MOTION: SUPERVISOR STUECK/MILLER MOVED APPROVAL OF THE MINUTES OF JULY 19, 2016 AS PRESENTED. MOTION CARRIED.
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1 Members Present: Members Excused: Others Present: MINUTES FINANCE COMMITTEE TUESDAY, AUGUST 2, 2016 K. Sturn, J. Pleuss, P. Stueck, N. Miller K. Groat Chair Sturn called the meeting to order at 9:00 A.M. MINUTES B. Massey, Finance Director J. Beauchamp, Controller *J. Guidote, Corporation Counsel J. Nooyen, County Board Chair C. Moser, Deputy Executive Administrator *D. Mumford, County Treasurer *L. Lux, Human Resources Director *T. Woelfel, Citizen *B. VanStraten, Recycling & Solid Waste Director *J. Rathman, Deputy Director, Health & Human Services *C. Moser, Deputy Executive Administrator K. Ciske, Legislative Services Specialist *(Attended a portion of the meeting) MOTION: SUPERVISOR STUECK/MILLER MOVED APPROVAL OF THE MINUTES OF JULY 19, 2016 AS PRESENTED. MOTION CARRIED. PUBLIC PARTICIPATION LIMITED TO THREE MINUTES PER PERSON There was no public participation. CLOSED SESSION: MOTION: SUPERVISOR STUECK/MILLER MOVED TO GO INTO CLOSED SESSION AT 9:20 A.M. PURSUANT TO SEC (1)(g), CONFERRING WITH LEGAL COUNSEL FOR THE GOVERNING BODY WHO IS RENDERING ORAL ADVICE CONCERNING STRATEGY WITH RESPECT TO PENDING LITIGATION. VOTE: SUPERVISOR STURN, AYE; SUPERVISOR PLEUSS, AYE; SUPERVISOR STUECK, AYE; SUPERVISOR MILLER, AYE. MOTION CARRIED. END CLOSED SESSION: MOTION: SUPERVISOR STUECK/PLEUSS MOVED TO END CLOSED SESSION AT 9:47 A.M. AND RESUME REGULAR FINANCE COMMITTEE BUSINESS. VOTE: SUPERVISOR STURN, AYE; SUPERVISOR PLEUSS, AYE; SUPERVISOR STUECK, AYE; SUPERVISOR MILLER, AYE. MOTION CARRIED. BROWN COUNTY LIBRARY ISSUE UPDATE The committee discussed that according to current legislation, Outagamie County should agree to pay $30,571. MOTION: SUPERVISOR PLEUSS/MILLER MOVED TO PREPARE AN INTRA-BUDGET TRANSFER FROM CONTINGENCY OF $30,571 TO PAY THE BROWN COUNTY LIBRARY. MOTION CARRIED. TREASURER S REPORT 2 nd Quarter Investment Report-2016 County Treasurer Mumford informed the committee that investments have increased 11 basis points since year end. The increase has happened because of the short term, liquid money having a better rate as well as CD s having a better rate. Since delinquent accounts are going down this has been a help in offsetting each other. Supervisor Pleuss questioned the lower yield on managed funds. Mumford explained that short term funds get a lower yield than long term funds. The
2 Page 2 of 5 liquid money is paid out in August. Supervisor Pleuss questioned what percent of the funds are longer term investments. Finance Director Massey estimated approximately $20 million. There is $10 million with Dana and $12.5 million with Associated. These portfolios are managed further out. Mumford referred to the pooled cash that remains longer term. Summary of Investment Rate of Returns 2014 thru 2016 May to Date County Treasurer Mumford discussed this issue above. Delinquent Tax Report June 30, 2016 County Treasurer Mumford informed the committee that during the July collection period the county is down $1.4 million in collections this year alone. Mumford is estimating a large drop in delinquent taxes this year. Interest will be down about $160,000 in 2016 and about $115,000 down for The drop in delinquent taxes indicates a strong economy in the county; therefore, losing interest on delinquent taxes saves the county money when borrowing. Massey informed the committee that the county s general interest income will increase $120,000. This will be offset by $150,000 loss in interest on delinquent taxes. FINANCE DIRECTOR S REPORT -County Salary Step Program Finance Director Massey reviewed the following with the committee: Salaries Step Program (an incentive for employees wanting to do a good job as well as keeping competitive in the marketplace). The County Executive has elected to continue with the county s salary step program. The impact of that program is that an average employee s salary will increase an estimated.75%. This is over and above the base wage adjustment. Total cost of approximately $506,000 (including FICA/WRS roll-ups) with a net levy cost of approximately $430,000. (Approximately 60% of employees are eligible for steps with approximately 40% receiving steps annually). Salaries Base Wage Increase Payroll projections were completed with a 1.0% base wage adjustment increase. The cost of the new 1% base wage increase is approximately $675,000 (including FICA/WRS roll-ups) with a net levy cost of approximately $575,000. Chair Sturn asked that the entire board receive this information. County Board Chair Nooyen suggested that the information be ed to the entire county board. -Employee Major Benefit & Salary Increase Comparison Human Resources Director Lux and Finance Director Massey reviewed the following with the committee. Assumptions include Basic Low Deductible (LDP) or High Deductible/Health Savings Plan (HDHP) Family Health Insurance Plan from Network/United for a full-time employee, General Category Wisconsin Retirement System (WRS) member, First portion of Salary/Wage information includes an average annual Wage Step Increase of.5% to.75%. (Normal steps are more than.5% to.75% but others receive none since they may be at the top end of the scale so the average is.5% to.75% for 2017 as recalculated). The second portion of the Salary/Wage piece indicates no step received. -TIF Information Residential Values Finance Director Massey provided the committee with the following information: Excerpt TIF State Statutes For a mixed use development TIF lands proposed for newly platted residential use, as shown in the project plan, may not exceed 35 percent, by area, of the real property within the district. For blighted or
