HomeMy WebLinkAboutFinance 07-10-03 _ _ i i
NOTICE OF COMMITTEE MEETING
TO: Chairman Buck Malick
St. Croix County Board
FROM: Ralph Swenson, Chair
COMMITTEE TITLE: Finance
DATE; Thursday, July 10, 2003 8:30 A.M.
LOCATION: Room 1281, Government Center, Hudson
CALL TO ORDER
ROLL CALL
ADOPTION OF AGENDA
DATE OF NEXT MEETING: August 7, 2003 8:30 A.M.**
ACTION ON PREVIOUS MINUTES: June 10, 2003
UNFIlVISHED BUSINESS:
NEW BUSINESS: 1. Review of Vouchers
2. Inquiry from New Richmond School District re; County Land Availability - 8:30 a.m.
3. Baldwin Com Center Funding Options
4. Defibrillators Report - Supervisor Mehls 9:00 a.m.
5. Review of Departments' Mission and Business Responsibilities Statements
Maintenance Department Report
a. Review of Generator Replacement
7. Computer Services Department Report
Risk Management Report
9. Corporation Counsel Report
10. Treasurer's Report
11. County Clerk Report
a. Claim for Damages to Animals from David H. Teelon, Town of Hammond
12. Finance Department Report
a. Financial Reports b. Review of Budget Software Status
c. ATM Status
d. Sales Tax Collection Status
e. Band Proceeds Investment Options
f. Zoning Department Truck Purchase*
13. Administrative Coordinator Report
a. Appraisal ofCounty Property Status
b. Review of State Budget Status
c. Review of Purchasing Agent Position Status
14. County Library Plan Review -Inter-County Library Use Reimbursement 10:00 a.m.
15. Status of Storm Drainage Request on County Property in Hudson
1~. EDC Funding Formula Proposal
CORRESPONDENCE: ADJOURNMENT Agenda not necessarily presented in this order}
COPIES T0: County Board Gffice News MedialNotice Board
County Clerk County Board
County Departments
~'~ADDITIONSICHANGESICORRECTIONS
fast Updated: 7/9/Z003-8:I2 AM
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FINANCE COMMITTEE
Regular Meeting July 10, 2003
Meeting called to order by Vice Chair Krueger at 8:30 a.m. Present: Stan Krueger, Clarence
Malick, Esther Wentz and Daryl Standafer. Absent and excused: Ralph Swenson. Staff present:
Administrative Coordinator Chuck whiting, Finance Director Michelle Pietrick and County
Clerk Cindy Campbell. ethers present: Supr. Julie Speer, Judy Wiff, media
Motion by Wentz, 2~~ by Standafer to adopt the agenda. Carried. Motion by Malick, 2na by
Standafer to approve the minutes of June 12, 2003. Carried.
1. Vouchers. July vouchers were reviewed by Malick on July 9th. Motion by Malick, 2na
by Wentz to approve July vouchers. Carried unanimously. Malick will review August vouchers.
2. Inquiry from New Richmond School District re: County Land Availability. New
Richmond School District Administrator Dr. Craig H. Hitchens was in attendance.
Administrative Coordinator whiting explained the New Richmond School District is interested
in possibly acquiring 100 to 1Z0 acres of the County Farm property in New Richmond. Whiting
indicated he explained to Hitchens the County's position about not parting with any of the
County-owned property until the long range plan is finished. Hitchens indicated the County's
New Richmond property would serve the needs for a new school site because of its size, location
and access to city water and sewer. Hitchens added the New Richmond School District is on a
fairly fast timeline which may not coincide with the County and noted this may go to referendum
next spring. The land would be used for a high school campus. They are being driven by the
physical deterioration of the New Richmond Middle School. Malick explained the current status
of the land with the state and appraisal status with respect to the upgrade of Highway 64. The
County Board Supervisors will go through an exercise at the August 2003 meeting of potential County land uses, allocations, etc. Wentz added we need to take into consideration that
right now
we do not know if there will be a property tax freeze for the next three years and the biggest
hurdle will be the referendum which has to come through the voters. Malick indicated the
property contains a fanner incinerator site and two cemetery sites. Hitchens indicated he will
correspond through Whiting to the County Board before the August Board meeting.
