Finance_Committee_Minutes_March_12_2026

Town of Presque Isle Finance Committee Meeting – Minutes Date: March 12, 2026 Time: 10:00 AM – adjourned approximately 2:20 PM Format: Hybrid (in-person and Zoom) Presiding: Michele Hinnendael, Finance Committee Chair Minutes: Dave Bogan Present: Michele Hinnendael (Chair), Dave Bogan, Rich Schmalzer, Cathy Weber, Al Eschenbauch, Gary Owens, Sarah Sisbach Also Present: Lori (Town Clerk, briefly) 1. Call to Order Michele Hinnendael called the meeting to order. The Pledge of Allegiance was recited. The meeting was recorded to the cloud via Zoom. Sarah Sisbach was introduced and welcomed as the new committee secretary. 2. Approval of Previous Meeting Minutes (February) February meeting minutes were distributed prior to the meeting. Motion: Rich Schmalzer moved to approve the February minutes. Second: Sarah Sisbach Vote: All in favor. Motion carried. 3. QuickBooks Budget Setup Work on loading the budget into QuickBooks is substantially complete. Budget line items that had previously been listed as projects at the bottom of reports have been moved into their proper account numbers. The income/revenue side is included in the file but was not reviewed at this meeting; a method for properly presenting it will be worked out going forward. The updated file will be used as the primary reference when reviewing monthly actuals. 4. Security Health Plan – Renewal Discussion The committee reviewed renewal options from Security Health Plan, presented by the town’s insurance agent (Wisconsin Benefit Planning). Three options were discussed: Option 1 – Retain Current HMO Premier Plan • Premium increases 73%, from approximately $6,629/month to $11,488/month. • No changes to plan structure, deductibles, or coinsurance. • Broader provider network: Marshfield, Aspirus, Essentia, Hospital Sisters, Mayo, Oakleaf, Previa, Aspirus St. Luke, Tamarack, UnityPoint Health, Meritor, and UW Health. Options 2a & 2b – Modified Current Plan • Same Security HMO Premier plan with two variants that adjust deductible levels and cost-sharing. • Premium increases of approximately 52% and 44% respectively, depending on the variant chosen. • Some additional cost burden shifted to employees compared to the current arrangement. Option 3 – Basic HMO Plan • Premium increases only 5.19%, bringing monthly cost to approximately $7,200. • Significant structural change: individual coinsurance increases from 0% to 100% (employee responsible for all costs after deductible until out-of-pocket maximum is reached). • Individual out-of-pocket maximum: $2,500; family: $5,000. The town’s existing HSA contributions (singles: $2,500; families: $5,000) would cover these maximums. • Provider network substantially reduced: Marshfield, UnityPoint/Meritor, and UW Health only. Aspirus and other providers on the Premier plan are not included. • Pharmacy benefit is included in the current plan subject to deductible; status under the basic plan was not confirmed. Key Discussion Points • The premium difference between Option 1 and Option 3 is approximately $4,900/month. The committee discussed whether HSA contributions could be used to offset increased employee cost exposure under Option 3, potentially making the lower-premium option financially neutral for employees in most scenarios. • A significant concern raised was the reduced provider network under Option 3, particularly the exclusion of Aspirus. Employees with existing subspecialty providers or chronic conditions could be materially affected. • The committee acknowledged insufficient information to make a decision and agreed the agent should present all options in detail at the March 25th meeting. • The committee did not have a copy of the current plan documents. Full coverage details (vision, hearing, physical therapy, pharmacy, long-term care, etc.) are needed for comparison. • Whether to invite employees to the March 25th meeting was discussed but not resolved. If the plan is changing, employee input may be important given the small group size and tight decision window. If no change is made, employee notification may be sufficient after the fact. • Decision deadline: April 1st for a May 1st effective date. The seven-day window between the March 25th agent meeting and the deadline was flagged as very tight. Decision: Item continued to March 25th meeting with insurance agent. Agent to provide full plan documents and point-by-point comparison of all options in advance. Question of employee participation in the March 25th meeting to be decided before that date. Action: Obtain full plan documents from agent prior to March 25th. Confirm whether employees will be invited to the March 25th meeting. 