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Big Muskego Lakes Packet 081021packet CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE PUBLIC HEARING ON NEXT YEAR'S BUDGET 2022 Budget Presentation BML Public Hearing Notice - 2022 Budget.pdf APPROVAL OF MINUTES OF ANNUAL MEETING July 28, 2020 BMLM20200728.pdf DEPUTY COMMISSIONERS' REPORT REGARDING STATUS OF LAKE NEW BUSINESS Review 2020 Audit and Approve Engagement Letter for 2021 Audit BML Engagement Letter.pdf Adopt 2022 Budget BML Public Hearing Notice - 2022 Budget.pdf Select 2022 Quarterly meeting dates: January 25, 2022; March 22, 2022; May 24, 2022; and September 27, 2022; and 2022 Annual meeting date: July 26, 2022. Elect Deputy Commissioners COMMUNICATIONS AND ANY OTHER BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT CITY OF MUSKEGO BIG MUSKEGO LAKE ANNUAL MEETING AGENDA 08/10/2021 5:45 PM Muskego City Hall, W182 S8200 Racine Avenue 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, CONTACT MUSKEGO CITY HALL, (262) 679-4100. 1 2 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 10, 2021, at 5:45 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 2022 Budget: Sharon Mueller, Finance & Administration Director 2022 2021 PROPOSED % BUDGET BUDGET CHANGE NON-MAJOR SPECIAL REVENUE FUND Revenues Grant Revenue $0 $0 Public Charges for Services $30,550 $30,605 Commercial Revenues $625 $125 Total Revenues $31,175 $30,730 -1.43% Appropriation of Fund Balance $57,148 $64,655 Total Available Funds $88,323 $95,385 Expenditures Salaries and Benefits $4,173 $4,235 Legal and Professional $2,750 $2,750 Water Quality Monitoring $750 $750 Postage, Office Expenses and Other $6,650 $6,650 Projects: Weed/Goose Control & Land Purchase $69,000 $71,000 Total Expenditures $83,323 $85,385 2.47% Designated Fund Balance/Land Conservancy $5,000 $5,000 Total Expenditures including Designated Funds $88,323 $90,385 ALL GOVERNMENTAL FUND BALANCE Undesignated Undesignated Fund Total Fund Balance Total Operating Balance January 1, 2022 Revenues Expenditures Dec. 31, 2022 Non-Major Special Revenue Fund $140,743 $30,730 $40,385 $131,088 * Property tax Levy: The District did not and will not levy taxes to finance 2021 or 2022 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 3 CITY OF MUSKEGO BIG MUSKEGO LAKE ANNUAL MEETING MINUTES July 28, 2020 5:45 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 5:53 p.m. Present were Commissioners Wolfe, Terrence, Kapusta, Engelhardt, Kubacki and Madden. Also present: City Attorney Warchol, Finance & Administration Director Mueller, Assistant Finance & Administration Director Mustapich, Deputy Clerk Blenski, Conservation Coordinator Zagar and Deputy Commissioners Larry Schweitzer, Leonard Pilak, Tom Kies and Karl Hoeppner. Absent: Commissioner Hammel. Several District residents were also in attendance. STATEMENT OF PUBLIC NOTICE The Deputy Clerk stated that the meeting was noticed in accordance with the open meeting law. PUBLIC HEARING ON 2021 BUDGET Director Mueller stated that the overall proposed 2021 budget revenues and expenses reflect a slight net change in the amount of $269.00 as compared to the prior year. Revenues consist mainly of resident fees. Those fees are budgeted to remain status quo at $80.00 for On Lake Properties and $35.00 for Off Lake Properties. The fees for 2020 will be included on this year’s property tax bills as directed at the January 28 Quarterly Meeting. Lastly, the 2020 Fund Balance is projected to be approximately $97,274.00 to support future budgets with $20,000.00 designated for land reserves. No one requested to speak regarding the proposed 2021 budget. APPROVAL OF MINUTES OF ANNUAL MEETING – July 23, 2019 Leonard Pilak made a motion to approve. Seconded by Larry Schweitzer; motion carried. DEPUTY COMMISSIONERS' REPORT REGARDING STATUS OF LAKE Conservation Coordinator Zagar reported the following: • The eagles nested and fledged two young this year. • There are now two successful osprey nests. • There was a nice spring migration of birds. Many ducks stayed to nest. The Forester’s Terns, which are endangered, attempted to nest but failed. • The DNR did a spring fish survey. The Northern Pike population increased; the size is getting bigger. Large Mouth Bass are also doing well. Carp are difficult to assess; however, a large population has been observed. • Eurasian Watermilfoil was chemically treated. No treatment was done on Bass Bay. • Navigation on the lake was impeded by a layer of filamentous algae, which has since broken up. • Starry Stonewort does exist but has not created navigation issues. • Boating and kayaking activity is up. • The lake is very clear. • Deputy Commissioner Burmeister identified where all the old sign posts were located; the DNR removed them. • Video cameras are being researched to potentially livestream an eagle or osprey nest. 4 Big Muskego Lake Annual Meeting Minutes 2 July 28, 2020 NEW BUSINESS Review 2019 Audit and Approve Engagement Letter for 2020 Audit Director Mueller stated that the 2019 audit results show a total fund balance of $162,590, which is $918 over the prior year. The audit went well. The fees for Baker Tilly to perform the 2020 audit will remain the same at a cost of $1,250.00. Leonard Pilak made a motion to approve the Engagement Letter for the 2020 Audit. Seconded by Doug Friedrich; motion carried. Adopt 2021 Budget Motion by Larry Schweitzer. Seconded by Tom Kies; motion carried. Select 2021 Quarterly Meeting Dates: January 26, March 23, May 25 and September 28 Select 2021 Annual Meeting Date: July 27, 2021 Motion by Leonard Pilak to approve the proposed meeting dates. Seconded by Tom Kies; motion carried. Elect Deputy Commissioners Motion by Leonard Pilak to nominate the existing Deputy Commissioners to serve for another year. Seconded by Karl Hoeppner; motion carried. Those District residents present elected the five nominees to serve as Deputy Commissioners. ADJOURNMENT Larry Schweitzer moved to adjourn at 6:12 pm. Seconded by Tom Kies; motion carried. Minutes taken and transcribed by Jill Blenski. 5 Baker Tilly Virchow Krause, LLP 777 E Wisconsin Ave, 32nd Fl Milwaukee, WI 53202-5313 T: +1 (414) 777 5500 F: +1 (414) 777 5555 bakertilly.com July 13, 2021 Board of District Commissioners C/O Ms. Sharon Mueller, Finanace 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 US, 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 City of Muskego ("you" or "your"). Service and Related Report We will audit the basic financial statements of he Big Muskego Lake - Bass Bay Protection and Rehabilitation District as of and for the year ended December 31, 2021, 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. