Increasing the authority of a county executive from a populous county and other counties and reducing the authority of a county board, budgeting procedures for populous counties, certain other counties, and cities, villages, and towns, and the method for establishing the compensation of county supervisors and county elective officers. (FE)

Under current law, the county executive of any county has the authority to coordinate and direct all administrative and management functions of the county that are not vested in other elected officers. This bill specifies that, with regard to a county executive of a populous county, the executive has sole authority over administrative actions with regard to procurement, including an appeals process, contracting, administrative review of appeals regarding the denial of certain applications, and the actions taken under the administrative manual of operating procedures related to the authority and powers of a county executive. Under the bill, any such action taken by a county executive of a populous county is not subject to submission to or approval by the county board.

Corporation counsel, appointees Current law requires the creation of the office of corporation counsel for any county with a population of 500,000 or more. Under current law, a corporation counsel is appointed by the county executive with the concurrence of a majority of the county board. A counsel may be dismissed at any time by the county executive with the concurrence of the board or may be dismissed at any time by a majority vote of the board. The bill requires the creation of the office of corporation counsel for any county with a county executive or county administrator. Under the bill, a corporation counsel is appointed by the executive or administrator with the concurrence of a majority of the county board, unless the board enacts an ordinance that waives the board's confirmation. The bill provides that the corporation counsel is under the supervision of the county executive or county administrator and may be dismissed by the executive or administrator with the board's concurrence.

Generally, the bill changes the method of board confirmation of county executive appointees in a populous county. Under the bill, an appointee confirmed by the board for a particular position does not need to be reconfirmed to continue in that position, and interim appointees do not require board confirmation. The bill also changes the current law provision requiring the comptroller to countersign all county contracts. Under the bill, the requirement applies only to contracts valued at more than $250,000.

Public contracts, bonding Generally under current law, subject to various bidding requirements, public contracts are let by the board. Also under current law, the board is authorized to enter into leases related to items including industrial development projects, solid waste management, land clearing and weed control, public transit, and leases for airport property. Generally under the bill, the authority to enter into public contracts and leases is transferred to the county executive, if the county has that office.

Generally under current law, a county must let a public contract having an estimated cost of more than $25,000 to the lowest responsible bidder. Under this bill, the amount above which a populous county must let a contract to the lowest responsible bidder is raised to $50,000.

The bill creates a requirement that any county with an elective comptroller must create an Internet site, which may be part of the county's website, on which it posts a list of certain contracts to which the county is a party if the contract relates to the purchase of goods or services, or the lease, sale, or purchase of real property.

This provision first applies approximately six months after the bill takes effect.

Under current law, if the payment of obligations is provided by revenue bonds, the governing body of a city, village, town, or county must, by ordinance or resolution, order the issuance and sale of bonds. The bill allows the county executive to order the issuance and sale of bonds in the case of county obligations.

Biennial budget procedures This bill also authorizes counties with a population of 750,000 or more (populous counties), currently only Milwaukee County, as well as any other county, and any city, village, or town (municipalities) to adopt and use a biennial budgetary procedure.

Current law specifies an annual budgetary procedure applicable to counties with a population of 500,000 or more and certain counties that elect to follow the procedure. No later than July 15, each department of the county submits to the director of the county department of administration the respective department's estimated revenues and expenditures for the coming fiscal year, the estimated cost of any capital improvements pending or proposed for the coming fiscal year and for the next four fiscal years, and any other information that the director requests. No later than August 15, the director submits to the county executive or county administrator and to the county board all of the following: 1) the annual budget estimates of each department; 2) a statement of principal and interest becoming due on outstanding bonds and on other financial obligations; 3) an estimate of all other expenditures; 4) an estimate of anticipated issues of new bond obligations; 5) an estimate of funds required for contingencies; 6) an estimate of revenue from all other sources; and 7) a complete summary of all the budget estimates and a statement of the property tax levy required if funds were appropriated on the basis of these estimates.

After receiving the estimates, the county executive or county administrator reviews the estimates and holds public hearings. The county executive or county administrator then makes changes in the proposed budget and, no later than October 1, submits the amended proposed budget to the county board. The amended proposed budget of the county executive or administrator must include all of the following: 1) a simple, clear, general summary of the detailed contents of the budget;

2) a comparative statement by organization unit and principal object of expenditure showing the actual expenditures of the preceding fiscal year, the appropriations and estimated expenditures for the fiscal year currently ending, and the recommended appropriations for the fiscal year next succeeding; and 3) a comparative statement of the actual revenues from all sources, including property taxes, during the preceding fiscal year; the anticipated revenues and the estimated revenues for the fiscal year currently ending; and the anticipated revenues for the next succeeding fiscal year.

After receiving the amended proposed budget, the county board refers the budget to the finance committee and the finance committee holds a public hearing on the budget. After the public hearing, the finance committee submits to the county board its recommendations for amendments to the proposed amended budget.

Finally, the county board adopts the budget with any changes it considers proper and advisable.