5. Outsourced Payroll – Initial Discussion Payroll has been a recurring source of issues, including W-2 errors (2025 W-2s not yet fully resolved), operator errors in QuickBooks, and the town clerk’s limited financial background. Outsourcing payroll to a third-party provider was discussed as a way to reduce risk, workload, and compliance burden. Options Discussed • ADP: Leading national payroll provider; pricing not publicly available, requires contact for quote. • Gusto: $49/month base + $6/employee (approximate), unlimited payroll runs. Strong third-party integrations. • Square Payroll: $35/month + $6/employee. • OnPay: Flagged as a strong option; further research underway. • Kerber Rose (existing accounting relationship): Could likely provide payroll services on an hourly basis; cost to be determined. • Consolidation with neighboring towns (Harshaw, Winchester, and others): Meeting scheduled the following week. Boulder Junction already outsources payroll and may have relevant experience. A group arrangement could provide cost advantages. QuickBooks Integration Issue • All major third-party payroll services integrate automatically with QuickBooks Online only. The town currently uses QuickBooks Desktop, meaning any third-party payroll data would need to be transferred manually. This is a significant limitation and ties the payroll decision to the broader QuickBooks migration question. • Direct deposit is not currently available through the town’s bank; would require either a bank change or a third-party payroll provider that handles direct deposit independently. Decision: No decision made. Research to continue. Results from the neighboring-towns consolidation meeting to be reported at the April meeting. A full payroll outsourcing recommendation to be presented at the April meeting. 6. Review of February Actuals The February budget-vs-actual report was reviewed. Gary Owens presented the run-rate analysis, which projects year-end outcomes based on current spending pace. The revenue side was excluded from this review. Key items flagged: Items Flagged • Town Clerk Office Expenses (Account 51421): Year-to-date spending of $1,653 against a remaining budget of $1,347. January charge of $652.72 was to Quill (paper/supplies). February charge included approximately $900 for clerk training (Elon Financial credit card) and smaller amounts for QuickBooks (Intuit), postage stamps, and two website renewal charges (one for the town office, one for the library — the library charge needs to be reclassed). Run-rate projects approximately $7,000 over budget for the year. The chair will review all credit card charges in detail and reclassify items as appropriate. • Utilities: Running high on a run-rate basis, but likely a seasonal/timing issue. No seasonal adjustment was made when the monthly budget was set. No immediate concern. • Deputy Clerk / Elections Assistant – Account Coding: The town has budgeted for clerk assistance and has an elections-focused assistant being brought on. Per the Wisconsin standard chart of accounts, Account 51440 (Elections) covers election-day workers and poll workers; ongoing clerk assistance should be coded to Account 51420 (Town Clerk Salary). The elections assistant is not a deputy clerk (no oath or bonding required for this role) and likely qualifies as a 1099 contractor given the periodic nature of the work, which would simplify payroll treatment and avoid WRS/FICA obligations. • Kerber Rose Coding: Two Kerber Rose engagements are in progress — the formal audit (coded to Account 51980, Other General Government) and QuickBooks/payroll assistance. The payroll assistance work may more properly belong under Account 51510 (Accounting) per the Wisconsin chart of accounts; this account has not previously been used and would need to be added. The committee agreed to address this as part of the broader account restructuring underway with Kerber Rose. • Maintenance Salary and Benefits (Account 51600D): Running high. Max’s salary is split between maintenance (27.5%) and parks (72.5%) based on timesheets. Park activity is minimal in winter/early spring, causing the maintenance line to appear over budget early in the year. The committee agreed to monitor combined maintenance + parks salary as a total figure and use historical payroll data to validate the allocation split over time. • Highway Insurance (Account 51932): The entire Security Health Plan premium is currently being coded here. It should be split across