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP Rev.Sept2016 6 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 2 The audit will include obtaining an understanding of he 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. We will design our audit to obtain reasonable, but not absolute, assurance of detecting misstatements due to 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. Rev.Sept2016 7 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 3 Management's Responsibilities 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"). 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 US, LLP 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 US, LLP 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. Any municipal advisory services would only be performed by Baker Tilly Municipal Advisors LLC ("BTMA") pursuant to a separate engagement letter between you and BTMA. 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. Rev.Sept2016 8 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 4 Nonattest Services Prior to or as part of our audit engagement, it may be necessary for us to perform certain nonattest services. For purposes of this letter, nonattest services include services that Government Auditing Standards refers to as nonaudit services. Nonattest 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 nonattest 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 nonattest services we provide. In connection with our performance of any nonattest 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 nonattest services we perform. Accept responsibility for the results of our nonattest services. Establish and maintain internal controls, including monitoring ongoing activities related to the nonattest 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 in an annual report or other information (excluding official 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. Rev.Sept2016 9 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 5 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 City of Muskego must contain a statement that Baker Tilly US, LLP is not associated with the official statement, which shall read "Baker Tilly US, 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 US, LLP, has also not performed any procedures relating to this official statement." 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 US, LLP 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 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 US, LLP 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 communicated to you and may 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 be $1,300. A charge of 1.5 percent 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 US, LLP 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. 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. Rev.Sept2016 10 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 6 Any additional services that may be requested, and we agree to provide, may 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 and accounting standards and the current single audit guidance 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. Rev.Sept2016 11 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 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 US, LLP 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 US, LLP 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 US, LLP 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 US, LLP 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 US, LLP is performing the services solely for your benefit, you will indemnify Baker Tilly US, LLP, its subsidiaries and their present or former partners, principals, employees, officers and agents against all costs, fees, expenses, damages and liabilities (including attorney's 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 US, LLP with respect to Baker Tilly’s ability to perform the services, you hereby release Baker Tilly US, LLP 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, its personnel or agents, that is not complete, accurate or current. 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. Rev.Sept2016 12 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 8 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 US, LLP 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 US, LLP for a period of twelve (12) 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 US, LLP a fee equal to the hired person's annual salary at the time of the violation so as to reimburse Baker Tilly US, LLP for the costs of hiring and training a replacement. Baker Tilly US, LLP, trading as Baker Tilly, 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 US, 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 US, 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 US, LLP 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 US, LLP 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. 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. Rev.Sept2016 13 Board of District Commissioners Big Muskego Lake - Bass Bay Protection and Rehabilitation District July 13, 2021 Page 9 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 this Engagement Letter, please contact Wendi M. Unger, the engagement partner on this engagement who is responsible for the overall supervision and review of the engagement and determining that the engagement has been completed in accordance with professional standards. Wendi M. Unger is available at 414 777 5423, or at wendi.unger@bakertilly.com. Sincerely, BAKER TILLY US, LLP Enclosure The services and terms as set forth in this Engagement Letter are agreed to by: __________________________________________________ Official's Name __________________________________________________ Official's Signature __________________________________________________ Title __________________________________________________ Date Rev.Sept2016 14 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 10, 2021, at 5:45 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 2022 Budget: Sharon Mueller, Finance & Administration Director 2022 2021 PROPOSED % BUDGET BUDGET CHANGE NON-MAJOR SPECIAL REVENUE FUND Revenues Grant Revenue $0 $0 Public Charges for Services $30,550 $30,605 Commercial Revenues $625 $125 Total Revenues $31,175 $30,730 -1.43% Appropriation of Fund Balance $57,148 $64,655 Total Available Funds $88,323 $95,385 Expenditures Salaries and Benefits $4,173 $4,235 Legal and Professional $2,750 $2,750 Water Quality Monitoring $750 $750 Postage, Office Expenses and Other $6,650 $6,650 Projects: Weed/Goose Control & Land Purchase $69,000 $71,000 Total Expenditures $83,323 $85,385 2.47% Designated Fund Balance/Land Conservancy $5,000 $5,000 Total Expenditures including Designated Funds $88,323 $90,385 ALL GOVERNMENTAL FUND BALANCE Undesignated Undesignated Fund Total Fund Balance Total Operating Balance January 1, 2022 Revenues Expenditures Dec. 31, 2022 Non-Major Special Revenue Fund $140,743 $30,730 $40,385 $131,088 * Property tax Levy: The District did not and will not levy taxes to finance 2021 or 2022 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 15