Portage County Proposed 2022 Budget - Presented By: Chris Holman, Portage County Executive October 5, 2021
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Portage County
Proposed 2022 Budget
Presented By: Chris Holman, Portage County Executive
October 5, 2021
1Our Fiscal Framework
• This budget reflects only what we know today. Projections are
moving targets due to unknowns, but our process ensures that
departments have what they need today and can get what they
need tomorrow if things change.
• Departments do not keep their surpluses if they exist. Rather they
go back to the general fund to fill gaps and if any funding is left, we
prioritize placing that one-time funding into CIP or appropriate fund
balances.
• The county lives off of grants and intragovernmental funding, so
there is a heavy emphasis on ensuring that we are making the types
of decisions that provide stability for that funding and the ability to
fully utilize those non-levy funding opportunities.
• We need to exercise reasonable care in all decision-making and not
place the county under unnecessary risk. There’s very little room to
maneuver, but prudent financial planning helps make room.
• Our fiduciary duty requires us to stay objective, honest, responsible,
and efficient. Everything needs to find a way to fit in the big picture.
22022 Budget Assumptions
- This budget is focused on preserving the financial integrity
of Portage County. It is balanced and does not create a
structural deficit.
- The operating levy is limited to a net new construction
increase of 1.894% less an adjustment for personal
property tax aid in the amount of $173,272, for a net
increase of $432,108. The overall levy increase is $669,505
for all levy categories.
- The budget includes an increase of $196,883 in tax levy
support for capital projects. This increase replaces part of
last year’s reduction and supports current and future
capital projects for long-term budget stability.
- 0% target increase for department budgets, as usual.
32022 Levy per $1,000 Equalized Value
Operating Levy: $25,039,759 (+$432,108)
Tax Rate: $3.77
Health Care Center Referendum: $1,400,000 (+$0)
Tax Rate: $0.21
Debt Service Levy: $4,088,623 (+$140,801)
Tax Rate: $0.62
Countywide EMS Levy: $2,552,716 (+$51,596)
Tax Rate: $0.38
Bridge & Culvert Aid Levy: $325,000 (+$45,000)
Tax Rate: $0.05
TOTAL LEVY: $33,406,098 Tax Rate: $5.03
(down from $5.23)
28% of TOTAL BUDGET: $119,005,942
4Tax Rate: The Last Ten Years
• No significant deviations over time given the levy limit and the county’s
ability to successfully budget under this constraint.
• 2013 $5.25 Average: $5.18/$1,000
• 2014 $5.36 Note: Outside of increasing the levy by
• 2015 $5.11 the maximum allowed (1.894%), we do
• 2016 $5.11 not control this number.
• 2017 $5.14
• 2018 $5.18
• 2019 $5.24
• 2020 $5.18 Median Home Value=$168,100
• 2021 $5.23
• 2022 $5.03 $168,100 x $5.03/$1,000 = $845.54
5Last Year’s Unknowns
– Health Care Center: On the path to referendum in
April 2022 and possibly November 2022.
– Infrastructure: Space and Properties tasked me with
seeking Owner’s Representative services at their last
meeting. That discussion is ongoing with an estimated
timeline of RFP completion in November 2021.
Construction Management services would be next, at
the appropriate time.
– 2021 COVID-19 Response: Ongoing and a lot of heroic
efforts on behalf of Public Health/HHS and county
staff in general, as no one has had an easy path
through the pandemic.
6Debt Service
• The county has been planning for years and has made
financial decisions to ready the county for larger projects.
• Planning includes an anticipation of the need for future debt
service for projects outlined in the current Capital
Improvement Plan.
• Debt service tax levy increases by $140,801 in this budget
based on existing debt service schedules. This also
incorporates a slight increase to the debt service target to
help maintain a stable debt service as the County plans for
future capital projects.
• The County has also structured repayment schedules to allow
for and prepare for anticipated larger debt issues in the
future.
• Ongoing discussions on this policy area at Finance Committee.
72022 CIP Projects & Funding
• We continue to plan in this area in a way that emphasizes
sustainable forward-looking budgeting so that we do not
create waves in our budgeting process.
• Larger projects completed in 2021 have led to a 2022
schedule that is generally smaller projects.