departments by employee. The chair will provide Lori with proper allocations. Highway insurance should cover only highway department employees (Doug, Joe); other employees belong in different accounts. • Aquatic Invasive Species: $27,000 hit in January, representing December invoices. This is a timing issue only; the expenses were included in the 2026 AIS budget. DNR grant reimbursement will follow later in the year. The run-rate tool will show this line as over budget until reimbursements arrive; the committee noted this is a known exception to run-rate analysis. • Payroll Expense / Employer Taxes (Account 6560): Employer FICA and Medicare are currently collected in a single account and reclassed to departments in December. This causes salary lines to appear under budget during the year. The committee would like this improved as part of the broader account restructuring effort. • Fire Department Utilities and Maintenance Contracts: Running high on run-rate but likely seasonal/timing issues. Fire maintenance contracts include EMS equipment (stairchair, cot, life pack) that may partially be picked up by Northwoods EMS district. Gary Owens and the chair to align on which expenses belong in which line. • Northwoods EMS District: February payment of $276,000 did not match the budgeted $294,000. The discrepancy and a January payment that should not have appeared need to be investigated. • Roadman Expenses (Account 53311A): A February spike of $2,959 against a monthly budget of $322 was noted. Investigation revealed this included a Wisconsin Retirement System (WRS) payment that does not belong in this account. The WRS payment should be reclassed to salaries. The committee will confirm with the clerk what expenses are properly coded to this line. • Garage Supplies and Library Expenses: Running high on a run-rate basis but likely timing issues. Library typically has higher expenses in February for annual purchases. • LOSA Payments: January payment was $3,200 under budget; run-rate shows this as over budget, but this is a timing artifact. Office Equipment / TV Discussion A budget line of $1,000 was set aside under Town Board Expense for meeting room IT equipment. The committee discussed purchasing a wall-mounted TV with a docking station and cables to support shared screen display during hybrid meetings. An electrician may be engaged to add a wall outlet to clean up cabling. The committee agreed to finalize the setup plan before calling an electrician. Fireworks ($7,500) also come from the Town Board Expense line, so remaining budget after that commitment is approximately $5,500. 7. Cash Flow and Bank Balance Reconciliation Issue Gary Owens flagged a significant issue: when preparing the cash flow report, he discovered that month-to-month bank balance figures are shifting — beginning balances in one period do not match ending balances from the prior period. This means the bank balance report is not providing a reliable basis for cash flow analysis. • The issue appears to stem from the treasurer making retroactive corrections to prior months rather than issuing amended period reports. When corrections are made, they change opening balance figures retroactively, causing reconciliation gaps. • The issue predates the current treasurer and was observed as far back as February/March with the prior treasurer. • The proper approach is to issue a corrected prior-period report while keeping current- period opening balances tied to the prior ending balance — not to change the figures in place. • Gary Owens to share the relevant bank balance reports with Rich Schmalzer for review. The chair will also review. A meeting with the treasurer may be needed to address the reporting approach going forward. The cash flow report could not be completed this month as a result. It will be completed once the bank balance figures are reconciled. Action: Gary Owens to share bank balance reports with Rich Schmalzer and the chair. Reconciliation issue to be resolved with the treasurer before the April meeting. Cash flow report to be completed for April. 