BIG MUSKEGO LAKE ANNUAL MEETING Packet - 8/28/2018CITY OF MUSKEGO
BIG MUSKEGO LAKE ANNUAL MEETING
AGENDA
08/28/2018
6:45 PM
Muskego City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
PLEDGE OF ALLEGIANCE
STATEMENT OF PUBLIC NOTICE
PUBLIC HEARING ON NEXT YEAR'S BUDGET
1 2019 Budget Presentation
APPROVAL OF MINUTES OF ANNUAL MEETING
1 August 22, 2017
DEPUTY COMMISSIONERS' REPORT REGARDING STATUS OF LAKE
NEW BUSINESS
1 Review 2017 Audit and Approve Engagement Letter for 2018 Audit
2 Adopt 2019 Budget
3 Select 2019 Quarterly Meeting Dates: January 22, March 26, May 28 and September 24
Select 2019 Annual Meeting Date: July 23
4 Elect Deputy Commissioners
COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW
ADJOURNMENT
NOTICE
IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF
THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION
WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL
BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE.
ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED
INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS
SERVICE, MUSKEGO CITY HALL, (262) 679-4100.
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Big Muskego Lake - Bass Bay
Protection and Rehabilitation District
2019 Proposed Budget
&
2017 Audit Summary
Prepared by City of Muskego
Finance & Administration Department
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2019 Budget Presentation
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REVENUES
2017
ACTUAL
2018
BUDGET
PROJECTED
12/31/2018
PROPOSED
2019
BUDGET
Public Charges
for Services $28,506 $29,100 $29,480 $29,100
Interest Income $50 $55 $200 $200
Donations $100 $0 $0 $0
Other - Penalty $328 $250 $250 $250
Total Revenues $28,984 $29,405 $29,930 $29,550
Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
• 166 On Lake @ $80
• 452 Off Lake @ $35
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2019 Budget Presentation
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Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
EXPENSES
2017
ACTUAL
2018
BUDGET
PROJECTED
12/31/2018
PROPOSED
2019
BUDGET
Personnel $3,570 $3,816 $3,708 $3,935
Travel/Training $0 $1,100 $550 $1,100
Maint./Rental $0 $1,500 $500 $1,500
Computer $175 $175 $175 $175
Supplies $1,732 $1,700 $1,750 $2,000
Outside Service $1,200 $2,700 $1,200 $2,700
Other Expenses $1,079 $1,750 $1,000 $1,950
Insurance $175 $175 $175 $175
Weed Control $10,300 $42,700 $20,000 $16,000
Goose Control $0 $3,000 $3,000 $3,000
Land Purchases $0 $50,000 $0 $50,000
Total Expenses $18,231 $108,616 $32,167 $82,535
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2019 Budget Presentation
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Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
FUND BALANCE
2017
ACTUAL
2018
BUDGET
PROJECTED
12/31/2018
PROPOSED
2019
BUDGET
Revenues over/
(under) Expenses $10,753 ($79,211) ($2,237) ($52,985)
Other Sources:
Appropriations
Land Reserve
($5,753)
($5,000)
$84,211
($5,000)
$7,237
($5,000)
$57,985
($5,000)
End Fund Balance:
Unreserved
Designated
$96,288
$50,000
$62,078
$5,000
$89,501
$55,000
$81,066
$10,000
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2019 Budget Presentation
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Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
Revenues vs. Expenditures - For the Years 2015 - 2019
0
20000
40000
60000
80000
100000
120000
2015 2016 2017 2018 2019
Revenue
Expense
BudgetedProjected
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2019 Budget Presentation
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Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
Fund Balance - For the Years 2015 - 2019
0
20000
40000
60000
80000
100000
2015 2016 2017 2018 2019
Designated
Undesignated
BudgetedProjected Page 6 of 7
2019 Budget Presentation
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Big Muskego Lake – Bass Bay
Protection and Rehabilitation District
STATEMENT OFACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2017
Function Expenses
Program
Revenues
Charges for
Services/Grants
Net (Expense)
Revenue and
Changes
In Net Position
General Government $7,931 $0 ($7,931)
Weed Treatment $10,300 $28,505 $18,205
Investment Earnings $50
Other Revenues $428
Total Activities (Net Change)$10,752
Net Position, End of Year $146,287
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2019 Budget Presentation
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Unapproved
CITY OF MUSKEGO
BIG MUSKEGO LAKE
ANNUAL MEETING MINUTES
August 22, 2017
6:45 PM
Muskego City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Chiaverotti called the meeting to order at 7:02 p.m. Present were Commissioners
Wolfe, Hammel, Borgman, Kapusta, Engelhardt, Kubacki and Madden. Also present: Deputy
Commissioners Tom Kies, Karl Hoeppner, Leonard Pilak, and Larry Schweitzer, Conservation
Coordinator Zagar, City Attorney Warchol, Finance and Administration Director Mueller and
Deputy Clerk Blenski as well as several District residents.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
STATEMENT OF PUBLIC NOTICE
The Deputy Clerk stated that the meeting was noticed in accordance with the open meeting
law.
