Chairperson Jordahl called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:09 a.m. Members present were: Charles Duffy, Jonathan Jordahl, Mike Lehman, Sally Stutsman, and Carol Thompson.

County Treasurer Tom Kriz discussed the creation of the second deputy position. He also stated he wanted to expand the hours of the Treasurer's Office to 7:30 a.m. to 5:30 p.m. He explained he didn't have the ability to keep all the deputies at work all the time. He described the proposed deputy's duties. He stated that the person for the job was already in the office and would just slide over, or reclassify. Stutsman asked if they old position would be filled. Kriz said no. He said there would only be an $8,000 change plus a small change in benefits. Stutsman asked him about the $43,000. Kriz stated he needed funds for employees covering other's vacations. He mentioned Deputy Treasurer Betty Sass and how important she was to the office. He said they wouldn't cut back on staff but as those people leave, he won't replace them because they are going to become more efficient. He said in the long term, there is a good chance they can cover those positions with cross trained employees. He said the biggest expense isn't the change in the Motor Vehicles side but the addition of the person on the tax side. He stated that person would work with Sass.

Kriz said they are rearranging the office so that no employee does just one duty in the office. He said they can't afford not to cross train with the masses of people they serve. He said they will be better at what they do, but there will be a learning curve. Jordahl stated he had been in a position similar to the second deputy and it was workable. Kriz said it may be the toughest job, but it's doable. Thompson asked if Sass would stay until December 1999. Kriz said he hopes she'll stay longer. Stutsman said if the new position were approved, it wouldn't go into affect until July. Kriz said possibly even later because it will take time to find the right person. Jordahl said they could do a budget amendment in 1999. He said it's on the table now because that's where they need to go. Jordahl asked if they need to go now or in July. Kriz stated he wouldn't have that person before July. He argued that in the past, the Treasurer's budget had rarely changed and because of that, they had fallen behind. He explained he was trying to find the cheapest way to remedy that. He said they have to get someone in a supervisory role just to cover the hours.

Jordahl asked if Sass's knowledge could be computerized. Kriz said they would be able to do that. He said it would be ideal if both those people make the transition to computers together. He explained someone new could help put that knowledge together because Sass isn't familiar with computers. Jordahl stated he could purchase outside help to convert records into an electronic format. Kriz said that was very applicable and they are talking with someone about optical imaging tomorrow.

Jordahl said there were 2 budget implications for this. He said one is to hire the second deputy now and the second is do they need money in the budget now for the technological conversion process. Kriz said they didn't have the facts yet. He said Dubuque's Treasurer uses a juke box but that cost him $65,000. He said they are willing to work towards that. He said his office needs to do more long range planning. Kriz explained if they have the right people doing the right things, they can actually function with less people and continue to grow. Stutsman asked if Kriz could fund half of the second deputy salary out of his budget. Kriz said they could but he wasn't willing to put just anyone into the position so it might take more time. He said they could find the right person and make them fit into the system. Stutsman said the $8,000 would address the issue of additional hours. He explained the Treasurer's Office was going to be the County investment center. Jordahl said he'd rather fund half the position and avoid taxing more than they have to. Lehman asked what his time table would be for advertising for the position. Kriz said it was foolish to start the process if it wasn't going to happen. He said it was a very limited pool from which to find this person. Jordahl suggested he speak with Human Resource Administrator Lora Shramek to cover the legalities. Jordahl said he wanted to speak with Kriz privately about the possibility of a grants person for the County.

Stutsman recommended funding half of the second deputy position because she's not convinced that the Treasurer has a well thought out plan yet. She said she doesn't want to tax for unnecessary things. Jordahl said Kriz wants the Motor Vehicle position right now. Stutsman argued that by July, he might have a new plan in place. Jordahl stated it's a serious problem that Sass is about to retire. Stutsman said they have this problem in every department in the County. She asked if they were going to set a precedent by hiring someone before that person retires so they can be trained by them. Jordahl said it was different because Sass has been with the County for 30 years. He said Kriz is trying to prepare for Sass's retirement. Lehman said it's a good plan but it hasn't been nailed down yet. Stutsman asked what they were going to do when Board of Supervisors Administrative Assistant Carol Peters leaves. Jordahl stated there should be an apprenticeship pattern. Thompson said Kriz needed to do the conversion more than he needs this position. Jordahl said he needs the money. Stutsman expressed doubt about eliminating that position. Jordahl asked if the Board wanted to wait and entertain a budget amendment at a later date. Stutsman said Kriz might not need this other position later. Jordahl pointed out the different levels in the Sheriff's Department and the County Attorney's Office. Jordahl recommended putting some money away for something, whether it be hiring Sass's replacement early or using it elsewhere. Stutsman said she'd be more comfortable with that. Thompson asked if they reinstated the part time money that he was deleting, if he could use that. Stutsman said any long term person could quit tomorrow. Duffy supported waiting until July first. Stutsman said it was better because Kriz had warned them ahead of time. Stutsman said not knowing when Sass was retiring was a big element. Jordahl said he thinks Sass will retire when Kriz tells her they are ready. Stutsman asks if it's responsible to tax for something if they don't have a specific plan. Jordahl questioned if they were putting personnel slop into his budget that he could do whatever with.

