FINANCE COMMITTEE Packet - 8/23/2016
CITY OF MUSKEGO
FINANCE COMMITTEE AGENDA
August 23, 2016
5:30 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
PUBLIC MEETING NOTICE
APPROVAL OF MINUTES - July 26, 2016
LICENSE APPROVALS
1. Recommend Approval of Operator Licenses
2. Recommend Approval of Outside Dance Permit - Marx Pioneer Inn, W180 S7808
Pioneer Drive, October 8, 2016 - Music from 4:00 pm to 11:00 pm
3. Recommend Amendment to Licensed Premise to Include Parking Lot - The Suburban
Bourbon, S76 W17745 Janesville Road, August 24, 2016 - 2:00 pm to 9:00 pm
4. Recommend Approval of Temporary License to Sell Fermented Malt Beverages -
Muskego Corvette Club - August 27, 2016
2015 AUDIT PRESENTATION
NEW BUSINESS
1. Recommend Approval to Apply for the 2016 Emerald Ash Borer (EAB) Mitigation
Grant
2. Recommendation Regarding Eligibility for Exemption from the County Library Tax
Levy for 2017
3. Recommend Approval of Edgewater Heights and Edgewater Heights Addition #1
Subdivider's Agreement
4. Update Per City Attorney Employment Agreement
VOUCHER APPROVAL
1. Utility Vouchers
2. Tax Vouchers
3. General Fund Vouchers
4. Wire Transfers for Payroll/Invoice Transmittals
Finance Committee Agenda 2
August 23, 2016
FINANCE DIRECTOR’S REPORT
1. Finance & Administration Department Quarterly Report
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.
Unapproved
CITY OF MUSKEGO
FINANCE COMMITTEE MINUTES
July 26, 2016
6:00 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Chiaverotti called the meeting to order at 6:00 p.m.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
ROLL CALL
Present: Committee Members Aldermen Wolfe, Engelhardt and Madden. Also present:
Aldermen Borgman, Kapusta and Kubacki as well as City Attorney Warchol, Community
Development Director Muenkel, Director of Public Works/City Engineer Simpson and Deputy
Clerk Blenski.
PUBLIC MEETING NOTICE
The Deputy Clerk stated that the meeting was noticed in accordance with the open meeting
law.
APPROVAL OF MINUTES - July 12, 2016
Alderman Engelhardt made a motion to approve. Alderman Wolfe seconded; motion
carried.
LICENSE APPROVALS
Recommend Approval of Operator Licenses
Alderman Madden made a motion to recommend approval of Operator Licenses for
Hailey Clark, Morgan Holzschuh, Adam Johnson, Dana King, Morgan Kaskowski,
Martha Mantanona, Daniell McDowell, Jessica Moore, Bailey Pietsch and Dane
Wojciehowski. Alderman Wolfe seconded; motion carried.
Recommend Approval of Outside Dance Permit - A.J.'s Bar & Grill, S90 W13970 Boxhorn
Drive - 8/19/2016 Music from 6:00 pm to 10:00 pm
Alderman Madden made a motion to recommend approval. Alderman Wolfe
seconded; motion carried.
NEW BUSINESS
Recommendation Authorizing the Mayor to Approve Vouchers (August 9 and November 8)
Mayor Chiaverotti stated those meetings will be canceled due to the elections.
Alderman Madden made a motion to recommend approval. Alderman Wolfe
seconded; motion carried.
Finance Committee Minutes 2
July 26, 2016
Reallocation of 2016 Capital Funds
Mr. Muenkel stated that the 2016 capital budget reflects funds for several recreation trails.
However, the Public Works Committee has recently removed some of the trails that were
approved, such as Martin Drive (Janesville to Lannon). The design and construction of the
North Cape trail is well under budget. The Parks & Conservation Committee
discussed reallocating some of the remaining funds ($160,000+) this year to complete the
following projects:
Design Janesville Road (Jimmy’s Car Wash to InPro – 650’)
Design Martin Drive (Janesville to Atonement Lutheran Church – 650’)
Erect signage to show on-road connection from Woods Road north through the Plum
Creek Subdivision to the connector to the WE Energies trail
In addition, Mr. Muenkel stated an extension of the trail from the Woodland Creek Subdivision
to the high school is proposed.
Alderman Wolfe requested a section on Janesville Road in his district at the City’s entrance be
included.
Mr. Muenkel stated approximately $80,000 would be reallocated for design of the proposed
trails. Mr. Simpson recommended adding the section of trail that Alderman W olfe requested.
He will obtain RFP's for all except Martin Drive, which will be done in house. He will bring the
cost information back to the Finance Committee for final determinations.
Alderman Madden made a motion to approve as discussed. Alderman Engelhardt
seconded; motion carried.
VOUCHER APPROVAL
Utility Vouchers
Alderman Wolfe made a motion to recommend approval of Utility Vouchers in the
amount of $402,196.07. Alderman Madden seconded; motion carried.
General Fund Vouchers
Alderman Wolfe made a motion to recommend approval of General Fund Vouchers in
the amount of $1,411,037.84. Alderman Engelhardt seconded; motion carried.
Wire Transfers for Payroll/Invoice Transmittals
Alderman Wolfe made a motion to recommend approval of Wire Transfers for
Payroll/Invoice Transmittals in the amount of $315,353.17. Alderman Madden
seconded; motion carried.
ADJOURNMENT
Alderman Engelhardt made a motion to adjourn at 6:13 p.m. Alderman Wolfe
seconded; motion carried.
Minutes taken and transcribed by Jill Blenski, Deputy Clerk.
Finance Committee Minutes 3
July 26, 2016
OPERATOR LICENSE APPROVALS
COMMON COUNCIL – 8/23/2016
Ashley Bartowiak
Jennifer Bohme
Robert Bruss
Scott Byrnes
Richard Curley
Tatjana Dacic
Phillip Kloss
Kristin Ksobiech
Julie Reichert
Jodi Ristow
Patti Schultz
Ericka Shulta
Kathryn Sier
Michael Tersen
Alma Zavala
T:\Departments\FinanceAdmin\Clerk\Licenses\Oper Lic Approval Lists\2016
CITY OF MUSKEGO
Muskego, Wisconsin
FINANCIAL STATEMENTS
Including Independent Auditor’s Report
As of and for the Year Ended December 31, 2015
City of Muskego
Index to Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Independent Auditors' Report 1 – 2
Management's Discussion and Analysis 3 – 12
Basic Financial Statements
Statement of Net Position 13
Statement of Activities 14
Balance Sheet – Governmental Funds 15
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 16
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities 17
Statement of Revenues, Expenditures, and Changes in Fund
Balance – Budget and Actual – General Fund 18
Statement of Net Position – Proprietary Funds 19
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Funds 20
Statement of Cash Flows – Proprietary Funds 21 – 22
Statement of Fiduciary Net Position – Fiduciary Funds 23
Statement of Changes in Fiduciary Net Position – Fiduciary Funds 24
Index to Notes to Financial Statements 25
Notes to Financial Statements 26 – 65
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Asset - Wisconsin
Retirement System 66
Schedule of Employer Contributions – Wisconsin Retirement System 66
Notes to Required Supplementary Information 67
City of Muskego
Index to Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Supplementary Information
Combining Balance Sheet – Non-major Governmental Funds –
Special Revenue Funds 68 – 69
Combining Balance Sheet – Non-major Governmental Funds –
Capital Projects Funds 70
Combining Balance Sheet – Non-major Governmental Funds 71
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds – Special Revenue Funds 72 – 73
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds – Capital Projects Funds 74
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-major Governmental Funds 75
INDEPENDENT AUDITORS’ REPORT
MANAGEMENT’S DISCUSSION
AND
ANALYSIS
Page 3
City of Muskego, Wisconsin
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
As management of the City of Muskego, we offer readers of these financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
December 31, 2015. The discussion and analysis presents the highlights of financial activities
and financial position for the City of Muskego (City). The analysis focuses on significant financial
issues, major financial activities and resulting changes in financial position, budget changes and
variances from the budget, and specific issues related to funds and the economic factors affecting
the City.
Financial Highlights
The net position of the City exceeded its liability by $133,320,330 as of December 31,
2015. Of this amount, $21,024,622 (unrestricted net position) may be used to meet the
government’s ongoing obligations to citizens and creditors. Compared to the prior year,
the City’s total net position increased by $5,463,084.
At the close of the 2015 fiscal year, the City’s governmental funds reported combined
ending fund balances of $17,485,030, which is an increase of $103,970 in comparison
with the prior year. Of this total amount, approximately 79% or $13,886,854 is available
for spending at the government’s discretion (committed, assigned and unassigned fund
balances).
The City’s combined committed and unassigned fund balance for the General Fund was
$4,449,520 or 32% of the total general fund expenditures (including transfers out) for
fiscal year 2015. Of this total, $2,529,212 is committed to meet the requirements of the
City’s Fund Balance and Annual General Fund Budgeted Contingency policy.
The City of Muskego’s total long-term debt, excluding compensated absences,
decreased by $2,735,731 (8%) during the 2015 fiscal year. The decrease was due to the
net of scheduled payments.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Muskego’s
basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements and 3) notes to the
financial statements. This report also contains other supplementary information in addition to the
basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City of Muskego’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred outflow of
resources, liabilities, and deferred inflows of resources, with the difference reported as net
position. Over time, increases or decreased in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation and
sick leave).
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 4
Government-wide Financial Statements (continued)
Both the government-wide financial statements distinguish functions of the City of Muskego that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City of Muskego
include general government, protection of persons and property, highways and transportation,
health and sanitation, recreation and education and conservation and development. Business-
type activities of the City include the Sewer Utility and the Water Utility.
The government-wide financial statements include the City of Muskego and the following
component units: The Community Development Authority and the Big Muskego Lake Bass Bay
Protection and Rehabilitation District. There are no other organizations or agencies whose
financial statements should be combined and presented with the financial statements of the City.
The government-wide financial statements can be found on pages 13 through 14 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City of Muskego, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental funds financial statements focus on the
near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Muskego maintains twenty-four individual governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures and changes in fund balances for the General Fund, Debt
Service Fund, Capital Budget Fund and Tax Increment District Capital Project Funds, all of which
are considered to be major funds. Individual fund data for each of the eighteen non-major
governmental funds is provided in the form of combining statements and can be found on pages
68 through 75 of this report.
The City of Muskego adopts an annual appropriated budget for its General Fund. A budgetary
comparison statement has been provided for the General Fund to demonstrate compliance with
its budget on page 18 this report. The basic governmental fund financial statements can be
found on pages 15 through 18 of this report.
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 5
Proprietary Funds
The City of Muskego maintains one type of proprietary fund: Enterprise funds are used to report
the same functions presented as business-type activities in the government-wide financial
statements. The City of Muskego maintains two enterprise funds.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water and sewer operations, both of which are considered to be major funds of
the City.
The basic proprietary fund financial statements can be found on pages 19 through 22 of this
report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement
because the resources of those funds are not available to support the City of Muskego’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The fiduciary funds for the City are private purpose trust funds and agency funds. Total assets of
the fiduciary funds were $34,575,616.
The basic fiduciary funds financial statements can be found on pages 23 and 24 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial
statements can be found on pages 25 through 65 of this report.
Other Information
The combining statements referred to earlier in connection with non-major governmental funds is
presented immediately following the notes to the financial statements. Combining and individual
fund statements and schedules can be found on pages 68 through 75 of this report.
Government-Wide Financial Analysis
As financial information is accumulated from year-to-year, changes in net position may serve as a
useful indicator of a government’s financial position. In the case of the City of Muskego, assets
and deferred outflows of resources exceeded liabilities and deferred inflows of resources by
$133,320,330 as of December 31, 2015.
The largest portion of the City of Muskego’s net position (74.16%) reflects its investment in capital
assets (e.g., land, buildings, improvements, and machinery and equipment), less any debt used
to acquire those assets that is still outstanding. The City of Muskego uses these capital assets to
provide services to citizens. Consequently, these assets are not available for future spending.