PUBLIC HEARING ON 2017 BUDGET
Finance and Administration Director Mueller gave an overview of the proposed 2018 budget.
She stated revenues and expenditures are essentially the same as the prior year. The 2018
budget reflects a 0.17% increase or $50 for Total Revenues while Total Expenditures
increased by 0.27% or $289. In summary, the proposed 2018 budget should produce a fund
balance of $65,000; however, it could be as high as $115,000 because no land purchases are
anticipated in the near future.
The District rates are projected to remain the same: $80.00 charge for on lake and $35.00
charge for off lake residents.
APPROVAL OF MINUTES OF ANNUAL MEETING - August 23, 2016
Larry Schweitzer made a motion to approve. Karl Hoeppner seconded; motion carried.
DEPUTY COMMISSIONERS' REPORT REGARDING STATUS OF LAKE
Conservation Coordinator Zagar reported the following:
Water levels were higher all year.
Higher water levels were positive for navigation with the exception of the moving cattail
bogs, which posed a problem.
Wildlife – The tree with the eagles nest fell; there is optimism that they will return to nest
next year. The osprey fledged three young. The endangered Forester’s terns did not
have a favorable year because of the high water level.
Fishing has been very good. Carp are on the increase.
Aquatic Plants – Eurasian milfoil has increased, but is at manageable levels. Starry
stonewort is growing, but not the most dominant plant on the lake and is not hindering
navigation.
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August 22, 2017
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Big Muskego Lake Annual Meeting Minutes 2
August 22, 2017
NEW BUSINESS
Review 2016 Audit and Approve Engagement Letter for 2017 Audit
Finance and Administration Director Mueller stated the 2016 audit reported an increase of
$10,000 in the District’s net position of $135,000 mostly due to the reduction of expenditures.
She requested approval of the Baker Tilly engagement letter to conduct the 2017 audit which
includes no increase in fees. The cost of the audit will remain at $1,250. Leonard Pilak made
a motion to approve the Engagement Letter for the 2017 Audit. Larry Schweitzer
seconded; motion carried.
Adopt 2018 Budget
Leonard Pilak made a motion to adopt the 2018 Budget as presented. Larry Schweitzer
seconded; motion carried.
Select 2018 Quarterly and Annual Meeting Dates
Leonard Pilak made a motion to approve the following 2017 Quarterly Meeting Dates:
January 23, March 27, June 26 and October 23, and August 28 for the 2018 Annual
Meeting. Karl Hoeppner seconded; motion carried.
Elect Deputy Commissioners
The following nominations were made: Greg Burmeister, Karl Hoeppner, Tom Kies,
Leonard Pilak and Larry Schweitzer. Leonard Pilak moved to accept the nominees to
serve as Deputy Commissioners. Karl Hoeppner seconded; motion carried.
Resolution #BML 1-2017 - Resolution to Amend the By-Laws of the Big Muskego Lake/Bass
Bay Protection and Rehabilitation District (Article III, Section 2) to Substitute a Class 2 Notice
for the Annual Meeting and Eliminate the Mailing Notification for Electors Residing within the
District
Karl Hoeppner moved to approve. Greg Burmeister seconded; motion carried.
ADJOURNMENT
Leonard Pilak made a motion to adjourn at 7:13 p.m. Larry Schweitzer seconded;
motion carried.
