Friendship Lake District Annual Meeting Minutes
FRIENDSHIP LAKE DISTRICT ANNUAL MEETING & BUDGET HEARING
SATURDAY AUGUST 31, 2024,
9:00AM
TOWN OF ADAMS HALL
1980 11TH AVENUE, ADAMS, WI 53910
Draft
1. Call meeting to order: Bob Berry called the annual meeting and budget hearing of the Friendship Lake District to order at approximately 9:10am. Present were commissioners Karen Pokorny, secretary and Sue Booth, treasurer. Also present were Chad Rhinehart from the Town of Adams, Marcus Skelton from the Town of Preston, and Rick Pease from Adams County. Jerry Sonnenberg from the Village of Friendship was excused. Approximately 55 lake district members were present compared to 57 in 2023.
2. Approve minutes from previous annual meeting, September 2, 2023: Karen Pokorny presented the minutes from the September 2, 2023 annual meeting for review. Karen Reske made a motion to approve the minutes and was seconded by Tina Meinen. The motion was carried unanimously.
3. Approve Treasurer’s report fiscal year 2024: Sue Booth presented the treasurer's report for the fiscal year August 1, 2023 through July 31, 2024. Sue reported that the NOW checking account had a beginning balance of $1,157.62, deposits of $141,866.33, interest earned $0.52, and disbursements of $141,771.51, and a year end balance of $1,252.96. The Money Market account had a beginning balance of $105,703.02, deposits of $184,878.74, interest earned $1,379.86, and transfers of $185,516.33, with a year end balance of $106,445.29. Sue explained that on September 27, 2023, the harvester account was closed and $45,003.59 was transferred to the money market account. $45,000 from the money market account was then invested in a 12 month CD that will mature on September 28, 2024. In July of 2024 a new shed was purchased for the harvester lot in the amount of $5,025.00 and was paid by donated funds. Bob hired an additional harvester operator to help with weed removal before the 4th of July weekend for $3500.00. This expense was paid for by donated funds. Sue detailed the two outstanding loans, the smaller loan for harvester equipment and previous dam owner settlement has a current balance of $201,533.34 and renews in early 2026. Payments on this loan are $13,785.94, biannually. The larger loan is for dam acquisition and repairs and has a balance of $326,711.67 renews in 2030, with an annual payment of $29,594.45. Tina Meinen made a motion to approve fiscal year 2023 - 2024 annual treasurer report and was seconded by Chuck Spargo. The motion was carried unanimously.
4. Presentation and submission of the annual audit: Sue Booth presented the Friendship Lake District Annual Audit signed concurrence page for fiscal year August 1, 2023 ending July 31, 2024. The certified review and audit was performed by lake district members, Larry Swaziek, Frances Schmidt, and Chuck Spargo, who found all of the financial records in proper order.
5. Review of By-Laws Article III - Annual Meeting, Section 7 for Project Approval: Bob Berry explained the process for the board as detailed in our By-laws regarding board approval to enter into contracts that cost $10,000.00 or more. This approval has to be presented to the membership at the annual meeting or at a special meeting of the membership. Additionally, Bob stated that the board must follow our By-Laws Article VI - Public Bidding with regard to the bid process for any contracted project costing $2,500.00 or more.
Bob Berry read the exact wording of the lake district By-Laws, Article III - Annual Meeting, Section 7 as written:
Before approval of the annual budget, the annual meeting shall, be separate vote, approve or disapprove each proposed project having a cost to the district more than $10,000.00. The annual meeting may also authorize the Board, during the succeeding year until the next annual meeting, to approve or disapprove projects having a cost to the District more than $10,000.00, and to enter into contract accordingly, subject to the limitations provided in the authorizing resolution. State of Wisconsin Chapter 33 [s.33.30(4)(b)] votes on projects may be taken by secret written ballot or at the discretion of the chairman. Members entered into a question and answer session sharing examples when the board may be presented with proposed projects. Chuck Spargo gave an example of upgrades to the power house as a proposed project. Bob Berry shared the example of additional harvester contractors to help our program with weed removal. Chuck explained that the district has $50,000 unused funds available at One Community Bank and this could be used to finance upgrades to the generator interconnection equipment if we decided to proceed with that project. The decision after long discussion by the members is that Resolution #8312024 be amended to include wording “not to exceed $50,000 of unused funds available at One Community Bank and as documented in the 2025 approved budget".