3 Page 3 of 5 industrial TIF s, at least 50.1% (by areas) has to be either considered blighted or zoned for industrial/commercial use. Therefore, it is possible that 49.9% in these types of TIF s could be residential related. Massey reviewed the current TIF s in Outagamie County that include residential property (per review of project plans and per Phil Cosson, Ehlers and Associates): Little Chute TID #5 Industrial TID no residential; Little Chute TID #4 Industrial TID Has residential unable to determine total area; Hortonville TID #3 Newly platted residential = % of the district; Wrightstown TID #2 Current and Newly platted residential = 4.90% of the district; Wrightstown TID #3 Current and Newly platted residential = 10.76% of the district; Combined Locks TID #1 Newly platted residential 10% of the district; Combined Locks TID #2 No residential; Grand Chute TID #2 Newly platted residential = 13% of the district; Grand Chute TID #1 No residential; Seymour TID #4 Current and Newly platted residential = 4.032% of the district; Appleton TID #10 No residential; Appleton TID #9 No residential. -Equalized Value Information Finance Director Massey provided the committee with the following information: Outagamie County s net new construction is up 2.12% or $289 million (these are preliminary numbers). 1.75% was budgeted. The economic value change of $132 million residential went up 1.98 % with all other going down 1.39%. The second biggest portion of the tax roll is commercial which was down 1.84%. Massey pointed out other changes in the personal property and demolitions devaluations. This shows Outagamie County s total value slightly over $14 billion or an overall change of $416 million or around 3%. Compared to other counties Massey pointed out that Outagamie County is ahead of Winnebago County at 1.30% and Brown County at 1.37%. Calumet County is up 2.16% with an overall State of Wisconsin at 1.43%. As far as the economic value change, Outagamie County is in line with all other counties. Massey pointed out that because residential is going up and commercial is going down, the average property owner will be paying a little more of the overall county taxes than commercial property. County Board Chair Nooyen referred to the East Central Wisconsin Regional Planning meeting last week. Regarding the levy assessment for our membership; Outagamie County and Calumet County will be going up with everyone else going down. Nooyen pointed out that the membership dues are based on equalized value and Outagamie County s certainly went up. Supervisor Nooyen questioned how TIF s that are finalized come back on the tax roll. Massey stated that there is a separate component of the levy limit formula that as that valuation of the TIF s come off that formula is used. -Financial Impact Analysis Security and Space Needs Project Finance Director Massey updated the committee on the Financial Impact Analysis that was presented to the county board in May of Subsequent to that analysis, the county board has approved bonding for the facilities project(s) of a maximum of $34,500,000 as compared to Venture Architects Option D for $44,000,000. Therefore, the estimates for the impact on the average property owner will be closer to the impact as indicated under option C, which was estimated to be $32,000,000. This will be updated in RESOLUTION REVIEW -HSW.5 Support grant funding from the Recycling Partnership of $52,000 The Outagamie County Recycling & Solid Waste department is requesting approval to accept and expend approximately $52,000 of grant funding on behalf of up to 12 Outagamie County communities for the purchase of 96 gallon automated recycling carts. These grant funds are provided by the Recycling Partnership, a not-for-profit organization that promotes recycling throughout the Country. Outagamie County will receive the full amount of the grant (estimated at $8.00 per cart for a total of $52,000). Participating communities will be reimbursed $7.00 per household for an estimated