Although the City’s investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 6
The following provides a summary of the City’s net position:
2015 2014 2015 2014 2015 2014
Current and other
assets $33,638,166 $ 32,687,841
20,878,420$ 20,532,765$ $ 54,516,586 $ 53,220,606
Capital assets 59,128,470 57,383,440 70,412,994 69,875,119 129,541,464 127,258,559
Total assets 92,766,636 90,071,281 91,291,414 90,407,884 184,058,050 180,479,165
Deferred outflows
of resources 1,376,166 - 157,507 - 1,533,673 -
Total Assets and
Deferred Outflows
of Resources 94,142,802 90,071,281 91,448,921 90,407,884 185,591,723 180,479,165
Current liabilities 1,390,371 2,009,562 1,850,623 1,930,623 3,240,994 3,940,185
Noncurrent outstanding 30,276,096 32,722,727 4,560,428 4,957,204 34,836,524 37,679,931
Other liabilities - - 578,814 591,313 578,814 591,313
Total liabilities 31,666,467 34,732,289 6,989,865 7,479,140 38,656,332 42,211,429
Deferred inflows
of resources 13,615,061 13,471,427 - - 13,615,061 13,471,427
Net investment
in capital assets 34,240,491 30,509,474 65,998,220 65,298,894 98,875,165 94,374,332
Restricted 4,659,736 3,579,135 8,760,807 8,198,062 13,420,543 11,777,197
Unrestricted 9,961,047 7,778,956 9,700,029 9,431,788 21,024,622 18,644,780
Total net position 48,861,274 41,867,565 84,459,056 82,928,744 133,320,330 124,796,309
Total Liabilities, Deferred
Inflows of Resources,
and Net Position $94,142,802 $ 90,071,281 $ 91,448,921 $ 90,407,884 $185,591,723 $180,479,165
City of Muskego - Net Position
Governmental Activities Business - type Activities Total
At the end of the 2015 fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
Changes in Net position
As of December 31, 2015, total net position of the City of Muskego amounted to $133,320,330,
which is an increase of $8,524,021 as compared to the 2014 fiscal year end. The major change
attributing to this increase is a $3.06 million restatement of beginning net position related to the
implementation of GASB 68 and GASB 71 relating to the WRS net pension asset. Other item
attributing to the increase is a $1.7 million in road related net capital assets being depreciated.
Net position of the City’s governmental activities totaled $48,861,274, which is an increase of
$6,993,709 as compared to the prior year. Of this total, $9,961,047 or 20.39% is classified as
unrestricted assets and may be used to finance the City’s ongoing obligations to citizens and
creditors. The restricted net position portion (9.53%) represents resources that are subject to
external restrictions on how they may be used, which include financing for debt service.
*The net position section includes an adjustment for capital assets owned by the business-type
activities, but financed by the debt of the governmental activities.
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 7
The business-type activities net position amounted to $84,459,056, an increase of $1,530,312.
The unrestricted balance of $9,700,029 is used to finance the continued operations of the water
and sewer utilities.
The following schedule highlights the key elements of the City’s revenues and expenses for the
2015 and 2014 fiscal year ends. These two main components are subtracted to yield the change
in net position and are summarized as follows:
2015 2014 2015 2014 2015 2014
Revenues:
Program Revenues
Charges for services $ 5,177,268 $ 4,674,731 $ 8,085,013 $ 7,956,324 $ 13,262,281 $ 12,631,055
Operating grants and
contributions 1,683,410 1,487,030 - - 1,683,410 1,487,030
Capital grants and contributions 193,651 107,145 2,538,685 685,072 2,732,336 792,217
General Revenues
Property taxes 13,426,112 13,469,824 - - 13,426,112 13,469,824
Other Taxes 133,220 126,427 -- 133,220 126,427
Grants and contributions not
restricted to specific programs 449,964 467,674 - - 449,964 467,674
Unrestricted investment
earnings 314,311 252,180 71,552 69,336 385,863 321,516
Miscellaneous 3,265 2,052 - - 3,265 2,052
Total Revenues 21,381,201 20,587,063 10,695,250 8,710,732 32,076,451 29,297,795
Expenses:
General government 2,570,943 2,935,787 - - 2,570,943 2,935,787
Public safety 6,206,086 6,808,496 - - 6,206,086 6,808,496
Highway and transportation 3,395,166 4,340,905 - - 3,395,166 4,340,905
Health and sanitation 1,192,898 1,189,620 - - 1,192,898 1,189,620
Economic development 1,175,614 39,947 - - 1,175,614 39,947
Education and recreation 2,135,018 3,043,856 - - 2,135,018 3,043,856
Interest on long-term debt 989,440 1,011,994 - - 989,440 1,011,994
Sewer - - 7,240,000 6,838,675 7,240,000 6,838,675
Water - - 1,708,202 1,785,038 1,708,202 1,785,038
Total Expenses 17,665,165 19,370,605 8,948,202 8,623,713 26,613,367 27,994,318
Decrease in Net Position before
transfers 3,716,036 1,216,458 1,747,048 87,019 5,463,084 1,303,477
Transfers 526,368 479,358 (526,368) (479,358) - -
Change in Net Position 4,242,404 1,695,816 1,220,680 (392,339) 5,463,084 1,303,477
Net Position - Beginning (Restated) 44,618,870 40,171,749 83,238,376 83,321,083 127,857,246 123,492,832
Net Position - Ending $ 48,861,274 $ 41,867,565 $ 84,459,056 $ 82,928,744 $ 133,320,330 $ 124,796,309
City of Muskego's Change in Net Position
Governmental
Activities
Business-type
Activities Total
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 8
Governmental Activities
The table below discloses cost of services for Governmental Activities. The total cost of services
column contains all costs related to the programs. The net of services column shows how much
of the total amount is not covered by program revenues. Succinctly put net costs that must be
covered by local taxes or other general revenue or transfers.
2015 2014 2015 2014
General government 2,570,943$ 2,935,787$ (2,261,720)$ (2,618,517)$
Public safety 6,206,086 6,808,496 (5,078,787) (5,667,634)
Public works 3,395,166 4,340,905 (1,869,777) (3,130,724)
Health and sanitation 1,192,898 1,189,620 1,987,098 1,603,236
Conservation & development 1,175,614 39,947 (1,087,789) 43,907
Education and recreation 2,135,018 3,043,856 (1,310,421) (2,319,973)
Interest and long-term debt 989,440 1,011,994 (989,440) (1,011,994)
17,665,165$ 19,370,605$ (10,610,836)$ (13,101,699)$
Net (Expenses)
of Services
Programs
Total
Services
Total Cost of
The major change in total cost of services was reflected in the public works, education and
recreation functions, which decreased by approximately $1.8 million. In 2015, these functions
included $1.5 million of developer contributions and $300,000 of expenditure reductions due to
merging the parks functions with public works.
Net cost of services is 60% of total cost of services in 2015. This reflects a continued reliance on
taxes and other general revenue sources to fund the cost of services.
The graph below shows the percentage of the total governmental activities revenues allocated by
each revenue type.
Charges for
Services
24.37%
Operating Grants
and Contributions
7.92%Capital Grants
and Contributions
0.91%
Property taxes
63.19%
Shared Revenue
2.12%
Investment
Earnings
1.48%Miscellaneous
0.02%
Revenues by Source - Governmental Activities
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 9
Business-Type Activities
Total Business-type activities’ charges for service revenues for the year ending December 31,
2015 were $8,085,013, which is a slight increase of $128,689 over 2014. This was primarily due
to an increase in water utility rates. The Business-type activities increased the City of Muskego’s
net position by $1,220,680, which reflects additional capital contributions over the prior year.
The following graph shows the relationship between revenues and expenses for the City of
Muskego Sewer and Water Utilities.
The graph below displays the breakdown of revenues by source for the business-type activities.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Sewer Utility Water Utility
Expenses and Revenues - Business-type Activities
Expenses Charges for Service
Charges for
Service
75.59%
Investment
Earnings
0.67%
Capital Grants &
Contributions
23.74%
Revenues by Source - Business-type Activities
Charges for Service
Investment Earnings
Capital Grants & Contributions
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 10
Financial Analysis of the Government’s Funds
As noted earlier, the City of Muskego uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. This section will discuss major
developments within the City’s governmental funds and proprietary funds.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unrestricted fund balance (includes committed,
assigned and unassigned fund balance) may serve as a useful measure of a government’s net
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds – General Fund, Debt
Service Fund, Tax Increment District Capital Project Funds, and all Other Non-major
Governmental Funds – reported a combined ending fund balances of $17,485,030, an increase of
$103,970 in comparison with the prior year. Approximately 79% of this total amount
($13,886,854) is available for spending at the government’s discretion. However, approximately
68% of this amount ($9,437,334) is classified as committed, assigned or reported in special
revenue funds or capital projects funds. The remainder of the fund balance is non-spendable or
restricted.
General Fund
The General Fund is the chief operating fund of the City. During 2015, the General Fund balance
increased by $634,810. This was primarily due from contracting the assessor services, merging
the parks functions with public works, position vacancies, employee benefit reductions, reduced
utility related costs and increased interest earnings and additional transportation aids. At the end
of the year, the unassigned fund balance of the General Fund was $4,449,520, while total fund
balance reached $4,488,995. As a measure of the general fund’s liquidity, it is useful to compare
both unrestricted fund balance and total fund balance to total fund expenditures. The unassigned
fund balance represents 32% of total general fund expenditures.
Debt Service Fund
Fund balance in the Debt Service Fund increased by $25,311 during 2015. This increase
resulted from Tax Increment Districts #8, #9 & #10 transfers and reimbursements from Special
Revenue funds to reimburse the City for relative past borrowings.
Capital Budget Fund
Fund balance in the Capital Budget Fund decreased by $74,313 during 2015. This decrease
reflects the transfer of prior year borrowed funds to the water utility.
Proprietary Funds
The City’s proprietary fund statements provide the same type of information found in the
government-wide financial statements, but in more detail. At year-end, net position of the Sewer
Utility Fund amounted to $58,028,090 with the Water Fund totaling $26,430,966. The Sewer
Utility Fund and the Water Utility Fund increased in net position in 2015; $333,544 and $887,136,
respectively.
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 11
General Fund Budgetary Highlights
The 2015 final budget of $14,611,614 included no amendments for the year. During the year,
however, revenues were slightly more than budgetary revenues and expenditures were
significantly less than budgetary expenditures.
Capital Assets and Debt Administration
Capital Assets
The City of Muskego’s investment in capital assets for its governmental and business-type
activities as of December 31, 2015, amounts to $129,541,464 (net of accumulated depreciation).
This investment in capital assets includes land, buildings and improvements, equipment,
infrastructure and construction in progress.
Major capital events during the current year included the 911 equipment upgrade, road paving,
bridge reconstruction, security and surveillance system installation, storm water related
stabilization projects, various park improvements and public safety equipment purchases...
2015 2014 2015 2014 2015 2014
Land $ 5,539,706 $ 5,539,706 $ 272,448 $ 160,066 $ 5,812,154 $ 5,699,772
Intangibles 513,123 452,423 36,500 36,500 549,623 488,923
Construction in progress 1,014,372 2,241,810 43,311 59,409 1,057,68 3 2,301,219
Land Improvements 4,064,113 4,064,113 - - 4,064,1 13 4,064,113
Buildings 13,211,659 13,196,365 20,493,324 20,343,011 33,704,983 33,539,376
Equipment 8,095,825 7,743,413 4,552,931 4,469,850 12,648,756 12,213,263
Library Collection 3,170,887 2,989,271 - - 3,170,887 2,989,271
Infrasturcture 72,852,280 67,357,488 77,326,451 75,299,840 150,178,731 142,657,328
Acc. Deprectiation (49,333,495) (46,201,149) (32,311,971) (30,493,557) (81,645,466) (76,694,706)
Total $ 59,128,470 $ 57,383,440 $ 70,412,994 $ 69,875,119 $ 129,541,464 $ 127,258,559
City of Muskego's Capital Assets
(net of depreciation)
Governmental
Activities
Business-Type
Activities Total
Additional information on the City’s capital assets can be found in Note IV on pages 47 through
49 of this report.
Long-term Debt
As of December 31, 2015, the City of Muskego had general obligation bonds and notes
outstanding totaling $26,938,162. The City’s business-type activities include revenue bonds and
notes payable, which total $4,937,956.
In the current year, the City paid $2,117,616 in principal and $1,001,210 in interest on
outstanding debt. Business-Type Activities paid $538,147 in principal and $199,308 in interest on
its outstanding debt. There was also a transfer of $74,314 of unspent bond proceeds from the
Governmental Activities to the Business-Type Activities during 2015.
Of the total City debt, $2,586,329 will become due within one year. The City of Muskego has a
Moody’s “Aa2” rating on its General Obligation Debt, a Moody’s “Aa2” rating on its Sewer
Revenue Bonds and a Moody’s “Aa3” on its Water Revenue Bonds.
