COMMITTEE OF THE WHOLE Packet - 10/11/2016
CITY OF MUSKEGO
COMMITTEE OF THE WHOLE AGENDA
October 11, 2016
6:00 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
STATEMENT OF PUBLIC NOTICE
APPROVAL OF AGENDA
APPROVAL OF MINUTES - September 22, 2016 and September 27, 2016
NEW BUSINESS
CLOSED SESSION
Please take notice that the Committee of the Whole will convene, upon passage of the
proper motion, in to closed session pursuant to: Wis. Stats.§19.85(1)(e) Deliberating or
negotiating the purchasing of public properties, the investing of public funds, or
conducting other specified public business, whenever competitive or bargaining
reasons require a closed session, more specifically the:
1.) Discussion relating to the contracting of a Construction Manager for the Police
Department Facility
2.) Discussion relating to public bid for the construction of City Hall and alternative
options for the construction of City Hall
Action may be taken in closed session. The Committee of the Whole will then
reconvene into open session to continue with agenda items.
OPEN SESSION
1.) Discussion relating to the contracting of a Construction Manager for the Police
Department Facility
2.) Discussion relating to public bid for the construction of City Hall and alternative
options for the construction of City Hall
3.) Finalize City Budget and Review Water & Sewer Utility Budgets
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
ADJOURNMENT
Possible reconvening of the Committee of the Whole immediately following Common Council
Meeting of the same date to continue work on agenda items
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.
Unapproved
CITY OF MUSKEGO
COMMITTEE OF THE WHOLE MINUTES
September 22, 2016
6:00 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Chiaverotti called the meeting to order at 6:00 pm.
PLEDGE OF ALLEGIANCE
ROLL CALL
Present: Alderman Wolfe, Hammel, Borgman, Kapusta, Engelhardt, Kubacki, Madden and
Mayor Chiaverotti. Also present: Director Mueller.
STATEMENT OF PUBLIC NOTICE
Director Mueller stated the meeting was properly noticed.
APPROVAL OF AGENDA
APPROVAL OF MINUTES - September 13, 2016
Alderman Engelhardt motioned to approve the September 13, 2016 minutes. Alderman
Kubacki seconded motion.
NEW BUSINESS
Unfinished Business - Capital Projects Fund Budgets
1.) DPW - Gas Pump Replacement Update
2.) IT - Unitrends Backup Update
New Business - Mayors Proposed Budget
1.) General Fund Revenue Budget
2.) General Fund Expenditure Budget
3.) Debt Service Fund Budgets
4.) Special Revenue Fund Budgets
5.) Capital Projects Budgets (Borrowing, Expenditures & TIDs #8 & #11)
Unfinished Business
1.) DPW Gas Pump Replacement Update. All in favor, approved unanimous.
2.) IT Unitrends Backup Update. All in favor, approved unanimous.
New Business
1.) Mayor's Proposed Budget
General Fund Revenue Budget
General Fund Expenditure Budget
Debt Service Fund Budgets
Special Revenue Fund Budgets
Capital Projects Budgets (Borrowing, Expenditure & TIDs #8 & #11)
Mayor Chiaverotti noted the Budget notification will be sent to the paper on 9/29/16 for
publication.
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
ADJOURNMENT
Possible reconvening of the Committee of the Whole immediately following Common Council
Meeting of the same date to continue work on agenda items
Alderman Kubacki motioned to adjourn. Alderman Wolfe seconded motion. Meeting adjourned
at 6:50 pm.
Unapproved
CITY OF MUSKEGO
COMMITTEE OF THE WHOLE MINUTES
September 27, 2016
6:15 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Chiaverotti called the meeting to order at 6:21 pm.
PLEDGE OF ALLEGIANCE
ROLL CALL
Present: Alderman Wolfe, Hammel, Borgman, Kapusta, Engelhardt, Kubacki, Madden and
Mayor Chiaverotti. Also present Director Mueller and City Attorney Warchol.
STATEMENT OF PUBLIC NOTICE
Director Mueller stated the meeting was properly noticed.
APPROVAL OF AGENDA
APPROVAL OF MINUTES
NEW BUSINESS
1.) Continued Discussion of 2017 Budgets
Continued discussion of 2017 Budgets. Operating Budgets approved unanimously.
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
ADJOURNMENT
Possible reconvening of the Committee of the Whole immediately following Common Council
Meeting of the same date to continue work on agenda items
Alderman Kubacki motioned to adjourn. Alderman Wolfe seconded motion. Meeting
adjourned at 6:46 pm.