4 Page 4 of 5 reimbursement amount of $45,500. The remaining $1.00 per household (approximately $6,500) will be retained by Outagamie County to offset the educational costs associated with implementing automated carts. Van Straten informed the committee that seven communities are still weighing their options but there is still time for them to be included in this grant. MOTION: SUPERVISOR PLEUSS/MILLER MOVED FINANCE COMMITTEE SUPPORT OF DRAFT RESOLUTION HSW.5. MOTION CARRIED. -HS.1 Support membership in Woodland Enhanced Health Services Commission The Outagamie County Health and Human Services Department has continued to find it very difficult to locate nursing home placements for individuals with severe dementia. As a result of the State of Wisconsin putting increased pressure and fines on nursing homes who serve dementia patients, and the need for nursing homes to have highly trained staff to serve patients with these advanced dementia conditions, in March of 2010, Outagamie County joined the Mississippi Valley Health Commission in order to place Outagamie County residents needing this specialized care in the Lakeview Nursing Home located in LaCrosse County. In 2010, we passed a county board resolution officially joining the Mississippi Valley Health Commission which included paying an initial membership fee of $5000 and appointing a County Board member as a voting member of the commission. This multicounty collaboration is governed under Wisconsin Statute and allows the member counties to pay daily rates in addition to Medicaid in order to provide more intensive and specialized services. Lakeview Nursing home is in the process of downsizing their beds from over 100 to 50 beds in order to move to a brand new smaller facility in October of As a result, Lakeview is not able to accommodate all of the referrals we have for Outagamie County residents. In order to meet current and future Outagamie County resident needs, we are recommending that we now join the Woodland Enhanced Health Services Commission that operates a specialized dementia nursing home in Clark County called the Clark County Health Care Center. To become members we will have to pay an initial membership fee of $5,000 and once again appoint a county board member to be a voting member of the Woodland Enhanced Health Services Commission. Our membership is subject to the acceptance of the existing members of the Woodland Enhanced Health Services Commission. Membership in multiple commissions operating specialized dementia nursing homes is becoming necessary to meet the growing number of county residents with these needs. MOTION: SUPERVISOR STUECK/MILLER MOVED FINANCE COMMITTEE SUPPORT OF DRAFT RESOLUTION HS.1. MOTION CARRIED. VOUCHER REVIEW The committee reviewed the following voucher: -Jeff Nooyen - $20.52 MOTION: SUPERVISOR PLEUSS/STUECK MOVED APPROVAL OF THE VOUCHER FOR CHAIR NOOYEN IN THE AMOUNT OF $ MOTION CARRIED. CHAIRS COMMITTEE UPDATE Committee Chair Sturn informed discussed the financial impact of the Sheriff s Department situation and the county executive s decision to veto the Eminent Domain resolution. Massey explained the budget surplus to the committee chairs. The Health Care Stabilization fund was discussed. Massey explained that the self insured fund was established quite a few years ago and a 9% health insurance increase was included in the budget. The commercial numbers were only 4.2% which provided a surplus with a piece of that surplus going into salaries and a piece going into the Health Care Stabilization fund. The county has been using approximately $50,000 of that per year to offset an increase in insurance premiums. This ended in 2016 with $25,000 left in that Health Care Stabilization fund which will be used in 2018 to start the Health Risk Assessment program. The goal is to build up a reserve which will take some time. Ultimately being self-insured guarantees more control over premiums and the plan. In planning for 2017, a meeting was
5 Page 5 of 5 held with the Health Care advisor with the outcome being that 2016 will be flat. It was hoped that the county would be in a surplus situation. Massey is proposing the County Executive Budget include another $500,000 of general fund surplus to build up that reserve. $500,000 was transferred in 2016 with another $500,000 in 2017 which will get the surplus up to $1 million with a goal of $2 to $3 million in the reserve fund which can be used to stabilize premiums. With regard to eminent domain and the veto, Supervisor Pleuss questioned if the consensus of the committee chairs was an override of the veto. Sturn stated that the committee chairs did not discuss this. County Board Chair Nooyen suggested that the committee look for the minutes from the Committee Chairs meeting which should be available sometime next week. UW-FOX VALLEY UPDATE There was no update at this time. FUTURE AGENDA ITEMS/NEXT MEETING UW-Fox Valley Update October calendar for departmental budget meetings 2 nd Quarter Insurance Report Claims Possibly the Village of Wrightstown TIF ADJOURNMENT MOTION: SUPERVISOR STUECK/MILLER MOVED TO ADJOURN AT 11:03 A.M. UNTIL AUGUST 16, 2016 AT 9:00 A.M. MOTION CARRIED. Respectfully submitted, Kathy Ciske Kathy Ciske Legislative Services August 2, 2016
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