City of Muskego
Management Discussion and Analysis
As of and for the Year Ended December 31, 2015
(Unaudited)
Page 12
Long-term Debt (continued)
2015 2014 2015 2014 2015 2014
G.O. Bonds and Notes 26,938,162$ 29,130,092$ 1,308,409$ 1,350,990$ 28,246,571$ 30,481,082$
Revenue Bonds - - 1,850,000 1,950,000 1,850,000 1,950,000
Revenue Refunding Bonds - - 1,415,000 1,715,000 1,415,000 1,715,000
Wisconsin Safe Drinking
Water Loan - - 364,547 385,800 364,547 385,800
Total 26,938,162$ 29,130,092$ 4,937,956$ 5,401,790$ 31,876,118$ 34,531,882$
Total
City of Muskego's Outstanding Debt
General Obligation and Revenue Bonds
Activities
Governmental Business-Type
Activities
Additional information about the City’s long-term debt can be found in Note IV on pages 50
through 52 of the financial statements.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors are noteworthy:
The City of Muskego’s equalized valuation for 2015 (Tax Increment Value included)
amounted to a tax base of $2.7 billion which is a 2.34% increase over the prior year.
Growth is expected to increase for both residential and commercial development with
several new subdivision developments and recent creation of Tax Increment District #11.
Muskego’s financial position is expected to remain positive due in part to its trend of
regular General Fund operating surpluses and maintaining reserves resulting from sound
financial operations
Debt levels are expected to remain affordable due to a sound pace of amortization with
future borrowing plans.
The City of Muskego’s 2015 tax rate of $4.89 per thousand remained relatively flat as
compared to the prior year, which reflects a decrease of $0.01 per thousand.
All these factors were considered in preparing the City of Muskego’s budget for the year ending
December 31, 2015.
Requests for information
This financial report is designed to provide a general overview of the City of Muskego’s finances
for all those with an interest in the government’s finances. Readers having question about any of
the information in this report or needing additional information should contact Director of Finance
and Administration, City of Muskego, W182 S8200 Racine Ave, Muskego, WI 53150, direct
contact at 262-679-5622 or e-mail smueller@cityofmuskego.org.
BASIC FINANCIAL STATEMENTS
Governmental Business-type Component
Activities Activities Totals Unit
ASSETS
Cash and cash equivalents 17,056,599$ 7,027,179$ 24,083,778$ 190,355$
Temporary investments - 1,338,265 1,338,265 -
Receivables (net of allowance for uncollectibles)
Accounts 1,076,952 2,480,387 3,557,339 -
Loan 281,466 - 281,466 -
Due from other governments 182,080 - 182,080 -
Taxes 13,633,676 - 13,633,676 -
Prepaid items 39,650 2,595 42,245 -
Deferred charge - 520,240 520,240 -
Restricted Assets
Cash and cash equivalents - 8,937,534 8,937,534 -
RCA and WCA assessments receivable - 317,083 317,083 -
Net pension asset 1,367,743 153,926 1,521,669 -
Special assessments receivable - 101,211 101,211 -
Capital Assets
Land and easements 5,539,706 308,948 5,848,654 -
Construction in progress 1,014,372 43,311 1,057,683 -
Other capital assets, net of depreciation 52,574,392 70,060,735 122,635,127 -
Total Assets 92,766,636 91,291,414 184,058,050 190,355
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflow related to pension 1,376,166 157,507 1,533,673 -
Total Deferred Outflows of Resources 1,376,166 157,507 1,533,673 -
LIABILITIES
Accounts payable and other current liabilities 1,108,937 1,250,742 2,359,679 -
Accrued interest payable 230,791 - 230,791 -
Unearned revenue 50,643 105,822 156,465 -
Liabilities payable from restricted assets
Accounts payable - 1,511 1,511 -
Accrued interest payable - 35,022 35,022 -
Current portion of long-term debt - 457,526 457,526 -
Noncurrent Liabilities:
Due within one year 2,228,903 - 2,228,903 -
Due in more than one year 28,047,193 4,560,428 32,607,621 -
Unearned revenue - 578,814 578,814 -
Total Liabilities 31,666,467 6,989,865 38,656,332 -
DEFERRED INFLOWS OF RESOURCES
Unearned revenue 13,615,061 - 13,615,061 -
Total Deferred Inflows of Resources 13,615,061 - 13,615,061 -
NET POSITION
Net investment in capital assets 34,240,491 65,998,220 98,875,165 -
Restricted for:
Depreciation and equipment and replacement funds - 1,239,721 1,239,721 -
Water and sewer capacity assessment funds - 7,107,834 7,107,834 -
Tax increment district purposes 688,182 - 688,182 -
Debt service 2,603,811 259,326 2,863,137 -
Pensions 1,367,743 153,926 1,521,669 -
Unrestricted 9,961,047 9,700,029 21,024,622 190,355
TOTAL NET POSITION 48,861,274$ 84,459,056$ 133,320,330$ 190,355$
City of Muskego
Statement of Net Position
As of December 31, 2015
See accompanying notes to financial statements.
Page 13
Operating Capital
Charges for Grants and Grants and Governmental Business-type Component
Functions/Programs Expenses Services Contributions Contributions Activities Activities Totals Unit
Primary government
Governmental Activities
General government 2,570,943$ 309,223$ -$ -$ (2,261,720)$ -$ (2,261,720)$ -$
Public safety 6,206,086 942,703 176,424 8,172 (5,078,787) - (5,078,787) -
Public works 3,395,166 76,652 1,274,010 174,727 (1,869,777) - (1,869,777) -
Health and sanitation 1,192,898 3,106,869 73,127 - 1,987,098 - 1,987,098 -
Conservation and development 1,175,614 48,483 28,590 10,752 (1,087,789) - (1,087,789) -
Education and recreation 2,135,018 693,338 131,259 - (1,310,421) - (1,310,421) -
Interest on long-term debt and fiscal charges 989,440 - - - (989,440) - (989,440) -
Total Governmental Activities 17,665,165 5,177,268 1,683,410 193,651 (10,610,836) - (10,610,836) -
Business-type activities
Sewer Utility 7,240,000 6,102,976 - 1,424,593 - 287,569 287,569 -
Water Utility 1,708,202 1,982,037 - 1,114,092 - 1,387,927 1,387,927 -
Total Business-type Activities 8,948,202 8,085,013 - 2,538,685 - 1,675,496 1,675,496 -
Total primary government 26,613,367$ 13,262,281$ 1,683,410$ 2,732,336$ (10,610,836) 1,675,496 (8,935,340) -
Component Unit
Community Development Authority 115$ -$ -$ -$ - - - (115)
General Revenues
Taxes
Property taxes, levied for general purposes 11,286,767 - 11,286,767 -
Property taxes, levied for debt service 2,139,345 - 2,139,345 -
Other taxes 133,220 - 133,220 -
Intergovernmental revenues not restricted to specific programs 449,964 - 449,964 -
Investment income 314,311 71,552 385,863 -
Miscellaneous 3,265 - 3,265 -
Total General Revenues 14,326,872 71,552 14,398,424 -
Transfers 526,368 (526,368) - -
Change in Net Position 4,242,404 1,220,680 5,463,084 (115)
NET POSITION - Beginning of Year (Restated) 44,618,870 83,238,376 127,857,246 190,470
NET POSITION - END OF YEAR 48,861,274$ 84,459,056$ 133,320,330$ 190,355$
Program Revenues Changes in Net Position
Net (Expenses) Revenues and
City of Muskego
Statement of Activites
For the Year Ended December 31, 2015
See accompanying notes to financial statements. Page 14
Tax
Increment
Debt Capital District Nonmajor Total
General Service Budget Capital Project Governmental Governmental
Fund Fund Fund Funds Funds Funds
ASSETS
Cash and cash equivalents 4,737,648$ 2,834,602$ -$ 201,062$ 9,283,287$ 17,056,599$
Receivables - net
Accounts 168,844 - - - 908,108 1,076,952
Due from other governments 3,388 - - - 178,692 182,080
Taxes 10,174,724 2,139,345 - - 1,319,607 13,633,676
Loan receivables - - - - 281,466 281,466
Prepaid items 39,475 - - - 175 39,650
Total Assets 15,124,079$ 4,973,947$ -$ 201,062$ 11,971,335$ 32,270,423$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable 259,796$ -$ -$ 1,765$ 414,517$ 676,078$
Accrued liabilities 112,859 - - - - 112,859
Due to other governments - - - - 320,000 320,000
Unearned revenue 50,542 - - - 101 50,643
Total Liabilities 423,197 - - 1,765 734,618 1,159,580
Deferred Inflows of Resources
Unearned revenue 10,211,887 2,139,345 - - 1,263,829 13,615,061
Unavailable revenues - - - - 10,752 10,752
Total Deferred Inflows of Resources 10,211,887 2,139,345 - - 1,274,581 13,625,813
Fund Balances
Nonspendable 39,475 - - - 175 39,650
Restricted - 2,834,602 - 199,297 524,627 3,558,526
Committed - - - - 8,788,081 8,788,081
Assigned - - - - 649,253 649,253
Unassigned 4,449,520 - - - - 4,449,520
Total Fund Balances 4,488,995 2,834,602 - 199,297 9,962,136 17,485,030
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 15,124,079$ 4,973,947$ -$ 201,062$ 11,971,335$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. See Note II.59,128,470
Some receivables that are not curently available are reported as unavailable revenue in the fund financial statements
but are recognized as revenue when earned in the governemtn-wide statements 10,752
Net pension asset does not relate to current financial resources and is not reported in the governmental funds 1,367,743
Deferred outflow of resources related to pension do not relate to current financial resources and is not reported
in the governmental funds 1,376,166
Some liabilites, including long-term debt, are not due and payable in the current period and
therefore are not reported in the funds. See Note II.(30,506,887)
NET POSITION OF GOVERNMENTAL ACTIVITIES 48,861,274$
City of Muskego
Governmental Funds
As of December 31, 2015
Balance Sheet
See accompanying notes to financial statements.
Page 15
Tax
Increment
Capital District Nonmajor Total
Debt Budget Capital Project Governmental Governmental
General Service Fund Funds Funds Funds
REVENUES
Taxes 10,131,551$ 2,139,345$ -$ -$ 1,234,868$ 13,505,764$
Intergovernmental 1,692,627 - - - 557,218 2,249,845
Licenses and permits 762,419 - - - 7,078 769,497
Fines, forfeitures and penalties 235,358 - - - - 235,358
Public charges for services 697,355 - - - 3,259,394 3,956,749
Commercial revenue 258,263 3,666 - 356 137,617 399,902
Intergovernmental charges for services 149,077 - - - - 149,077
Interdepartmental revenues 73,555 - - - - 73,555
Total Revenues 14,000,205 2,143,011 - 356 5,196,175 21,339,747
EXPENDITURES
Current
General government 2,094,068 - - - 255,041 2,349,109
Public safety 6,026,425 - - - - 6,026,425
Public works 2,574,786 - - - 18,329 2,593,115
Health and sanitation 3,675 - - - 1,185,927 1,189,602
Conservation and development 338,990 - - 147,698 171,079 657,767
Education and recreation 1,823,081 - - - 6,961 1,830,042
Debt service
Principal retirement - 2,117,616 - - - 2,117,616
Interest - 1,001,210 - - - 1,001,210
Capital outlay 1,035,130 - - - 2,917,664 3,952,794
Total Expenditures 13,896,155 3,118,826 - 147,698 4,555,001 21,717,680
Deficiency of revenues under expenditures 104,050 (975,815) - (147,342) 641,174 (377,933)
OTHER FINANCING SOURCES (USES)
Transfers in 543,969 1,001,126 - - 1,827,063 3,372,158
Transfers out (42,063) - (74,313) - (2,803,727) (2,920,103)
Proceeds from sale of capital assets 28,854 - - - 994 29,848
Total Other Financing Sources (Uses) 530,760 1,001,126 (74,313) - (975,670) 481,903
Net Change in Fund Balance 634,810 25,311 (74,313) (147,342) (334,496) 103,970
FUND BALANCES - Beginning of Year 3,854,185 2,809,291 74,313 346,639 10,296,632 17,381,060
FUND BALANCES - END OF YEAR 4,488,995$ 2,834,602$ -$ 199,297$ 9,962,136$ 17,485,030$
City of Muskego
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended December 31, 2015
Governmental Funds
See accompanying notes to financial statements. Page 16
Net change in fund balances - total governmental funds 103,970$
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However in the
statement of net position, the cost of these assets is capitalized and they are
depreciated over their estimated useful lives and reported as deprecitaion
expense in the statement of activities.
