 I'd like to call the order the Tuesday, September 19th, 2023 meeting of the Sheboygan County Board of Supervisors Are we certified in compliance with the open meeting law? Yes? It was posted at 11 a.m. on the 15th of September Please join me in the Pledge of Allegiance Next is roll call Supervisor Schobert, are you in remotely? Supervisor Schobert Yes, I am here. Thank you As long as we're checking with Supervisor Schobert, Supervisor Coulson or Ellis or Obler anyone else chiming in remotely All right. Thank you 22 supervisors present Next is the approval of the August 15th 2023 journal Supervisor Brower Mr. Chair, I would make a motion for approval of the minutes. Thank you Supervisor Brower Supervisor Wagner, thank you, Mr. Chairman. I'll move. I'll second that Thank you, Supervisor Wagner. Is there any discussion seeing no discussion, please vote Supervisor Schobert I Prove unanimously Next is consideration of appointments by County Administrator affirmative action Commission David Loomis Airport Advisory Committee Carol Lena Brian Olson and reappointments Mindy Smith David Hilper Schauser Lee Kunze Deidre Martinez Glenn Valenstein and Matt Grenoble Supervisor Wagner Thank you, Mr. Chairman. I'll move for approval of the appointments of all of them Thank you, Supervisor Wagner Supervisor Brower. Thank you, Mr. Chair. I will second that motion. Thank you Supervisor Brower under discussion Seeing no discussion, please vote Supervisor Schobert I unanimously Presentations Brian Grunewald of Clifton Larson Allen with the 22 annual Comprehensive Financial Report. I'm Brian Grunewald with CLA. Thanks for having me here this evening In terms of the audit discussion and the audit presentation I just want to remind you that there's two different audit documents the annual Comprehensive Financial Report As well as we also issue what I'm referred to as a management communication letter I believe you've seen those documents and for purposes of tonight's discussion Just pulling information from both those documents together Just wanted to give you a real high-level overview in terms of the content of those documents But if anyone does have any questions, please feel free to ask Okay, and in terms of the agenda real briefly just I'm gonna walk through and give you an overview of the audit results Similar to what you've seen in the past There's a few a few pieces of key financial information that I'd like to walk through and then last but not least just share some information With regards to new standards as we look forward and some additional information that will be dealing with the future and future audits In terms of the audit and our responsibilities Just want to give you a real brief overview and reminder in terms of management's responsibilities Management is responsible for the preparation of the financial statements You're also responsible for the design and implementation of your internal control structure Essentially, that means how you do things how you handle cash how you pay your bills for example Our responsibilities as auditors is to express opinions on your financial statements We do that by evaluating accounting policies and procedures We perform tests of audit procedures to gain audit evidence and we also consider the organization's internal control structure We do not issue an opinion on your internal control structure Again that being how things are done In terms of the results first starting out with the audit opinion And this is included in your annual comprehensive financial report on pages one through three The audit opinion is considered to be a clean or unmodified opinion Essentially means that I believe that your financial statements and your annual comprehensive financial report are complete and accurate and in accordance with our professional standards And just as a reminder that is the highest level of assurance that you can receive As part of the audit process And then in addition we also do issue a report on internal control again, that does not include an opinion But as part of the audit process we do consider your internal control structure We use that for planning purposes how we design tests for audit purposes When we do become aware of conditions that we refer to as findings we are required to communicate those I'm happy to report that we have not identified any issues or concerns with regards to internal control So no findings no reportable conditions related to internal control And that report is actually included in the management communication document on pages five and six Then just in addition to our review and our audit the county also Voluntarily goes through the process of submitting your financial statements to the government finance officers association as part of their review They've issued their certificate of achievement for excellence in financial reporting So just wanted to acknowledge that that is included in your annual comprehensive financial report on page six and that's certainly a Proceduous award. It's actually the ninth year that you've received that in a role. Congratulations on that and based on our review I fully expect that you will continue to receive that report going forward In this side, I also wanted to give you a real brief overview in terms of the management communication document There is a letter that's included in there I'm referred to as it as a governance letter it includes information that we are required to communicate as part of the audit process a Language in the terminology that's included in there is fairly consistent with what you've seen in the past It's a lot of very standardized accounting terminology as you can see on some of the references