I attended the Executive Committee because they were talking budget, moratorium on land purchases and RTA and I was in the building. I learned a few things at the meeting including that it looks like the County Board is going to continue the freeze on Capital spending. Separately, I’ve been informed that the way the County Board works, they don’t submit amendments in advance, or make copies for the whole committee even, and of course that means no copies or notice for the public. I wonder if all the amendments are available before their public hearing on the Executive Budget on the 22nd? The schedule for the County Board is also now available here. Thank you, thank you, thank you!
Here’s the items of interest from the meeting:
Present: Ripp, Henrick, Erickson, McDonell, Optiz, Wiggy, Miles, Vedder, Bayrd
Overview of Revenues – Sales Tax on the Rise?
The Controller gives them an overview. Hands out something I didn’t see. Says no new info on sales tax since the County Executives budget was out. The sales tax payment in September was $3,638,000 and that was the first increase where the payment was higher than the year before. He explained February 2009 was first month of the big decline, March was bad as well. The decline started long after the budget was adopted. They ended up $900,000 short last year. The projection they are using now, $40,133,000 or down 11% from what was budgeted for this year. In 2010 they are projecting the same $40,133,000 and that means is that the budget for sales tax is $5M less than budgeed for this year. He says that is one of the most significant challenges.
Overview of Revenues – Interest Income
Interest income was reduced from 2009 projections of just over $3M to just over $500,000 for 2010. This year through October they have raised about $600,000 year to date. The interest income for this year has been one of the big challenges again. It can be volatile source of income. The controller explains there are two components, cash on investments from state pool and fixed income investment. He says as the interest fluctuates, so does the amount of capital in those accounts, they declined in value and now are increasing. Because the interest rate is so small, the capital variation can be a big swing. At $500,000 we should feel comfortable that the number has been a real conservative number. They are not projecting things getting better for next year.
[After these two explanations, I began to think that they could adjust the 3% cut to the non-profits mid-year if they are getting in more revenue – which it looks like they will. After all, they unilaterally reduced our “contracts” by 1% mid-year this year. If we have to share in the pain, why not the gain? It would make planning really, really hard for the non-profits and lay-offs will likely occur, but at least it wouldn’t be an automatic 3% cut and we could possibly hire back folks or restore hours at some point.]
Revenue Projections – Fees, Fines, Forefeitures
$250,000 register of deeds fees adjusted downwards. That office hasn’t suffered as much as the other two sources, while the transfer tax has been low refinancing has kept up transactions.
Revenue Projections – The Upside of Delinquencies
He says that the growth in delinquencies means that they collect interest (18%) while they are outstanding. Interest is $1.9 on a budget of about $1M. [i.e. They made back the $900,000 that they lost last year.] His request included an increase in that revenue. Delinquencies have risen and with the new position they twill have a keener interest in collecting those.
Sales Tax and Cash for Clunkers
Wiggy asks about sales tax beingup because of cash for clunkers? Controller says that it had about $40,000 – 45,000 impact on the sales tax. That program was in effect in August and with car sales you fill out the form and send in the folrm and collect the sales tax immediately as opposed to retailers which is submitted at the end of the month. They think the impact is split in August and September.
Who knew the Clerk’s Office Budget would be interesting – Plat Books, Printing Ballots, Voting Machines and Upside of Domestic Partnerships
[Note: I skipped some of the more mundane issues]
Bob Ohlsen says that his budget is not much different than any year, there are 4 elections next year so increased cost is due to 4 elections instead of two.
In the general administrative budget they have plat books they will pay for and sell and sell advertising. They came up short on advertising because their competition got alot of the advertising last year so they started earlier this year. He says people like their books better.
They had to cut $9,056 per the County Executive. They added revenue due to domestic partner law, they exceeded their budget this year. They budgedted $3,000 and they sold 310 domestic partnership licenses for $115 each $25 of each license goes to the state. [i.e. They made an extra 30,000? Or maybe only 11,000 due to the following explanation, it wasn’t clear.] He says that the clerk keeps $35, the District Attorney gets $15 and family court counseling gets the other $40. He says they have 2300 same sex couples in Dane County, so they think they can issue 400 licenses per year, so that was an additional $11,000 in the budget.
He had to cut $6000 with the bargaining agreement and they did that by the ballot printer getting new equipment for printing the ballots and now they have “ballot on demand”. They can print the ballots in 15 minutes instead of a much longer process. They can now order less ballots because they agreed to stay open on election night so their orders will go down. They think they can save about $12,000 and think that is conservative.
