Auditor: Marathon County in ‘good financial shape’

Marathon County’s debt load increased last year and its general fund balance dropped, but these are not major causes for concern, according to an auditor who spoke to supervisors last week.

“Overall, the county is in good financial shape and has been for a number of years,” said John Rader, director of the Baker Tilly accounting firm, during a presentation at the Aug. 22 meeting of the Human Resources, Finances and Personnel Committee. Rader provided committee members with what he called a “high level summary” of the county’s 2022 financial statements based on an analysis by Baker Tilly performed earlier this year.

The county’s general fund balance decreased by $3.8 million last year, but less money was spent down than originally anticipated, he noted. Rader displayed a five-year graph of the county’s unrestricted fund balance, from 2018 to 2022, which showed the amount well above what is required by the county’s own policies.

“It has been very, very steady overall,” he said.

Revenues came in about $10 million short of what was budgeted in 2022 – $75.6 million instead of $85.7 million – partly because the county’s investments lost $2.6 million in value, Rader said. On the positive side, the county’s sales tax revenue was $2 million over what was budgeted.

Board chairman Kurt Gibbs noted that the $2.6 million loss on investment securities is temporary, as the county does not plan to cash them out anytime soon, so it is likely to gain back some, if not most, of that value over time.

Expenditures totalled about $79.5 million last year – $6.8 million less than what was budgeted. Rader said several departments came in under budget, including the Sheriff’s Office, Health Department, Public Library, Forest and Agriculture.

The county’s debt obligations increased from about $64.8 million in 2021 to over $104 million in 2022, but the county also saw its statutory debt limit jump by 11.7 percent during the same time period, putting it at over $718 million.

Rader said the county ended 2022 at 15 percent of its debt limit, which is up five points from the year before, primarily because of money borrowed for renovations at North Central Health Care. About $63.8 million of the county’s total debt load is for the NCHC improvements, but the hope is that the facility generates enough revenue to offset future loan payments.

The county’s $4.2 million in principal and interest payments in 2022 represented about 4.6 percent of the county’s noncapital expenditures. Rader said Baker Tilly typically recommends that number be below 20 percent, so the firm is not concerned about the current level.

The committee voted to accept the auditor’s report and placed it on file.

Other business

n The committee met in closed session to get an update on negotiations regarding the county’s employee health insurance plan, but no action was taken in open session.

“Those negotiations are ongoing, and once they are finalized, we will share that information with the county board and the public,” said committee chairman John Robinson.

n The committee discussed the county’s employment practices and delivery of services to make sure they are in line with the county’s goal to promote cultural competence in those areas.

Human resources director Molly Adzic said the county does more than just follow all anti-discrimination laws when recruiting and hiring new employees.

“We also strive for inclusive and nonbiased language in all of our job descriptions, job advertisements as well as in our policies and procedures manual,” she said.

When it comes to customer service, Adzic said the county offers translation services to both employees and members of the public, and the county’s new website provides an option to be translated into multiple languages.

Adzic added that all newly hired employees are required to attend anti-discrimination and anti-harassment training, which is repeated every five years. She said her department is always looking at ways to increase flexibility to accommodate cultural needs and religious practices.

“Whenever we are made aware of opportunities to improve in those places, we strive to do so,” she said.

n The committee reviewed the county’s policy for the sale and distribution of excess property. Robinson said the county currently owns 1,113 parcels, ranging from forest land to remnant lots, along with buildings on Thomas Street and River Drive in Wausau that are being vacated by county departments.

Gibbs said the parcels could be roughly divided into three categories: ones that can still be used by the county, those that can be leased out for revenue and others that can be divested for other purposes.

“Some properties are just not conducive to longterm value, and some properties are,” he said.

n The committee voted to disallow two damage claims made against the county by motorists who claim to have sustained vehicle damage caused by county equipment. In one case, a rock hit a windshield, and in another, damage was allegedly done by a snow plow operator.

n Finance director Kristi Palmer told the committee that about $2 million in rollover funds are available for capital improvement projects in 2024.

n Deputy administrator Chris Holman and Palmer said department heads will be meeting in September to finalize 2024 budget numbers, with a plan to present a draft proposal to the committee and board at the end of next month.