Finance Committee

DATE: March 11, 2008

Members present: Tommy Lee Bychinski, William F. Wenzel, Marty Krueger, Joan Fordham, Tom Kriegl
Others present: Kerry Beghin, Carol Herwig, Kathy Schauf, Brad Viegut (via phone), Pat Carignan, Lowell Haugen, Alene Kleczek, David Lasker, Media

The meeting was called to order by Chairperson Bychinski at 8:32 AM. Certification of open meeting compliance was given. Motion by Wenzel, second by Fordham to adopt the agenda with one adjustment which is to move the discussion with Brad Viegut to the first item on the agenda. Motion carried.

Consider Resolution Authorizing the Borrowing of $10,000,000; Providing for the Issuance and Sale of General Obligation Bond Anticipation Notes Therefor; and Levying a Tax in Connection Therewith.
Via conference call, Viegut updated the committee on the current market conditions. 3% is the expected rate we can expect to pay based on today's market. At this rate, the County would be able to spend $250,000 less than was projected in December on this issue. We have an advantage because we are offering a bank qualified issue. Moody's has given Sauk County the best short-term rating available and they have a report ready to release affirming our long-term rating as well. Viegut will be at the County Board meeting next week to help support the finalizing of the borrowing.

Motion by Kriegl to amend the minutes of the meeting dated February 12, 2008 to include text included in an e-mail sent to Beghin that had been provided to all Committee members, second by Fordham. Kleczek advised the Committee on the information required to be included in meeting minutes. Motion failed. Kriegl - aye, all others - naye.

Fordham moved to adopt the minutes of the meetings dated February 12 and February 18 as printed, second by Wenzel. Motion carried with Kriegl opposed.

Public Comment: None.
Communications: Memo regarding approval recommendation for Public Health project position request.

Consideration of contract with Quarles & Brady LLP for bond counsel services.
Motion by Wenzel, second by Fordham to approve the contract with Quarles & Brady LLP for bond counsel services related to this bond anticipation note issue for $9,750. Motion carried.

Consider contract for indirect cost allocation plan preparation services.
Motion by Fordham, second by Wenzel, to approve contract with Sequoia Consulting Group for indirect cost allocation plan preparation services from 2008 through 2012 for $3,900 each year. Motion carried.

Consideration of 2009 budget timeline, process, and policies, including possible revision to Financial Policy 2-96, Annual Budget Process, regarding funding to outside agencies.
Beghin explained some changes that have been made to Financial Policy 2-96 and the annual budget process. Part of those changes include outside agencies making their annual request to an oversight committee instead of the Finance Committee. Krueger supports the idea that outside agencies could be rolled into another department but he believes that Sauk County Development Corporation, UW Baraboo and the Library should continue to report to Finance. Kriegl expressed his desire to keep the door open for emergency situations where agencies can still request funding outside the budget process. Committee members discussed their concern over outside agencies being given the same amount as last year without having to complete forms accurately. More effort will be made to get detailed financial information from all agencies. Motion by Krueger, second Fordham to approve amendments to Financial Policy 2-96 and the 2009 Budget Guidance with a report to the County Board in March, but to wait on the suggested changes made to the outside agency reporting structure until after the County Board Committee structure is approved in April. Motion carried.

Discussion of payment approval and processing.
Committee requested that the Accounting Department keep track for one month of any vendor complaints and the nature of the Friday checks being issued. Committee postponed making any decision until it can be further discussed next month.

Discussion of draft revised quarterly financial report for the County Board.
A draft revised reporting structure was reviewed that focused on big picture analysis of the County's finances and key economic indicators. Committee requested that Beghin include narrative on the reports describing where there are unreported revenues on some line items due to the nature of modified accrual accounting. Beghin and Schauf will continue to try to improve this report and welcome any suggestions the members may have.

Discussion of Financial Policy 15-95, Appropriations.
Supervisor Kriegl requested that this financial policy be amended to require reporting of departments exceeding their budgets by the lesser of 10% or more than $50,000. The Committee discussed the definition of "exceeding budget" in relation to past interpretations. Motion by Kriegl to change Financial Policy 15-95 to include the $50,000 limit for reporting purposes, motion failed due to lack of second. Motion by Krueger, second by Wenzel to postpone this item to the April 11th meeting. Motion carried.

Discussion of internal audits.
Policy 9-95 was discussed. Due to staff and time constraints, internal audits are performed as needed and not on a predetermined schedule.

Approval of per diem and mileage paid to the County Board members per Rule VII. B. of the Rules of the Sauk County Board of Supervisors.
Motion by Fordham, second by Kriegl to approve the per diem and mileage paid to the County Board members report. Motion carried.

Presentation of jail unit A report:
Beghin has been told by jail staff that Pod A did open by March 1st as planned, but not at full capacity. State inmates began entering the jail in February to fill available beds in Pod B. The Finance Committee would like to have law enforcement staff present a more complete report. Motion by Kriegl, second by Wenzel for the County Board Chairperson and the Administrative Coordinator to work with law enforcement staff to provide a more useful report that includes information such as jail population by unit, gender, and rent status, along with the rental revenue received for the monthly period. Motion carried. Kriegl requested the opportunity to see the contract that we have with the State.

Treasurer's Department Update:
Carignan mentioned that their department kept track of real estate tax payments through the newly established grace period. She believes the grace period cost the County about $3,800. Motion by Wenzel, second by Fordham to approve payment of the vouchers from the Treasurer's department in the amount of $1,557.88. Motion carried.

Accounting Department Update:
Beghin pointed out the highlights of the Accounting Department's activity for February 2008. Staff have been working towards the audit which comes up next month. Controller has been working with the Sheriff's department on preparing for the record keeping of Unit A. Kronos time system is up and running at the HCC. The department has been working to implement the changes suggested in the Virchow Krause review. Motion by Krueger, second by Fordham to approve payment of the vouchers from the Accounting department in the amount of $26,029.01. Motion carried. Motion by Fordham, second by Wenzel to approve the County vouchers in the amount of $3,912,015.04. Motion carried.

Possible closed session pursuant to Wisc. Stats. 19.85 (1) (c) Considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility. Performance evaluation of Controller.
Motion by Wenzel, second by Fordham to enter closed session. Krueger-Aye, Fordham-Aye, Bychinski-Aye, Wenzel-Aye, Kriegl-Aye. Motion carried. Motion by Wenzel, second by Krueger, to reconvene in open session. Motion carried.

Finance will meet on March 18, 2008 prior to the County Board meeting. A joint meeting with the Finance and Personnel Committees will be held on April 11, 2008 at 8:15 a.m. The next regular Finance meeting will be held directly following the joint meeting on April 11, 2008.

Motion by Wenzel, second by Fordham to adjourn the meeting. Motion carried.

Respectfully submitted, William F. Wenzel, Finance Committee Secretary