Boone County saves thousands from refinancing jail bond - Rockford, IL - Rockford Register Star

Will the 1 per cent sales PSB tax end in 2018?

The $9.3 million bond was originally issued in 1999 to help pay for the county jail. It is set to expire in 2018.

Additionally, the board received an Aa2 bond rating from Moody’s Investors Service, which is the third highest bond rating offered by the agency. To receive that rating, County Administrator Ken Terrinoni met with representatives from Moody’s Investors Service, who interviewed him about the county’s finances for an hour. 

“We gave them a full picture of our finances, and they were mostly questioning the ways we got through this recent recession,” he said.

The agency said the county’s strengths included a strong and conservative management team, as well as having a healthy reserve level. One of its weaknesses included relying on sales tax revenues.

Boone County saves thousands from refinancing jail bond - Rockford, IL - Rockford Register Star

Refinancing jail bonds will save Boone County $377,000 | Belvidere Daily Republican

Written by Bob Balgemann

Refinancing $3.32 million worth of bonds, the remaining amount from the $9.3 million issuance in 1999 for jail construction and other projects, will save the county an estimated $377,000 in interest.

The repayment interest was reduced from 3.7 percent to 0.97 percent thanks to a AA bond rating …

The half-cent public safety sales tax, approved in 1999 for the jail project and others, is due to expire in 2018. It has generated more than enough money for the annual bond repayment, and sometimes elicited controversy as to how the overage should be spent.

Click on the following to read the entire article:  Refinancing jail bonds will save Boone County $377,000 | Belvidere Daily Republican

Journal’s Coverage of the county budget and Mr. Mattison’s Letter to the Editor

The following is taken from this Friday, November 18, 2011, which is available free of cost at merchants across the county and on the web at:http://www.boonecountyjournal.com/news/2011/Boone-County-News-11-18-11.pdf#page=1

Click on the photocopy to enlarge: 

Boone County receives a seven page Management Letter from Auditing Firm

Based upon the length of the management letter it appears some changes are called for.

Click on the photocopy to enlarge:

3 Board Members critical of Boone County deputies’ raises

The following editorial was submitted and published by both the Rockford Register Star and the Boone County Journal.  Below is the RR Star publication.  Click on the photocopy to enlarge.

Wage Increases And Early Retirement Incentives Approved by Boone County

County Board gives $10,000 to a Sheriff employee who is already retired as an retirement  “Incentive”.

The following is from page 7 of February 18, 2011, Boone County Journal which is available free of cost at merchants across the area and on line at:  http://www.boonecountyjournal.com/

 

Wage Increases And Early Retirement Incentives Approved by County

By Rebecca Osterberg

The Boone County Board approved a “Joint Supposal” at
the February 16 meeting in the form of an Agreement reached
in collective bargaining on January 26. The Agreement was
between the Fraternal Order of Police (FOP) that represents
Boone County Sheriff’s department employees and the
county board.

The Agreement spells out wage increases over two years
and is retroactive to 2010. In Article #20, for example, titled
“General Economics,” the Agreement allows for no increase
for six employees as of December 1, 2010, except for the
already agreed upon 1.0 percent step increase. Effective
December 1, 2011, 17 employees will receive wage increases
of 1.5 percent in addition to the step increase of 2.8 percent
for a total of 4.3 percent and for 2012, the same 1.5 percent
increase, plus the additional 1.0 percent step increase for
eight employees. According to the article, the step increases
occur “on average.”

County representatives Cathy Ward (District 2), Kenny
Freeman District 3) and Pat Mattison (District 3), noted that
they opposed acceptance of the Agreement.

“During such tough economic times, this amounts to a
raise of 4.3 percent,” said Ward. “I will be voting against
it.”

Freeman and Mattison echoed Ward’s sentiments.

“You don’t have the funds to pay this,” Mattison said.
“I’m not going to be for these step agreements.”

In a written statement, Mattison clarified his statements
and added that there is now the need for an additional
$493,753.45 for county corrections and sheriff’s
departments. “What do we tell the Boone County employees
who did not get raises? What is the justification for giving
union employees raises, while we hold the line on others?”