Capital outlay reported as an expenditure in the fund financial statements
but is capitalized in the government-wide financial statements 3,952,794
Some items capitalized were not reported as capital outlay 181,616
Some items reported as capital outlay were not capitalized 913,663
Depreciation is reported in the government-wide statements (3,303,043)
Contributed capital assets are reported as revenue in the government-wide
statements.(68,351)
Receivables not currently available are reported as revenue when collected or
currently available in the fund financial statements but are recognized as
revenue when earned in the government-wide financial statements 10,752
Debt issued provides current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net position.
Repayment of debt principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net position
Transfer of debt to Enterprise Fund 74,313
Principal repaid 2,117,616
Amortization of premium on long term debt issues 69,207
Some expenses in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in the
governmental funds.
Compensated absences 185,495
Accrued interest on debt 11,768
Net pension asset (841,684)
Deferred outflows related to pensions 834,288
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 4,242,404$
To the Statement of Activities
City of Muskego
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
For the Year Ended December 31, 2015
See accompanying notes to financial statements. Page 17
Variance with
Final Budget -
Budgeted Amounts Over
Original and Final Actual (Under)
REVENUES
Taxes 10,136,898$ 10,131,551$ (5,347)$
Intergovernmental 1,625,084 1,692,627 67,543
Licenses and permits 744,495 762,419 17,924
Fines, forfeitures and penalties 209,000 235,358 26,358
Public charges for service 715,822 697,355 (18,467)
Commercial revenues 176,100 258,263 82,163
Intergovernmental charges for services 146,500 149,077 2,577
Interdepartmental revenues 224,070 73,555 (150,515)
Total Revenues 13,977,969 14,000,205 22,236
EXPENDITURES
Current
General government 2,279,199 2,094,068 (185,131)
Public safety 6,348,682 6,026,425 (322,257)
Public works 2,602,836 2,574,786 (28,050)
Health and sanitation 3,650 3,675 25
Conservation and development 353,413 338,990 (14,423)
Education and recreation 2,002,371 1,823,081 (179,290)
Capital Outlay 946,463 1,035,130 88,667
Contigency 75,000 - (75,000)
Total Expenditures 14,611,614 13,896,155 (715,459)
Excess (deficiency) of revenues over (under)
expenditures (633,645) 104,050 737,695
OTHER FINANCING SOURCES (USES)
Transfers in 609,645 543,969 (65,676)
Transfers out - (42,063) (42,063)
Sale of property 24,000 28,854 4,854
Total Other Financing Sources 633,645 530,760 (102,885)
Net Change in Fund Balance -$ 634,810 634,810$
FUND BALANCES - Beginning of Year 3,854,185
FUND BALANCES - END OF YEAR 4,488,995$
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
City of Muskego
General Fund
For the Year Ended December 31, 2015
See accompanying notes to financial statements.
Page 18
Business Type Activities
Enterprise Funds
Total
Sewer Water Enterprise
Utility Utility Funds
ASSETS
CURRENT ASSETS
Cash and cash equivalents 7,016,288$ 10,891$ 7,027,179$
Temporary investments 1,338,265 - 1,338,265
Receivables, net 2,027,693 452,694 2,480,387
Prepaid Items 1,161 1,434 2,595
Deferred charge 520,240 - 520,240
Restricted Assets
Cash and cash equivalents - 294,348 294,348
Total Current Assets 10,903,647 759,367 11,663,014
NON-CURRENT ASSETS
Restricted Assets
Cash and cash equivalents 6,955,973 1,687,213 8,643,186
RCA and WCA assessments receivable 189,358 127,725 317,083
Net pension asset 96,942 56,984 153,926
Capital Assets
Land and easements 130,918 178,030 308,948
Construction work in progress 11,231 32,080 43,311
Plant in service 63,185,970 39,186,735 102,372,705
Accumulated depreciation (21,912,478) (10,399,492) (32,311,970)
Other assets
Special assessments 22,469 78,742 101,211
Total Non-Current Assets 48,680,383 30,948,017 79,628,400
Total Assets 59,584,030 31,707,384 91,291,414
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 99,757 57,750 157,507
Total Deferred Outflows of Resources 99,757 57,750 157,507
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable 940,373 37,241 977,614
Accrued vacation, sick leave and compensatory time 183,337 89,791 273,128
Deferred lease and other revenue 15,447 90,375 105,822
Liabilities Payable From Restricted Assets
Accounts payable - 1,511 1,511
Current portion of long-term debt - 457,526 457,526
Accrued interest - 35,022 35,022
Total Current Liabilities 1,139,157 711,466 1,850,623
NON-CURRENT LIABILITIES
Long-term debt - 4,560,428 4,560,428
Unearned revenue 516,540 62,274 578,814
Total Non-current Liabilities 516,540 4,622,702 5,139,242
Total Liabilities 1,655,697 5,334,168 6,989,865
NET POSITION
Net investment in capital assets 41,415,640 24,582,580 65,998,220
Restricted for
RCA and WCA funds 6,274,375 833,459 7,107,834
Debt service - 259,326 259,326
Depreciation and equipment replacement funds 870,956 368,765 1,239,721
Pension 96,942 56,984 153,926
Unrestricted 9,370,177 329,852 9,700,029
TOTAL NET POSITION 58,028,090$ 26,430,966$ 84,459,056$
City of Muskego
Statement of Net Position
Proprietary Funds
As of December 31, 2015
See accompanying notes to financial statements.
Page 19
Business Type Activities
Enterprise Funds
Total
Sewer Water Enterprise
Utility Utility Funds
OPERATING REVENUES
Charges for services 6,088,830$ 1,838,637$ 7,927,467$
Other operating revenues 14,146 143,400 157,546
Total Operating Revenues 6,102,976 1,982,037 8,085,013
OPERATING EXPENSES
Operation and maintenance 6,184,145 696,904 6,881,049
Depreciation 1,055,855 786,369 1,842,224
Taxes - 25,621 25,621
Total Operating Expenses 7,240,000 1,508,894 8,748,894
Operating Income (Loss)(1,137,024) 473,143 (663,881)
NON-OPERATING REVENUES (EXPENSES)
Investment income 24,859 14,816 39,675
Interest income on special assessments 21,116 - 21,116
Amortization of bond premium - 10,761 10,761
Interest on long term debt - (199,308) (199,308)
Total Nonoperating Revenues (Expenses)45,975 (173,731) (127,756)
Income (Loss) before Contributions and Transfers (1,091,049) 299,412 (791,637)
CAPITAL CONTRIBUTIONS 1,424,593 1,114,092 2,538,685
TRANSFERS - TAX EQUIVALENT - (526,368) (526,368)
Change in Net Position 333,544 887,136 1,220,680
NET POSITION - BEGINNING OF YEAR (Restated) 57,694,546 25,543,830 83,238,376
NET POSITION - END OF YEAR 58,028,090$ 26,430,966$ 84,459,056$
For the Year Ended December 31, 2015
City of Muskego
Statement of Revenues, Expenses
And Changes in Fund Net Position
Proprietary Funds
See accompanying notes to financial statements. Page 20
Business Type Activities
Enterprise Funds
Total
Sewer Water Enterprise
Utility Utility Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 6,140,516$ 1,663,309$ 7,803,825$
Receipts from municipality for services - 318,270 318,270
Payments to other funds (41,934) - (41,934)
Paid to vendor for goods and services (5,270,339) (414,021) (5,684,360)
Paid to employees for services (852,767) (313,673) (1,166,440)
Net Cash Flows From Operating Activities (24,524) 1,253,885 1,229,361
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Received from Water Utility for subsidies 285,526 - 285,526
Paid to Sewer Utility for subsidies - (285,526) (285,526)
Paid to municipality for tax equivalent - (526,368) (526,368)
Net Cash Flows From Non-Capital Financing Activities 285,526 (811,894) (526,368)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Debt issued - 74,313 74,313
Debt retired - (538,147) (538,147)
Interest paid - (197,143) (197,143)
Special assessments received 410,694 197,695 608,389
Acquisition and construction of capital assets (205,346) (297,953) (503,299)
Connection fees received 31,000 - 31,000
Net Cash Flows From Capital and
Related Financing Activities 236,348 (761,235) (524,887)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Interest on investments 25,133 3,450 28,583
Interest on special assessments 21,116 11,368 32,484
Investments purchased (1,338,265) - (1,338,265)
Investments sold and matured 741,503 - 741,503
Net Cash Flows From Investing Activities (550,513) 14,818 (535,695)
Net Change in Cash and Cash Equivalents (53,163) (304,426) (357,589)
CASH AND CASH EQUIVALENTS - Beginning of Year 14,025,424 2,296,878 16,322,302
CASH AND CASH EQUIVALENTS - END OF YEAR 13,972,261$ 1,992,452$ 15,964,713$
City of Muskego
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2015
See accompanying notes to financial statements. Page 21
Total
Sewer Water Enterprise
Utility Utility Funds
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
Current:
Cash and cash equivalents 7,016,288$ 10,891$ 7,027,179$
Temporary investments 1,338,265 - 1,338,265
Restricted cash and cash equivaluents - 294,348 294,348
Non-current
Restricted cash and cash equivaluents 6,955,973 1,687,213 8,643,186
Less: Non-cash equivalents (1,338,265) - (1,338,265)
Cash and cash equivalents - end of year 13,972,261$ 1,992,452$ 15,964,713$
NON CASH INVESTING, CAPITAL AND RELATED FINANCING ACTIVITIES
Capital additions contributed
to the Utility by customers and developers 1,064,230$ 959,805$ 2,024,035$
Assessment of benefits for property owners for improvements 329,363$ 154,287$ 483,650$
Premium on debt issued for refunding -$ 10,761$ 10,761$
Reconciliation of operating income (loss) to net cash provided
by operating activities:
Operating Income (loss) (1,137,024)$ 473,143$ (663,881)$
Adjustments to reconcile operating income (loss) to net cash
provided by operating activities:
Depreciation 1,055,855 786,369 1,842,224
Depreciation charged to other accounts - 26,424 26,424
Pension related expense (1,693) (108) (1,801)
(Increase) decrease in assets:
Accounts receivable - other 37,540 (4,235) 33,305
Prepaid Items (1,161) 1,250 89
Deferred charge (129,128) - (129,128)
Increase (decrease) in liabilities:
Accounts payable 172,023 (21,472) 150,551
Accrued vacation, sick leave and compensatory time (20,936) (10,971) (31,907)
Unearned revenue - (292) (292)
Unearned lease revenue - 3,777 3,777
Total adjustments 1,112,500 780,742 1,893,242
Net Cash Flows From Operating Activities (24,524)$ 1,253,885$ 1,229,361$
Business Type Activities
Enterprise Funds
City of Muskego
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2015
(Concluded)
See accompanying notes to financial statements. Page 22
Volunteer
Library Fire Co.
Expansion Scholarship Agency
Trust Fund Fund Funds
ASSETS
Cash and cash equivalents 23,138$ 176,296$ 30,516,370$
Accounts receivable, net - - 68,706
Taxes receivable - - 3,791,106
Total Assets 23,138 176,296 34,376,182
LIABILITIES
Accounts payable - - 158,904
Due to other taxing units - - 33,997,402
Other Deferred Credits - - 107
Special deposits - - 219,769
Total Liabilities - - 34,376,182
NET POSITION
Restricted - held in trust 23,138 176,296 -
TOTAL NET POSITION 23,138$ 176,296$ -$
Private Purpose
Trust Funds
City of Muskego
As of December 31, 2015
Fiduciary Funds
Statement of Fiduciary Net Position
See accompanying notes to financial statements. Page 23
City of Muskego
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
Volunteer
Library Fire Co.
