Neillsville City Council Hears 2020 Audit Report

Thursday, March 25th, 2021 -- 10:00 AM

The Neillsville City Council heard the 2020 Audit Report from a representative of CliftonLarsonAllen.

She stated the City has $2.9 million in the General Funds with $1.9 million in Unassigned Fund Balance, which is a very good financial condition and very stable.

The Water Utility shows a positive change in net position ($5,533) and the Sewer Utility shows a negative change in net position ($<15,363>) with Rate of Returns of (Water 2.21% and Sewer <0.6>%).  These were very close and oversight is needed to make sure the fluctuations are monitored and utility rates are updated and sufficient to cover increasing expenses and revenue changes.

TIF Districts #2 and #3 were reviewed.  TIF Districts are a large upfront investment ($2.1 million and $1.8 million respectively) recovered in future tax increments from the individual TIF Districts.

The council needs to be aware that TIF #2 has a deficit of $341,049 with 12 years remaining.  The district was extended by the granting of distressed status in February 2016 by the State of Wisconsin, with a dissolution date of 2032. TIF #2 should pay off early, TIF #3 has 6 years of remaining life with a deficit of $533,564 which may not break even unless more development occurs.

Risk disclosure on the City’s cash and investments were reviewed.  At year end, the majority (95.5%) was FDIC or NCUSIF insured or collateralized.  The remaining 4.5% was under the State Deposit Guarantee Fund, which is not considered to be insured or collateralized.

They reviewed the City’s long term debt.  City Statutory limit is $7.0 million with current borrowing of $1.7 million.  With $5.3 million available, the City is in good financial shape.  They also reviewed the GASB 68 and 71 Statements regarding the City’s share of the Wisconsin Retirement Pension Plan.

The General Fund Budget Comparison was reviewed; they reviewed the Compiled Schedule Report of long term debt, non-lapsing funds, insurance, water, and sewer rates of return-regulatory basis; and they reviewed the City’s internal control structure and mentioned a lack of separation of duties, preparation of financial statements and audit adjustments.

In conclusion the records are in very good working order, the staff was open and cooperative, the City had an overall good year, with good financial planning in place.  The council also heard a list of continuing appropriations and their respective balances as of December 31st.

The Council also heard the various Committee Reports from the past couple weeks.  Council Member Joe Neville reported on the March 11th meeting of the Neillsville Community Fire Hall Board regarding payment of bills, completion of the entry door, thanking the City crew for snowplowing, and holding on the building wall crack.  They also eviewed and accepted the 2020 Financial Statements.

Council Member Dave Harnisch reported on the March 17th meeting of the Historic Preservation Commission regarding discussion on the James Bogart (134 E. Fifth Street) property plans, improvements and nomination process for the Local Historic Registry.

They received a Certificate of Appropriateness (COA) and grant application for 218 Clay Street.  They had a discussion on the withdrawn COA and grant application for 534 and 538 Hewett Street.

They had a discussion on the preliminary nomination of the “Merchants Hotel property” at 105 W. Seventh Street for the Local Historic Registry.  They had a discussion on the initial draft of the 2021 Action Plan.

Finally, they reviewed the current City of Neillsville Comprehensive Plan sections which are being revised, discussed possible properties for Registry listings and other Historic/Cultural/Tourism related information for the new Comprehensive Plan and had a discussion on funds.

Council Member Julie Counsell reported on the March 18th meeting of the Library Board regarding the Librarians’ reports.  They also reviewed and filed the Library Director’s evaluation.

They had a discussion on and approval of Re-opening Protocol Phase 4, with the Library being open Saturdays, beginning April 10th; and had a discussion on and acceptance of the Neillsville Public Library Annual Report for 2020.

They also had a discussion on the Library section of the City of Neillsville Comprehensive Plan dated 2013 and reviewing the Plan for changes.  Finally, they reviewed facility use for 2020, discussed ways to increase patronage, and heard an update on donation and carryover funds.

Mayor Diane Murphy reported on the March 18th meeting of the Heritage Days Committee regarding a discussion on a Heritage Artifact Display and discussion on the Fire Department water fight and vehicle/equipment display.

They had a discussion on and hiring of Country Lines Band at a cost of $600 to play downtown in the tent on Thursday, July 8th, discussion on honoring Health Care Workers at the parade, and discussion on and booking of portables for the event.

They had a discussion on and approved of “Neillsville the Way It Was” as the theme, and discussion on various other Heritage Days event.  Finally, Council Member Dan Clough reported on the March 23rd meeting of the Commission on Public Works/Utilities regarding current activities, discussion on updating City Ordinance 10-8 Fences, and payment of bills.

Mayor Murphy also reported that the Neillsville Tourism Commission met and disbursed $21,250 in Room Tax Funds from 2019 and 2020.  She attended the United Communities of Clark County meeting in Thorp, with a presentation by Clark County Economic Development Executive Director Sheila Nybeg.  And she represented the City of Neillsville at The Highground recognition banquet.  The City received a recognition plaque for support of The Highground.

Finally, during the appearances portion of the meeting, Jon Counsell stated that he is speaking about what seems to be a continuing misconception about the ability of a Committee Chair to vote. At the last meeting Mayor Murphy stated that a six member committee is okay, since there would not be a tie vote, because as Chair she doesn’t vote. The League of Wisconsin Municipalities states that a Chair has all the rights to participate in discussion, motions and voting. No member is obligated to vote, they can abstain. State Statutes state that the Mayor does not count in determining a quorum and may only vote in case of a tie at the Council level. It is important for citizens to know how their Mayor and Council Members consider, discuss and stand on issues, as well as where appointed committee members stand on issues. By not voting, Committee Chairs and members cause problems.  Where do they stand?  They escape their responsibilities and the voter doesn’t have the information when going to the voting booth.

Feel free to contact us with questions and/or comments.