Chairperson Thompson called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 5:05 p.m. Members present were: Pat Harney, Mike Lehman, Terrence Neuzil, Sally Stutsman, and Carol Thompson.

Unless otherwise noted, all actions were taken unanimously.

Convened Public Hearing on proceedings to enter into a loan agreement and borrow money in the principal amount of not to exceed $800,000.00 for the purpose of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Jail Building at 5:05 p.m.

No members of the public spoke for or against the proceedings. Thompson reported that a written statement received from Margaret Reihman would be read at the public hearing for the FY03 proposed budget later in this meeting. The letter comments on the use of bonding. County Auditor Tom Slockett said that, other than the correspondence from Reihman, no written objections have been placed on file. Slockett said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:09 p.m.

Convened Public Hearing on proceedings to enter into loan agreement and borrow money in the principal amount of not to exceed $800,000.00 for the purpose of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Administration Building at 5:09 p.m.

No members of the public spoke for or against the proceedings. Thompson again noted the correspondence placed on file by Margaret Reihman. Slockett added that no other written objections have been placed on file. He said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:10 p.m.

Convened Public Hearing on proceedings to enter into loan agreement and borrow money in the principal amount of not to exceed $310,000.00 for the purpose of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Ambulance Building at 5:10 p.m.

No members of the public spoke for or against the proceedings. Slockett again noted the correspondence filed by Margaret Reihman and that no other written objections have been placed on file. Slockett said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:11 p.m.

Convened Public Hearing on proceedings to enter into loan agreement and borrow money in the principal amount of not to exceed $235,000.00 for the purpose of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Courthouse at 5:11 p.m.

No members of the public spoke for or against the proceedings. Slockett again noted the correspondence filed by Margaret Reihman and that no other written objections have been placed on file. Slockett said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:12 p.m.

Convened Public Hearing on proceedings to enter into loan agreement and borrow money in the principal amount of not to exceed $120,000.00 for the purpose of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Secondary Roads Building, the Johnson County Health Department Building, the Johnson County Department of Veterans Affairs, the Johnson County Conservation Department Operations Center, the Johnson County Department of Human Services Building, and the Johnson County SEATS Building at 5:12 p.m.

No members of the public spoke for or against the proceedings. Slockett again noted the correspondence filed by Margaret Reihman and that no other written objections have been placed on file. Slockett said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:13 p.m.

Convened Public Hearing on proceedings to enter into loan agreement and borrow money in the principal amount of not to exceed $6,150,000.00 for the purpose of paying the cost, to that extent, of funding health and liability self-insurance programs; and acquiring, developing and improving a geographic computer data base system suitable for automated mapping and facilities management at 5:13 p.m.

No members of the public spoke for or against the proceedings. Slockett again noted the correspondence filed by Margaret Reihman and that no other written objections have been placed on file. Slockett said sealed bids have been received for the purchase of $7,525,000 in tax exempt general obligation capital loan notes from Hills Bank and Trust at 2.15% interest and for purchase of $880,000 in taxable general obligation capital loan notes from Hills Bank and Trust at 2.95% interest and from Farmers and Merchants Bank at 3.97% interest.

Public Hearing closed at 5:14 p.m.

Whereas, pursuant to the provisions of Section 331.402 of the Code of Iowa, Johnson County, Iowa (hereinafter referred to as the "County"), has heretofore proposed to contract indebtedness and enter into loan agreements (the "Loan Agreements") in the principal amount of $8,405,000, for the purposes of paying the cost, to that extent, of remodeling, reconstructing and equipping the Johnson County Jail Building, the Johnson County Administration Building, the Johnson County Ambulance Building, the Johnson County Courthouse, the Johnson County Secondary Roads Building, the Johnson County Health Department Building, the Johnson County Department of Veterans’ Affairs, the Johnson County Conservation Department Operations Center, the Johnson County Department of Human Services Building, the Johnson County SEATS Building and funding health and liability self-insurance programs; and acquiring, developing and improving a geographic computer data base system suitable for automated mapping and facilities management, and has published notices of the proposed action and has held a hearing thereon; and

Whereas, bids were received for the issuance of $7,525,000 Tax Exempt General Obligation Capital Loan Notes and $880,000 Taxable General Obligation Capital Loan Notes (together, the "Notes");

Now, Therefore, Be It Resolved by the Board of Supervisors of Johnson County, Iowa, as follows:

Section 1. The Board hereby determines to enter into the Loan Agreements and determines that the Notes shall be sold to Hills Bank & Trust Co., at the price shown in the bank’s bid.

Section 2. All resolutions and orders or parts thereof in conflict with the provisions of this resolution, to the extent of such conflict, are hereby repealed.

Motion by Stutsman, second by Lehman, to approve Resolution 03-11-02-B1.

Recessed at 5:20 p.m.; reconvened at 5:30 p.m.

Convened Public Hearing on proposed FY 2003 Johnson County Budget at 5:30 p.m.

Budget Coordinator Jeff Horne gave a rundown of the budget process. He then gave a summary of the budget. A 1.25 million dollar loss in revenue was mostly attributed to a reduction in the rollback factor, state budget cuts, and loss of interest income. Horne cited the primary factors in a 1.23 million dollar increase in expenditures, which were payroll increases (many of which were pre-determined), additional funding to transport and house prisoners in Linn County, and a 20% increase in health insurance costs. Neuzil discussed Human Services budget, which have been adversely impacted by the loss of State funding. Stutsman reviewed Capital Projects, noting that cuts were made in this area of the budget. Thompson covered Interprogram, State, and Local Government Services, highlighting the impact of insurance costs on this area of the budget. Harney reviewed Roads and County Environment, including the reductions in the Secondary Roads budget due to lower Road Use revenues and County budget cuts. Lehman discussed Public Safety and Court Services, noting the challenge presented by increased Jail costs. Horne reviewed sources of revenues, with the 2 largest sources being property taxes and intergovernmental revenues. He said this is the first year the County has used a debt service levy, tapping into TIF district valuations, taking advantage of low interest rates, and saving money for taxpayers. Horne presented a breakdown of the impact on taxpayers.

Jim Swaim, Casey Cook, and Joan Vandenberg commended the Board on budget decisions they have made, particularly the investment in young people. Tom Carsner questioned whether there may be too high a reserve balance in the proposed MH/DD budget, which may lead to another cutback by the State of Iowa. Slockett said the budget filed for this hearing did not contain the $568,000 deduction in revenues for the current budget, so the balance is higher than where the fund will actually end up if expenditures are correct, but he expressed some concern that the State may expect even lower fund balances. Executive Assistant Mike Sullivan read the letter placed on file by Margaret Reihman.

Public Hearing closed at 6:28 p.m.

Adjourned at 6:30 p.m.

/s/Carol Thompson, Chair, Board of Supervisors

Attest: Tom Slockett, Auditor

By Casie Parkins, Recording Secretary

These minutes were sent for publication and formal approval on March 14, 2002.