Earlier in the meeting the board also approved early
retirement package for eligible employees who have
completed the pre-application procedure. The county board
was given an opportunity with language outlined by Boone
County State’s Attorney Michelle Courier to amend the
ordinance to state “current” employees that are qualified.
However, no amendments were offered to limit the process;
therefore, an employee who filled out the pre-application
will be eligible for the incentives.

The package includes estimated incentives under Option

#1, the cost of the employer’s share of single group medical
insurance for three years, or a one-time lump sum payment
of $10,000, under Option #2.

“Why are we considering somebody who is already
resigned?” asked Mattison.

Boone County Administrator Ken Terrinoni replied that
the program was under discussion prior to the retirement
of the employee. “I guess it’s up to you whether or not you
decide to pay him,” said Terrinoni. “If you already signed
the pre-application form then you are eligible. You only
have a total of 14 people that are eligible. Six signed up by
the deadline.”

Employees are required to be enrolled in the retirement
program, be at least 50 or 55 years old (depending on
the retirement program they are enrolled in) and have a
minimum of 25 years of service with Boone County as
of their termination date. The applications will need to be
submitted by March 31, 2011.

Representatives Freeman, Mattison and Ward voted
against the measure.

County Administrative Committee questions special funds: A new discovery? Or something everyone should have known?

The following three special purpose funds, not part of the general county funds, were questioned at last night’s committee meeting. 

 

This fund receives revenue from Circuit Court fees however there are no expenses since December 2008.  These funds may have special use restrictions and spending may be the prerogative of officials other than the county board.

 

This apparently is federally funded from drug seizures.  A sheriff patrol vehicle and equipment were purchased with the funds and the current balance is $69k.

This account is receiving funds from fees from the Circuit Court but no expenses have been charged for the past two years. These funds may have special use restrictions and spending may be the prerogative of officials other than the county board.

Stephenson County set to approve higher property tax levy - Freeport, IL - The Journal-Standard

 

levy increase would appear quite large if one were only looking at revenue going into the general fund, Blum said. The 2010 tax levy contributed an estimated $1.7 million to the general fund, while the 2011 levy contributes about $2.4 million to this fund, Blum said.

“We had to freeze all the other levies to get the (levy increase) into the general fund,” Blum said. “All the other line items are frozen, some went down. The general fund, where we needed revenue to protect public safety, went up.”

Concerns Raised

Recently elected County Board member Jerry Clay said he objects to the way the county seems to be playing “accounting games” to balance its budget. He said the county is taking expenses that should be coming out of their revenue stream and putting them in closed funds, and then using borrowed funds to pay for the expenses.

Click on the following regarding regarding financial woes in Stephenson County:   Stephenson County set to approve higher property tax levy - Freeport, IL - The Journal-Standard

Boone County’s October 6th Miracle

The Boone County Board’s Finance Subcommittee for the 2011 budget has not meet for two weeks.  The 2-3 meetings a week process stopped after agreeing to a broad outline concerning what reserve and annual funds would (or might be) considered revenue for the period and the subcommittee agreed that a 3% decrease in department spending across the board would bring the budget into an acceptable balance.  The major department budgets (Sheriff, County Clerk, Clerk of the Circuit Court, States Attorney and Public Defender) were basically the same as FY 2010 although “bare bones” if not large decreases were requested by the county board. The committee requested that County Administrator, Ken Terrinoni, and Finance Chairman, Karl Johnson, work with the individual department heads and work out the 3% reduction (or best solution).  Asked by one of the  board members “how this could happen”, Mr. Terrinoni said he “knew” where savings (“dead bodies”) were hiding in the budgets.

Will the miracle happen?  Will $400,000 be found?  Will a county budget be agreed and passed before the November deadline?  Will the numbers be known to the public prior to the November 2 election?