3. Baldwin Com Center Funding options. Communications Director Gary Kollman
indicated he received verbal approval from the CE4 of Dairyland Power to build the Baldwin
tower. Original award was $1,068,079 which was awarded to Harris, total bid with Baldwin
option was $1,348,535; the difference is $280,459, less the Baldwin Tower x$139,970}providing
a balance of $140,459. Dairyland's participation was predicated upon construction of a "guyed"
tower. Kollman indicated a guyed tower takes up too much space. The Emergency
CommunicationslManagement Committee asked Kollman to negotiate that the County would
contribute the difference between a guyed tower and a standalone tower. The difference is
approximately $35,000. Dairyland has gone to bid for a standalone tower but the bids are not yet
in. Dairyland has agreed to construct a tower shack 10'x12' building}, build a fence around the
tower and supply a generator. To add the tower contribution is approximately $35,000 leaving
an amount needed of $175,459. Kollman indicated this figure could go up or down depending
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on the cost of the tower. The Village of Baldwin approved the tower providing landscaping be
done around the site. Dairyland mentioned they may need a raad, but they have not physically
viewed the site. All of this needs to be negotiated. A Village of Baldwin Trustee expressed
concerned about Dairyland competing against Baldwin Telecom. Dairyland indicated they have
aboard policy that prohibits outside interests on their tower. If necessary Dairyland agreed to
sign an agreement with the County promising Dairyland will not go into competition with
Baldwin Telecom. Krueger indicated he does not want to see a "forever lease". Malick
suggested a ten year lease subject to renegotiation. Madan by Wentz, 2~~ by Malick to approve
funding of a tower in an amount not to exceed $185,000 with the funds coming out of the
Building Fund. Carried.
4. Defibrillators Report -Supr. Mehls. Supr. Mehls provided a quote for four 2B-
LIFEPAK 500 Automated External Defibrillators with four surface mount wall cabinets in the
amount of $8,668.00 with additional expenses for training forty staff at $10.55 each, supplies and
training supplies for a total of $9,160. Mehls reported the 2003 United Way Grant is in the
amount of $4,500. The remaining amount was placed in the 2003 budget. No motion necessary.
5. Review of Departments Mission and Business Responsibilities Statements. The
Committee reviewed the Mission and Business Responsibilities Statements for Computer
Services, Administrative Coordinator, Finance Department, County Clerk and Corporation
Counsel. Computer Services has no changes from last year.
6. Maintenance Department Report.
a, Review of Generator Replacement. Ralph Robole requested funds to pay for
repairs for the emergency generator in the amount of $5,994.27. Robole's report indicated _
during a routine exercise of the emergency generator, a problem with the switching relay caused
a major failure of the emergency switchgear. when the panel was switched back to normal
power, the main switching motor did not disconnect the emergency generator and wiring, the
switching motor and other relays burned out. Standafer indicated this is clearly an unanticipated
ex ense and there is no way to plan for a catastrophic failure such as this. Motion by Standafer,
2 by Wentz to authorize payment far repair of the emergency generator 1n the amount of
$8,994.27 from the Contingency Fund. Carried.
7. Computer Services Department Report. No report,
Risk Management Report. No Report.
9. Corporation Counsel Report. No Report.
10. Treasurer's Report. County Treasurer Cheryl Slind provided a Reconciliation Report
for May 2003. Balance as of May 3 1, 2003 is $1,196,075.17.
11. County Clerk's Report. County Clerk Cindy Campbell reported she attended the
Wisconsin County Clerk's convention in Kenosha on June 22na through the 25th. Campbell
distributed copies of the County Clerk's revised Mission and Business Responsibilities
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Statements and a proposed Microsoft Excel voucher form for Statement of Expenses Incurred for -
St. Croix County.
a. Claim for Damages to Animals from David H. Teelon, Town ofHammond. A -
dog damage claim was submitted by David Teelon stating he discovered two dogs leaving his
property in the town of Hammond and found six dead chickens and two dead guineas on his
lawn and in the chicken coop. The claim, which was approved by the town board, requested
$7.00 per bird for the eight birds killed for a total claim of $56.00. Motion by Malick, 2na by
Wentz to approved claim in the amount of $56.00. Carried unanimously.
