1. 2019 Annual Report on the Condition of The County
Nick Osborne, County Administrator
July 2019

2. Wisconsin Statutes sec. 59.18
The County Administrator shall annually… communicate to the Board the condition of the county.
Wisconsin Statutes sec

3. Polk County Data vs Wisconsin
Source- Forward Analytics Green Book

4. 2018 Revenues Above Budget Revenue Budget Actual Variance Taxes
$ 15,428,551
$ 16,301,860
$ 873,309
Intergovernmental
3,939,989
4,365,533
425,544
License and Permits
419,729
383,264
-36,465
Fines and forfeits
139,050
105,377
-33,673
Public charges
1,560,772
1,798,492
237,720
Intergovernmental charges
760,739
844,393
83,654
Miscellaneous
625,885
1,058,205
432,320
Total Revenues
$ 22,874,715
$ 24,857,124
$ 1,982,409

5. Sales Tax Continues to Grow

6. County Revenue Mostly Flat Since 2010

7. 2018 Expenditures Below Budget
Expenditure Category
Budget
Actual
Difference
General Government
$ 8,320,063
$ 7,237,654
$ 1,082,409
Public Safety
8,228,730
8,469,086
-240,356
Highway (General Fund Transfer)
5,048,871
Sanitation
666,989
617,839
49,150
Health and Human Services (General Fund Share Only)
1,756,329
1,641,116
115,213
Culture, Recreation and Education
8,320,063
7,237,654
1,082,409
Total Expenditures
$ 25,296,434
$ 24,225,251
$ 1,071,183

8. Lessons from the Ant and the Grasshopper
"Why bother about winter?" said the Grasshopper; we have got plenty of food at present."  But the Ant went on its way and continued its toil.  When the winter came the Grasshopper had no food and found itself dying of hunger, while it saw the ants distributing every day corn and grain from the stores they had collected in the summer.”
Source: Aesop’s Fables

9. Yield Curve Inversion
When long-term interest rates are paying out less than short-term rates
Has been flattening out and sloping down for more than a year
On June 30, an inauspicious milestone was achieved: The yield curve remained inverted for three months, or an entire quarter, which has for half a century been a clear signal that the economy is heading for recession in the next nine to 18 months
Source: National Public Radio, June 30, 2019

10. Source- National Public Radio, June 30, 2019

11. Why is this important?
Fund balance needs to be set at appropriate level
It protects against:
Cash flow irregularities
Poor credit rating
Volatile revenues or expenditures (snowplowing)
Unforeseen and significant costs
Exposure from other sources (enterprise funds, recession)

12. 2018 Fund Balance Change Summary
HWY Facility
$ 907,527
Sales Tax
271,675
Community Services
-688,337
Contingency
77,496
Asset Fund
187,200
Fleet
-3,878
General Government
1,073,244
Total Change
$ 1,824,927
*Total Unassigned Fund Balance ~$11.78 million

13. Fund Balance Remains Healthy

14. Summary: Financial Condition
Budget Plan in place for 2019 and 2020
Ceilings set for departments in budget preparation
Aging buildings and equipment will continue to be a problem
Zero revenue growth budgeting strategy cannot go on indefinitely

15. Management Issues

16. MANAGEMENT ISSUES Analysis of Mandated & Optional Services
Capital Needs Planning
Analysis of Mandated & Optional Services
Division Structure Implementation

17. Capital Needs Planning
Existing bonding strategy- payment levels drop from $2.4 million in 2021 to $1.3 million in 2022.
Cedar Corps study of Fairgrounds to include long term capital plan
$76,000 carryover from 2018 Budget for Government Center Security Analysis
Overall analysis of aging equipment

18. Analysis of Mandated & Optional Services
Almost all County services are mandated, but will continue to seek efficiencies
Recycling Center
Lime Quarry
Other analyses as required

19. Division Structure Implementation
First adopted in 2018 with more detailed plan in May 2019
Intended to increase efficiencies and encourage cooperation between departments
Evolving concept
This Photo by Unknown Author is licensed under CC BY-NC-ND

20. Overall Conclusions
Polk County is in good fiscal health, but challenges could be on the horizon
Work on management issues could lead to policy decisions/changes
2020 Budget process is underway

21. Questions?