Minutes taken and transcribed by Jill Blenski, Deputy Clerk.
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August 22, 2017
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August 15, 2018
Board of District Commissioners
C/O Ms. Sharon Mueller, Finance Director
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
W182 S8200 Racine Avenue
Muskego, Wisconsin 53150-0749
Dear Commissioners:
Thank you for using Baker Tilly Virchow Krause, LLP ("Baker Tilly" or "we" or "our") as your auditors.
The purpose of this letter (the "Engagement Letter") is to confirm our understanding of the terms and objectives
of our engagement and the nature of the services we will provide as independent accountants of the Big
Muskego Lake - Bass Bay Protection and Rehabilitation District ("you" or "your").
Services and Related Report
We will audit the basic financial statements of the Big Muskego Lake - Bass Bay Protection and Rehabilitation
District as of and for the year ended December 31, 2018, and the related notes to the financial statements.
Upon completion of our audit, we will provide the Big Muskego Lake - Bass Bay Protection and Rehabilitation
District with our audit report on the financial statements referred to below. If, for any reasons caused by or
relating to the affairs or management of the Big Muskego Lake - Bass Bay Protection and Rehabilitation District,
we are unable to complete the audit or are unable to or have not formed an opinion, or if we determine in our
professional judgment the circumstances necessitate, we may withdraw and decline to issue a report as a result
of this engagement.
Our Responsibilities and Limitations
The objective of a financial statement audit is the expression of an opinion on the financial statements. We will
be responsible for performing that audit in accordance with auditing standards generally accepted in the United
States of America ("GAAS"). These standards require that we plan and perform our audit to obtain reasonable,
rather than absolute assurance about whether the financial statements are free of material misstatement,
whether caused by error or fraud. The audit will include examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing accounting principles used and significant
estimates made by management, and evaluating the overall financial statement presentation. Our audit does
not relieve management and the audit committee or equivalent group charged with governance of their
responsibilities.
The audit will include obtaining an understanding of the Big Muskego Lake - Bass Bay Protection and
Rehabilitation District and its environment, including internal controls, sufficient to assess the risks of material
misstatement of the financial statements and to determine the nature, timing and extent of further audit
procedures. An audit is not designed to provide assurance on internal controls or to identify deficiencies in
internal control. However, during the audit, we will communicate to management and the audit committee or
equivalent group charged with governance internal control matters that are required to be communicated under
professional standards.
Baker Tilly Virchow Krause, LLP
777 E Wisconsin Ave, 32nd Floor
Milwaukee, WI 53202-5313
tel 414 777 5500
fax 414 777 5555
bakertilly.com
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 2
We will design our audit to obtain reasonable, but not absolute, assurance of detecting errors or fraud that
would have a material effect on the financial statements as well as other illegal acts having a direct and material
effect on financial statement amounts. An audit is not designed to detect error or fraud that is immaterial to the
financial statements. Our audit will not include a detailed audit of transactions, such as would be necessary to
disclose errors or fraud that did not cause a material misstatement of the financial statements. It is important to
recognize that there are inherent limitations in the auditing process. Audits are based on the concept of
selective testing of the data underlying the financial statements, which involves judgment regarding the areas to
be tested and the nature, timing, extent and results of the tests to be performed. Our audit is not a guarantee of
the accuracy of the financial statements and, therefore, is subject to the limitation that material errors or fraud or
other illegal acts having a direct and material financial statement impact, if they exist, may not be detected.
Because of the characteristics of fraud, particularly those involving concealment through collusion, falsified
documentation and management's ability to override controls, an audit designed and executed in accordance
with GAAS may not detect a material fraud. Further, while effective internal control reduces the likelihood that
errors, fraud or other illegal acts will occur and remain undetected, it does not eliminate that possibility. For
these reasons, we cannot ensure that errors, fraud or other illegal acts, if present, will be detected. However,
we will communicate to you, as appropriate, any such matters that we identify during our audit.