8. Designated Funds Schedule – Preliminary Review A preliminary designated funds schedule was presented, showing how the town’s year-end 2025 cash balance (approximately $604,819, net of 2026 tax payments received in December) is allocated. This schedule is not yet finalized pending confirmed December bank balance figures from the treasurer. Key Points • Total year-end cash available (net of prepaid 2026 taxes): approximately $604,819. This was a better outcome than expected; earlier in 2025 there were concerns about cash availability through December 31. • Mandatory/restricted designations that cannot be redirected: Accommodations (Room) Tax; Gravel Pit Reclamation; Transfer Station; Town Hall. • Pipike Park Dam Restoration: $256,000 designated (from $200,000 contributions in each of 2024 and 2025, net of approximately $150,000 spent on engineering to date). Remaining funds are earmarked pending grant award and project completion. Grant reimbursement (anticipated at approximately 50%) not yet received. • Park Dam Maintenance Fund ($50,000): Retained pending clarification on inspection frequency and cost. If inspections prove to be annual, this may transition to a regular budget line. If infrequent, designated fund treatment may be appropriate for multi-year accumulation. • Gravel Crushing: Reduced from $105,000 to approximately $40,000 after reallocation to cover other designations. The existing gravel stockpile is expected to be substantially used on South Crab Lake Road work this year, likely requiring a new crushing event in preparation for the following year. Budget for future crushing to be revisited in the next annual budget cycle. • Contingency fund: Fully exhausted. No contingency or equipment reserve remains. • Tri-County Council designated balance: This has sat unused for years with no specific purpose. Committee agreed it can be eliminated and the funds reallocated. • Ambulance/EMS designation: Was added in 2023 without a specific earmarked purpose. Committee agreed this can be removed and the amount added to contingency or another allocation. • Economic Development Committee: Fund retained and slightly increased. • Pond Restock: Corrected to $1,632 (donated funds designated for restocking the pond once the Pipke Park Dam project is complete). The bank balance figures shown in the preliminary schedule ($21,770 / $979 / $923) do not yet reconcile to the treasurer’s bank reports. Final December figures are needed before the schedule can be approved. Decision: Preliminary schedule reviewed. Final version to be prepared once December bank balances are confirmed. The board will be asked to approve the final schedule at an upcoming town board meeting. Action: Obtain final December bank balance figures from treasurer and finalize designated funds schedule. Schedule to be presented to full board for approval. 9. Next Meeting Next Finance Committee meeting: April 16, 2026 (second Thursday of April), 10:00 AM. Michele Hinnendael noted she will likely attend via Zoom from Milwaukee in April and possibly May as well. 10. Adjournment Motion: Rich Schmalzer moved to adjourn. Vote: All in favor. Meeting adjourned at approximately 2:20 PM. Action Items Action Item Owner Due Obtain full Security Health Plan documents and coverage details; distribute to committee before March 25th meeting Al Eschenbauch Before Mar 25 Confirm whether employees will be invited to the March 25th insurance agent meeting Michele Hinnendael / Al Before Mar 25 Review credit card charges under Account 51421; annotate and reclassify as appropriate (including library website charge) Michele Hinnendael April Meeting Confirm elections assistant pay treatment (1099 vs. payroll) and proper account coding (51420 vs. 51440) Michele Hinnendael / Al April Meeting Provide Lori with proper health insurance account allocations by employee/department Michele Hinnendael ASAP Investigate and resolve Northwoods EMS district payment discrepancy (Feb vs. budget; Jan payment) Michele Hinnendael / Gary April Meeting Reclass WRS payment out of Roadman Expenses (Account 53311A) to correct salary account Michele Hinnendael / Lori April Meeting Align with Gary Owens on fire department expense line assignments Michele Hinnendael / Gary April Meeting Share bank balance reports with Rich Schmalzer and chair; resolve retroactive correction issue with treasurer Gary Owens April Meeting Complete cash flow report once bank balances are reconciled Gary Owens April Meeting Obtain final December bank balance figures from treasurer; finalize designated funds schedule Michele Hinnendael / Becky April Meeting Present finalized designated funds schedule to full board for approval Michele Hinnendael Next board meeting Research payroll outsourcing options; attend neighboring-towns consolidation meeting; present recommendation Dave Bogan / Al April Meeting Finalize meeting room IT equipment plan (TV, docking station, cabling) before engaging electrician Cathy Weber / Dave April Meeting Draft minutes prepared by Dave Bogan — Town of Presque Isle Finance Committee | Chair: Michele Hinnendael