on the slide in front of you I just wanted to share that because it is information we're required to communicate from my perspective There's nothing in there that I would consider to be unusual certainly nothing that I would consider to be a red flag The one thing that I do want to emphasize or point out is you will see several references to the governmental accounting standards board and statement number 87 that's a new standard that was implemented You implemented that because you were required to so all other organizations that are following government auditing standards are also Implementing that what you will see that referenced multiple places throughout the government's the government's communication as well as in your audited financial statements So no other issues or concerns with regards to any of those topics And then real briefly just wanted to give you an overview of the financial statements and some of the key financial information Again, I know your financial statements are very large. This is just a summary of some of the key Items that I tend to focus on for example when I think of your overall financial condition the number one thing that I look at first Is typically your fund balance and your fund balance levels? What do you have for general fund and your fund balance reserves? So we'll talk more about that Another thing that I always like to look at when someone says hey, what's our financial condition is your general obligation debt? So you can see we have some additional information, and I have some additional slides relative to general obligation debt and Then in addition to that I just included some information with regards to Rocky Mullen Highway Really because of the size and significance of those funds and operations So again, this is a very short list in a real high level if you have any questions Any topics that you don't see here that you'd like us to talk further about Okay, then just digging in a couple slides here related to your general fund and your fund balance levels again So that's your reserves that you've built up over time The first thing that I always like to do is see what's happening from a trend perspective What is your overall fund balance reserves? What's happening? How are they fluctuating? You can see on the slide here if you just look across the top of that bar graph Your general fund fund balance reserves have been increasing steadily the last few years So certainly positive financially back in 2018 the total of all those categories listed there You're an approximately twenty one point five million if you roll that forward to 2021 you're approximately thirty two million And again if you end at the end of two thousand twenty two Approximately thirty four thirty four point five million for the year ended December 31st two thousand twenty two Your general fund fund balance did increase by two point four million And again if you do want to get into more details of why that happened a couple spots that I would recommend to refer you to There's certainly a detailed budget to actual report that's included within your financial statements on page that starts on page 32 And then also if you haven't read it the management discussion and analysis section of your annual financial report Does include in a real nice narrative overview that the county prepares and does touch on some of the budgetary highlights I just wanted to emphasize that or mention that as well So again if you step back certainly a positive trend in terms of what you see in the slide in front of you In looking at those different categories The one that I tend to pay the most attention to is that unassigned category That being available for contingency and working capital reserves And if you can see the trend there back in 2018 Approximately eighteen point five million and unassigned you can see how that's fluctuated over time a slight dip in 2019 and then increasing steadily for twenty twenty one and twenty two ending two thousand twenty two with twenty seven point seven million In your unassigned fund balance There are other categories there particularly assigned and committed and restricted There is additional information in your annual financial report on pages seventy four and seventy five if you're interested It gets into a little bit more detail about what's included within those categories. I Will say that at a high level the assigned and committed I typically refer to those as the categories where you have some planning opportunities the County can determine what they want to set aside funds for The restricted is really driven by outside third parties when you receive money for example They might be telling you what you can and can't spend that on So they're restricted by that outside third party and the not spendable is really set aside based on some accounting definitions that we work through So again high-level overview certainly positive trend in your overall and positive trend particularly in that Questions or thoughts on that before I move on Information there then from a benchmarking perspective and certainly the county has a policy in relation to this too When we look at that general fund and your unassigned fund balance Looking at how much do we have how much should we have? You know certainly your policy helps guide those decisions and what you're doing with that money And here again just giving you a snapshot of the recent trends of your overall unassigned fund balance You can see the policy minimum and maximum that being 30% and 15% and then that red line being your actual Experience for the last few years in terms of your unassigned fund balance in comparison to your budget or expenditures