Expansion Scholarship
Trust Fund Fund
ADDITIONS
Investment income 77$ 229$
Total additions 77 229
DEDUCTIONS
Other expense 600 -
Change in Net Position (523) 229
NET POSITION - Beginning 23,661 176,067
NET POSITION - ENDING 23,138$ 176,296$
Trust Funds
Private Purpose
For the Year Ended December 31, 2015
See accompanying notes to financial statements. Page 24
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 25
NOTE Page
I. Summary of Significant Accounting Policies 26
A. Reporting Entity 26
B. Government-Wide and Fund Financial Statements 27
C. Measurement Focus, Basis of Accounting,
and Financial Statement Presentation 30
D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources and Net Position or Equity 32
1. Deposits and Investments 32
2. Receivables 34
3. Inventories and Prepaid Items 35
4. Restricted Assets 35
5. Capital Assets 35
6. Deferred Outflows of Resources 36
7. Compensated Absences 36
8. Long-Term Obligations 37
9. Utility Deferred Lease and Other Revenue 37
10. Deferred Inflows of Resources 37
11. Equity Classifications 38
E. Other Policies-Tax Incremental Districts 40
II. Reconciliation of Government-Wide and Fund Financial Statements 41
Explanation of Certain Differences Between the
Governmental Fund Balance Sheet and the Statement of Net Position 41
III. Stewardship, Compliance, and Accountability 42
A. Budgetary Information 42
B. Excess Expenditures Over Appropriations 42
C. Limitations on the City’s Tax Levy 42
IV. Detailed Notes on All Funds 43
A. Deposits and Investments 43
B. Restricted Assets 45
C. Receivables 46
D. Capital Assets 47
E. Interfund Transfers 49
F. Long-Term Obligations 51
G. Net Position / Fund Balances 53
H. Component Unit 57
I. Restatement of Net Position 57
V. Other Information 58
A. Employees’ Retirement System 58
B. Risk Management 63
C. Commitments and Contingencies 63
D. Water and Sewer Utility Rates 64
E. Antenna Lease Agreements 64
F. Effect of New Accounting Standards on Current Period Financial Statements 65
G. Subsequent Events 65
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 26
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES
The accounting policies of the City of Muskego, Wisconsin (“city”) conform to accounting
principles generally accepted in the United State of America as applicable to governmental units.
The accepted standard-setting body for establishing governmental accounting and financial
reporting principles is the Governmental Accounting Standards Board (GASB).
A. REPORTING E NTITY
This report includes all of the funds of the city. The reporting entity for the city consists of the
primary government and its component units. Component units are legally separate organizations
for which the primary government is financially accountable or other organizations for which the
nature and significance of their relationship with the primary government are such that their
exclusion would cause the reporting entity's financial statements to be misleading. The primary
government is financially accountable if (1) it appoints a voting majority of the organization's
governing body and it is able to impose its will on that organization, (2) it appoints a voting
majority of the organization's governing body and there is a potential for the organization to
provide specific financial benefits to, or impose specific financial burdens on, the primary
government, (3) the organization is fiscally dependent on and there is a potential for the
organization to provide specific financial benefits to, or impose specific financial burdens on, the
primary government. Certain legally separate, tax exempt organizations should also be reported
as a component unit if all of the following criteria are met: (1) the economic resources received or
held by the separate organization are entirely or almost entirely for the direct benefit of the
primary government, its component units, or its constituents; (2) the primary government or its
component units, is entitled to, or has the ability to access, a majority of the economic resources
received or held by the separate organization; and (3) the economic resources received or held by
an individual organization that the primary government, or its component units, is entitled to, or
has the ability to otherwise access, are significant to the primary government.
Component units are reported using one of two methods, discrete presentation or blending.
Generally, component units should be discretely presented in a separate column in the financial
statements. A component unit should be reported as part of the primary government using the
blending method if it meets any one of the following criteria: (1) the primary government and the
component unit have substantively the same governing body and a financial benefit or burden
relationship exists, (2) the primary government and the component unit have substantively the
same governing body and management of the primary government has operational responsibility
for the component unit, (3) the component unit serves or benefits, exclusively or almost
exclusively, the primary government rather than its citizens, or (4) the total debt of the component
unit will be paid entirely or almost entirely from resources of the primary government.
Discretely Presented Component Unit
Muskego Community Development Authority
The government-wide financial statements include the Muskego Community Development
Authority (“Authority”) as a component unit. The Authority is a legally separate organization. The
board of the Authority is appointed by the mayor and city council of the City of Muskego.
Wisconsin Statutes provide for circumstances whereby the city can impose their will on the
Authority, and also create a potential financial benefit to or burden on the city. See Note IV I. As
a component unit, the Authority’s financial statements have been presented as a discrete column
in the financial statements. The information presented is for the fiscal year ended December 31,
2015. The Authority does not issue separate financial statements.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 27
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
A. REPORTING E NTITY (continued)
Blended Component Unit
Big Muskego Lake – Bass Bay Protection and Rehabilitation District
The basic financial statements of the City also include the financial data of the City's component
unit, Big Muskego Lake - Bass Bay Protection and Rehabilitation District (district). The City
created the district under certain provisions of the Wisconsin Statutes in order to assist the City in
undertaking programs of lake protection and rehabilitation. The district’s governing body is
substantively the same as the City, with all members serving on the City common council and with
the Mayor acting as chairman. Separately issued financial statements for the district may be
obtained from the district’s office. The district is reported as part of the Non-Major Special
Revenue Funds.
B. GOVERNMENT-WIDE AND F UND FINANCIAL STATEMENTS
Government-Wide Financial Statements
In June 2012, the GASB issued statement No. 68 - Accounting and Financial Reporting for
Pensions - an amendment of GASB statement No. 27. This statement establishes standards for
measuring and recognizing assets, liabilities, deferred outflows of resources, deferred inflows of
resources, and expense/expenditures related to pensions. In November 2013, the GASB issued
statement No. 71 - Pension Transition for Contributions Made Subsequent to the Measurement
Date - an amendment of GASB Statement No. 68. This statement addresses an issue regarding
application of the transition provisions of Statement No. 68. These standards were implemented
January 1, 2015.
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds.
The statements distinguish between governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other non-
exchange revenues. Business-type activities are financed in whole or in part by fees charged to
external parties for goods or services. Likewise, the primary government is reported separately
from certain legally separate component units for which the primary government is financially
accountable.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 28
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
B. GOVERNMENT-WIDE AND F UND FINANCIAL STATEMENTS (continued)
Fund Financial Statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The City does not allocate indirect expenses to
functions in the Statement of Activities. Program revenues include 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services, or privileges provided by a
given function or segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not
included among program revenues are reported as general revenues. Internally dedicated
resources are reported as general revenues rather than as program revenues.
Fund Financial Statements
Financial statements of the City are organized into funds, each of which is considered to be a
separate accounting entity. Each fund is accounted for by providing a separate set of self-
balancing accounts, which constitute its assets, liabilities, deferred inflows of resources, net
position/fund balance, revenues, and expenditure/expenses.
Funds are organized as major funds or non-major funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary
categories. A fund is considered major if it is the primary operating fund of the City or meets the
following criteria:
a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources,
revenues, or expenditures/expenses of that individual governmental or enterprise fund are
at least 10 percent of the corresponding total for all funds of that category or type, and
b. The same element of the individual governmental or enterprise fund that met the 10
percent test is at least 5 percent of the corresponding total for all governmental and
enterprise funds combined.
In addition, any other governmental or enterprise fund that the City believes is particularly
important to financial statement users may be reported as a major fund.
Separate financial statements are provided for governmental funds and proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
The City reports the following major governmental funds:
General Fund – accounts for the City’s primary operating activities. It is used to account
for and report all financial resources except those required to be accounted for and
report in another fund.
Debt Service Fund – used to account for and report financial resources that are
restricted, committed, or assigned to expenditures for the payment of general long-
term debt principal, interest, and related costs, other than TID or enterprise debt.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 29
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
B. GOVERNMENT-WIDE AND F UND FINANCIAL STATEMENTS (continued)
Tax Increment District Capital Projects Funds – used to account for and report financial
resources that are restricted, committed, or assigned to expenditures for capital
outlays, including the acquisition or construction of capital facilities and other capital
assets for the Tax Increment District #8, 9 and 10.
Capital Budget Fund - used to account for and report financial resources that are
restricted, committed, or assigned to expenditures for capital outlay, including the
acquisition or construction of capital facilities and other capital assets.
The City reports the following major enterprise funds:
Sewer Utility – accounts for operations of the sewer system
Water Utility – accounts for operations of the water system
The City reports the following non-major governmental funds:
Special Revenue Funds – used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified
purposes (other than debt service or capital projects).
Parks Recreational Ticket
Compensated Absences Cable TV
Other Grant Capital Improvements
Refuse/Recycling Federated Library System
Revolving Loan Big Muskego Lake – Bass Bay
Landfill Standing Committee Protection and
Stormwater Management Rehabilitation District
Well Testing Reserve Landfill
Land Open Space Conservation Tax Increment District
Capital Projects Funds – used to account for and report financial resources that are
restricted, committed, or assigned to expenditures for capital outlay, including the
acquisition or construction of capital facilities and other capital assets.
Industrial Park Expansion Capital Equipment
In addition, the City reports the following fund types:
Private-purpose trust funds are used to account for and report any trust arrangement not properly
reported in a pension trust fund under which principal and income benefit the expansion of the
library or scholarships.
Library Expansion Volunteer Fire Co. Scholarship
Agency funds are used to account for and report assets held by the City in a trustee capacity or
as an agent for individuals, private organizations, and/or other governmental units.
Special Deposits Subsequent Years Tax Roll
Police Health Insurance Collections
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 30
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
C. MEASUREMENT F OCUS, B ASIS OF A CCOUNTING, AND F INANCIAL S TATEMENT P RESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual
basis of accounting, revenues are recognized when earned and expenses are recorded when the
liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and
liabilities resulting from exchange and exchange-like transactions are recognized when the
exchange takes place. Property taxes are recognized as revenues in the year for which they are
levied. Taxes receivable for the following year are recorded as receivables and deferred inflows.
Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider are met. Special assessments are recorded as revenue when earned.
Unbilled receivables are recorded as revenues when services are provided.
As a general rule, the effect of inter-fund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City’s water and
sewer utilities and various other functions of the government. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recorded when
they are both measurable and available. Available means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the
City considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures are recorded when the related fund liability is incurred, except
for un-matured interest on long-term debt, claims, judgments, compensated absences, and
pension expenditures, which are recorded as a fund liability when expected to be paid with
expendable available financial resources.
Property taxes are recorded in the year levied as receivables and deferred inflows. They are
recognized as revenues in the succeeding year when services financed by the levy are being
provided.
Intergovernmental aids and grants are recognized as revenues in the period the City is entitled to
the resources and the amounts are available. Amounts owed to the City which are not available
are recorded as receivables and unavailable revenues. Amounts received before eligibility
requirements (excluding time requirements) are met and recorded as liabilities. Amounts received
in advance of meeting time requirements are recorded as deferred inflows.
Special assessments are recorded as revenues when they become measurable and available as
current assets. Annual installments due in future years are reflected as receivables and
unavailable revenues. At December 31, 2015, there are unrecorded future assessments of
$642,393 in the Sewer Utility, which are not recorded as receivables because collection is subject
to certain events occurring in the future. No formal repayment schedule has been established.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 31
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
C. MEASUREMENT F OCUS, B ASIS OF A CCOUNTING,
AND F INANCIAL S TATEMENT P RESENTATION (continued)
Fund Financial Statements (continued)
Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for
services, special assessments and interest. Other general revenues such as fines and forfeitures,
inspection fees, recreation fees, and miscellaneous revenues are recognized when received in
cash or when measurable and available under the criteria described above.
Proprietary and fiduciary fund financial statements (other than agency funds) are reported using
the economic resources measurement focus and the accrual basis of accounting, as described
previously in this note. Agency funds follow the accrual basis of accounting, and do not have a
measurement focus.
The proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Water Utility and Sewer Utility are charges to customers for
sales and services. Special assessments are recorded as receivables and contribution revenue
when levied. Operating expenses for proprietary funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources
and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 32
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with
an initial maturity of three months or less when acquired to be cash equivalents.
Investment of City funds is restricted by Wisconsin state statutes. Available investments are
limited to:
1. Time deposits in any credit union, bank, savings bank or trust company maturing in
three years or less.
2. Bonds or securities of any county, city, drainage district, technical college district,
village, town, or school district of the state. Also, bonds issued by a local exposition
district, a local professional baseball park district, a local professional football stadium
district, a local cultural arts district, the University of Wisconsin Hospitals and Clinics
Authority, or the Wisconsin Aerospace Authority.
3. Bonds or securities issued or guaranteed by the federal government.
4. The local government investment pool.
5. Any security maturing in seven years or less and having the highest or second highest
rating category of a nationally recognized rating agency.
6. Securities of an open-end management investment company or investment trust, subject
to various conditions and investment options.
7. Repurchase agreements with public depositories, with certain conditions.
The City’s investment of library trust funds is regulated by Chapter 112 of the Wisconsin state
statutes. That section gives broad authority to use such funds to acquire various kinds of
investments including stocks, bonds and debentures.
The City has adopted an investment policy that follows state statues for allowable investments.