12. Finance Department Report.
a, Financial Reports. As of May 31, 2003 there is a total balance of $22,188,476.19
in the various County accounts and investments; $250,000 in the 2003 Contingency Fund. Pietrick distributed an Expenditure Summary Report as of June and Health and Human Services
financial report for January through May 2003. Nursing Home expenditures as of May 31, 2003
were $2,680,442.63; Nursing Home revenues as of May 31, 2003 were $2,626,897.41; Excess
Nursing Home expenses over revenues: x$53,545.22},
b. Review of Budget Software Status. Pietrick reported she is working with IDI to
get coding issues resolved. She hopes to schedule training in the third or fourth week in July to
enable Department Heads to get initial budgets put together in August.
c. ATM Status. E-Fund will not put a machine in our facility at this time, based on
forecasted business. Pietrick estimated if the County purchases an ATM, at a cost of $3,500 and
the County charges a $2.00 surcharge it would require 1700 transactions to cover the cost of the
machine. Malick indicated Public Protection Committee would like to see an ATM installed
because it would cut down on bad checks and people never paying, Standafer suggested doing
E-Scan on each check. E-Scan will also accommodate credit and debit cards. Pietrick will
investigate this option with First National Bank of Hudson and discuss it with Clerk of Court
Lori Meyer.
d. Sales Tax Collection Status, Pietrick reported the County must recognize sales
tax revenue based on the date of sale. In 2001 the County's financial report actually had 14
months of sales tax collections, Sales tax collected for January 2003 received in March}
$269,50x, February received in April} $291,400 and March received in May} $210,700,
Standafer indicated the Associated Press reported the State Revenue Department is alleging 57
counties have been overpaid in sale tax revenues. Pietrick indicated St. Croix County is included
as one of the 57. St. Croix County had been receiving estimated sales tax figures from
November 2002 through May 20x3. Pietrick revised figures for 2002 sales and the County is
$8,000 away from budget. The State will withhold $360,000 that was overpaid in future
payments beginning with the June payment. Based on the first four months we are down about
3%. Projections for 2002 collections were $4,248,300; actual collections were $4,256,718.
Pietrick added the County budgeted $4.5 million for 2003 and we may possibly finish $300,000
short.
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Pietrick reported the auditors suggested the County create a separate revenue fund for
sales tax collection rather than run it through the General Fund, At budget time, the County
estimates sales tax revenue and determines how much to use towards the General Fund to reduce
the levy. Currently the General Fund absorbs shortfalls. If a separate fund is set up the County
would make decisions of using a certain amount of sales tax collections, Other counties are
doing this because there are fluctuations.
e. Bond Proceeds Investment Options. Pietrick indicated she has contacted area
banks to get interest rates for the bond proceeds, The funds are in the state pool which is only
receiving interest at a rate of 1.19%. She sent out a cash flow forecast and should hear by the
end of the day from the banks. She added she is applying the County Investment Policy criteria.
f. Zoning Department Truck Purchase. Pietrick explained the Zoning Department
had in its Capital Outlay Plan $5,000 budgeted for this year and $5,000 for the next three years because they were anticipating purchasing a truck under a lease method. They went
out for bids
and nobody gave them a lease option, but they received a good quote for an outright purchase
with trade-in of the current truck. The cost would be $12,400, There is $5,000 in the budget
now and will need $12,000 to come out of this year's budget. Zoning will then not budget lease
payments for the next three years. Current lease has a 7.6% interest factor. Motion by Wentz, 2na
by Krueger to allow use of current operating money to purchase the truck, Carried.
13. Administrative Coordinator Report.
a. Appraisal of County Property Status. whiting reported the County's appraisal of
County Farm property came in at $507,500, about $315,000 of that is the appraiser's calculation
of what the diminution of value is for another 160 acres of property, some of which would
essentially not be accessible any more from County Road K. WisDoT's appraisal was $93,500
which was limited to the 23 acres they would take. The County needs to be concerned that the,
remaining part of the County's property is diminished by this improvement. Malick suggested
negotiating with the state regarding running sewer and water lines under the new road before it is
constructed to make sewer and water accessible to the property. whiting indicated nothing can
be done that exceeds the value of the report. It's the value that will end up dictating what
happens in the condemnation proceedings. Whiting will talk to the City of New Richmond
Engineer regarding this property and will coordinate with Dave Fodroczi a land use exercise for
the County Board meeting in August. Krueger suggested having the County Board members
write down their suggestions of land uses in advance of the August County Board meeting.
b. Review of State Budget Status. whiting indicated the levy limits are in the
Legislative package although the Governor is giving some indications he will veto those
provisions. The Governor has indicated no one will receive greater than a 15% cut in shared
revenue.
c. Review of Purchasing Agent Position Status. whiting reported the Personnel
Committee approved the Purchasing Agent job description. The content is based on Eau Claire
County's Purchasing Director job description. wentz suggested using coordination of effort
with other departments which are particular to their environment ~i.e. Highway and Nursing
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Home purchases}, The position will also allow us to track County assets. Pietrick indicated a
high priority for the new purchasing agent is setting up a corporate cell phone account as
opposed to each department obtaining their own account.