We are also responsible for determining that the audit committee or equivalent group charged with governance
is informed about certain other matters related to the conduct of the audit, including (i) our responsibility under
GAAS, (ii) an overview of the planned scope and timing of the audit, and (iii) significant findings from the audit,
which include (a) our views about the qualitative aspects of your significant accounting practices, accounting
estimates, and financial statement disclosures; (b) difficulties encountered in performing the audit; (c)
uncorrected misstatements and material corrected misstatements that were brought to the attention of
management as a result of auditing procedures; and (d) other significant and relevant findings or issues (e.g.,
any disagreements with management about matters that could be significant to your financial statements or our
report thereon, consultations with other independent accountants, issues discussed prior to our retention as
independent auditors, fraud and illegal acts, and all significant deficiencies and material weaknesses identified
during the audit). Lastly, we are responsible for ensuring that the audit committee or equivalent group charged
with governance receives copies of certain written communications between us and management including
written communications on accounting, auditing, internal controls or operational matters and representations
that we are requesting from management.
The audit will not be planned or conducted in contemplation of reliance of any specific third party or with respect
to any specific transaction. Therefore, items of possible interest to a third party will not be specifically addressed
and matters may exist that would be addressed differently by a third party, possibly in connection with a specific
transaction.
Management's Responsibilities
The Big Muskego Lake - Bass Bay Protection and Rehabilitation District's management is responsible for the
financial statements referred to above. In this regard, management is responsible for establishing policies and
procedures that pertain to the maintenance of adequate accounting records and effective internal controls over
financial reporting, the selection and application of accounting principles, the authorization of receipts and
disbursements, the safeguarding of assets, the proper recording of transactions in the accounting records, and
for reporting financial information in conformity with accounting principles generally accepted in the United
States of America ("GAAP").
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 3
Management is also responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us in the management representation letter (i) about all known or suspected
fraud affecting the Big Muskego Lake - Bass Bay Protection and Rehabilitation District involving: (a)
management, (b) employees who have significant roles in internal control over financial reporting, and (c)
others where the fraud or illegal acts could have a material effect on the financial statements; and (ii) of its
knowledge of any allegations of fraud or suspected fraud affecting the Big Muskego Lake - Bass Bay Protection
and Rehabilitation District received in communications from employees, former employees, analysts, grantors,
regulators, or others.
Management is responsible for (i) adjusting the basic financial statements to correct material misstatements
and for affirming to us in a management representation letter that the effects of any uncorrected misstatements
aggregated by us during the current engagement and pertaining to the latest period under audit are immaterial,
both individually and in the aggregate, to the basic financial statements taken as a whole, and (ii) notifying us of
all material weaknesses, including other significant deficiencies, in the design or operation of your internal
control over financial reporting that are reasonably likely to adversely affect your ability to record, process,
summarize and report external financial data reliably in accordance with GAAP. Management is also
responsible for identifying and ensuring that the Big Muskego Lake - Bass Bay Protection and Rehabilitation
District complies with the laws and regulations applicable to its activities.
As part of management’s responsibility for the financial statements and the effectiveness of its system of
internal control over financial reporting, management is responsible for making available to us, on a timely
basis, all of your original accounting records and related information and for the completeness and accuracy of
that information and your personnel to whom we may direct inquiries. As required by GAAS, we will make
specific inquiries of management and others about the representations embodied in the financial statements
and the effectiveness of internal control over financial reporting. GAAS also requires that we obtain written
representations covering audited financial statements from certain members of management. The results of our
audit tests, the responses to our inquiries, and the written representations, comprise the evidential matter we
intend to rely upon in forming our opinion on the financial statements.
Baker Tilly is not a municipal advisor as defined in Section 975 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act or under Section 15B of the Securities Exchange Act of 1934 (the "Act"). Baker Tilly is
not recommending an action to the Big Muskego Lake - Bass Bay Protection and Rehabilitation District; is not
acting as an advisor to you and does not owe a fiduciary duty pursuant to Section 15B of the Act to you with
respect to the information and material contained in the deliverables issued under this engagement. You should
discuss any information and material contained in the deliverables with any and all internal and external
advisors and experts that you deem appropriate before acting on this information or material.
Non-Attest Services
Prior to or as part of our audit engagement, it may be necessary for us to perform certain non-attest services.
For purposes of this letter, non-attest services include services that Government Auditing Standards refers to as
non-audit services.
