SYNOPSIS: The evidence strongly suggests that the County has been typically funding perhaps 20 to 35 positions that it has little or no intention of filling during the upcoming year. The funding for these planned unfilled positions would presumably provide additional funding “earmarked” for future CIP rollover. While I don’t have definitive proof that this is true, if it is, it would appear that this practice would be contrary to WI Court dicta and the Opinion of the WI Attorney General.
Following the recommendations shown below would reduce the 2025 tax levy increase from $1,896,965 (3.27%) to $293,040 (0.51%).
In Barth v. Monroe Board of Education, 108 Wis. 2d 511, 322 N.W.2d 694 (Ct. App. 1982), the Wisconsin court of appeals stated in dicta: “It is possible that a sinking fund dedicated to all current and future capital expenditures without relation to specific capital projects has so little public purpose that it violates the prohibition against taxing for purposes other than a public purpose.” However, the court did not resolve this issue because the funds at issue in the case had been dedicated to a specific project before the lawsuit was filed.
The Wisconsin Attorney General has provided a summary position on accumulations of tax revenues. In it, the Wisconsin cases are read to mean that while municipalities may not lawfully create and accumulate unappropriated surplus funds, they may “maintain reasonable amounts necessary in the exercise of sound business principles to meet their immediate cash flow needs during the current budgetary period or to accumulate needed capital in non-lapsing funds to finance specifically identified future capital expenditures.” 76 Op. Att’y Gen 77 (1987). (LWM Financial Procedure FAQ 7) (Emphasis Added)
RECOMMENDATIONS
- Request County Staff to identify the number of planned unfilled positions and the associated budget dollars in the 2025 budget.
- Remove $1,603,925 from these funded, but not planned to be filled positions, from the 2025 Budget and remove a corresponding $1,603,925 from the increase in debt levy.
- Amend RESOLUTION #R-55-24 or make an additional resolution to provide the Social Service Department with a working minimum Fund Balance of around 25% of the Social Service Budget. This would be in the $2,500,000 to $3,000,000 range which would be easily covered by the $6,042,170 in the Social Improvement Fund.
- In future years (or possibly starting in 2025), identify “specifically identified” future capital needs (as identified in the 5 year CIP plan) and include funding for future projects in the ensuing year Budget.
Following thee recommendations would reduce the funds available for 2027 CIP expenditures by $1,603,925. The County has wisely spent much of the $24 million in ARPA funds on capital projects, which should minimize the impact of the proposed 2027 reduction.
Following these recommendations would reduce the 2025 tax levy increase from $1,896,965 (3.27%) to $293,040 (0.51%).
Additional Detail on possible Funded Positions that the County has little or no intention of filling in 2025.
Based on the available data from past audits and past and current budget messages, I expect that the following Departments probably have funded positions that are unlikely to be filled.
Please note that this should in no way reflect poorly on the associated Department Heads. In order to make the CIP rollover scheme work, the Budget has to be padded somewhere.
Sheriff’s Office: 10+ positions
Social Services: 5+ positions
Highway: Perhaps 2 positions
Facilities and Capital Management: Perhaps 2 positions
How many positions does the County currently have filled and how many job vacancies were posted as of 10/1/2024?
This post is my opinion. I am not an attorney and this post is not legal advice.
REFERENCES:
Please refer also to the references included in Part 1
From 2025 Budget Message, Page 20
Email Correspondence with Finance Director Fenske