• CIP is shaped by our planning for large projects, but this
planning and approach cannot go on much longer. So, we
need to take steps in one direction or another and we
generally know what those options are.
• We are poised to move forward here and find ourselves
situated better than ever to take appropriate actions that
don’t let the window we’re in close and will situate the
county with a more stable and predictable CIP process.
8Revenue Highlights
- Sales Tax forecasts are conservatively projected (and budgeted) to
increase an estimated 2.5% over 2021 projections for 2022. Sales
tax collections are estimated to increase by $420,626 or 5.9% over
the 2021 budget. This increase resulted from reducing the 2021
budget amount to account for projected impact of the pandemic on
the economy.
- If sales tax continues to trend the way it is, it may provide some
additional one-time funding for the county to lean on in future
years. Keep an eye on the Supreme Court case where the use and
budgeting of sales tax by counties is being challenged.
- Funds to assist the county with its ongoing efforts to respond and
recover from the COVID-19 pandemic have helped ease fiscal
impacts and provided some stability in the face of unprecedented
uncertainty.
9County Employees
• This budget includes employees’ steps within the salary plan as well
as a 1.25% increase to the plan itself. 2022 is providing a window to
do more here, but it’s a small window.
• The new vacation policy has already assisted with recruitment and
has been a big positive for employees as well.
• The Health Insurance Fund continues to be strong and a multi-year
strategy for bringing various line items into alignment is in place.
This will continue to provide stability and some certainty for
employees.
• Although we are unable to provide additional pay, we are able to
maintain benefits by keeping health insurance premiums flat so that
employees are not having to contribute more to them each year.
This is somewhat unique in the Health Insurance world.
10New Positions
• IT Network Analyst (User Fees)
• Highway County Road Foreman (User Fees)
• HHS Child Welfare Resource Supervisor (Levy)
• Sheriff’s Office Communications Supervisor (Levy)
• Parks Seasonal Assistant Manager (Levy)
• HHS Grant Funded Positions:
– Children’s Eligibility Determination Worker
– Child Support Specialist
– Community Health Assistant
– Community Health Nurse
– Social Worker in Comprehensive Community Adult Services
– Social Worker in Comprehensive Community Child Services
11Reclassifications
• Facilities Administrative Associate IV
– Grade 19NE, Step 7 to Grade 21NE, Step 7
• Highway Parts Room and Shop Manager
– Grade 29E, Step 9 to Grade 29E, Step 10
12Non-County Agencies
• The county is always an unreliable source of annual funding
for non-county agencies.
• Portage County Business Council maintains its $25,000 per
year. Todd Kuckkahn is also moving on this month and a
new Executive Director has been found.
• A new Humane Society contract is in the works and will be
implemented starting in 2022.
• Rent Ready is the newest addition in 2021 and maintains a
funding level of $4,800 for 2022. 11 families were directly
assisted by county funding.
• Exploring ARPA opportunities here as well via WCA
collaboration on efforts to support tourism across the state
and in general. Will connect with SPACVB.
13Department Highlights
• Health Care Center
– COVID-19 has changed the landscape in big ways
– Lower census has driven staffing conversations and reduction in
bed licenses to 48
– Medicaid reimbursement continues to be one of the lowest in the
US. The average cost of providing services for a Medicaid resident
is $520.73/day and our reimbursement is $187.55 (36% of cost).
– Staff, committee members, and I vetted the opportunity for
regionalization with North Central Health Care, and it was not a
viable option from either our perspective or NCHC’s.
– Referendum Study & Public Information Campaign are both
underway and off to an incredible start!
– Looking to provide skilled-nursing services as well as
complimentary approaches to community-based treatment.
– Referendum question will go to April 2022 ballot.
14Department Highlights
• Health and Human Services
– The Division of Public Health has been an anchor for our community
throughout the pandemic and they have worked continuously—and
under tremendous pressures—for nearly two years providing support
and guidance to local businesses, local organizations, local schools,
and the community at-large.
– The most challenging areas within HHS have all been exacerbated by
the pandemic. The recent assistance via ARPA funds has provided the
people in these divisions and those they serve with a needed boost in
a time when case numbers have surged and the complexity of the
cases has grown. Thank you.
– Ray’s retirement will put the agency in new hands and we’ve recently
completed the recruitment process and will be notifying candidates of
our selection.