When you look at that trend that red line is moving really consistent with the dollars that we saw in that previous slide You start out 22.9 percent in 2018 a slight decrease in 2019 consistent with that decrease in your overall fund balance Excuse me the unassigned fund balance and then from 20 21 22 Again consistent with the growth in your overall unassigned unassigned fund balance dollars You'll also see the growth and increases in your unassigned fund balance as a percentage of your expenditures Ending 2022 at 29.6 percent. So certainly when I see that again very positive in terms of your overall trend Some of the things that I look for do we have a lot of fluctuation? Or is there a decreasing trend? Obviously those are things things that we look for and monitor Then overall in terms of that balance being 29.6 percent certainly very strong financially. I Was like to say that creates planning opportunities Yeah, yeah, so maybe just to step back and give you perspective. I mean CLA does audit approximately half I will say that certainly while they're we're in a very challenging time when I think Like inflation and whatnot. I do think there has been some counties that have been able to take advantage of things like ARPA funding To help to help with their overall fund balance position Overall every county that makes local decisions on where they want to be I would say there's a lot of healthy counties out there right now And I think you're in that in that mode as well So if there's a county that has a lower fund balance There could be a financial reason that's driving that or there could be a board decision to I think From my perspective for Sheboygan County again as we go through this you're going to see a lot of positive news financially I think you put a lot of emphasis on planning and budgeting and you can see that in your financial results There's a lot of positive news financially And I would just encourage you to keep doing that going forward again You know plan ahead budget be conscious with your budget and overall you're in great financial Thoughts or questions on that? Now moving on to Rocky Knoll is a good time for that question moving into Rocky Knoll Certainly when I think of Rocky Knoll an area that has been a little bit more challenging when I think of The impact of COVID and then coming out of that dealing with inflation Rocky Knoll and nursing home being a little bit more challenged and not just you that's throughout the state in that service This slide just gives you a snapshot of your overall and position again that being your equity reserves So you can see what's happened over time Now you do see steady increases in your net position your fund balance Approximately again some of all those categories Approximately 10.6 million back in 2018 you can see how that's grown Approximately 12.2 million in total at the end of 2021 you did increase in 2021 to 22 There was approximately like $800,000 increase and you ended 22 with approximately 13 million overall net position So certainly positive that you had that increase When you get into the individual categories You can see a little bit more detail there for example that net investment in your capital assets from an accounting standpoint That's how we account for and we depreciate your capital assets over time From your perspective when I look at this, it's how much do you have? What was your cost that's left in terms of those assets? And you can see the trend you've gone from 7 million up to 8.3 If you think of some of the remodeling and stuff that you've done out there You've been investing continuing to invest dollars in Rocky Knoll. So that's increased your net position It's increased that green category Again, you can see that in the trend If you jump back and look at that unrestricted category that blue category Again work across the graph. You can see you were at 3.9 million and how that's fluctuated and come down a little bit again consistent with the challenging times of COVID ending 2022 at about 1.8 million in terms of your again positive trend financially Overall, but just have to understand that Any thoughts or questions on that Then I also just wanted to take a step back and look at the net position for highway. So here to highway you can see Very steady increases overall if you get into individual categories your unrestricted category that blue category You can see this. I'll say steady increases there as well For example, 2019 you had approximately 4.2 million if you work across you can see 2021 at just over 5 million and then how that's increased from 21 to 22 up to approximately 5.8 million. So Overall increase in your net position And also the increases in that unrestricted category If you relate it to that net investment just to kind of correlate back to what I said with Rocky Knoll You know here to I see 37.2 million at the end of 2021 36 37 million at the end of 2022 very consistent in terms of your overall in that position there What that tells me is is you're continuing to reinvest for example buying new trucks So those get me those those are added to your net position. What happens from an accounting standpoint? We appreciate those so as we depreciate those placing them and overall you're fairly consistent And I know you do pay a very detailed attention to what you do with your equipment So there I think again the takeaway is probably the overall increase in your unrestricted So certainly very strong Lots of questions on that And then I also just wanted to step back and take a picture of your general obligation debt Really two parts to this slide the top part I just wanted to give you a visual of your overall outstanding