The Board approved the Deputy for the Motor Vehicles. Stutsman asked if they wanted to direct him to hire someone to work along side Sass before she leaves. Pillard said he could probably live without someone under Sass. Duffy said they don't get rich doing the State's work. Pillard said that amounts to $9,321. Jordahl asked if they should give him the part time temporary position. Pillard said it's already in his budget. Pillard said the actual increase would be $3,938, subtracting the part time temporary wages.

Pillard asked if they supported the County Attorney amount. Jordahl said they were waiting for more specification there. Stutsman said they will put his money for promotions into Central Services, not in his budget.

Jordahl asked if he should communicate with Planning and Zoning that they will accept a budget amendment request. Duffy didn't support that. Stutsman said that office had made a good start and it just needed to be worked out.

Pillard stated Court Services was requesting money to increase audio-visual and photos on the criminal side and add a court reporter for the prosecution, at a cost of $8,500. Jordahl asked about the projector. Pillard said that was in capital expenditures. Jordahl asked if they granted that. Pillard said they did.

Pillard stated the Auditor's Office requested to increase poll workers' wages to $8.00. Stutsman said she wanted to do that. Jordahl said the Board members have too many family members who are poll workers, and it was a conflict of interest to give their opinion. Duffy asked how much that would be. Stutsman said it was $98.

Pillard said Human Services wanted to increase a part time social worker to full time and they had granted $3,000 for primary treatment so their budget would increase by $13,712. The Board of Supervisors supported this. Duffy asked if they increased full time employees last year. Jordahl said MH/DD had some increases last year.

Pillard stated they took $43,000 out of capital projects. She said $128,000 from capital expenditures was for Sheriff cars. Jordahl said they were talking about $280,000 this year. Stutsman asked if they had flagged anything. Jordahl said they should scrutinize this amount. Stutsman asked about the ambulances. Jordahl said they took the 5th ambulance out. Lehman said they were discussing a purchasing agent for the County. Stutsman said everyone is saving for copiers. She asked if Thompson wanted to try buying all these copiers at one time and see if they can get a deal. Pillard pointed out that department heads exchanging their specifications for copier replacement promoted communication and might lead to discounts if multiple copiers were bought from the same vendor. Lehman added that a discount would be possible even if different photocopier models were purchased. Stutsman said a coordinator would be needed to oversee purchasing multiple copiers at once for various departments. Jordahl said this was an issue to discuss at the budget wrap-up session with department heads. Stutsman recommended making no changes with funds allocated to the Ambulance Department for a copier machine replacement.

Next, the Board discussed the Conservation Department's budget. Stutsman advocated budgeting a 22 cent levy of the assessed value of Johnson County property, which is the minimum needed to quality for REAP funding. Pillard pointed out that the line items for equipment could not be put into the conservation trust, because only moneys for capital projects and land conservation could be placed into the trust. Pillard said the Board had previously decided to fund the Conservation Department's 0% growth operating budget without funding the requested increase to replace storm damaged trees. Jordahl reviewed the rationale for this, that hiring one additional staff member was budgeted into Conservation's operational budget, which showed enough flexibility within their budget to replace the trees. Pillard added that this would encourage the Conservation Department to use the funds within their operating budget for an additional employee on tree replacement instead. Stutsman was not against additional staff for this department, saying Conservation had not had a staff increase in a decade. Stutsman and Jordahl agreed it was possible to do fundraising to replace the storm damaged trees in Kent Park. Stutsman was against allocating funds for tree replacement. Duffy believed funds could not be placed in the conservation trust for tree replacement. The Board agreed to allocate funds to meet the 22 cent levy without additional dollars for tree replacement or Cost of Living Adjustment (COLA). Pillard inquired what the Board would do if REAP was not met with this amount, and Jordahl answered that additional funding would be provided if needed. Pillard and Wong calculated the dollar amount for this allocation and Pillard informed the Board that the Conservation Department's budget would decrease from FY 99. Jordahl suggested allocating funds equaling the current amount in that department's base budget without COLA, approximately $722,000, which would provide some leeway in maintaining REAP eligibility.