McDonell asks what if there are widespread problems, Ohlson says the clerks know in advance, usually when doing absentee ballots. Very unlikely that 61 municipalities would call at 6:00 and all need ballots. Printer is in McFarland, they agreed to have pick up spots on the west side. They don’t see that as an issue, also during the day they will know early enough to order them.
Miles asks about $1M that was requested on the capital side of the budget that didn’t make it into the County Executive’s budget. Ohlson says the equipment is old and a year ago he suggested that they purchase it, this year there were two instances where the equipment died – wouldn’t even start up – they are concerned that some of the equipment is 20 years old and state won’t certify the equipment at some point. He talked to the clerks throughout the county and asked them if they would be interested if he put in the request with a 5-year payback, he didn’t get anyone who said they wouldn’t do it but it was verbal, not in writing. He said he’d get written approvals and put it in the budget next year. Each numicipality owns their own their equipment. They want to buy in bulk because good price and all the same equipment. If they didn’t do that they would lose money cuz can’t code the systems and have no control over what the companies charge for printing ballots. They have to pay for the ballots and if the company “wanted to rape us”, we’d have to pay what they charge.
Wiggy asks if the old equipment was junk. Olson says doubtful “some poor sucker” would buy it.
Bayrd Appointed to Vogel’s spot
Bayrd comes in and McDonell explains that earlier today she was appointed to Vogel’s spot on the committee. Bayrd apologizes for being late and says she won’t be in the future, she just found out about the appointment today.
[I skipped a bunch of detail about the County Executive Budget here.]
County Board Budget
They reduced money in the printing and per diems and video services because they weren’t being used as much. They also reduced the audit line – it is only $26,000 and they used that very effectively the last few years.
Amendment to Freeze Capital spending
Hendrick had an amendment to freeze all capital projects in 2010 and all carried over 2009 projects. He says before the projects move forward they would need prior approval from the standing committee and Personnel and Finance committee. It is to expand the current freeze. May need to control spending in 2010 to keep down principal and interest expenses in 2011. There are some things we know that we need to do, but this allows the committees to unfreeze them.
Wiggy asks why this is different than they do now, they really have to come through in advance. They explain if its frozen, they can’t begin to bid it out if they don’t know if the money is available.
Wiggy asks about if they were talking about land? They explain that before they could get to a contract stage they would need approval.
Wiggy asks how this helps if they borrow all the money in January and Hendrick says they would not borrow for things that are frozen and it would be borrowed in phases.
Hendrick explains they voted on it at Zoning 4 – 0, will be at Personnel and Finance.
Ripp asks about land purchases, does that mean before a resolution is introduced they will have to get permission? He says you’ll have to have some negotiations first. Hendrick says that when resolution is introduced there would be an offer and accepted offer. McDonnel saya that if they want to make an offer they go into closed session at personnel and finance.
Wiggy asks if rates change with phased borrowing. They say they do this now because of workload or changing conditions, sometimes the project takes longer, he checks with departments to see if they will use the money, they manage the borrowing to the project needs. When they did the courthouse, they didn’t borrow in one big chunk. No reason to borrow if they aren’t using the money – cited an example that I missed.
Wiggy asks about carry forwards, they say they are not borrowed for, just spoken for.
Topf Wells says County Exec hasn’t taken a position, her one concern is that if at any point next year we see a replay of this year, we will be very careful, but in the meantime, just about any significant capital expense has to come before the board and he can’t think of any that wouldn’t come before them. The comptroller says purchases of vehicles might not says come to the board. Wells says there is an extra layer of committee action and his concern is staff work load issue. He lists staff who will have a double set of meetings for each capital item, it is a concern in terms of staff workload that they want them to consider. This could be a highly desirable and necessary action, but it might be worth discussing if you do it preemptively, or wait until you see signs of problems.
McDonell says that if they had this, we wouldn’t have gotten to the point where we feel like we are not negotiating in good faith. This would mean that we are negotiating in good faith.
Hendrick says that if the economy is good and its a non-controversial project, then it is a waste, but if the project tends up controversial in the end, it might be good for them to know in advance. He also explains that if the economy is not good, if we don’t do it during the budget process, they need 2/3 vote later, personnel and finance can do it, but this is the only opportunity for the county board to do this.
Miles says that ZLR discussed that Personnel and Finance could just unfreeze if the economy is good. Miles is concerned that if timing is an issue, committees need to be on the ball and get the approvals done.
Passes unanimously.
Moratorium on Land Sales
Postponed because Gau wasn’t there.
RTA Referendum Question
They ran out of time and Bruskewitz declined to comment and said they could refer.
