
better and timely communication and a plan to address increasing
losses. He suggested having an audit by a firm familiar with
Nursing Homes to improve the bottom line or hiring a consultant
such as Arthur Anderson. Bieraugel and Swenson both commented
they would like this to be regarded as an offer to help
Motion by Krueger, 2nd by Swenson to hire an audit firm for a
management study of the Nursing Home to be paid by transferring
up to $50,000 from the 2002 Contingency Fund to the
Administrative Coordinator's budget. Bieraugel would like to
involve H&HS Committee and Nursing Home staff so all would
cooperate with the management study. Carried. Note: This
motion was rescinded at the October 26 Finance Comm. meeting.
Motion by Bieraugel, 2nd by Krueger to remove Ballot on Demand
from the borrowing list and pay the $14,000 cost from the 2001
Contingency Fund. Carried. Swenson voted no.
Other Actions: Committee agreed to have Dorsey, Whiting and
Nelson sign the Ayres Huber study.
Committee requested Whiting sit in on interviews for Child
Support Administrator position.
Chair O'Connell referenced the letter from Supr. Speer in which
she questioned the Finance Committee canceling the Public
Protection Committee decision to have Ayres Associates do a Huber
study. O'Connell replied the Finance Committee is also the
Building and Bond Committee and has the responsibility for all
County buildings in regard to remodeling, additions and new
construction.
A meeting was set for Friday, October 26 from 8:30 to 9:30 a.m.
for review of final budget presentation.
Motion to adjourn by Bieraugel, 2nd by Swenson. Meeting adjourned
at 1:50 p.m.
Stan Krueger, Secretary
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