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 4
Non-attest services that we will be providing are as follows:
> Financial statement preparation
> Propose adjusting journal entries
> Compile regulatory reports
> Civic Systems software
None of these non-attest services constitute an audit under generally accepted auditing standards including
Government Auditing Standards.
We will not perform any management functions or make management decisions on your behalf with respect to
any non-attest services we provide.
In connection with our performance of any non-attest services, you agree that you will:
> Continue to make all management decisions and perform all management functions, including
approving all journal entries and general ledger classifications when they are submitted to you.
> Designate an employee with suitable skill, knowledge, and/or experience, preferably within senior
management, to oversee the services we perform.
> Evaluate the adequacy and results of the non-attest services we perform.
> Accept responsibility for the results of our non-attest services.
> Establish and maintain internal controls, including monitoring ongoing activities related to the
non-attest function.
On a periodic basis, as needed, we will meet with you to discuss your accounting records and the management
implications of your financial statements. We will notify you, in writing, of any matters that we believe you should
be aware of and will meet with you upon request.
Other Documents
If you intend to reproduce or publish the financial statements, and make reference to our firm name in
connection therewith, you agree to publish the financial statements in their entirety. In addition, you agree to
provide us, for our approval and consent, proofs before printing and final materials before distribution.
If you intend to reproduce or publish the financial statements in an official statement, unless we establish a
separate agreement to be involved in the issuance, any official statements issued by the Big Muskego Lake -
Bass Bay Protection and Rehabilitation District must contain a statement that Baker Tilly is not associated with
the official statement, which shall read "Baker Tilly Virchow Krause, LLP, our independent auditor, has not been
engaged to perform and has not performed, since the date of its report included herein, any procedures on the
financial statements addressed in that report. Baker Tilly Virchow Krause, LLP, has also not performed any
procedures relating to this official statement."
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 5
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your Internet website, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or to consider
the consistency of other information in the electronic site with the original document.
The documentation for this engagement, including the workpapers, is the property of Baker Tilly and constitutes
confidential information. We may have a responsibility to retain the documentation for a period of time sufficient
to satisfy any applicable legal or regulatory requirements for records retention. If we are required by law,
regulation, or professional standards to make certain documentation available to regulators, the Big Muskego
Lake - Bass Bay Protection and Rehabilitation District hereby authorizes us to do so.
Timing and Fees
Completion of our work is subject to, among other things, (i) appropriate cooperation from the Big Muskego
Lake - Bass Bay Protection and Rehabilitation District's personnel, including timely preparation of necessary
schedules, (ii) timely responses to our inquiries, and (iii) timely communication of all significant accounting and
financial reporting matters. When and if for any reason the Big Muskego Lake Bass Bay Protection and
Rehabilitation District is unable to provide such schedules, information, and assistance, Baker Tilly and you will
mutually revise the fee to reflect additional services, if any, required of us to complete the audit. Delays in the
issuance of our audit report beyond the date that was originally contemplated may require us to perform
additional auditing procedures which will likely result in additional fees.
Revisions to the scope of our work will be set forth in the form of an “Amendment to Existing Engagement
Letter." In addition, if we discover compliance issues that require us to perform additional procedures and/or
provide assistance with these matters, fees at our standard hourly rates apply.
We estimate that our fee will not exceed $1,250. Invoices for these fees will be rendered each month as work
progresses and are payable on presentation. A charge of 1.5% per month shall be imposed on accounts not
paid within thirty (30) days of receipt of our statement for services provided. In accordance with our firm
policies, work may be suspended if your account becomes thirty (30) days or more overdue and will not be
resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement
will be deemed to have been completed upon written notice of termination, even if we have not completed our
report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket
expenditures through the date of termination.
We may use temporary contract staff to perform certain tasks on your engagement and will bill for that time at
the rate that corresponds to Baker Tilly staff providing a similar level of service. Upon request, we will be happy
to provide details on training, supervision, and billing arrangements we use in connection with these
professionals.
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 6
Additionally, we may from time to time, and depending on the circumstances, use service providers (e.g., to act
as a specialist or audit an element of the financial statements) in serving your account. We may share
confidential information about you with these service providers, but are committed to maintaining the
confidentiality and security of your information.
Any additional services that may be requested and we agree to provide will be the subject of a separate
engagement letter.