The City is exposed to various risks related to their cash and investments. The City’s policy
related to these risks is described below:
Custodial Credit Risk
The City’s policy indicates that to the extent possible bank balances should be maintained at
amounts less than or equal to the amounts insured by FDIC or State of Wisconsin guaranteed
amounts. (At year end the City had bank balances in excess of insured amounts as disclosed in
Note IV A.) Additionally, all certificates of deposit exceeding these coverage’s shall be
collateralized with U.S. securities or Wisconsin municipal debt. Collateral shall be in the City’s
name and held by a third party custodian.
Credit Risk
The City’s investment policy does not address this risk.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 33
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
1. Deposits and Investments (continued)
Interest Rate Risk
The City investment policy only addresses interest rate risk on certificates of deposit and
specifies that they must mature within three years or less from the date of investment.
Investments are stated at fair value, which is the amount at which an investment could be
exchanged in a current transaction between willing parties. Fair values are based on quoted
market prices. No investments are reported at amortized cost. Adjustments necessary to record
investments at fair value are recorded in the operating statement as increases or decreases in
investment income. Investment income on commingled investments of municipal accounting funds
is allocated based on the average investment balance. The difference between the bank balance
and carrying value is due to outstanding checks and/or deposits in transit.
The Wisconsin Local Government Investment Pool (LGIP) is part of the State Investment Fund
(SIF), and is managed by the State of Wisconsin Investment Board. The SIF is not registered with
the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin
Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the
LGIP have the right to withdraw their funds in total on one day’s notice. At December 31, 2014,
the fair value of the City’s share of the LGIP’s assets was substantially equal to the amount as
reported in these statements.
PMA Financial Network, Inc. is the administrator for the Wisconsin Investment Series Cooperative
(WISC). The investment manager for WISC is PMA Financial Network, Inc. The WISC is not
registered with the Securities and Exchange Commission, but invests its funds in accordance with
applicable Wisconsin statutes. The WISC has the characteristics of a mutual fund and
accordingly, reports the value of its underlying assets at fair value. At December 31, 2015, the
City’s share of the WISC’s assets was substantially equal to the amount reported.
Certificate of Deposit Account Registry Service (CDARS) is a member of a special network which
offers access to multi-million dollar FDIC insurance coverage on CD investments through one
bank.
See Note IV.A. for further information.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 34
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
2. Receivables
Property taxes are levied in December on the assessed value as of the prior January 1. In
addition to property taxes for the City, taxes are collected for and remitted to the state and county
governments as well as the local school district and technical college district. Taxes for all state
and local governmental units billed in the current year for the succeeding year are reflected as
receivables and due to other taxing units on the accompanying agency fund statement of fiduciary
net position.
Property tax calendar – 2015 tax roll:
Lien date and levy date December 2015
Tax bills mailed December 2015
Payment in full, or January 31, 2016
First installment due January 31, 2016
Second installment due April 30, 2016
Third installment due July 31, 2016
Personal property taxes in full January 31, 2016
Tax deed by county – 2015 delinquent
Real estate taxes October 2018
Accounts receivable have been shown net of an allowance for uncollectible accounts. Delinquent
real estate taxes as of July 31 are paid in full by the county, which assumes the collection thereof.
No provision for uncollectible accounts receivable has been made for the water and sewer utilities
because they have the right by law to place all delinquent bills on the tax roll, and other
delinquent bills are generally not significant.
During the course of operations, transactions occur between individual funds that may result in
amounts owed between funds. Short-term interfund loans are reported as “due to and from other
funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to
other funds.” Interfund receivables and payables between funds within governmental activities are
eliminated in the Statement of Net Position. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial
statements as internal balances.
The City has received state grant funds for economic development loan programs to various
businesses and individuals. The City records a loan receivable when the loan has been made
and funds have been disbursed. The amount recorded as economic development loans
receivable has not been reduced by an allowance for uncollectible accounts.
The Water and Sewer Utilities provide services to customers within the municipal boundaries.
Metered water sales to customers are billed on a quarterly basis at rates approved by the Public
Service Commission of Wisconsin. Sewer customers are billed rates established by the Common
Council. Bills are payable in 30 days. Delinquent balances at the time of the property tax lien date
are placed on the customer’s tax bill and collected through the normal tax collection process.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 35
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
3. Inventories and Prepaid Items
Governmental fund inventory items are charged to expenditure accounts when purchased. Year-
end inventory was not significant. Proprietary fund inventories are generally used for construction
and for operation and maintenance work. They are not for resale. They are valued at cost based
on weighted average, and charged to construction or operation and maintenance expense when
used.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements.
4. Restricted Assets
Mandatory segregations of assets are presented as restricted assets. Such segregations are
required by bond agreements and other external parties. Current liabilities payable from these
restricted assets are so classified. The excess of restricted assets over current liabilities payable
from restricted assets will be used first for retirement of related long-term debt. The remainder, if
generated from earning, is shown as restricted net position. Restricted net position principally
represents Water and Sewer Reserve Capacity Assessment Funds, Special Redemption Funds
and Equipment Replacement Funds restricted assets, less related current liabilities payable from
the restricted assets.
5. Capital Assets
Government–Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide
financial statements. Capital assets are defined by the government as assets with an initial cost of
more than $5,000 for general capital assets and $10,000 for infrastructure assets, and an
estimated useful life in excess of one year. All capital assets are valued at historical cost or
estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at
their estimated fair value at the date of donation.
Additions to and replacements of capital assets of business-type activities are recorded at original
cost, which includes material, labor, overhead, and an allowance for the cost of funds used during
construction when significant. For tax-exempt debt, the amount of interest capitalized equals the
interest expense incurred during construction netted against any interest revenue from temporary
investment of borrowed fund proceeds. No net interest was capitalized during the current year.
The cost of renewals and betterments relating to retirement units is added to plant accounts. The
cost of property replaced retired or otherwise disposed of, is deducted from plant accounts and,
generally, together with removal costs less salvage, is charged to accumulated depreciation.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 36
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
5. Capital Assets (continued)
Government–Wide Statements (continued)
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the
statement of activities, with accumulated depreciation reflected in the statement of net position.
Depreciation is provided over the assets’ estimated useful lives using the straight-line method.
The range of estimated useful lives by type of asset is as follows:
Buildings 20-50 Years
Land Improvements Other than Building 10-50 Years
Machinery and Equipment 3-20 Years
Utility System 19-125 Years
Infrastructure
Intangibles
10-50
5
Years
Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are
accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital
assets used in proprietary fund operations are accounted for the same way as in the government-
wide statements.
6. Deferred Outflows of Resources
A deferred outflow of resources represents a consumption of net position/fund balance that
applies to a future period and will not be recognized as an outflow of resources
(expense/expenditures) until that future time.
7. Compensated Absences
Under terms of employment, employees are granted sick leave and vacations in varying amounts.
Only benefits considered to be vested are disclosed in these statements.
All vested vacation and sick leave pay are accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental
funds only if they have matured, for example, as a result of employee resignations and
retirements, and are payable with expendable resources.
Payments for vacation and sick leave will be made at rates in effect when the benefits are used.
Accumulated vacation and sick leave liabilities at December 31, 2015 are determined on the basis
of current salary rates and include salary related payments.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 37
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
8. Long-Term Obligations
All long-term obligations to be repaid from governmental and business-type resources are
reported as liabilities in the government-wide statements. The long-term obligations consist
primarily of notes and bonds payable, and accrued compensated absences.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) is reported as other financing sources
and payments of principal and interest are reported as expenditures. The accounting in
proprietary funds is the same as it is in the government-wide statements.
For the government-wide statements and proprietary fund statements, bond premiums and
discounts are amortized over the life of the issue using the effective interest method. The balance
at year end is shown as an increase or decrease in the liability section of the statement of net
position.
9. Utility Deferred Lease and Other Revenue
Utility deferred lease and other revenue principally represents unearned special assessments
which will be reported as contributed capital when and if the property owner connects to the water
system and the assessment becomes due, and prepayments of reserve capacity assessments.
10. Deferred Inflows of Resources
A deferred inflow of resources represents an acquisition of net position/fund balance that applies
to a future period and therefore will not be recognized as an inflow of resources (revenue) until
that future time.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 38
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
11. Equity Classifications
Government–Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances
(excluding unspent bond proceeds) of any bonds, mortgages, notes, or other
borrowings that are attributable to the acquisition, construction, or improvement of
those assets.
b. Restricted net position – Consists of net position with constraints placed on the use
either by 1) external groups such as creditors, grantors, contributors, or laws or
regulations of other governments or, 2) law through constitutional provisions or
enabling legislation.
c. Unrestricted net position – All other net positions that do not meet the definition of
“restricted” or “net investment in capital assets.”
The net position section includes an adjustment for capital assets owned by the business-type
activities column, but financed by the debt of the governmental activities column. The amount is a
reduction of "net investment in capital assets", and an increase in "unrestricted" net position,
shown only in the total column. A reconciliation of this adjustment is as follows:
Governmental Business-type
Activities Activities Adjustment Total
Net investment in capital assets $ 34,240,491 65,998,220$ (1,363,546)$ 98,875,165$
Unrestricted 9,988,492 9,700,029 1,363,546 21,052,067
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 39
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
10. Equity Classifications (continued)
Fund Statements
Governmental fund balances are displayed as follows:
a. Non-spendable – Includes fund balance amounts that cannot be spent either because
they are not in spendable form or because legal or contractual requirements require
them to be maintained intact.
b. Restricted – Consists of fund balances with constraints place on their use either by 1)
external groups such as creditors, grantors, contributors, or laws or regulations of
other governments or 2) law through constitutional provisions or enabling legislation.
c. Committed - Includes fund balance amounts that are constrained for specific purposes
that are internally imposed by the government through formal action of the highest
level of decision making authority. Fund balance amounts are committed through a
formal action (resolution) of the city. This formal action must occur prior to the end of
the reporting period, but the amount of the commitment, which will be subject to the
constraints, may be determined in the subsequent period. Any changes to the
constraints imposed require the same formal action of the city that originally created
the commitment.
d. Assigned - Includes spendable fund balance amounts that are intended to be used for
specific purposes that do not meet the criteria to be classified as restricted or
committed. The City Council has, by resolution, adopted a financial policy authorizing
the Finance Committee to assigned amounts for a specific purpose. Assignments may
take place after the end of the reporting period.
e. Unassigned - Includes residual positive fund balance within the general fund which has
not been classified within the other above mentioned categories. Unassigned fund
balance may also include negative balances for any governmental fund if expenditures
exceeds amounts restricted, committed, or assigned for those purposes.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund
balance is available unless there are legal documents / contracts that prohibit doing this, such as
in grant agreements requiring dollar for dollar spending. Additionally, the City would first use
committed, then assigned and lastly unassigned amounts of unrestricted fund balance when
expenditures are made.
The City has a formal minimum fund balance policy. That policy is to maintain an unassigned fund
balance in the general fund of $2,529,212, or 17% of the ensuing year’s budgeted general fund
expenditures. The balance at year end was $4,449,520 or 30% of 2015 budgeted general fund
expenditures.
Proprietary fund equity is classified the same as in the government-wide statements.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 40
NOTE I – SUMMARY OF S IGNIFICANT A CCOUNTING POLICIES (continued)
D. ASSETS, D EFERRED O UTFLOWS OF RESOURCES, LIABILITIES, D EFERRED INFLOWS OF
RESOURCES AND NET P OSITION OR EQUITY (continued)
10. Equity Classifications (continued)
Fund Statements (continued)
Fiduciary fund equity is classified as held in trust for the Library Expansion Trust and the
Volunteer Fire Co. Scholarship on the statement of fiduciary net position. Various donor
restrictions apply, including authorizing and spending trust income, and the City believes it is in
compliance with all significant restrictions.
E. OTHER POLICIES - TAX I NCREMENTAL D ISTRICTS
The City has created a number of “City of Muskego Tax Incremental Districts” to encourage
development of the City tax base, efficient use of land, buildings and public improvements and
private investment in various specific areas of the City. Property taxes of each specific District
generated in future years, measured by the increment in value of the property in the district over
the base year, will be used to retire the interest and principal of the related debt incurred to
finance the project costs. Below is a summary of each district:
1. District No. 8 was created in 2000 and is for the development of the City’s downtown
area. Project costs were originally estimated at $2.7 million. In September, 2005 the
City amended the project plan to include an additional $855,000 in project costs.
2. District No. 9 was created in 2003 for development in the City’s Community
Development Authority Redevelopment District No. 1. Project costs were estimated
at $1.5 million and have been financed with a $2.0 million Community Development
Lease Revenue Bond.