Based upon the subcommittee’s paper trail and  committee presentation the following summary is provided:

• The budget overall summary is provided in the photocopy below.  A $1.764 million deficit (“A” in red) is estimated based upon continued 2010 revenue and expenditures.  $1.473 million in “additional revenue” are shown below item “A”.  $430,000 in increased real estate tax levies based upon new property being place upon the roles and taxing to levy maximums.  [In the current down real estate market is this really possible?]  The next four items are borrowing from other levies.  $250,000 decrease in the Highway Department’s matching road fund.  In 2011 needed matching funds for state and federal grants for road construction will have to draw down previous year’s reserves. Likewise the Tort Fund is decreased $200,000 and reserves from prior years must be used for FY 2011 tort expenditures.  The Bridge Fund usually accumulates funds for several years and then a bridge is reconstructed or rebuilt (usually a million dollar plus project). $350,000 of the bridge fund will be used by the general fund in FY 2011. Finally the Health Department’s levy is decreased  by $143,000 and that amount will be used for general fund operation.  The effect on the Health Department is minimal.  Health Department Administrator, Ms.Stephanie (Seaworth) Crawford resigned and may not be replaced.  [That is actually a Health Department decision.]  And the salary for the county’s soil scientist will no longer be paid by the Health Department.
• Circled in red, the deficit is now $391,039.  Mr. Johnson and Terrinoni were instructed to seek budget concession for approximately this amount [actually $400,000] from the county departments. Prior to this direction committee discussions pointed to the fact that  a 3% reduction in the $13.558 million projected expenditures was approximately $400,000 [actually $406,742].  And that over half of the $400,000 could be obtained by a give-back of the 3% non-union  pay raise granted for 2010 [See photocopy below, $82,050] and a corresponding 3% decrease in union wages [See photocopy below, $156,838 decrease either through union concessions or layoff’s].     Click on the photocopy to enlarge.                                                                    
•   To some extent the quest for the $400,000 is already shown. $200,000 in one time transfer from Tax Sale Fund and a $200,000 one time transfer from the Maple Crest fund are shown at the bottom of the top photocopy.  Will Mr. Terrinoni and Mr.Johnson find any “bodies” in their discussions with the departments?  Will the county board make any hard decisions for the FY 2011 budget?  If not, how is this situation going to change for FY 2012?  How many of the one-time revenues will be available in 2012?  Perhaps FY2012 will be the year of the “miracle”.
• Finally in case things appear heading for a possible solution—Does the FY 2011 budget mean anything? Will the unions gain  additional wage increase in negotiations which begin in November?  Will the county negotiate from a point of strength?  Will the county threaten and carry through job cuts for union contract demands that exceed the 2011 budget? Or will expenditures just exceed the budget and deficits increase?                                                                        Some county board members (Marshall Newhouse, Republican, District 1, in particular) has suggested that Public Safety expenditures not be subject to any cuts.
• Will any departments have any cuts?

Pat Mattison tells public where the present county board stands on the PSB Sales Tax

The paid advertizing below was published in the Shopper and a similar “Letter to the Editor” was printed in the Boone County Journal. Mr. Mattison supplies a summary of how the Public Safety Building sales tax was intended to only pay for the expansion of the jail and how it has been used for “non-intended purposes” since 2004.  Board member/2010 candidate Anderson, Dini, Larson and Glass voted to continue use of the tax for the “non-intended” uses.  Board member/2010 candidate Freeman and  Hartwig voted against “non-intended use”.  Peggy Malone, wife of 2010 candidate for county board, Tim Malone, voted against “non-intended” use of the PSB Sales Tax. 

Analysis of 1999 Boone County Public Safety Tax

To the Boone County Board and Public

Did you know...?

The Public Safety Sales Tax of one-half percent, to be taxed on merchandise sales in Boone County FOR THE PURPOSE OF FINANCING AN EXPANSION

OF THE EXISTING JAIL FACILITY--passed April 13, 1999 by a margin of 66%

Yes, and 34% No.  It was passed for building an expansion of the jail--not for jail operations and Boone County General Fund expenditures.

The following is the use of the Public Safety Sales Tax funds since 2004 suggested by and according to Ken Terrinoni, Boone County Administrator's accounting:

Revenues (actual 2004-2009, projected 2010)

$10,583,234

Expenditures (actual 2004-2009, projected 2010)

$ 5,320,245   Bond Payments

+

          $    285,000 Transfer out, Gen. Fund allowable expenses

          $    521,725 Transfer out, Job staffing

          $ 3,934,268 Transfer out, Jail staffing

          $    376,977 Transfer out, Sheriff's equipment

          $    125,000 Transfer out, Logan Building

          $      15,000 Transfer out, Architect

          $    400,000 Transfer out, Courtroom

$    250,000 Transfer out, Courtroom, Probation, & States Attorney

$ 5,907,970   Total Transfers out

$11,228,215 Total Expenditures (Bond payments & Transfers out)

Total Expenditures minus Total Revenue

$11,228,215 - $10,583,234 = (-$704,981)  More money expended then Sales Tax revenue

$5,320,245 has been expended for voter approved Jail Expansion

$5,907,970 (more than approved for the Jail Expansion) has been expended for General Fund operations, staffing, sheriff's equipment, Logan Avenue Building, Architect, Courtroom Probation, and the State's Attorney--none part of the voter approved Jail Expansion.

