Committee of the Whole Presentation Controller July 16, 2009

2 Agenda Department Projections Sales Tax Collections General Fund Balance Savings Measures Instituted

3 First Quarter Projections

4 Sales Tax Collections

5 General Fund Balance

6 Savings Measures

7 Next Steps oDOA will be is beginning preparation of the second quarter projections. oDepartments are preparing and submitting their 2010 budget requests. oThe compilation of budget requests will be available on Wednesday September 9.

Committee of the Whole Presentation Treasurers Office July 16, 2009

9 Agenda Introduction Interest Earnings Tax Collections Qs and As

10 Introduction Chairmans Request Talk about Revenue shortfalls Treasurers role as Investor Treasurers role as Tax Collector Both of these directly related to the current economy

11 Interest Earnings Investment Policy Safety Liquidity Earnings

12 Interest on Investments Income from investments Local Government Investment Pool (LGIP) Bank CDs Other managed investment accounts Dependant upon: Cash balances Interest rates

13 Interest on Investments

14 Federal Interest Rates

15 LGIP Interest Rates

16 LGIP Monthly Interest

17 Other Contributing Factors Amounts available to invest has decreased Increased Liquidity concerns Allocation of interest Impact of mark to market on bonds

18 Future Interest Earnings Economic recovery expected to begin in late 2009, early 2010, but improve slowly. Federal Reserve is not expected to begin to raise rates till the second quarter of Staying liquid due to the uncertainty of revenues. Bottomline – interest income will not rebound to previous levels for some time to come.

19 Tax Collections County Role in tax collections Calculate and create bills, assist municipalities in first installment collections, and assume collection of the second installment Importance of Settlement All other taxing jurisdictions paid in full County responsible for delinquencies

Source CAFR and includes penalty and interest20 Year End Outstanding Property Tax Delinquencies

21 Current Year Collections continue to lag behind prior year. Have made efforts to collect delinquencies Spring effort Planning joint effort Will increase penalties and interest collections.

22 Future Delinquencies are continuing to grow and will likely do so until economy improves. Recovery in WI employment and personal income not expected until mid 2010 (DOR). Treasurers Office is poorly equipped to aggressively pursue delinquencies.

23 Conclusion Expect interest income to be down significantly for the for the next year and recover slowly with an improving economy. Expect delinquencies to continue to rise in the near term until housing industry has recovered.

24 Reminder Second installment of property taxes are due July 31. Penalty and interest accrue if you are late.

25 Questions and Answers