We may be required to disclose confidential information to federal, state and international regulatory bodies or a
court in criminal or other civil litigation. In the event that we receive a request from a third party (including a
subpoena, summons or discovery demand in litigation) calling for the production of information, we will promptly
notify the Big Muskego Lake - Bass Bay Protection and Rehabilitation District, unless otherwise prohibited. In
the event we are requested by the Big Muskego Lake - Bass Bay Protection and Rehabilitation District or
required by government regulation, subpoena or other legal process to produce our engagement working
papers or our personnel as witnesses with respect to services rendered to the Big Muskego Lake - Bass Bay
Protection and Rehabilitation District, so long as we are not a party to the proceeding in which the information is
sought, we may seek reimbursement for our professional time and expenses, as well as the fees and legal
expenses, incurred in responding to such a request.
Our fees are based on known circumstances at the time of this Engagement Letter. Should circumstances
change significantly during the course of this engagement, we will discuss with you the need for any revised
audit fees. This can result from changes at the Big Muskego Lake - Bass Bay Protection and Rehabilitation
District, such as the turnover of key accounting staff, the addition of new funds or significant federal or state
programs or changes that affect the amount of audit effort from external sources, such as new accounting and
auditing standards that become effective that increase the scope of our audit procedures. This Engagement
Letter currently includes all auditing standards in effect as of the date of this letter.
We would expect to continue to perform our services under the arrangements discussed above from year to
year, unless for some reason you or we find that some change is necessary. We will, of course be happy to
provide the Big Muskego Lake - Bass Bay Protection and Rehabilitation District with any other services you
may find necessary or desirable.
Resolution of Disagreements
In the unlikely event that differences concerning services or fees should arise that are not resolved by mutual
agreement, both parties agree to attempt in good faith to settle the dispute by mediation administered by the
American Arbitration Association ("AAA") under its mediation rules for professional accounting and related
services disputes before resorting to litigation or any other dispute-resolution procedure. Each party shall bear
their own expenses from mediation.
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 7
If mediation does not settle the dispute or claim, then the parties agree that the dispute or claim shall be settled
by binding arbitration. The arbitration proceeding shall take place in the city in which the Baker Tilly office
providing the relevant services is located, unless the parties mutually agree to a different location. The
proceeding shall be governed by the provisions of the Federal Arbitration Act (FAA) and will proceed in
accordance with the then current Arbitration Rules for Professional Accounting and Related Disputes of the
AAA, except that no pre-hearing discovery shall be permitted unless specifically authorized by the arbitrator.
The arbitrator will be selected from AAA, Judicial Arbitration & Mediation Services (JAMS), the Center for Public
Resources or any other internationally or nationally-recognized organization mutually agreed upon by the
parties. Potential arbitrator names will be exchanged within fifteen (15) days of the parties’ agreement to settle
the dispute or claim by binding arbitration, and arbitration will thereafter proceed expeditiously. The arbitration
will be conducted before a single arbitrator, experienced in accounting and auditing matters. The arbitrator shall
have no authority to award non-monetary or equitable relief and will not have the right to award punitive
damages. The award of the arbitration shall be in writing and shall be accompanied by a well-reasoned opinion.
The award issued by the arbitrator may be confirmed in a judgment by any federal or state court of competent
jurisdiction. Each party shall be responsible for their own costs associated with the arbitration, except that the
costs of the arbitrator shall be equally divided by the parties. The arbitration proceeding and all information
disclosed during the arbitration shall be maintained as confidential, except as may be required for disclosure to
professional or regulatory bodies or in a related confidential arbitration. In no event shall a demand for
arbitration be made after the date when institution of legal or equitable proceedings based on such claim would
be barred under the applicable statute of limitations.
Our services shall be evaluated solely on our substantial conformance with the terms expressly set forth herein,
including all applicable professional standards. Any claim of nonconformance must be clearly and convincingly
shown.