Jordahl noted that the Board did not have the authority to cut line items within the Conservation Department's budget, so ultimately the Board was allocating a certain amount of funds to be spent at that department's discretion. Lehman pointed out that a dozer had been leased by that department the past 2 years that needed 2 additional future payments, which the Board was unaware of, and that this department needed to be watched. Pillard said that revenues generated by the Conservation Department during FY 99 would be transferred into the conservation trust which would help meet REAP requirements. Lehman said revenues should increase during FY 2000 since there was a revenue decrease during FY 99 due to the storm and the Conservation Education Center had recently been completed.

The Board reviewed allocations for capital expenditure requests. Pillard reviewed where funds that had already been distributed went. Within the Ambulance Department, funds were allocated for a photocopier, funds were set aside to save for 2 ambulances and a cardiac monitor. Pillard continued by saying funds were disbursed to save for a photocopier for Elections/Accounting portion of the County Auditor's Office. Funds were distributed to the Health Department for a vehicle, and funds were saved to replace 2 vehicles in that department. Funds were disbursed for the Board to purchase a photocopier. Money was allocated to the Sheriff's Department for vehicles and savings for a digital fingerprinting machine. A mandatory amount of funding was distributed to SEATS which had been previously removed from their operating budget. Moneys were given to the Physical Plant for a display on the second floor of the administration building and funds were set aside to save for a truck. Within the Planning and Zoning Department, funds were saved for a truck and a photocopier. Money was allocated for a projector and screen for Court Services. Funds were given for half the cost of a photocopier for Elections' side of the Auditor's Office, as well as funds for a vehicle purchase.

Recessed at 10:30 a.m.; reconvened at 10:47 a.m. with Jordahl absent.

Pillard said that $1.3 million was the projected increase in the general fund tax askings based on the allocations the Board had already made. Pillard instructed the Board to examine a handout which showed the increase in the tax levy for various county units with a $1.25 million increase.

Jordahl entered at 10:48 a.m.

Jordahl was in favor of cutting $50,000 so the tax levy was reduced to $1.25 million. Lehman and Stutsman agreed that the only place left to make cuts was capital projects. Stutsman noted that at a $1.25 million levy, there would be a large increase in agricultural land taxes or a 2.71% increase and a 9.05% for rural commercial. Jordahl pointed out that other cities commercial (all cities except Iowa City) would have a 10.56% increase and other cities residential at 10.84%. Jordahl pointed out that the difference between a 10.84% increase for other cities residential and an increase of 6.43% for rural residential was roughly $1.50 more per $100,000 in actual dollars. Duffy objected to the $1.25 million levy, saying most houses in Johnson County cost over $100,000, assessors were increasing the assessed values of homes, and the State had 2 new tax increases Duffy and Stutsman agreed that the taxpayers would look at the percentage increase of the tax levy rather than the actual dollar increase, which could portray the increase as being more costly than it actually was.

Stutsman suggested borrowing money in the future to fund capital projects rather than saving it, since interest rates were at an all time low. Duffy said items were funded that should not have been the previous 2 years. He continued by saying this budget would be contested and that he would vote against a budget which levied a 10% tax increase for some units of the county. Lehman asked Duffy what he perceived as problems with the FY 2000 budget, to which Duffy suggested a one percent decrease in every department. Jordahl said funding the Secondary Roads budget completely from the rural basic fund, rather than taking a portion from the general fund, would decrease the levy increase percentage for the cities. Duffy objected to this, since it would decrease the cities tax levy and increase the rural one. Stutsman asked if everything that was in the FY 2000 budget could be justified. Jordahl said expenditures could be justified by capital project needs. Duffy countered that the jail should be funded by a bond issue. The Board agreed that a 10% tax increase for some units was too much. Again, Jordahl suggested that the Board calculate the effects of the tax levy increase on the city side by not transferring funds from the general basic fund to the secondary roads budget. Duffy objected.

Duffy left at 11:13 a.m.