14. County Library Plan Review -Inter-County Library Use Reimbursement. Whiting indicated the area libraries submit reports at this time every year so the County may compile
the
information for rural circulation each library has. The County's practice has been to budget the
higher amount between the County's old funding formula and the Act 150 amount. Those
attending for area libraries: Eric Tommerdahl of New Richmond Library, Jim O'Connor from
Hudson Area Joint Library Board, Shirley Perkins of the Deer Park Library, Norma Scott of
Somerset Library, Nancy Miller of the River Falls Library, Lynn Barringer of Glenwood City
Library.
Pietrick distributed a 2004 Library Funding Preliminary Worksheet. Pietrick indicated Hudson
goes down to $0.00 because they are a joint library so they have their own levy authority.
0' Connor asked why. Pietrick explained there was a resolution adopted with regard to the j Dint
library of the City of Hudson, Village of North Hudson and the Town of Hudson that states these
three municipalities are exempted from County Library Tax Levy pursuant to WI Stats, §43.64.
O'Connor indicated it is true they are exempt from the County Tax Levy as is every municipality
that supports a library however the joint library is still eligible for rural funding as is every
library in the County so they would be entitled to the $50,772.
Pietrick explained the handout titled Reimbursements Due from Other Counties which, based on
information Pietrick received from the county libraries, calculated the total amount that could
have been billed to other counties totaling $67,229.69. Based on bills received from other
counties, Pietrick indicated St. Croix County would be paying out $9,244.18,
Whiting indicated last fall the Finance Committee passed a motion recommending a resolution
be drafted for St. Croix County cross-county reimbursement to libraries but there was no follow
through so there is no policy that indicates what the .County will pay other counties for our users
using their libraries. The County p~~~vx.l the other counties for out of county use. The
libraries in the County receive money from other counties. As a whole the County benefits.
Pietrick asked if the County is prepared to assume that kind of obligation without something in
return because we have an obligation to County libraries. One way to deal with it is while we are
required to pay the Act 150 amounts for the libraries receiving over Act 150, some of those
monies could offset County's obligation. What New Richmond would be owed from out of
county would exceed what the County has been contributing, Whiting added the proposed
resolution would be used to amend the current plan. Timmerman recommend this plan contain
reciprocal language,
0' Connor asked the County stay with the present funding formula and not cut back funding for
any libraries because 1}the smaller libraries need all the funding they can get, 2} attempting to
offset it by out of county monies, introduces unnecessary complexity and 3}the exact amount
received from other counties is not a sure thing.
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Timmerman added WI Stats §43.12 reads by July 1 of each year each public library line in whole
or inpart in a County shall provide a statement to the County Clerk of that County. He added it
does not say any library lying in a different county has to supply the list by July 1.
Based on the motion made and passed last fall, the Finance Committee asked Timmerman to
prepare a resolution for the August 2003 County Board meeting to amend the plan regarding
cross-county reimbursement to libraries.
O'Connor asked again why Hudson Joint Library does not get funds. Timmerman responded
saying Resolution 282002} passed by County Board indicated the City of Hudson, Village of
North Hudson and the Town of Hudson opted out of the library reimbursement plan because they
do not contribute to the County program. The city, town and village fund themselves. O'Connor
disagreed and indicated by creating the joint library it became a larger city library but still should
receive rural reimbursement as other libraries do. Rural circulation is the County's responsibility
which would entitle the Hudson library to $50,772 County Funds Received in 2003} or $47,897
~70% of Cost of Rural Circulation}. Timmerman agreed the Hudson Joint Library is entitled to
the $47,$97. Timmerman indicated the affect on the County in regard to the joint library is that
no longer do the Village of North Hudson residents or Town of Hudson residents qualify as rural
circulation. Pietrick asked if the other county libraries have to bill the j Dint library in Hudson to
get their reimbursement? O'Connor indicated they are entitled by an offer and agreement made
to them.
