Neillsville City Council Hears Audit Report

Friday, March 25th, 2022 -- 11:00 AM

The Neillsville City Council heard the Audit Report from a representative from CliftonLarsenAllen.

According to the auditor, the City has $2.9 million in the General Fund with $1.8 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, $18,643, and the Sewer Utility shows a positive change in net position, $67,328, with Rates of Returns, water 1.96% and sewer 1.91%, these were very close.

Oversight is needed to make sure the fluctuations are monitored and utility rates are updated and sufficient to cover increasing expenses and remove changes. Water rates were updated in 2013 when the PSC approved a 2.5% rate of return. A rate study would be required.

TIF Districts #2, #3 and #4 were reviewed. TIF Districts are a large up-front investment, $2.1 million, $1.8 million, and $22,000 respectively, recovered in future tax increments from the individual TIF Districts.

The Council needs to be aware that TIF #2 has a deficit of $25,726 with 11 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 5 years of remaining life with a deficit of $450,151, which may not break even unless more development occurs. TIF #4 has a deficit of $22,018 with 20 years remaining.

Risk disclosure on the City’s cash and investments were reviewed at year end. The majority, 93.4%, was FDIC or NCUSIF insured or collateralized. The remaining 6.6% was under the State Deposit Guarantee Fund, which is not considered to be insured or collateralized.

They also reviewed the City’s long term debt. City Statutory limit is $6.7 million with current borrowing of $1.4 – $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. They reviewed the City’s internal control structure regarding lack of separation of duties, preparation of financial statements, audit adjustments and new lease standards.

In conclusion, the records are in very good working order, the staff was open and cooperative, and the City had an overall good year with good financial planning in place.

City Clerk Rex Roehl presented a report on the City’s continuing appropriation accounts and their respective balances as of December 31, 2021. The Council approved moving those accounts forward.

The Council also discussed pay for Neillsville Police Officers. A member of the Police and Fire Commission was at the meeting and discussed officer compensation. They are not just talking about hiring; they need to talk about retention.

The veteran officers train the new ones. They don’t just want to be a training ground, they want them to come and stay. It is not just the pay. If they are unhappy, they will leave for 5% more pay. However, if they have satisfaction they will stay even if offered 20% more pay.

The other things looked for are career growth, feedback, recognition, training and equipment. The Police and Fire Commission compared other departments around Neillsville and the sheriff’s departments and there is really no standard. They are all different from each other.

For example, Thorp gives 80 hours of leave the first year, while Neillsville gives 40 hours. They say you should have 3.4 officers for every 1,000 of population. Clothing allowance varies, some kind of longevity is needed.

The Clark County Sheriff’s Department starting pay is $25.65 per hour. Neillsville is $25.13. However, the County’s second year goes to $27.23 and the third year $30.61. Neillsville is not keeping up.

It was stated it is not like the past where someone stays their whole career in one place. They want to belong, fit in, find acceptance, accomplishment, recognition and responsibility. They want a challenge, training, and equipment.

Neillsville’s package is not bad at all, but they are competing with bigger departments and the County Sheriff Departments. Recognition can be little things. It says ‘we notice what you are doing.’

It was suggested they pay for a candidate’s academy school in exchange for a three-year commitment or increasing longevity pay. Currently, the City offers 1% after five years and they should consider giving it sooner. Also, increasing the clothing allowance.

Currently, the City gives $150 per quarter, but a uniform costs $250. Police Chief Jim Mankowski stated that they need to touch on the uniform allowance, maybe going through the City to purchase things, having an amount the officer can draw from versus being paid on allowance.

Council Member Joe Neville stated that he requested the Tourism Committee’s distribution of Tourism funds for reconsideration on the agenda due to questionable distribution and reconsideration of a new meeting for redistribution of Tourism funds be placed on the agenda as he received calls regarding conflicts of interest.

A Neillsville Improvement Corporation Board Member is on the Committee and the wife of a Committee member is also and money was given to NIC. Council Member Neville presented City Ordinance Sec. 2-8-5 Conflict of Interest and Wisconsin Statues Sec. 19.59 were present.

Council Member Neville stated NIC is getting $5,500; did they vote for it? The minutes show James Voss’ comment about not knowing why presentations were being done, because he had the distribution all figured out. How could it all be figured out? They didn’t have a meeting.

Council Member Neville stated we want to handle it locally, not go to an outside source. Council Member Dan Clough stated that he is not on the Committee, the Mayor makes the nominations and the Council approves them. He believes there is no conflict.

Council Member Neville stated one of NIC’s Directors, which Clough is a part of, is on the Committee. City Attorney Bonnie Wachsmuth stated if someone on the Tourism Committee has a connection with the applicant they have to abstain. They should not be a part of the discussion.

Have a meeting and motions can be made with abstentions made. Council Member Neville stated it was not intentional. We can’t force them to have another meeting. If they don’t correct the action taken, there may be other actions.