Ambulance Department Director Mike Sullivan arrived to discuss his department's budget with the Board. Sullivan said the mobile care program at the University of Iowa offered to sell an ambulance which met the county's needs at $7,000 instead of the $21,580 vendor price. Sullivan said his original capital expenditure asking would be reduced from $93,000 to $79,700 if this ambulance was purchased. Sullivan summarized his request by asking for $7,000 to purchase a fifth ambulance and funds set aside to remount an ambulance and to replace another ambulance, the latter having it's replacement cycle extended another year.

Duffy returned at 11:22 a.m.

Jordahl noted that the $7,000 for an ambulance was not part of the Ambulance Department's budget request for FY 2000, that it would be funded from a budget amendment or left over funds within that department from FY 99 would be carried over to purchase the ambulance.

Stutsman asked Pillard why increasing a part-time secretary to full-time in the County Attorney's Office seemed to be so costly. Pillard said 2 part-time secretaries would be added, including FICA and IPERS.

Jordahl asked the Board to review the calculations for a $1 million tax levy increase, which had no double digit tax increases for any units. Stutsman suggested holding departmental technology expenditures to a set limit. Jordahl said funding could be found in the $349,848 increase allocated for the County employee health care plan and the $500,000 funding increase for capital projects. Stutsman suggested taking $100,000 out of the health fund and $200,000 from capital projects, which Jordahl agreed with. Thompson felt funds should be found elsewhere. Thompson proposed that cuts could be made by reducing the revenue expense adjustment, which were moneys, calculated by the County Auditor, set aside to cover County departments' tendencies to overspend and underestimate revenue.

Duffy brought up the effects of an increased tax levy for farmers. Duffy said comparisons could not be made concerning the impact of a tax levy between agricultural and other land, since agricultural land value was assessed differently using a productivity formula.

County Auditor Tom Slockett arrived at the Board's request to discuss the revenue expense adjustment. Lehman calculated that a $1.3 million total budget increase would be a 3.8% overall total budget increase. Jordahl argued that the County's tax increase would be small in comparison to the cities' and schools' increased tax levy. Stutsman said the average taxpayer only looks at the bottom line. Jordahl again stated his support for reducing the funds allocated for County healthcare by $100,000 and capital projects by $200,000 which would mean the tax levy increase for agricultural land would be the same as the rate of inflation. Jordahl talked about reducing the allocation to the County healthcare fund. Slockett said there were emergency measures which could be used if the healthcare fund was in danger. The Board discussed strategies to defend their budget from criticism.

Recessed at 12:17 p.m.; reconvened at 1:30 p.m. with Stutsman and Thompson absent.

Jordahl said Slockett told him that $100,000 had been transferred from the general basic fund to Secondary Roads beyond what was needed to qualify for federal funds. Jordahl recommended using that $100,000 to decrease the tax levy, since this money came from the general fund levy originally. Duffy recommended that County Engineer Mike Gardener be told of this reduction in Secondary Roads funding.

Stutsman and Thompson entered at 1:35 p.m.

Pillard called Gardener, who was put on speaker-phone, who said he thought Secondary Roads funding was already at the minimum needed to qualify for road tax dollars. Jordahl asked Gardener if funds from the $500,000 surplus for construction which had been carried over for years in the Secondary Roads budget could be used to fill the gap if $100,000 in funding was withheld. Gardener said there would be trouble transferring the $500,000.

The Board discussed scheduling the formal meeting to approve the published budget.

Pillard said she had calculated the cost of the additional staff member budgeted into the Conservation Department's budget at $35,000. Pillard said the $39,500 in moneys subtracted from the Conservation Department previously included the 27th pay period and the Cost of Living Adjustment. The Board withheld the full $39,500 from the Conservation Department's budget.

Pillard reviewed the personnel additions within the FY 2000 budget, which included one full-time county attorney and one full-time secretary in the Attorney's Office, one half-time health inspector, one human resources assistant, and a control center operator and 2 deputies for the Sheriff's Department. Pillard continued by saying a reclassification of staff was made in the Treasurer's Office, and an increase of a part-time social worker to full-time in the Human Services Department. Duffy objected to funding a human resources assistant, saying the human resource coordinator wouldn't need help if she wasn't forced to spend time on non-human resources duties such as attending meetings. Jordahl, Lehman and Stutsman voted in a straw poll to fund a human resources assistant position. Stutsman said the personnel additions were equivalent to 7 additional full-time employees.