Limitation on Damages and Indemnification
The liability (including attorney’s fees and all other costs) of Baker Tilly and its present or former partners,
principals, agents or employees related to any claim for damages relating to the services performed under this
Engagement Letter shall not exceed the fees paid to Baker Tilly for the portion of the work to which the claim
relates, except to the extent finally determined to have resulted from the willful misconduct or fraudulent
behavior of Baker Tilly relating to such services. This limitation of liability is intended to apply to the full extent
allowed by law, regardless of the grounds or nature of any claim asserted, including the negligence of either
party. Additionally, in no event shall either party be liable for any lost profits, lost business opportunity, lost data,
consequential, special, incidental, exemplary or punitive damages, delays or interruptions arising out of or
related to this Engagement Letter even if the other party has been advised of the possibility of such damages.
As Baker Tilly is performing the services solely for your benefit, you will indemnify Baker Tilly, its subsidiaries
and their present or former partners, principals, employees, officers and agents against all costs, fees,
expenses, damages and liabilities (including attorneys’ fees and all defense costs) associated with any
third-party claim, relating to or arising as a result of the services, or this Engagement Letter.
Because of the importance of the information that you provide to Baker Tilly with respect to Baker Tilly’s ability
to perform the services, you hereby release Baker Tilly and its present and former partners, principals, agents
and employees from any liability, damages, fees, expenses and costs, including attorney's fees, relating to the
services, that arise from or relate to any information, including representations by management, provided by
you, Big Muskego Lake - Bass Bay Protection and Rehabilitation District personnel or agents, that is not
complete, accurate or current.
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 8
Each party recognizes and agrees that the warranty disclaimers and liability and remedy limitations in this
Engagement Letter are material bargained for bases of this Engagement Letter and that they have been taken
into account and reflected in determining the consideration to be given by each party under this Engagement
Letter and in the decision by each party to enter into this Engagement Letter.
The terms of this section shall apply regardless of the nature of any claim asserted (including, but not limited to,
contract, tort or any form of negligence, whether of you, Baker Tilly or others), but these terms shall not apply to
the extent finally determined to be contrary to the applicable law or regulation. These terms shall also continue
to apply after any termination of this Engagement Letter.
You accept and acknowledge that any legal proceedings arising from or in conjunction with the services
provided under this Engagement Letter must be commenced within twelve (12) months after the performance of
the services for which the action is brought, without consideration as to the time of discovery of any claim.
Other Matters
Neither this Engagement Letter, any claim, nor any rights or licenses granted hereunder may be assigned,
delegated, or subcontracted by either party without the written consent of the other party. Either party may
assign and transfer this Engagement Letter to any successor that acquires all or substantially all of the business
or assets of such party by way of merger, consolidation, other business reorganization, or the sale of interest or
assets, provided that the party notifies the other party in writing of such assignment and the successor agrees
in writing to be bound by the terms and conditions of this Engagement Letter.
Our dedication to client service is carried out through our employees who are integral in meeting this objective.
In recognition of the importance of our employees, it is hereby agreed that the Big Muskego Lake - Bass Bay
Protection and Rehabilitation District will not solicit our employees for employment or enter into an independent
contractor arrangement with any individual who is or was an employee of Baker Tilly for a period of twelve
months following the date of the conclusion of this engagement. If the Big Muskego Lake - Bass Bay Protection
and Rehabilitation District violates this non-solicitation clause, the Big Muskego Lake - Bass Bay Protection and
Rehabilitation District agrees to pay to Baker Tilly a fee equal to the hired person's annual salary at the time of
the violation so as to reimburse Baker Tilly for the costs of hiring and training a replacement.
Baker Tilly Virchow Krause, LLP is an independent member of Baker Tilly International. Baker Tilly International
Limited is an English company. Baker Tilly International provides no professional services to clients. Each
member firm is a separate and independent legal entity and each describes itself as such. Baker Tilly Virchow
Krause, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly
International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly Virchow
Krause, LLP, nor any of the other member firms of Baker Tilly International has any liability for each other’s acts
or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International
Limited.
This Engagement Letter constitutes the entire agreement between the Big Muskego Lake - Bass Bay Protection
and Rehabilitation District and Baker Tilly regarding the services described in this Engagement Letter and
supersedes and incorporates all prior or contemporaneous representations, understandings or agreements, and
may not be modified or amended except by an agreement in writing signed between the parties hereto.
