Dunn County executive committee backs $3 million highway borrowing, orders fund-balance policy change as budget gap looms

The Dunn County Executive Committee on Wednesday voted to authorize the sale of up to $3,000,000 in general obligation promissory notes to fund highway projects and approved removing the county's existing fund-balance ordinance in favor of a board-approved policy, county leaders said.

County Manager Dan told the committee the borrowing would fund this year's highway work and is timed as late in the year as feasible; he said the county maintained a AA stable credit rating. The committee later moved, seconded and approved the resolution authorizing the issuance and sale of not-to-exceed $3,000,000 general obligation promissory notes, series 2025A.

The votes came amid an extended budget workshop during which Dan and supervisors discussed proposed changes to the pay plan, a projected 18% rise in health insurance premiums, proposed new positions and program reviews intended to find savings. Dan presented a draft budget showing roughly $1.1 million of salary-and-fringe cost increases (about $429,000 from a 2.75% pay adjustment and about $692,000 from the insurer's 18% premium increase). He said a 1% wage-variance equals about $245,000 and that the county had adjusted an earlier $245,000 projection for performance-based increases down to $145,000.

Why it matters: Committee members said they want a balanced 2026 budget but acknowledged the county faces a structural gap that requires a mix of options: limited borrowing for capital, potential program cuts, adjustments to the pay plan, and reviewing how administrative (indirect) costs are charged to enterprise funds. The committee set October meetings to review program-cut proposals and asked staff for more detail on potential savings.

Most important facts - The committee approved a resolution authorizing not-to-exceed $3,000,000 in promissory notes for highway projects; the motion passed unanimously. - The committee voted to repeal the current Chapter 7 fund-balance language and replace it with a board-approved fund-balance policy (staff to prepare the policy); that motion passed. - Dan reported Dunn County's audited 2024 fund balance at about $14,000,000 and said the projected 2026 unrestricted fund balance is roughly $11,600,000 (about 36.4% of general fund expenses), near the county's 35% policy floor.

What the committee decided and next steps - Borrowing: The committee agreed to proceed with the $3 million highway borrowing option presented by staff and approved the promissory-note resolution on a voice vote. - Fund-balance policy: The committee chose to repeal the existing ordinance text in Chapter 7 and asked staff to implement the fund-balance approach as a board-approved policy (the committee's preference over rewriting a new ordinance was explicit). - Budget process: Supervisors asked staff to return program-review results (department heads were given a Sept. 18 deadline); the executive committee scheduled an extended meeting for Oct. 1 at 5:30 p.m. to prioritize program reductions and other changes needed to meet a balanced budget.

Key discussion points and context - Pay plan: The committee discussed eliminating the fixed step system and replacing it with a manager-driven evaluation and pay plan. Dan said the proposal would provide a 2.75% general increase plus a smaller differential for higher-performing employees (a 0.5% incremental bump in the draft). Several supervisors, including Supervisor Steen and Supervisor Morehouse, voiced concerns that the change could be perceived as a pay cut for many employees or create management abuses if evaluations are not consistently applied. Dan said the ordinance change removing steps will proceed to a second reading at the county board next month and that the detailed pay-plan policy will be returned to the Committee on Administration for review before it is implemented. - Health insurance: Dan said the county is estimating an 18% increase in health-plan costs from the insurer and presented the county-covered cost for 2026. He said the county could absorb the full 18% in 2026 (to avoid increasing employee premiums) but noted that would increase levy pressure; the committee left the 18% assumption in place for now and asked for further analysis. - Fund balances and governance: Dan explained the rationale for moving the general-fund floor from ordinance to board-approved policy: improved policy tracking and more-operational flexibility. He described the policy as a tool to reduce conservative budgeting by departments that build protection into each departmental budget rather than relying on a centralized fund balance. - Indirect costs and enterprise funds: Staff and supervisors discussed shifting internal administrative costs (IT, HR, finance, facilities) into enterprise-fund budgets or charging indirect costs to better reflect actual expenses and reduce the appearance of large year-end transfers into the general fund. Dan estimated that proper indirect-cost charging could yield a material one-time budget effect (staff projected up to about $1 million of additional general-fund revenue in scenario testing) but said exact numbers require further work.

Votes at a glance - Resolution authorizing issuance and sale of not-to-exceed $3,000,000 general obligation promissory notes, series 2025A — Outcome: Approved (voice vote; no roll-call tally recorded in the transcript). Provenance: promissory-note resolution discussion and vote. - Ordinance amending Chapter 7 (fund-balance policy) — Outcome: Committee voted to repeal the Chapter 7 fund-balance language and proceed with a board-approved policy; action approved. Provenance: fund-balance policy agenda discussion and vote. - Resolution amending county supervisory district maps (Menominee annexation) — Outcome: Approved. Provenance: rezone/annexation agenda item. - Budget amendments (routine) — Outcome: Approved. Provenance: agenda items presented and voted on.

Who spoke (selected) - County Manager Dan — county manager, Dunn County (presented the budget, borrowing plan and fund-balance proposal). - Supervisor Steen — Dunn County supervisor (frequent budget critic and commenter). - Supervisor Morehouse — Dunn County supervisor (raised employee-pay concerns and implementation timeline). - Supervisor Kinnear — Dunn County supervisor (asked questions on levy, enterprise funds and timing). - Supervisor Vogel — Dunn County supervisor (questions about levy limit and debt service).

Clarifying details (numbers and sources discussed at the meeting) - Authorized borrowing considered: up to $3,000,000 for highway projects (resolution approved). - Audited 2024 fund balance cited by county staff: about $14,000,000. - Projected 2026 fund balance in staff presentation: about $11,600,000 (approximately 36.4% of general fund expenses). - Target fund-balance range discussed: 35% to 50% of general fund expenditures (policy guideline). - Levy limit number cited for the 2026 budget: $1,999,462.03. - Salary/fringe illustrative impacts: ~ $429,000 for a 2.75% pay-plan change; ~ $692,000 for an 18% health-premium increase; together roughly $1.1 million. - Wage-variance rule: 1% variance in general fund approximated at $245,000.

Proper names (selected) - Dunn County (agency) - Menominee (city) - Kerberos (audit firm; referenced as presenting audit) - UW Extension / FoodWIse (program referenced) - Neighbors (enterprise fund / facility referenced in discussion) - ERP (enterprise resource planning project)

Provenance (transcript evidence) - topicintro: {"block_id":"block_483.005","local_start":0,"local_end":56,"evidence_excerpt":"is actually the real fun stuff. Budget discussion and preparation."} - topfinish: {"block_id":"block_8282.515","local_start":0,"local_end":40,"evidence_excerpt":"All those in favor? Aye. Any opposed? Motion passes unanimously."}

Salience and editorial notes - Local civic salience: high. The budget choices influence levy, county services, county staffing and capital projects that affect residents. - Report aims to reflect explicit committee directions and recorded votes; it avoids inference beyond what staff and supervisors stated during the meeting.

Ending: The executive committee directed staff to return with detailed program-review results and options in time for an Oct. 1 meeting set for 5:30 p.m.; further ordinance changes tied to the pay plan will move through the Committee on Administration and the full county board for final action.