Council Member Clough yielded the floor to James Voss. James Voss stated that he reviewed the grant applications over the weekend. Do the requests meet the criteria and state law guidelines, which is reasonably likely to use a hotel, six-month use period, re-occurring events should be moving to self-sustaining status, etc.

Council Member Neville asked if the committee Chair took part in the vote. Voss replied yes. Voss stated everyone believes there is a need. If they meet the criteria, they take a percentage of requests by available funds.

Council Member Neville stated if you don’t have a cap, everyone will come in for more. The conflict of interest needs to be addressed. Council Member Julie Counsell stated that she took time to read all the applications. Most of the money should be used for advertising.

It is the Committee’s jobs to determine which are going to benefit the community the most OR put heads in beds. That is the reason the State changed the law. During the appearances portion of the meeting, Neillsville Chamber Director Diane Kren reported on the Tourism Meeting.

She said six people sit on the Commission, it is a thankless job. Her concerns are where the money is being used. The rules are followed and are putting heads in beds. Requests received totaled $64,600 with available funds of $29,500.

There is never enough money. For example, Farm Tech Days is a one-time deal and Heritage Days a yearly event. She does what the Commission tells her, she doesn’t have a say in the issues, she just wants it done properly.

The Council also heard the various reports. Mayor Diane Murphy reported on representing the City of Neillsville at The Highground recognition banquet. The City received a recognition plaque for support of The Highground.

Chief of Police Mankowski requested a moment of silence in memory of Retired Police Chief Thomas Woods who passed away on March 21, 2022. Woods served as Chief of Police from 1983 to 2001. The Neillsville Police Department will be providing an honor guard for the visitation and funeral on April 8 and 9, 2022.

Chief of Police Mankowski reported on:

• Attending the Wisconsin Chief of Police Association Conference;
• Working on a pre-employment background check on a part-time officer candidate;
• Construction and painting the Police Department office;
• Squad car maintenance;
• February citations;
• Complaints, business checks, and activities.

City Clerk Roehl reported:

• That Clark County will resume monthly testing of the outdoor warning sirens beginning April 6 th between 5:00 P.M. and 6:00 P.M.;
• Open Book will be Wednesday, April 13, 2022 from 11:00 A.M. to 1:00 P.M.;
• And Board of Review will be Monday, May 16, 2022 from 8:00 A.M. to 10:00 A.M.

One resident stated that she is all for development in the City. The City adopted Public Participation Procedures (Resolution No. 609) and an updated Comprehensive Plan (Ordinance No. 1066).

On page 196 of the Comprehensive Plan a survey done February 2020 for the Marshfield Medical Center-Neillsville found 69% of the households responding prefer to own their own single-family home while 6% would prefer a condo/townhouse home. There is a need for side-by-side condos, people want to own not rent.

Diane Kren, Chamber of Commerce Executive Director, stated she was asked to give a Chamber update. In February a group met with Chippewa Valley Technical College representatives and their partner Swing Digital Corporation to gather information on the City needs.

Kren presented the Neillsville Farmer’s Market Rules for 2022, a poster and she will be putting ads in the paper. During Autumn Harvest Fest the Farmer’s Market will be moved to the Library Parking Lot. Participants will be required to have their own insurance and food processing licenses. The June Dairy Breakfast will be hosted by Boon Farms in Christie on June 12 th . The Chamber Golf Outing will be June 25 th.

City Attorney Wachsmuth read the minutes of the March 3rd joint meeting of the Common Council, Planning Commission and Economic Development Commission regarding:

• Presentation by S. C. Swiderski, LLC representatives on a residential development in the Boon Subdivision;
• Potential financing of street construction and developers incentive with a Tax Incremental Financing District;
• A memorandum of understanding between the City and S.C. Swiderski, LLC;
• And discussion on these items.

Council Member Neville reported on the March 10t meeting of the Neillsville Community Fire Hall Board regarding:

• Payment of bills;
• Thanked the City crew for snowplowing;
• The Smokey the Bear sign will be going up soon;
• Building some shelves;
• Discussion on and approved the use of the Fire Hall for the Girl Scouts spaghetti feed fundraiser;
• Reviewed and accepted the 2021 financial statements;
• And discussion on and approved putting a bell tower out front of the Fire Hall.

Council Member Counsell reported on the March 15, 2022 meeting of the Library Board regarding:

• Librarians’ reports;
• Discussion on and approval of materials and labor to bring the building exterior landscaping and flower gardens up to standard;
• Reviewed and approved the Public Library Annual Report as submitted to the WVLS;
• Reviewed and approved the Public Library System Effectiveness Statement as submitted to the WVLS;
• And reviewed and filed the bills.

Council Member Clough reported on the March 22nd meeting of the Commission on Public Works/Utilities regarding:

• Current activities;
• And payment of bills.

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