Question:  Will the voters of Boone County trust future Boone County tax referendums as being used as proposed?

-- compiled and organized by Patrick B. Mattison, Boone County Board District 3

Revised Boone County Budget Process for FY 2011

At tonight’s Finance Committee Budget meeting it was decided that the process would changed.  There was a length discussion regarding changing the process to coincide with the new outline supplied by the County Administrator.  Basically a more solid revenue estimate along with additional revenue possibilities such as using reserves would agreed upon  by the county board    Once these numbers are agreed, then the affected departments would have meetings with the committee regarding their budget.  See the two page memo describing the process and dates of meetings shown below:

Click on the photocopy to enlarge: 

Several new developments regarding possible cuts in budgets were discussed.  It is possible that the Health Department will not be replacing their Administrator (Assistant Administrator, Stephanie Crawford).  Thus $75,200 (FY 2010) or $78,000 (FY 2011) could be saved and possibly not be levied by the county for the Health Department.  In the Planning Department Adam Tegen ($64,180) is resigning and may not be replaced.  That decision is a shared decision with the City of Belvidere.

Finally a long term project was proposed by the committee to seek help from local manufacturing firms  in beginning a program similar to the “LEAN” manufacturing system.  The program could take several years but a more labor efficient operation could occur in many county departments. Crucial to the plan is the cooperation of elected and appointed department heads.

DeKalb County Finance committee sends FY2011 budget to county board

Boone County’s Finance Committee is two months from sending the budget to the county board. 

property taxes for the average homeowner will increase by 2.4 percent. Property tax levies were reduced by 5 percent, but the reduction goes to the general fund

bad news translates into is layoffs or downsizing,” Hanson said. For the 2011 budget, county departments were asked to cut expenses by 5 percent of the past year’s budget.

 

sheriff’s office will lose two patrol deputies, one detective and one communications officer

state’s attorney’s office asked for a 2.5 percent reduction instead of 5 percent

Several other departments will cut hours or transfer employees to other cost centers.

 

Bockman proposed cutting the number of county board and committee meetings to save money. The number of monthly meetings each year would be reduced from 12 to 10.

Click on the following for more details:  Finance committee sends FY2011 budget to county board | Daily Chronicle

Cook County Budget Deficit Could Lead to Big Cuts

 

John Daley says he supports 10 percent across-the-board cuts to help balance the budget.

He says the biggest reason for the shortfall is the loss of tax revenue, in part due to the county's sales tax cut. Daley says he doesn't recall any elected county officials opposing the tax cut.

City Room™ - News In Brief - Reported Cook County Budget Deficit Could Lead to Big Cuts

Kane County to hear from financial expert

Interesting article for several reasons.  I never knew that a county board could not really stop overspending of elected officials.

state budget experts will speak to the board in what McConnaughay [County Board Chairwoman] described as an effort to get members to understand the state's dire financial situation. The experts also will explain what that situation means for the county.

Members again cited the fact that the board has no authority to prevent offices from overspending.

"We end up overspending at the end of the year because we can't control the management decisions made in other offices," McConnaughay said

Kane to hear from financial experts :: Beacon News :: Local News

Counties worry about how to deal with cuts to funding for salaries

Proposed cuts to state reimbursements for salaries of public defenders and state's attorneys throughout the state have local county officials concerned about ramifications on upcoming budget planning.