6. Resolution #8312024: Authorize Friendship Lake District Board during the succeeding year or until the next annual meeting to approve or disapprove each proposed project that has a cost to the district more than $10,000.00, but not to exceed $50,000 of unused funds available at One Community Bank as documented in the 2025 approved budget. The board may enter into a contract accordingly, subject to the limitations provided in this resolution. Mike Koonce made a motion to amend Resolution #8312024 and approve the resolution as written and was seconded by Tina Meinen. The motion was approved unanimously.
7. Review and consideration of Budget for FLD fiscal year 2025: Chuck Spargo, chairman of the Financial Advisory Committee, presented the Friendship Lake District Proposed 2025 Budget. Chuck introduced the members of his committee, Bob Berry, Carol Berry, Larry Swaziek, Fran Schmidt, Karen Pokorny, and Sue Booth. Chuck went over each section, and line item detail, including previous year actuals, comparisons, and proposals for 2025. He noted increases in insurance, fuel, and harvester expenses for equipment maintenance and payroll. Chuck attended the Wisconsin Lakes convention in spring of this year. In the past we were under the impression that unused budget money had to be placed into a non-lapsable fund and reserved only for capital improvements. This year he learned that we do not have to reserve these funds for capital improvement only, but that the funds could also be applied to our annual budget and help reduce net expenses and levy. Chuck highlighted that the committee recommended we apply $9000 of prior years’ revenue to this year's budget. Chuck detailed the operating budget, revenue, capital budget, funding sources, cash assets and loan balances. The members entered into a detailed question and answer discussion with all questions answered. Dann Reske made a motion to approve the Friendship Lake District proposed 2025 fiscal year budget and was seconded by Larry Swaziek. The motion was carried unanimously.
8. Consideration tax levy for operating costs and repayment of debt detailed in the proposed 2025 budget: Chuck Spargo presented recommended tax levy and special charges as presented in the approved 2025 fiscal year budget.
Revenue needed for Operating Expenses is $62,620 and a mill rate of 0.00169 based on estimated Lake District values (land + improvements). Only Lake District properties with lakefront will pay for these costs as Special Charges on their property tax.
Revenue needed for Capital Debt Service is $57,072 and a mill rate of 0.00154 and based on an estimated Lake District total value (land + improvements). This is a total mill rate of 0.00323. Dann Reske made a motion to approve the 2025 tax levy and special charges as detailed in the approved 2025 budget. This motion was seconded by Larry Swaziek. The motion was carried unanimously. According to State Statute all Lake District properties are taxed to pay for capital improvements as a levy on their property tax.
9. Report from the Lake Management Advisory Committee & weed harvesting program: Linda Moonan, chairman of the lake management advisory committee presented a detailed report summarizing the progress of this committee since it reconvened in June of this year. Linda introduced her committee members, sharing that they have been working directly with Adams County Land and Water and WDNR. This committee is working on updating the lake management plan and contingency planning and use of resources to ensure our lake sustainability and good management in the future. Kiefer Sroka, water specialist at Adams County Land and Water is performing a plant study for our lake. This study is needed in updating the lake management plan. The lake management plan needs to be in place, updated, and followed to continue the mechanical harvesting permit. A complete report will be available to review on the website. Linda introduced Mike Koonce who presented the preliminary harvesting program data report that included hours of harvesting, loads, water testing, maintenance etc. A final report will be presented to the board after the harvesting season has ended. This report will also be available on the website for review. Discussion was entered regarding the lake level for the fall and winter season. Chuck Spargo said last year we agreed to lower the level by 24 inches. Chuck said it was hard to achieve the 24 inch mark due to the October 1st DNR requirement to let the amphibians hibernate and a very rainy fall season. After extensive discussion by the property owners both pro and con regarding the lake level, and wanting to perform shoreline work, a motion was made by Mike Koonce to lower the lake level this winter 24 inches and was seconded by Carol Berry. The motion was carried.