Similarly, current law specifies certain annual budgetary procedures for first class cities (presently only Milwaukee) and other cities that choose to follow these procedures. The procedures include the following requirements: 1) production of a general summary; 2) detailed estimates of all anticipated revenues applicable to proposed expenditures; 3) all proposed expenditures; 4) a compensation schedule; 5) the total amount of proposed expenditures for the current year, the proposed amount for the next year, and the percentage change between the two years; and 6) the current year and next year's proposed property tax levy, along with the percentage change.

Current law for cities also includes responsibilities for the board of estimates and detailed requirements for budget review and adoption procedures, public meetings, mayoral vetoes, and common council procedures to override such disapproval.

Generally under this bill, for fiscal years that begin after December 31, 2017, any county or municipality (political subdivision) may adopt a biennial budget using the following timeline:

1. All departments submit their budget requests to the director or municipal budget director.

2. No later than October 1 of an odd-numbered year, the chief executive of a municipality, the county executive, county administrator, or, in counties without an executive or administrator, the county's finance committee submits his or her or its proposed budget to the county board or municipality's governing body.

3. No later than November 1 of an odd-numbered year, the county board of a county with a county executive or a municipality's governing body approves the budget, engrossed with any amendments, and returns it to the county or chief executive. In any county or municipality, any amendment to the budget must be submitted to the comptroller or budget director at least seven business days before it may be considered by a political subdivision's governing body or by a committee of the governing body and must include an estimate, prepared by the comptroller, of the costs that will be incurred, and the staffing changes that will be required, to implement the amendment during the next five fiscal years. If the county or municipality does not have a comptroller, the estimate must be prepared by the county or municipal budget director.

4. No later than November 15 of an odd-numbered year, the county executive or the mayor may submit vetoes or changes to the county board or common council.

The county board or common council may act on the vetoes or changes no earlier than upon receiving them or November 16, whichever occurs first, although the county board or common council must act on the changes or vetoes no later than November 19 of an odd-numbered year or the vetoes or changes are considered to be approved by the governing body.

5. After a biennial budget takes effect, if revenues received or expenses incurred by the political subdivision are different from the amounts anticipated, the county executive or municipality's chief executive may increase or decrease appropriation amounts as he or she determines is appropriate to account for the changed revenue or expense amounts that affect the political subdivision.

6. Outside of the budget process, a political subdivision's chief executive, a county administrator, or, in a county without a county executive or administrator, the finance committee may propose to the political subdivision's governing body an increase or decrease in any appropriation or revenue amount subject to the same budget amendment procedures described in item #3., above. A two-thirds majority vote of the governing body is required to approve such a proposal, which may not be amended, except that if such a proposal is made and voted on between October 1 and November 15 of an even-numbered year, it may be approved by a simple majority and may be amended on a limited basis.

This bill also provides certain restrictions on the county board's and municipality's governing body's actions related to the budget, including the following:

1. The budget must include all of the following items, and may include no others: a) the county or municipal tax levy; b) anticipated revenue amounts from all sources; and c) appropriations for all departments, and for any other obligations of the county or municipality.

2. The county board of a county with a county executive and a municipality's governing body may not issue municipal obligations in an amount that is higher than the amount initially proposed by the county or chief executive in his or her proposed budget for that biennium. During a biennium, however, a county executive or municipal chief executive may propose, outside of the budget process, the issuance of additional county or municipal obligations. The county board or municipal governing body may approve such a proposal, but may not increase the amount proposed.

3. A political subdivision's authority to transfer unencumbered appropriation balances is subject to certain limitations.

4. With regard to a populous county, and subject to some exceptions, the county board may not adopt a budget in which the total amount of budgeted expenditures related to the compensation of county board members, and to any other costs that are directly related to the operation and functioning of the county board or committees, including staff, is greater than 0.4 percent of the county portion of the tax levy for that year to which the budget applies. Some of the exceptions to this 0.4 percent cap include health care and pension benefits for retired county employees and officers, and salaries and benefits for any board member whose term begins before April 2018.

Accounting procedures This bill also requires populous counties to utilize fund accounting and authorizes any county to create proprietary funds, fiduciary funds, and other appropriate funds allowed by government accounting practice, provided that the county describes the sources of revenues that may be deposited into each fund and the types of expenditures that may be made from each fund. In counties without a county executive, such funds may be created by the county board. In counties with a county executive, such funds may be created only by executive order of the county executive. Counties that create proprietary, fiduciary, or other funds must develop policies and procedures that apply to each such fund, including setting a working cash flow target for each fund, publishing annual estimates of working cash flow balances, and descriptions of possible uses of balances in a fund that accumulate above the cash flow target.

Compensation, certain elective officials This bill also makes the following changes to the method for establishing the compensation of county supervisors and county elective officers other than circuit judges:

1. Requires that a county board of supervisors may change the compensation of county supervisors only by enacting an ordinance for that purpose at least three months before, but not more than six months before, the next due date for filing nomination papers for the office of supervisor.

2. Provides that the county executive, county administrator, or administrative coordinator of each county may elect to appoint a commission, composed of five people who are not holding a federal, state, or local elective office, that must make recommendations to the county board concerning the compensation for each county elective officer other than supervisor and circuit judge. The bill requires the county board to enact an ordinance establishing that the compensation for county elective officers other than circuit judges and supervisors is identical to the compensation commission's recommendations.