State reimbursements are supposed to pay for two-thirds of these officials' salaries, but Quinn's proposed budget cut $8.5 million from the $14 million line items for state's attorney reimbursements and more than $3 million from the $5.7 million allocated for public defenders

Counties worry about how to deal with cuts to funding for salaries

Slow income has Winnebago County considering loans

When will Boone County’s Board Chairman [Bob Walberg] start talking about the realities of our county’s finances?  See http://boonecountywatchdog.blogspot.com/2010/02/boone-county-revenues-fall-even-lower.html

a bit more than $800,000 in the red for the first quarter of its 2010 budget year, compared with estimates made last fall. Similarly, revenues in the county’s public safety sales tax fund are roughly $278,000 behind benchmarks set last fall.

For more on the Winnebago story click on the following:  Slow income has Winnebago County considering loans - Rockford, IL - Rockford Register Star

Will Boone County Taxpayers have to pay for Poplar Grove’s special protection?

As reported by the Rockford Register Star on 2-16-2010, Poplar Grove has yet to determine whether they will receive reduced protection from the Sherriff’s Department. See:  http://www.rrstar.com/boone/x196135208/Committee-OKs-new-taxes-holds-off-on-sheriff-s-vote 

But it appears that the Sheriff continues to provide the services and payments are in the rears.  The following is taken from the Boone County Finance Committee Subcommittee minutes 2-9-2010:

“ He [Ken Terrinoni, County Administrator] has not heard from the Village of Poplar Grove whether they plan to continue paying the current amount for police protection.  They are behind a few months on paying for this service”  [See the minutes below]

It appears that Poplar Grove is three months behind in payments.  The  list below was prepared based upon the monthly Sheriff’s Department Revenue Summaries that the Sherriff is required to submit to the County Board. 

Will the entire county end up paying for Poplar Grove’s special protection from the Sherriff’s Department?  Will the county be properly reimbursed for the extra  services granted by the Sherriff to Poplar Grove?  Oh yes, Poplar Grove’s old contract promised to eventually purchase a new police car for the Sheriff—will there be any settlement on this matter?

 

Click on the minutes to enlarge.

Boone County Revenues fall lower—will there be any adjustments in expenditures?

In November the county board passed the present budget by one vote.  That budget minimized lay-offs and allowed for wage increases of 3-6% to most employees.  It appears that revenue will not meet projections and a large deficit will now occur unless something is done.

Take a look at the recently released revenue charts and compare them with last year’s.  Total shortfall for the five funds for the first two months is $43,888.57  or 5.3% of anticipated $827,491 revenues.  Should these revenue shortfalls continue at the same rate,  the annual shortfall would be six-fold or $263,331.

Last year [FY 2009] the revenue projections were considerably higher.  A shortfall of approximately $45,000 had occurred at this point in  2009.  FY2010 projections are very low compared to 2009 yet the 2010 shortfalls continue at the 2009 rate. 

Will the Boone County Board do anything to keep its budget within bounds?  Last year I repeatedly heard that a 5% budget imbalance was sufficient to reopen the budget.  The 2010 revenue shortfall for these five funds  currently exceed  5%.  The 2010 budget anticipates a total revenue to the General Fund from all sources of $13,382,101.  The $263,331 shortfall is  2% of the General Fund Revenue.  Are there additional shortfalls? Are there expenditures not budgeted?

2009----------------------------2010

Click on the photocopy to enlarge:

 

2010 Shortfall $1,412.51  which is 1.1 % of projected 2 month income from this source.

2010 Shortfall $6,923.61 which is 5.1 % of 2 month revenue from this source.

2010 shortfall is $14, 822.37 which is 6.3% of the 2 month revenue  from this source.

2010 shortfall is $ 20,286.46 which is 4.8% of the  2 month revenue from this source.

2010 shortfall is  $414.61 which is .5% of the 2 month revenue from this source.

DeKalb Courthouse, jail projects go to public hearing | Daily Chronicle

 DeKalb County will enjoy low rates for these projects through the federal stimulus program.  Boone County board members should note the start date of DeKalb’s new jail. After that is completed Boone County will lose a sizeable source of revenue.

Finance Committee agreed to use a combination of Recovery Zone Bonds and Build America Bonds, which are federal stimulus programs with a subsidized interest rate.

majority of the jail project may be funded by new revenue generated by an expansion of the landfill, which is a multiyear process needing approval by both the county and the state. Those bonds and the start of the jail construction are slated for 2012, though Hanson said it all depends on the landfill outcome.

Courthouse, jail projects go to public hearing | Daily Chronicle