15Department Highlights
• Information Technology (IT)
– Major upgrades to the county’s network have been completed. This provides
us with an approach that is up-to-date, best practices, and a strong defense
against hacking attempts and service issues (e.g. accidental line cut, server
problem)
– More steps are being taken to try to move systems off the AS400 platform
while maintaining key interfaces with state agencies that still use it. Moving
forward, credit card processing will also be expanding.
– Worked with CLA to complete an internal audit of the IT department that
included all key department users of IT services. Numerous recommendations
came out of that, and we are working through them one-by-one. This includes
a new position to better meet demands being placed on the department by
county users as well as state and federal agencies.
– Director Hawker and I have been working with WCA and others to have a
statewide conversation about how counties are approaching IT and a survey of
all counties is underway that will help to inform all parties as to how we might
make the state’s dysfunctional approach to IT more functional, at least at the
county level.
– Director Hawker is retiring, and the recruitment process has been initiated.
16Department Highlights
• Planning & Zoning
– Work plan around groundwater issues in Nelsonville is
work in progress. Options that may come out of this are
likely high cost. Analyzing all potential paths’ benefits will
be important. Any final decision will come through County
Board via committee.
– North Central Wisconsin Regional Planning Commission
membership is creating new opportunities for
collaborative efforts with sewer service planning and
economic development conversations.
– Municipalities are already taking advantage of RPC
membership by getting their roads rated for free.
– Director Schuler is retiring in January and recruitment is
ongoing.
17Department Highlights
• Medical Examiner
– Regional morgue conversations at Marathon County
continue and we remain a peer and partner in those
conversations though any potential financial role we
might play is no longer part of the conversation due to
changes in planning and potential partners.
– Many costs have increased due to higher-than-
average numbers in 2021. See annual report.
– Scott Rifleman is retiring soon. Recruitment process is
ongoing.
18Department Highlights
• Clerk of Courts
– Because of jury trial postponements, the budgeted
expenses (per diem juror payments, mileage, meals
and jury trial bailiffs) related have—so far—gone
under spent for 2021. Should go up in 2022.
– Trials by jury resumed in August 2021. Case backlog
poses all areas in the courts with a significant
challenge to work through.
– Working with departments in this area to put together
a funding package via ARPA funds.
19Department Highlights
• Family Court Commissioner
– Personnel services increased by 22% due to the
transfer of a .50 FTE Admin. Associate II position from
the Clerk of Courts Office.
– The workload in this office has increased dramatically,
so we have taken immediate steps to provide some
extra hours and will likely need to keep that or some
other change in place moving forward. Will address
this via Courts Package.
– Cases here—and in general—are more complex, more
contested, and take more time to resolve.
20Department Highlights
• Solid Waste
– Working on creating more recycling options for materials
that are currently being landfilled.
– Preparing for contract with Johns Recycling, which starts
January 1. A big two-year test for both parties.
– Contractual services increasing $633,666 primarily due to
Johns contract, an increase in tipping fees to $1.68/ton
($213,521) at Marathon County landfill, and an increase of
1,781 tons in hauling expenses.
– Public charges increase by 18.9% which includes a tipping
fee increase of $0.50 and a per capita fee of $2.09 from
member municipalities to help offset recycling costs.
21Department Highlights
• Highway
– A portion of intergovernmental revenues is related to general
transportation aids (GTAs). The 2022 GTAs are estimated to
increase 2%, but that increase added onto the 2021 GTAs actual
amount resulted in a budgeted decrease of $16,925.
– The 2022 budget includes Local Road Improvements Program
(LRIP) funds totaling $505,000 for the County Road HH Project and
CR Z Project. This is an increase of $263,535 from 2021 to 2022.
– The State’s Routine Maintenance Agreement (RMA) for 2022 is
budgeted to remain the same as it was in 2021.
– Personnel services reflect a 1.8% decrease here due to the
projected decrease to the incidental labor rate.
– Grants, contributions, and indemnities increase by $187,500 due to
the planned bridge aid projects that will be completed in 2022.
– Supplies and expenses increase 10.7% due to the increase of
construction projects and an increase in material prices.
22Department Highlights
• Parks
– The pandemic triggered a significant increase in the use of
County Parks and demand continues to increase.
Expansion is limited but improvements are being made to
provide more opportunities and to increase local tourism.