Nancy Miller of River Falls indicated it was her understanding this was a hold harmless
agreement for any loss. O'Connor indicated to Miller the joint library will not pay for the
Village of North Hudson because they did not need County permission to become part of the
joint library. Miller thought it was a hold harmless clause and no distinction was made and they
needed the Town of Hudson into the j Dint library to make it worthwhile. 0' Connor gave Miller
a reimbursement offer in which the Hudson Area Joint Library agreed to reimburse any other
County library for town rural circulation that Loses by having the Town of Hudson in the joint
library system. O'Connor stated it works out they owe Somerset approximately $64, River Falls
X4,000 plus. Pietrick indicated in the. County resolution it states; "The Mayor of Hudson,
President of North Hudson and Chairman of Town of Hudson have all acknowledged that the
Joint Library Board intends to reimburse any public library in the County for any negative
financial impacts for loss of collection for rural circulation that would have been received had
the j Dint library members remained subj ect to the County's library tax levy." She added the
Village of North Hudson was considered rural circulation before the joint library was created.
0' Connor indicated the j Dint library agreement that formalized the j Dint library and was adopted
by the three municipalities does contain the reimbursement provision for the towns but does not
include the Village of North Hudson. Standafer indicated the Joint Library Agreement is in
conflict with the County's Resolution. Malick indicated it is a breach of faith and added it was a
critical element that the Finance Committee built the County resolution the way it did.
0' Connor indicated the village has independent authority to j Din a j Dint library. The
reimbursement offer for town circulation came out of the fact that the towns need County .
approval to j Din, Malick received conf rmation that "rural" included the village prior to this
action. No action was taken to change the definition. Wentz added one of the reasons this went
through was the fact the hold harmless for all library including rural circulation was in there.
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Malick suggested the County calculate how much would go to River FaIIs on account of North
Hudson's circulation and the other libraries and look at offsetting that from any County payment
to the Hudson Area Joint Library. The approximate difference for River Falls is $1,000. Wentz
stated it's not a financial issue, it's an integrity issue.
Pietrick will obtain information regarding what was billed to the other counties from each
library.
15. Status of Storm Drainage Request on County Property in Hudson. Whiting indicated
the development on the Hanson Property, located on Carmichael and County Road LTU, has been
proposed to the city and that property currently drains water onto County property. The nature
of the development is office buildings and parking lots which will increase, by some degree, the
amount of drainage onto County property. Whiting met with the developers, the City of Hudson
and County Conservationist Bob Heise. Calculations from their proposal include amounts of
increase by 811 oaths of an inch. If the County was open to accepting the water and putting
conditions on it, the concerns would be future costs relating to storm water drainage. The County
would need to be open to an arrangement to be determined to keep the County from suffering
discount value on the property or some actual cost of public improvements in the future.
whiting suggested if the County decides to take an approach other than no more water, a written
agreement will need to be prepared with the property owners. Malick added if agreed to not
accept more water, we do nothing, if we agreed, we need to provide an agreement. Standafer
noted he is not an independent to the issue. Motion by Malick, 2nd by Wentz to respond by
declining to accept an increase of water flaw to County land, Carried. Standafer abstained from
voting.
16. EDC Funding Formula Proposal. Director of St. Croix County Economic
Development, Bill Rubin submitted a revised formula concerning the future funding of St. Croix
Economic Development. The EDC board of directors unanimously approved the changes as
suggested by the Finance Committee in March 2003. The revised formula now reads as follows:
Subj ect to county budgetary constraints, St. Croix EDC requests up to one-half of
the percentage increase associated with the county manufacturing values, real
property and personal property, not to exceed a four percent ~4%} increase from
one year to the next.
In the event the county's manufacturing values decline, the EDC would receive
the same contribution from the county as received in the previous year.
The county's 2003 funding level of $45,564 gross} would serve as the base year
for future funding calculations. A deduction of $2,000 was made from the 2003
funding level to reflect the county's donation of office space and telephone
service. For 2004, the value of the office space and telephone service has been
increased to $2,200,
Standafer observed the formula requests funding on the basis of something that has happened as
opposed a prof ection of what needs to happen. Malick indicated it would be appropriate to use
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this formula in its budget request. The real gain is it aligns incentives for the County's interest in
improving its tax base in areas EDC can make a difference, rather than just by population
growth. Whiting asked if the formula suggested a 4% increase in a contribution annually, Rubin
said they want to be fair to recognizing up to 4% but maybe the request will be 2%, EDC will
use this formula as a guideline as they begin preparing their budget for 2004.
Motion to ad'ourn b Wentz 2nd b Krue er. Meetin ad'ourned at 12:24 .m. J Y ~ Y g g J p
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