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Board of District Commissioners
Big Muskego Lake - Bass Bay Protection and Rehabilitation District
August 15, 2018
Page 9
The provisions of this Engagement Letter, which expressly or by implication are intended to survive its
termination or expiration, will survive and continue to bind both parties. If any provision of this Engagement
Letter is declared or found to be illegal, unenforceable or void, then both parties shall be relieved of all
obligations arising under such provision, but if the remainder of this Engagement Letter shall not be affected by
such declaration or finding and is capable of substantial performance, then each provision not so affected shall
be enforced to the extent permitted by law or applicable professional standards.
If because of a change in the Big Muskego Lake - Bass Bay Protection and Rehabilitation District's status or
due to any other reason, any provision in this Engagement Letter would be prohibited by, or would impair our
independence under laws, regulations or published interpretations by governmental bodies, commissions or
other regulatory agencies, such provision shall, to that extent, be of no further force and effect and this
agreement shall consist of the remaining portions.
This agreement shall be governed by and construed in accordance with the laws of the state of Wisconsin,
without giving effect to the provisions relating to conflict of laws.
We appreciate the opportunity to be of service to you.
If there are any questions regarding the Engagement Letter, please contact Wendi Unger, the engagement
partner on this engagement who is responsible for the overall supervision and review of the engagement and
for determining that the engagement has been completed in accordance with professional standards. Wendi
Unger is available at 414 777 5423, or at Wendi.Unger@bakertilly.com.
Sincerely,
BAKER TILLY VIRCHOW KRAUSE, LLP
Enclosures
The services and terms as set forth in the Engagement Letter are agreed to by:
__________________________________________________
Official's Name
__________________________________________________
Official's Signature
__________________________________________________
Title
__________________________________________________
Date
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Notice is hereby given that at the Annual Meeting of the Big Muskego Lake/Bass Bay Protection and Rehabilitation District
to be held on Tuesday, August 28, 2018, at 6:45 p.m. at the Muskego City Hall, W182 S8200 Racine Avenue,
a PUBLIC HEARING on the PROPOSED BUDGET will be held. The proposed budget in detail is available for inspection
at City Hall in the Clerk-Treasurer's office from 8:00 a.m. to 4:30 p.m. on Monday through Friday.
Following is a summary of the proposed Big Muskego Lake/Bass Bay Protection and Rehabilitation District 2019 Budget:
Sharon Mueller, Finance & Administration Director
2019
2018 PROPOSED %
BUDGET BUDGET CHANGE
NON-MAJOR SPECIAL REVENUE FUND
Revenues
Grant Revenue $0 $0
Public Charges for Services $29,100 $29,100
Commercial Revenues $305 $450
Total Revenues $29,405 $29,550 0.49%
Appropriation of Fund Balance $84,211 $57,985
Total Available Funds $113,616 $87,535
Expenditures
Salaries and Benefits $3,816 $3,935
Legal and Professional $2,700 $2,700
Water Quality Monitoring $750 $750
Postage, Office Expenses and Other $5,650 $6,150
Projects: Weed/Goose Control & Land Purchase $95,700 $69,000
Total Expenditures $108,616 $82,535 -24.01%
Designated Fund Balance/Land Conservancy $5,000 $5,000
Total Expenditures including Designated Funds $113,616 $87,535
ALL GOVERNMENTAL FUND BALANCE Undesignated Undesignated
Fund Total Fund
Balance Total Operating Balance
January 1, 2019 Revenues Expenditures Dec. 31, 2019
Non-Major Special Revenue Fund $89,051 $29,550 $37,535 $81,066 *
Property tax Levy: The District did not and will not levy taxes to finance 2018 or 2019 operations.
* $5,000 of Undesignated Fund Balance is designated for Land Conservancy.
PLEASE NOTE: It is possible that members of and possibly a quorum of members of other governmental bodies of the
municipality may be in attendance at the above-stated meeting to gather information; no action will be taken by any
governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice.
Also, upon reasonable notice, efforts will be made to accommodate the needs of disabled individuals through appropriate aids
and services. For additional information or to request this service, contact the Finance & Administration Director,
Muskego City Hall, (262) 679-5622.
NOTICE OF ANNUAL MEETING AND PUBLIC HEARING FOR THE BIG MUSKEGO LAKE/BASS BAY
PROTECTION AND REHABILITATION DISTRICT
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Adopt 2019 Budget
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