3. District No. 10 was created in 2007 and is a mixed use tax increment district
comprised of the east and west sides of Moorland Road from College Avenue on the
north to one-half mile south. Project costs were estimated at $8.3 million and have
been financed with $9.25 million bonds.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 41
NOTE II – RECONCILIATION OF G OVERNMENT–WIDE AND FUND F INANCIAL STATEMENTS
EXPLANATION OF CERTAIN D IFFERENCES B ETWEEN THE G OVERNMENTAL
FUND B ALANCE S HEET AND THE S TATEMENT OF N ET P OSITION
The governmental fund balance sheet includes reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide
statement of net position. The details of this reconciliation include the following items.
Capital assets used in governmental funds are not financial resources and, therefore, are not
reported in the funds.
Land 5,539,706$
Intangibles 513,123
Construction in progress 1,014,372
Land improvements 4,064,113
Buildings 13,211,659
Machinery and equipment 8,095,825
Library collection 3,170,887
Infrastructure 72,852,279
Less: Accumulated depreciation (49,333,494)
Adjustment for Capital Assets 59,128,470$
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the
current period, and accordingly, are not reported as fund liabilities. Interest on long-term debt is
not accrued in governmental funds, but rather is recognized as an expenditure when due. All
liabilities–both current and long-term–are reported in the statement of net position.
Bonds and notes payable $ 26,938,162
Compensated absences 2,574,728
Unamortized debt premium 763,206
Accrued interest 230,791
Combined Adjustment for Long-Term Liabilities $ 30,506,887
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 42
NOTE III – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY I NFORMATION
Budgetary information is derived from the annual operating budget and is presented using the
same basis of accounting for each fund as described in Note I.C.
A budget has been adopted for the General Fund, certain Special Revenue Funds, Debt Service
Funds, certain Capital Project Funds, the Water Utility and Sewer Utility. Budgets have not been
formally adopted for the Federated Library System Fund, Industrial Park Expansion Fund, and
Agency Funds. Wisconsin Statute 65.90 requires that an annual budget be adopted for all funds.
Appropriations lapse at year end unless specifically carried over by the Common Council. There
were no carryovers to the following year. Budgetary control is exercised at the fund level for all
funds.
B. EXCESS E XPENDITURES OVER APPROPRIATIONS
Expenditures exceeded appropriations due to the unbudgeted costs in the following funds. The
excess expenditures were covered by additional revenues received or use of available fund
balance.
Fund
Budgeted
Expenditures
Actual
Expenditures
Excess
Expenditures
Over Budget
Debt Service Fund
Debt Service Budget 3,112,120$ 3,118,826$ 6,706$
Capital Projects Fund
Capital Budget 1,745,673 1,983,890 238,217
Tax Increment District - 147,698 147,698
Special Revenue Funds
Parks 313,000 361,252 48,252
Revolving Loan 8,500 10,704 2,204
Capital Improvement - 13,466 13,466
Tax Increment District 377,500 468,150 90,650
Compensated Absences 203,388 233,891 30,503
C. L IMITATIONS ON THE CITY’S T AX LEVY
Wisconsin law limits the City’s future tax levies. Generally, the City is limited to its prior tax levy
dollar amount (excluding TIF Districts), increased by the greater of the percentage change in the
City’s equalized value due to new construction or zero percent. Changes in debt service from one
year to the next are generally exempt from this limit with certain exceptions. The City is required
to reduce its allowable levy by the estimated amount of fee revenue it collects for certain services,
if those services were funded in 2015 by the property tax levy. Levies can be increased above
the allowable limits if the amount is approved by referendum.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 43
NOTE IV – DETAILED N OTES ON ALL F UNDS
A. DEPOSITS AND I NVESTMENTS
The City’s cash and investments at year end were comprised of the following:
Carrying Bank Associated
Value Balance Risks
Deposits with banks 64,618,604$ 60,983,390$ Custodial Credit Risk
LGIP 43,327 43,327 Credit Risk
Wisconsin Investment Series Cooperative (WISC) 411,665 411,665 Credit and Interest Rate
Risk
Petty cash 1,785 - None
Total Cash and Investments 65,075,381$ 61,438,382$
Reconciliation to financial statements
Per statement of net position
Unrestricted cash and investments 24,083,778$
Temporary investments 1,338,265
Restricted cash and investments 8,937,534
Per statement of net position - Fiduciary Funds
Library expansion trust 23,138
Volunteer Fire-Co. Scholarship 176,296
Agency 30,516,370
Total Cash and Investments 65,075,381$
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time
and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts
(interest-bearing and noninterest-bearing). In addition, if deposits are held in an institution
outside of the state in which the government is located, insured amounts are further limited to a
total of $250,000 for the combined amount of all deposit accounts.
Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $400,000.
However, due to the nature of this fund, recovery of material principal losses may not be
significant to individual municipalities. This coverage has been considered in computing custodial
credit risk.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 44
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
A. DEPOSITS AND I NVESTMENTS (continued)
Custodial Credit Risk
Deposits
Custodial credit risk is the risk that in the event of a financial institution failure, the City’s deposits
may not be returned to the City.
As of December 31, 2015, there were no City bank balances exposed to custodial credit risk as
uninsured and uncollateralized.
Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the
counterparty, the City will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party.
The City does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligation.
The City had investments in the external Wisconsin Local Government Investment Pool and
Wisconsin Investment Series Cooperative, which are not rated.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rate will adversely affect the value of an
investment.
As of December 31, 2015 the City investments were as follows:
Investment Maturities (in years)
Less than 1-3
Investment Type Fair Value 1 Year Years
WISC 411,665$ -$ 411,665$
See Note I.D.1. for further information on deposit and investment policies.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 45
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
B. RESTRICTED A SSETS
The following represent the balances of the restricted assets:
Liabilities Payable
from Restricted
Restricted Assets and Restricted
Assets Other Liabilities Net Position
Sewer Utility
Cash and investments
Equipment replacement 870,956$ -$ 870,956$
Reserve capacity assessments 6,085,017 - 6,085,017
RCA assessments receivable 189,358 - 189,358
Net pension asset 96,942 - 96,942
Total Sewer Utility 7,242,273 - 7,242,273
Water Utility
Cash and investments
Redemption account 294,348 35,022 259,326
Reserve account 390,428 457,426 - (1)
Depreciation account 368,765 - 368,765
Construction funds 214,264 37,241 - (1)
Reserve capacity assessments 713,756 - 713,756
WCA assessments receivable 127,725 8,022 119,703
Net pension asset 56,984 - 56,984
Total Water Utility 2,166,270 537,711 1,518,534
Total Business-type Activities 9,408,543$ 537,711$ 8,760,807$
(1) – Reserve accounts and Construction funds consist of bond proceeds and are not a
component of net position.
Below are descriptions of restricted assets:
Long Term Debt Accounts
Redemption – Used to segregate resources accumulated for debt service payments
over the next twelve months.
Reserve – Used to report resources set aside to make up potential future
deficiencies in the redemption account.
Depreciation – Used to report resources set aside to fund plant renewals and
replacement or make up potential future deficiencies in the redemption
account.
Construction – Used to report proceeds of revenue bond issuances that are restricted
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 46
NOTE IV – D ETAILED N OTES ON ALL FUNDS (continued)
B. RESTRICTED ASSETS (continued)
Water and Sewer Capacity Assessments Account
The water and sewer utilities established funds to account for capacity assessment levies that are
restricted to finance certain system capital costs or related debt service costs.
Equipment Replacement Account
The sewer utility established an equipment replacement account to be used for significant
mechanical equipment replacement as required by the Wisconsin Department of Natural
Resources and debt covenants.
Net Pension Asset
Restricted assets have been reported in connection with the net pension asset balance since this
balance must be used to fund the employee benefits.
C. RECEIVABLES
Governmental funds report unavailable or unearned revenue in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current period.
Property taxes levied for the subsequent year are not earned and cannot be used to liquidate
liabilities of the current period. Governmental funds also defer revenue recognition in connection
with resources that have been received, but not yet earned. At the end of the current fiscal year,
the various components for unavailable revenue and unearned revenue reported in the
governmental funds were as follows:
Unearned Unavailable
Property taxes receivable for subsequent year 13,615,061$ -$
Other 101 10,752
Program revenue collected in advance 50,542 -
Total Unearned/Unavailable Revenue
for Governmental Funds $ 13,665,704 $ 10,752
Unearned revenue included in liabilities 50,643$
Unearned revenue included in deferred inflows 13,615,061
Total Unearned Revenue for Governmental
Funds $ 13,665,704
Significantly all governmental activities receivables are expected to be collected within one year.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 47
NOTE IV – D ETAILED N OTES ON ALL FUNDS (continued)
D. C APITAL ASSETS
Capital asset activity for the year ended December 31, 2015 was as follows:
Governmental Activities
Beginning Ending
Balance Additions Deletions Balance
Capital assets not being depreciated/amortized
Land $ 5,539,706 $ - $ - $ 5,539,706
Construction in progress 2,241,810 580,998 1,808,436 1,014,372
Total capital assets not being
depreciated/amortized 7,781,516 580,998 1,808,436 6,554,078
Capital assets being depreciated/amortized
Intangibles 452,423 60,700 - 513,123
Land improvements 4,064,113 - - 4,064,113
Buildings 13,196,365 15,294 - 13,211,659
Machinery and equipment 7,743,413 523,110 170,698 8,095,825
Library collection 2,989,271 181,616 3,170,887
Infrastructure 67,357,488 5,494,792 - 72,852,280
Total Capital Assets
Being Depreciated/Amortized 95,803,073 6,275,512 170,698 101,907,887
Less: Accumulated depreciation/amortization for
Intangibles (138,330) (87,802) - (226,132)
Land improvements (2,088,174) (141,537) - (2,229,711)
Buildings (5,772,727) (313,196) - (6,085,923)
Machinery and equipment (5,374,111) (453,276) 170,698 (5,656,689)
Library collection (2,509,644) (133,184) - (2,642,828)
Infrastructure (30,318,163) (2,174,049) - (32,492,212)
Total Accumulated Depreciation/Amortization (46,201,149) (3,303,044) 170,698 (49,333,495)
Net Capital Assets
Being Depreciated/Amortized 49,601,924 2,972,468 - 52,574,392
Total Governmental Activities
Capital Assets, Net of
Depreciation/Amortization 57,383,440$ 3,553,466$ 1,808,436$ 59,128,470$
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 48
NOTE IV – D ETAILED N OTES ON ALL FUNDS (continued)
D. CAPITAL A SSETS (continued)
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $ 185,349
Public safety 303,730
Public works, which includes the depreciation of
infrastructure 2,238,784
Economic development 137,564
Education and recreation 437,617
Total Governmental Activities Depreciation Expense $ 3,303,044
Business Type Activities Beginning Ending
Balance Additions Deletions Balance
Capital Assets not being deprectiated
Land and easements $ 196,566 $ 112,382 $ - $ 308,948
Construction in progress 59,409 138,090 154,188 43,311
Total Capital Assets
Not Being Depreciated 255,975 250,472 154,188 352,259
Capital Assets being deprectiated
Buildings and improvements 20,343,011 150,313 - 20,493,324
Improvements other than buildings 75,299,840 2,026,611 - 77,326,451
Machinery and equipment 4,469,850 111,767 28,686 4,552,931
Total Capital Assets
Being Depreciated 100,112,701 2,288,691 28,686 102,372,706
Less: Accumulated Depreciation
Buildings and improvements (10,392,262) (727,421) - (11,119,683)
Improvements other than buildings (16,615,835) (964,037) - (17,579,872)
Machinery and equipment (3,485,460) (151,560) 24,604 (3,612,416)
Total Accumulated Depreciation (30,493,557) (1,843,018) 24,604 (32,311,971)
Net Capital Assets
Being Depreciated 69,619,144 445,673 4,082 70,060,735
Total Business Activities
Capital Assets, Net
of Depreciation $ 69,875,119 $ 696,145 $ 158,270 $ 70,412,994
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 49
NOTE IV – D ETAILED N OTES ON ALL FUNDS (continued)
D. CAPITAL ASSETS (continued)
Depreciation/amortization expense was charged to functions as follows:
Business-Type Activities
Sewer utility $ 1,055,855
Water utility 786,369
Total Business-Type Activities Depreciation/Amortization
Expense $ 1,842,224
Depreciation/amortization expense may be different from business-type activity accumulated
depreciation additions because of joint metering, salvage, cost of removal, internal allocations, or
costs associated with the disposal of assets.