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Schedule
Statement of income and expense 1
Schedule of capital outlay 2
Schedule of changes in utility working capital: 3
Sewer Fund Definitions 4
CONTENTS
Schedule 1
Page 1
2016 2017 2017 % Change
2015 Aug. 31, 2016 2016 Adopted Proposed Adopted From 2016
Actual Actual Projected Budget Budget Budget Budget
Operating revenues
Sewer service charges $ 6,088,830 3,061,364 6,093,750 6,060,000 6,120,000 - 0.99%
Miscellaneous revenues 14,146 5,533 12,775 15,000 12,800 - -14.67%
Total operating revenues 6,102,976 3,066,897 6,106,525 6,075,000 6,132,800 - 0.95%
Operating expenses
Operation and maintenance:
Milwaukee Metropolitan Sewerage District:
Capital charge 3,558,128 3,624,731 3,624,731 3,629,583 3,793,394 - 4.51%
User charge 1,125,962 559,623 1,122,283 1,122,283 1,128,923 - 0.59%
Town of Norway
Capital charge - - - - - - 0.00%
User charge 266,346 178,884 330,000 225,000 350,000 - 55.56%
Supervision and labor 441,516 291,100 470,045 468,137 462,787 - -1.14%
Supplies and expense 27,597 18,383 28,000 28,000 28,000 - 0.00%
Maintenance:
Amortization - - - - - -
Odor control 2,624 2,046 15,000 22,500 22,500 - 0.00%
Building and structures 15,243 10,350 14,000 14,000 18,000 - 28.57%
General plant safety equipment 2,910 2,615 7,000 7,000 7,000 - 0.00%
Sewerage collection system 57,408 29,407 50,000 125,000 125,000 - 0.00%
I & I reduction 28,935 6,560 20,000 100,000 100,000 - 0.00%
Electricity 120,731 69,862 130,000 155,000 155,000 - 0.00%
Transportation expense 11,182 9,206 18,000 20,000 20,000 - 0.00%
5,658,581 4,802,766 5,829,059 5,916,503 6,210,604 - 4.97%
Customers' account expenses:
Accounting and collection 67,022 35,448 64,017 64,017 61,258 - -4.31%
Meter expense 29,934 - 31,000 31,000 31,500 - 0.00%
96,955 35,448 95,017 95,017 92,758 - -2.38%
General expenses:
Office Salaries 72,022 38,562 69,717 69,517 66,958 - -3.68%
Employee pensions and benefits 258,436 169,303 269,339 $269,339 260,410 - -3.32%
Unemployment compensation - - 2,000 2,000 2,000 - 0.00%
Office supplies and expenses 52,727 37,688 62,880 68,780 65,077 - -5.38%
Outside services 45,424 26,337 56,176 78,343 76,302 - -2.61%
428,608 271,890 460,112 487,979 470,747 - -3.53%
Total operation and maintenance 6,184,145 5,110,104 6,384,188 6,499,499 6,774,109 - 4.23%
Depreciation 1,055,855 - 1,080,000 $1,135,000 $1,112,400 - -1.99%
Total operating expenses 7,239,999 5,110,104 7,464,188 7,634,499 7,886,509 - 3.30%
Net operating income (loss)
(forward) (1,137,023) (2,043,207) (1,357,663) (1,559,499) (1,753,709) - 12.45%
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE
2017 BUDGET
Schedule 1
Page 2
2016 2017 2017 % Change
2015 Aug. 31, 2016 2016 Adopted Proposed Adopted From 2015
Actual Actual Projected Budget Budget Budget Budget
Net operating income (loss)
(forwarded) $ (1,137,023) (2,043,207) (1,357,663) (1,559,499) (1,753,709) - 14.87%
Add non-operating income
Interest from investments 24,859 8,759 25,000 21,500 25,250 - -14.00%
MMSD I&I Subsidy $0 $0 $0 $250,000 $250,000 -
Interest income on RCA's and special assessments 21,116 23,277 23,277 20,670 21,750 - -11.20%
Sewer Connection Fees 31,000 17,000 30,000 20,000 25,000 - -33.33%
Total non-operating income 76,975 49,036 78,277 312,170 322,000 - 298.80%
Income before non-operating expenses (1,060,048) (1,994,171) (1,279,386) (1,247,329) (1,431,709) - -2.51%
Deduct non-operating expenses
Interest charges on long-term debt - - - - - - #DIV/0!
Amortization of debt discount $0 $0 $0 $0 $0 - #DIV/0!
I&I MMSD Program - $0 $0 $250,000 $250,000 - #DIV/0!
Total non-operating expenses - - - 250,000 250,000 - #DIV/0!