Administrative Assistant Carol Peters discussed the County employee health care plan with the Board. Peters calculated, and Jordahl explained, that cutting $100,000 from the general fund which would was allocated for the County health care premiums would actually reduce the health care premiums fund by $190,000. Peters said if the predictions held true, allocating $100,000 less than the $433,000 recommended by Blue Cross to put into the premium fund would not stop that fund from diminishing. Peters warned against reducing the allocation of funds more than 25% below the Blue Cross recommendation. Stutsman asked Peters what she thought the minimum funding the Board could provide to keep the premium funds solvent, which Peters said was roughly $423,000.

Jordahl said the $300,000 in cuts would probably have to come from capital projects, and suggested discussing a bond referendum once the consultant makes a recommendation regarding the jail. Stutsman asserted that the 2 best options for the Board to reach a $1 million tax levy were to either take $300,000 from capital projects or $200,000 from capital projects and $100,000 from Secondary Roads. Duffy was apprehensive about cutting Secondary Roads funds, but the Board agreed to take no action on this until the County Engineer and Auditor met with the Board.

Jordahl asked the Board if they would be satisfied if a $1 million levy increase was achieved because some units within the County would have a 9% increase, and asked what portions of the budget would be difficult to defend and should be remedied.. Duffy said he didn't like the other cities residential levy increase of 9.31%. Jordahl suggested transferring the whole tax burden of Secondary Roads solely from the rural basic fund, rather than transferring a portion of the moneys from the general basic fund, which would lower this percentage.

Duffy said the Secondary Roads Department was behind schedule in paving County roads and was apprehensive about cutting funding from that department. Jordahl said a County budget increase could be justified in the $338,000 additional cost for juvenile detention. Pillard listed the total expended budget of Johnson County from FY 97 to FY 99 was $31,081,935, $32,513,518, and $35,181,371. Thompson recommended that the public be told the Board's attempted to keep the tax levy increase as small as possible, the lowest increases for agricultural lands and buildings, respond to needs that were deferred during the property tax limitation, and to protect the county employees' health insurance pool during the FY 2000 budget process. Stutsman suggested that additional staff needs could be justified as needed for rural areas, such as additional deputies and another county attorney.

Pillard warned against using the county employees' pay raises being lower than union pay raises since elected officials had a higher percentage pay raise than others. Thompson and Pillard said most personnel additions could be associated with the growth of Johnson County. Stutsman added that most departments that received additional personnel hadn't received increased staffing in several years, which could be used as justification during the budget hearing. Duffy said that the State should be given credit for increasing assessed property value from 54.9% to 56.5%. Jordahl argued that this was not actual increased funding from the state.

County Engineer Mike Gardner and County Auditor Tom Slockett arrived to meet with the Board. Gardner said Secondary Roads was $135,000 above the minimum needed to maintain road use tax eligibility. Slockett said transferring $100,000 would leave $35,000 cushion and was very confident that road tax eligibility would be maintained. Slockett added that the consequences of this would be a reduction in Secondary Roads budget by $100,000. Gardner said there wouldn't be an impact on construction, that $100,000 would be spent out of Secondary Roads' carry over balance. Slockett said there was a $561,000 carry over fund that could be spent on capital expenditures by Secondary Roads.

Slockett said he examined the phase 1 and phase 2 salary increases which had a mid-year total amount of $137,514 that would not reoccur Jordahl said that amount had already been included in the FY 2000 base budget. Slockett said some salary increases could be funded without an additional tax levy by delaying them for one year. Lehman estimated the total budget increase, if there was an additional $1 million tax levy would be 2.8% for FY 2000 compared to an 8.2% from FY 98 to FY 99. Jordahl said he believed the Board supported transferring $100,000 from Secondary Roads via the general fund and $200,000 from capital projects to make the total tax levy increase $999,193.

The Board discussed issuing a press release or holding a press conference regarding the FY 2000 budget.

Duffy expressed dissatisfaction with funding some of the additional personnel.

The Board discussed the schedule regarding budget approval, publication and follow-up.

Duffy expressed concern with the tax levy's effects on commercial property and residential housing within the cities.

Thompson asked Pillard to calculate the 5 biggest increased items within the budget. Lehman agreed, saying numbers would be helpful in writing the press release.

The Board scheduled one last budget work session before its publication.

Adjourned at 3:10 p.m.

Attest: Tom Slockett, Auditor

By Casie Parkins, Recording Secretary