– Approximately 1/3 of the department budget originates
from park user fees and revenues.
– Public charges for services increased by $101,928 or 24.1%
(based on two-year averages)
– Future operations designations are increased due to
anticipated funds that will be placed in the boat launch
reserve account for 2022.
23Department Highlights
• Library
– In 2020 (most recent completed year), the Library’s
22,000 registered borrowers checked out a total of
227,257 physical items and 82,697 digital items.
– To date for 2021, total circulation is up 45%.
– Digital checkouts grew 13.4% over 2019 numbers due
to the pandemic.
– The Library is also a community computing center
with just over 10,000 sessions on Library computers
and additional 242,000 wireless sessions.
– In the past year, the Library has completed 6,200
curbside pickups.
24Department Highlights
• Register of Deeds
– Increased selling price of homes and increases in Real
Estate Transfer fees led to a 10.5% increase in funds.
– Public charges for services increased due to higher use
of online services during the pandemic and more
recording activity during this low interest rate period.
– Anticipating that 2022 will see the prices and
demands of homes staying high along with a lower
interest rate. Public access revenues expected to
increase as well.
– Ongoing scanning of records to convert information
from the AS400 system to another drive.
25Department Highlights
• Portage County Business Park
– Projects happening in 2021-2022:
• Completion of First State Bank Building
• Construction of two new medical clinics
• Completion of new Delta Dental HQ
• Updates to signs and landscaping
• Conversations around handing the park over
26Fiscal Planning:
2022 Budget Task Force
• Successfully developing fiscal policies through
the Finance Committee. Initial work has been
on fee structures and debt service policy.
• Thanks to Jenni and her team, Supervisor
Raabe, and Supervisor Morrow for their
participation and contributions to the
conversations and policy development. Thanks
to the Finance Committee for their work,
questions, and review as well.
27State and Local Fiscal Recovery Funds
(American Rescue Plan Act)
• Recent guidance from US Treasury has extended reporting deadlines due to
the need for more time to generate a final rule.
• For now, the Interim Final Rule (IFR) is binding and if counties use recovery
funds in a manner consistent with the IFR, while the IFR is effective, they will
not be subject to recoupment once a final rule is issued.
• SLFR funds is one of the funding sources in ARPA, and other funds from this
act are funneling directly to departments.
• These funds are NOT in the 2022 budget that is being presented today.
Amendments will be made and based on what has been authorized and spent,
and these funds will be tracked but treated independently.
• We have an initial estimate for our lost revenue calculation, which is important
as that amount has more flexibility for how it is used.
• Jenni and I will be providing some brief information on broad strategies for
ARPA fund budgeting and calculations on the next WCA leadership call. We are
also communicating regularly with municipalities and providing help.
28Fiscal Planning:
American Rescue Plan Act
• Initial focus has been on Portage County.
– HHS positions to help assist in Child Welfare and
other areas due to the large increases in caseloads
and other pressures outside of county control
– Additional steps in this area with an emphasis on
the collaborative prevention work that is carried
out jointly with HHS and United Way (et al) will be
presented for consideration.
– Courts package under discussion.
29Fiscal Planning:
American Rescue Plan Act
• One of the eligible areas for this funding is in the
area of water. Will soon be holding internal
discussions with staff to bring a package forward
that will help provide near-term support for
people and businesses with water quality issues.
• Broadband expansion discussions have also taken
place and will continue. The emphasis is on
working with the private sector to fill the gaps
and provide a stronger, overall network for
county residents.
30MovingForward…
- The ability to utilize ARPA funds in some areas will help provide
the county and our community with needed support that won’t
have to compete with our year-to-year budgeting challenges.
Taking our time and being prudent with how we use these funds
is key, as the goal is to have them help put everyone into a
position that is better post-COVID than where we were pre-
COVID.
- Uncertainty does remain a challenge, though in many ways 2021
has provided us with more answers than 2020. I expect that
we’ll see changes in 2022 when it comes to the pandemic and
public health responses and policy in general. What we know is
that uncertainty is having a major social and economic impact
on every part of our lives.
31A big thank you to the Finance
Department Staff for all of their work
and assistance and thank you to
department heads, everyone on staff,
and the County Board as well for the
seriousness you give to the county’s
fiscal future.
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