Net income (loss) before capital contributions $ (1,060,048) (1,994,171) (1,279,386) (1,497,329) (1,681,709) - 17.03%
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE (Concluded)
2017 BUDGET
Schedule 2
Page 3
2016
Estimated 2016 2017 2017
Total Adopted Proposed Adopted
Description Funding Cost Budget Budget Budget
1.2016 Capital Projects
Truck - 25% DPW Replacement (C ) - 46,250
Truck - 50% Water/Sewer (C ) 13,404 17,500
Communication Controls Radio (C ) 30,000 30,000
City Garage Maint/Addition (C ) 630,000
Lift Station Upgrades (C ) 7,359 -
$ 50,764 723,750 - -
2.2017 Capital Projects
Truck - 25% DPW Replacement (C ) - - - -
Truck - 50% Water/Sewer (C ) 16,000 -
Lift Station Upgrades (C ) - - 50,000 -
City Garage Maint/Addition (C ) - - 499,568 -
Gas Pump (C ) - - 6,000
SCADA Upgrade (C ) - - 5,000
(C ) - - - -
$- - 576,568 -
$ 50,764 723,750 576,568 -
Note A: Anticipated to be financed with available construction funds
Note B: Anticipated to be financed with borrowings
Note C: Finance with working capital
Note D: Finance with replacement funds
Note E: Finance with reserve capacity assessment funds
Note F: Reimbursement from MMSD
Note G: Reimbursement from Franklin
Grand Total
CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CAPITAL OUTLAY
Schedule 3
Page 4
Non-TIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction
Fund Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for the year $ (1,681,709) - - - - (1,681,709)
Add charges to income not requiring funds:
Depreciation 1,112,400 - - - - 1,112,400
Amortization:
Debt discount - - - -
Manhole Rehabilitation and Mapping Projects - - - - - -
MMSD Funding 250,000 - 250,000
Less:
Other - - - - - -
Funds provided from operations (319,309) - - - - (319,309)
Increases in:
Collection of special assessments 4,000 - - 325,000 - 329,000
Other contributed capital collection- RCA Landfill - - - - - -
Total funds provided (315,309) - - 325,000 - 9,691
Funds applied
Principal payments on debt - - - - - -
Capital outlay (Schedule 6 for Construction Fund) - - - - 576,568 576,568
Total funds applied - - - - 576,568 576,568
Interfund transfers - net
Interest earnings (8,150) - 8,150 - - -
Equipment replacement (26,350) - 26,350 - - -
Sewer Connection fees (25,000) - - 25,000 - -
Transfer to Construction Fund (576,568) - - - 576,568 -
Transfer for debt retirement reserve - - - - - -
RCA funds used to finance MMSD capital charge - - - - - -
Total transfers (636,068) - 34,500 25,000 576,568 -
Increase (decrease) in working capital (951,377) - 34,500 350,000 - (566,877)
Working capital, beginning of year 6,706,283 - 905,306 6,450,016 - 14,061,605
Working capital, end of year $ 5,754,906 - 939,806 6,800,016 - 13,494,728
-14.19% 0.00% 3.81% 5.43% 0.00% -4.03%
CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2017 BUDGET
Schedule 4
Page 5
FUND DESCRIPTION
Operations and Maintenance Required to fund, at a minimum, 3 months of operations and maintenance costs.
Special Redemption Accounts as a reserve for a percentage of annual principal and interest payments, as
required by the debt covenants.
Equipment Replacement Fund Used for significant mechanical equipment replacements as required by the DNR.
Non-TIF - RCA Includes reserves established to account for capacity assessment levies restricted to
finance related capital and/or debt service costs.
Construction Accounts for borrowed funds or interfund transfers from working capital to cover the cost of
capital projects.
MMSD Capital Charge Funding 77.83% = Utility rates & 22.17% = Reserve Capacity Assessments (Prior to 2007, 27.83% was
funded by positive tax increments from TID's #2-#7)
CITY OF MUSKEGO SEWER UTILITY
WORKING CAPITAL FUND DESCRIPTIONS
2017 BUDGET
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Schedule
Statement of income and expense 1
Schedule of capital outlay 2
Schedule of changes in utility working capital: 3
Water Fund Definitions 4
CONTENTS
Schedule 1
2016 2017 2017 Change
2015 Aug 31, 2016 2016 Adopted Proposed Adopted From 2016
Actual Actual Projected Budget Budget Budget Budget
Operating revenue
Sales of water:
Sales to general customers $1,288,744 658,523 1,337,800 1,360,595 1,349,050 - -0.85%
Private fire protection $41,613 20,942 42,000 45,500 42,500 - -6.59%
Public fire protection $469,237 78,780 485,500 510,000 486,000 - -4.71%
Other operating revenue $64,150 28,195 61,900 60,400 62,400 - 3.31%
Rental of Water property - tower lease $118,293 32,431 115,000 103,625 108,800 - 4.99%
Total operating revenue 1,982,038 818,870 2,042,200 2,080,120 2,048,750 - -1.51%
Operating expenses
Operation and maintenance:
Source of supply expense 6,447 5,741 12,708 9,878 13,867 - 40.38%
Pumping expense 150,612 87,628 176,354 175,496 180,252 - 2.71%
Water treatment expense 25,197 22,805 28,461 28,621 30,269 - 5.76%
Transmission and distribution expense 147,290 97,649 152,600 129,162 146,924 - 13.75%
Customer accounts expense 22,732 13,042 28,950 29,418 29,315 - -0.35%
Administrative expense 344,296 268,606 362,748 378,448 393,613 - 4.01%
Total operation and maintenance expenses 696,573 495,470 761,821 751,023 794,241 - 5.75%
Depreciation $786,369 - 800,000 771,000 810,000 - 5.06%
Taxes $551,989 16,666 578,533 578,333 582,753 - 0.76%
Total operating expenses 2,034,931 512,136 2,140,354 2,100,356 2,186,994 - 4.12%
Net operating income (loss) (52,893) 306,734 (98,154) (20,236) (138,244) - 583.17%
Add non-operating income - interest $25,576 $13,001 $25,397 $22,961 $24,261 $0 5.66%
Income before non-operating expenses (27,317) 319,735 (72,757) 2,725 (113,983) - -4282.36%
Deduct non-operating expenses
Interest on advances from municipality and revenue bonds $199,308 94,876 180,266 182,165 170,655 - -6.32%
Amortization of debt discount and expense $0 - - - - - #DIV/0!