general obligation debt and what's happened over time You can see back in 2018 Approximately 36 million of outstanding debt you can see again. What's happened as you as you've repaid principal at the end of 2021 You're approximately 23 million of outstanding debt And ending 2022 with approximately 24.7 million again. I know that's very detailed and laid out within your budget in your budget model So just wanted to give you a snapshot of that The bottom portion of that slide and why I included this in here There's also a statutory debt limit So you can see that label on the slide the statutory debt limit is based on the equalized value of the county You can see how that's gone up over time Really certainly a positive indicator in terms of the overall increases in the last value of the property within the county increasing that debt limit that statutory debt limit and From a benchmarking perspective one of the things that I always like to look at is how much general obligation debt Do you have as a percentage of that limit and here too on the side you can see from 2018 2020 how that's fluctuated so 2022 you actually In terms of percentages those are I would say relatively low whenever I talk about that I think it's also important remember that You know, it's my job to come in here and report on your financial statements Your financial statements include a lot of disclosures about the debt balances that you have Obviously from the board's perspective you got to continue to Assess the needs of the county and how you're going to pay for those So I'm not trying to tell you what you should or shouldn't do with your debt All I'd say is if you do issue new debt make sure it's built into your budget Which you've done in the past then also from a benchmarking perspective one of the things that I like to look at is How much debt service meaning your principal and interest payments? What are our debt service payments in comparison to the size of our budget? I'm just focusing here on your non capital expenditures and then expressing that as a percentage and this information is coming right from your annual financial report on page 118 There's a common industry benchmark by rating agencies of 20 percent That's the red line if you look at the blue line. You can see your actual experience And and you can see the decline there and what's happened as your debt payments have come down That percentage has come down. So back in 2018 approximately 9.8 percent 2022 you get about 6.9 percent and again what that's telling you is how much of your budget is used Fact that the gap between the red line and the blue line is widening is certainly Okay, and then last but not least, you know again, I did reference new accounting standards There was a standard that we implemented for this year. So Want to acknowledge your team your finance department for the assistance of working through that process There are additional new standards that will be required to be implemented for the next year's audit to 2023 audit There's another standard you can see listed on your number 96 with the subscription based IT agreements I know your county has started the process of gathering information on that There's also another standard there label as auditing standards 143 to 145 Just wanted to acknowledge that Understand that we're sharing the information with regards to the requirements of that Certainly, there's more information on our website if anybody wants to take a look at those topics But we will be working with your finance department And I went through that pretty quickly any thoughts questions concerns. Thank you very much. Thank you Are there any public addresses there are none letters communications and announcements County administrators report Good evening everyone I want to start this evening by saying thank you to Brian Not only for being here this evening to share the results of our Financial status, but also for sharing all of the good news Certainly good to hear that we're in a very positive place financially. So thank you Brian and quite fitting not only the report on our 2022 audit, but the themes of being conscientious and planning Fits well with one of the items on the agenda tonight, which is the five-year capital plan And so I wanted to just quickly touch on that. So that's resolution number seven And these are for projects that are over a hundred thousand dollars the proposal before you tonight is within our bonding limit of 11 million and I just wanted to touch on a couple of the significant projects that are included in the five-year capital plan One of those being the Marsh Dam replacement, which is already underway, and I'm pleased to report that that's going well I don't want to jinx it, but thus far it is on schedule. So pleased with the progress of that Project in addition one of the other significant projects included in the capital plan is Courthouse tuck pointing and this is a once in a century project So this will be a significant investment for the county in this very building and that will include tuck pointing The exterior of the building as well as replacing all of the windows in this building and of course Maintaining the historical Appearance of the building so that will be a significant project for us in addition, there's other Regular items that we often bond for such as elevator upgrades roof replacements other routine maintenance pieces In addition one of the newer projects added to the capital plan is radio upgrades for the sheriff's department There's a couple projects at the airport with some taxiway and runway projects And then also equipment and some upgrades at Rocky Noel And so I'm pleased to share that all of