10. Report from the Dam Operations Advisory Committee: Chuck Spargo manager of dam operations, along with operators Eddie Bender and Bob Berry gave a report. Chuck said that we had a very mild winter. He has seen less log debris and thanked owners for keeping an eye on their properties. Data from August 1, 2023 to July 31, 2024, showed the operators made 180 visits to the dam with 150 dam gate adjustments. Of concern is a small crack that has seen some seeping of water. Chuck has spoken and shared pictures with our dam engineer who recommended we continue to monitor the crack closely and placement of a crack gauge. It is difficult to physically get down near the crack so Chuck is recommending we have an engineer assist with placement of the gauge. An option to repave part of the driveway area alongside the dam powerhouse to divert water away from the foundation and area near the crack is being evaluated. This cost was approved today as detailed in the 2025 budget. Chuck will contact contractors to obtain bids as soon as a plan is confirmed.
11. Report from the Friends of Friendship Lake: Darlene Hovorka, treasurer of the Friends of Friendship Lake gave a detailed report on the fundraising for the year. In spring the Friends provided a brat fry for the Adams County Chamber Ducky Derby event, in August the annual “Dam Mulligan’s golf outing" was held and now they are preparing a 2025 monthly cash raffle fundraiser. Darlene gave a history of the Friends group as one of the original founding members since 1992. Tina Koonce presented the 2025 cash raffle fundraiser with only 300 tickets to be sold. Drawings will be at Moundview Golf course on the last Sunday of every month in 2025 with 1st prize $400, 2nd prize $200, and 3rd, 4th, & 5th, $50 each monthly. Even if you win that month, your ticket is put back into the bucket for a chance to win all 12 months. This fundraiser has the potential to raise $9000 and money raised will be dedicated to repayment of our harvesting loan.
In closing Darlene presented a check for $5000 to the board fulfilling the friends annual commitment and support of the lake district.
12. Election of Commissioner (term ends): Bob Berry asked for nominations from the floor for the lapsing term. Carol Berry made a motion to nominate Bob Berry and was seconded by Mike Koonce. Bob asked for any other nominations for commissioner position from the floor with Chuck Spargo nominating Mike Henke and seconded by Linda Moonan. Bob Berry asked again for any other nominations for commissioner position, and no more nominations were made. Nominees, Bob Berry and Mike Henke each took a few minutes to speak to the members sharing their vision of the future of the Lake District and why they were seeking the position on the Friendship Lake District Board. Prior to the meeting Bob Berry randomly chose three lake district members to tabulate election results. Blank papers as ballots were handed out to the members to complete a secret written vote for commissioner chairman position. Three lake district volunteers tabulated the results with the vote falling in a tie, 23 votes for Bob Berry and 23 votes for Mike Henke. The ballots underwent a recount by the lake district volunteers and again resulted in the 23 vote tie between the nominees. Discussion was given as to the state statutes that oversee election results in a tie for a commissioner board position. After some input from the board and members and at the consideration of Bob Berry, he respectfully declined the nomination, resulting in the election of Mike Henke as the new commissioner. Applause and thank you’s were shared with Bob Berry, who has dedicated his time to the district as a commissioner for over 20 years. Congratulations were given to Mike Henke, newly elected commissioner.
13. Future Commissioner Board Meeting Date’s: August 31, 2024 immediately following the annual meeting and budget hearing to approve actions and motions decided at the annual meeting. November 7, 2024, FLD Quarterly Board Meeting, 5:00pm, Town of Adams Hall. TBD April 2025; May 2025; June 2025; July 2025; August 2025; November 2025.
14. Set date for next Annual Meeting & Budget Hearing: August 30, 2025, 9:00am, Town of Adams Hall or possibly the Village of Friendship Hall because of a larger capacity.
15. Adjournment: Karen Pokorny made a motion to adjourn and was seconded by Linda Graf. The motion was carried unanimously.
Respectfully
Karen Pokorny,
Commissioner Secretary
September 5, 2024