Total non-operating expenses 199,308 94,876 180,266 182,165 170,655 - -6.32%
Net income (loss) before capital contributions $ (226,625) 224,859 (253,023) (179,440) (284,638) - 58.63%
CITY OF MUSKEGO WATER PUBLIC UTILITY
STATEMENT OF INCOME AND EXPENSE
2017 BUDGET
Schedule 2
Estimated
2016 2016 2017 2017
Total Adopted Proposed Adopted
Funding Cost Budget Budget Budget
1.2016 Capital Additions:
Meters (A) 75,000 75,000
Truck - 25% DPW Replacement (A) - 46,250 - -
Truck - 50% Water / Sewer (A) 13,405 17,500
Well #4 Abandonment (A) 30,374 30,000
Building - Roof, Garage Doors & Wash Station (A) - 630,000
Water Painting - Mercury (A) & (B) - 350,000
- - - -
$ 118,779 1,148,750 - -
2.2017 Capital Additions:
Meters (B) 50,000 50,000
Truck - 25% DPW Replacement (A) - -
Truck - 50% Water / Sewer (B) 16,000 16,000
Gas Pump (B) 6,000 6,000
Building - Roof, Garage Doors & Wash Station (A) 499,568 499,568
Water Tower Painting - Mercury (A) & (B) 350,000 350,000
Scada Maintenance (B) 5,000 5,000
- - 926,568 926,568
Grand Total $ 118,779 1,148,750 926,568 926,568
Notes:
(A) - Financed by borrowings.
(B) - Financed by working capital / Depreciation Fund
(C) - Anticipated to be financed by a borrowing
(D) - Anticipated to be financed by a stimulus grant
(E) - Anticipated to be financed by assessments
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CAPITAL OUTLAY COSTS
PROJECTED 2016 AND 2017 BUDGET
Schedule 3
Operation
and Debt
Maintenance Construction Depreciation Service
Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for year $ (113,983) - - (170,655) (284,638)
Add charges to income not
requiring funds:
Depreciation 140,500 - 20,000 649,500 810,000
Amortization - - - - -
Amortization on water tower - - - - -
Transfer working capital to other funds - 329,583 (329,583) - -
Proceeds from borrowing - 500,000 - - 500,000
Increases in collection of
special assessments - - - 55,000 55,000
Total funds provided (applied) 26,517 829,583 (309,583) 533,845 1,080,362
Funds applied
Principal payments on debt - - - 481,384 481,384
Capital outlay 926,568 926,568
Paid to utility for implicit cash subsidy - - - - -
Total funds applied - 926,568 - 481,384 1,407,952
Interfund transfers - interest earnings (2,100) 500 100 1,500 -
Increase (decrease) in
working capital 24,417 (96,485) (309,483) 53,961 (327,590)
Working capital, beginning of year 75,684 96,485 388,965 1,457,928 2,019,062
Working capital, end of year $100,101 - 79,482 1,511,889 1,691,472
132.26% -100.00% -79.57% 3.70% -16.22%
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2017 BUDGET
Schedule 4
FUND DESCRIPTION
Operations and Maintenance Recommended to fund 3 months of operations and maintenance costs.
Construction Accounts for borrowed funds or interfund transfers from working capital to cover the cost of
capital projects.
Depreciation Is available for the acquisition of capital equipment not financed by a revenue bond issue.
Debt Service Accounts as a reserve for a required percentage of the annual principal and interest payments on
the outstanding debt.
CITY OF MUSKEGO WATER UTILITY
WORKING CAPITAL FUND DESCRIPTIONS
2017 BUDGET