the projects that are included in the capital plan are Responsible requests from our department and they are needed for Maintaining our facilities and being able to provide the quality services to our residents and Next I wanted to just quickly touch on and recap the Wisconsin counties Association conference that we just Returned from myself and 10 of your fellow supervisors were in the Dells for the last two days And actually we just got back a couple hours ago. So Hot off the presses. I wanted to just touch on a couple of the Highlights from the conference for those who were not able to attend it was held in Wisconsin Dells this year and These conferences are a great opportunity to not only hear from speakers and subject matter experts But also to network with colleagues So not only do you get to network with other county board supervisors from across the state but you get to see other county staff and hear what they're doing and Learn from them and discuss ideas So it's a great opportunity to connect with people that you may only see once or twice a year This year they had a number of interesting speakers as part of either breakout sessions or the general conference Sessions that everyone attended that included governor Thompson Governor Evers the DOT secretary Thompson in the DNR secretary pain I don't think any of us have ever heard him speak before so that was new No And in addition today our final general assembly speaker was a gentleman He was the former CIA chief of counterintelligence and I thought he had a really great message and Hopefully everyone that attended the conference was able to stay. I know it's the last portion of the day but he talked about his time as a spy and Taking significant risks for the greater good and just a calling to a career in public service And I thought he had a really a nice message. It was very interesting. He interjected humor It's not often that you have a room of hundreds of people and everyone's on the edge of their seat paying attention Closely to a speaker, especially is the last session of the day. So I thought he did a really great job In addition we got legislative updates We had a number of breakout sessions covering everything from a to z Related to county government including cyber security mental health parliamentary procedure child care shortages PFAS next gen 9-1-1 broadband Transportation housing. I mean you name it. They had a really wide variety of topics that you could hear from and Throughout the conference one of the themes that kept Cropping up during the different sessions was really about collaboration Partnerships working together, etc And so I'm pleased to share that during a number of different instances by a number of different people Sheboygan County was brought up as a leader in a number of different areas across the state So it I think I share this sentiment with the supervisors It brings a lot of pride to be at a state convention like that in here Sheboygan County Being talked about as a leader in some of these areas So overall it was a great conference and for supervisors who haven't attended in the past I encourage you to consider participating in the future Next year it will be held in La Crosse and we again are requesting a budget for a Number of you to attend so I would encourage you to take that opportunity And that is the conclusion from my remarks this evening All right next is consideration of committee reports executive committee resolution number seven regarding 2024 five-year capital plan recommendation to adopt Supervisor Gehring. Thank you, Mr. Chairman. I move for adoption. Thank you supervisor Gehring Supervisor Brower you mr. Chair. I will second that motion. Thank you supervisor Brower. Is there any discussion? Seeing no discussion, please vote Supervisor Schobert, how do you vote? Hi Thank you Next is resolution number eight Authorizing County aid for covered bridge replacements in the towns of Holland Lima Linden Mozo Wilson and Sheboygan Falls Recommendation to adopt supervisor Wagner Thank You mr. Chairman. I'll move for passage of resolution number eight. Thank you supervisor Wagner supervisor Tastrodi Thank You mr. Chairman. I'll second the motion Thank You supervisor Tastrodi. Is there any discussion? Seeing no discussion, please vote Supervisor Schobert, how do you vote? Hi Number eight's privy unanimously Coordinates number five regarding modifying fee schedule of the medical examiner in chapter 96 recommendation to enact Supervisor Gehring. Thank you, mr. Chairman. I move to enact Thank You supervisor Gehring, Supervisor Jorgensen I second that. Thank You supervisor Jorgensen. Is there any discussion? Seeing no discussion, please vote Supervisor Schobert, I vote aye. It's also privy unanimously Alright under resolutions introduced resolution number nine Finance committee regarding authorizing the issuance and sale of 10.9 million of general obligation promissory notes Resolution number nine will go to executive committee resolution number 10 guarding authorizing application for DNR surface water grant Resolution number 10 will go to finance and resolution number 11 Regarding accepting donation of property Added to the Sheboygan County Broad and Marsh Resolution number 11 will go to executive ordinance is introduced ordinance number six Finance regarding amending chapter for the investment policy and procedures Ordinance number six will go to executive Next supervisor to Strowdy Move to adjourn. Thank You supervisor to Strowdy Supervisor Brower. Thank You mr. Chairman. I will second the motion. Thank You supervisor Brower Please vote Supervisor Schobert. Hi. Thank You and good night. We're German past unanimously