E. I NTERFUND TRANSFERS
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From Amount Principal Purpose
General Fund Water Utility
$ 526,368 Payment in lieu of taxes
Nonmajor Governmental Funds General Fund 42,063 Compensated absences
committed balance
Debt Service Fund Nonmajor Governmental Funds 1,001,126 Debt service requirements
General Fund Nonmajor Governmental Funds
17,601
Water Utility Capital Budget Fund
74,313 Unspent proceeds
Nonmajor Governmental Funds Nonmajor Governmental Funds 1,785,000
CDA debt service and capital
improvements
Subtotal - Fund Financial Statements 3,446,471
Less: Fund eliminations (2,845,790)
Total Transfers - Government-Wide
Statement of Activities $ 600,681
Transfer closed Recreation
Ticket & Other Grants fund
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund
that the budget requires to expend them, (2) move receipts restricted to debt service from the
funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected
in the general fund to finance various programs accounted for in other funds in accordance with
budgetary authorizations. The City transferred $74,313 of unspent bond proceeds from the
Capital Budget Fund to the Water Utility. This transaction is shown as a transfer out in the Capital
Budget Fund and as an increase to long-term debt liabilities in the Water Utility. Therefore,
transfers on the Statement of Activities will not agree to the schedule above.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 50
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
F. L ONG-TERM O BLIGATIONS
General Obligation Debt
Long-term obligations activity for the year ended December 31, 2015 was as follows:
Amounts
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable
General obligation debt 29,130,092$ 2,191,930$ 26,938,162$ 2,128,903$
Unamortized debt premium 832,413 - 69,207 763,206 -
Total Bonds and Notes Payable 29,962,505 - 2,261,137 27,701,368 2,128,903
Other Liabilities
Accrued compensted absences -
vacation and sick leave 2,760,222 31,776 217,270 2,574,728 100,000
Total Governmental Activities
Long-Term Liabilities 32,722,727$ 31,776$ 2,478,407$ 30,276,096$ 2,228,903$
BUSINESS-TYPE ACTIVITIES
Bonds and Notes Payable
Revenue Bonds 1,950,000$ -$ 100,000$ 1,850,000$ 100,000$
Revenue Refunding Bonds 1,715,000 - 300,000 1,415,000 300,000
General obligation debt 1,350,990 74,313 116,894 1,308,409 35,606
Wisconsin Safe Drinking Water Loan 385,800 - 21,253 364,547 21,820
Unamortized debt premium 90,757 - 10,760 79,997 -
Total Business-type Activities
Long-Term Liabilities 5,492,547$ 74,313$ 548,907$ 5,017,953$ 457,426$
All general obligation notes and bonds payable are backed by the full faith and credit of the City.
Notes and bonds in the governmental funds will be retired by future property tax levies or tax
increments accumulated by the debt service fund. Business-type activities debt is payable by
revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies.
In accordance with Wisconsin Statutes, total general obligation indebtedness of the City may not
exceed 5% of the equalized value of taxable property within the City's jurisdiction. The debt limit
as of December 31, 2015, was $135.3 million. Total general obligation debt outstanding at year
end was $28,246,571.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 51
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
F. L ONG-TERM OBLIGATIONS (continued)
General Obligation Debt
Date of Interest Principal Interest Original Balance
Issue Rate Payable Payable Amount 12/31/15
Governmental Activities
General Obligation Debt
Refunding Debt 6/1/06 4.00-4.25 6/1/07-17 6/1&12/1 5,160,000$ 1,330,000$
Refunding Debt 4/27/10 2.50-4.75 5/1/12-24 4/1& 10/1 5,575,000 5,050,000
Refunding Debt 4/27/10 4.00-6.50 5/1/12-18 4/1& 10/1 815,000 400,000
Promissory notes 10/22/13 2.00-4.00 4/1/14-31 4/1& 10/1 11,805,000 11,711,500
Corporate purpose bonds 10/22/13 2.00-3.125 4/1/14-23 4/1& 10/1 885,000 780,090
Refunding Debt 11/26/13 1.00-3.00 4/1/14-22 4/1& 10/1 9,550,000 7,600,000
Promissory notes 12/31/14 - 2/15/15-22 - 76,082 66,572
Total Governmental Activities - General Obligation Debt 26,938,162$
Date of Interest Principal Interest Original Balance
Issue Rate Payable Payable Amount 12/31/15
Business-type activities
General obligation debt 10/22/13 2.00-4.00 4/1/14-31 4/1 & 10/1 820,000$ 813,500$
General obligation debt 10/22/13 2.00-3.125 4/1/14-23 4/1 & 10/1 440,000 494,909
1,308,409$ Total Business-Type Activities
Debt service requirements to maturity are as follows:
Principal Interest Principal Interest
2016 $ 2,128,903 $ 937,923 $ 35,606 $ 47,434
2017 2,150,528 877,200 33,981 46,738
2018 2,026,200 812,713 58,309 45,913
2019 2,016,498 762,356 68,010 44,552
2020 3,656,795 696,966 77,713 42,316
2021-2025 7,805,865 2,288,548 538,165 155,794
2026-2030 5,843,749 910,925 406,250 63,327
2031 1,309,624 26,180 90,375 1,820
Totals $ 26,938,162 $ 7,312,811 $ 1,308,409 $ 447,894
Business Type
Long-Term DebtLong-Term Debt
Governmental Type
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 52
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
F. LONG-TERM O BLIGATIONS (continued)
Other Debt Information
Estimated payments of compensated absences are not included in the debt service requirement
schedules. The compensated absences liability attributable to governmental activities will be
primarily liquidated by the general fund.
Water System Revenue Bonds
The Water Utility has $3,265,000 in Water System Revenue Bonds outstanding at December 31,
2015. The bonds are not general obligations of the City of Muskego and are payable from a first
pledge of the income and revenues derived from the operations of the systems in accordance with
the resolution adopted in conjunction with the issuance of the debt. The resolution creates a
statutory mortgage lien upon the systems and its revenues in accordance with Section 66 of
Wisconsin Statutes. The utilities have established certain funds, as described in the resolution, to
account for the allocation of each utility’s gross revenue and have deposited funds in compliance
with the bond covenants.
Revenue bonds payable at December 31, 2015 consists of the following:
Date of Interest Principal Interest Original Balance
Issue Rate Payable Payable Amount 12/31/15
Water Utility
Revenue Bonds 9/1/08 3.5-5.25 5/1/09-28 5/1&11/1 2,450,000 1,850,000
Revenue Refunding Bonds 11/8/11 2.0-4.00 5/1/12-20 5/1&11/1 2,740,000 1,415,000
Total Business-Type Activities Revenue Debt 3,265,000$
Debt service requirements to maturity are as follows:
Principal Interest
2016 400,000$ 129,544$
2017 425,000 117,669
2018 440,000 103,506
2019 475,000 86,562
2020 250,000 71,750
2021-2025 725,000 241,797
2026-2028 550,000 44,625
3,265,000$ 795,453$
Revenue Debt
Business-type Activities
The total principal and interest paid during the year on the Water Revenue Bonds was $539,544.
The revenues as defined by the respective bond covenants for the same period were $2.388
million for the Water Utility. Annual principal and interest payments are expected to require 14%
of the net revenues for the Water Utility.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 53
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
G. NET P OSITION / F UND B ALANCES
Governmental Activities
Net position reported on the government wide statement of net position at December 31, 2015
includes the following:
Net investment in capital assets
Land $ 5,539,706
Other capital assets, net of accumulated depreciation 52,574,393
Construction in progress 1,014,372
Less: related long-term debt outstanding (26,938,162)
Less: unamortized debt premium (763,206)
Plus: unspent capital related debt proceeds 159,842
Plus: non-capital debt proceeds 2,653,546
Total Net investment in capital assets 34,240,491
Resticted for:
Tax Increment District purposes 688,182
Other debt service 2,603,811
Pensions 1,367,743
Total Restricted Net Position 4,659,736
Unrestricted 9,961,047
Total Governmental Activities Net Position $ 48,861,274
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 54
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
G. N ET POSITION / FUND B ALANCES (continued)
Governmental Funds
Governmental fund balances reported on the fund financial statements at December 31, 2015
include the following:
Nonspendable
Major Fund
General Fund
Prepaid items 39,475$
Total Major Fund 39,475
Nonmajor Funds
Special Revenue Funds
Land Open Space Conservation Fund - prepaid items 175
Total Nonmajor Funds 175
Total Nonspendable Fund Balance 39,650$
Restricted
Major Funds
Debt Service Fund 2,834,602$
Capital Projects Fund - Tax Increment District
Project costs and debt service 199,297
Total Major Funds 3,033,899
Nonmajor Fund
Special Revenue Fund
Tax Increment District Funds 524,627
Total Nonmajor Funds 524,627
Total Restricted Fund Balance 3,558,526$
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 55
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
G. N ET POSITION / FUND B ALANCES (continued)
Governmental Funds (continued)
Committed
Nonmajor Funds
Special Revenue Funds
Park Fund 876,655$
Refuse / Recycling Fund 688,250
Revolving Loan Fund 274,250
Landfill Standing Committee Funds 80,410
Stormwater Management Fund 261,633
Well Testing Reserve Fund 572,399
Land Open Space Conservation Fund 190,885
Compensated Absences Fund 2,574,728
Cable TV Fund 109,784
Capital Improvements Fund 784,157
Federated Library System Fund 118,363
Big Muskego Lake - Bass Bay Protection and Rehabilitation District 114,473
Landfill Fund 2,142,094
Total Nonmajor Funds 8,788,081
Total Committed Fund Balance 8,788,081$
Assigned
Nonmajor Funds
Capital Projects Funds
Industrial Park Expansion Fund 6,216
Capital Equipment Fund 643,037
Total Nonmajor Funds 649,253
Total Assigned Fund Balance 649,253$
Unassigned
Major Fund
General Fund 4,449,520$
Total Unassigned Fund Balance 4,449,520$
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 56
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
G. NET P OSITION / F UND B ALANCES (continued)
Net position reported on the government wide statement of net position at December 31, 2015
includes the following:
Business-type Activities
Net Investment in Capital Assets
Land and easements $ 308,948
Other capital assets, net of accumulated depreciation 70,060,735
Construction in progress 43,311
Less: related long-term debt outstanding (4,937,956)
Add: unspent capital related debt proceeds 212,753
Add: Non-capital debt proceeds 310,429
Total Net Investment in Capital Assets 65,998,220
Resticted for:
Debt service 259,326
Depreciation and equipment replacement funds 1,239,721
Water and sewer capacity assessment funds 7,107,834
Pensions 153,926
Total Restricted Net Position 8,760,807
Unrestricted 9,700,029
Total Business-type Activities Net Position $ 84,459,056
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 57
NOTE IV – DETAILED N OTES ON ALL F UNDS (continued)
H. C OMPONENT U NIT
This report contains the Muskego Community Development Authority (Authority), which is
included as a component unit.
In addition to the basic financial statements and the preceding notes to financial statements,
which apply, the following additional disclosures are considered necessary for a fair presentation.
a. Basis of Accounting/Measurement Focus
The Authority follows the full accrual basis of accounting and the flow of economic
resources measurement focus.
b. Deposits and Investments
At year-end, the carrying amount of the Authority’s deposits was $190,355 and the bank
balance was $190,355. The Authority does not have any deposits exposed to custodial
credit risk.
c. Cash and Cash Equivalents
The Authority considers all highly liquid investments with an initial maturity of three
months or less when acquired to be cash equivalents.
d. Capital Assets
Capital assets used by the Authority are those assets owned by the City of Muskego.
Consequently, the Authority does not report any capital assets.
e. Employee Retirement System
The Muskego Community Development Authority does not participate in a pension plan.
I. RESTATEMENT OF N ET POSITION
Net position has been restated as a result of the implementation of GASB Statement No. 68-
Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27 and
implementation of GASB Statement No. 71 - Pension Transition for Contributions Made
Subsequent to the Measurement Date. These statements require the net pension asset and
related deferred outflows and deferred inflows if any, to be reported in the financial statements.
The details of this restatement are as follows:
Governmental
Activities
Business-type
Activities Water Utility Sewer Utility
Net Position - December 31, 2014 (as reported) 41,867,565$ 82,928,744$ 25,429,204$ 57,499,540$
Add: Net pension asset 2,209,427 248,649 92,050 156,599
Add: Deferred ouflows related to pensions 541,878 60,983 22,576 38,407
Net position - December 31, 2014 (as restated) 44,618,870$ 83,238,376$ 25,543,830$ 57,694,546$
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 58
NOTE V – OTHER I NFORMATION
A. E MPLOYEES’ RETIREMENT SYSTEM
Summary of Significant Accounting Policies
Pension. For purposes of measuring the net pension asset, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net position
of the Wisconsin Retirement System (WRS) and additions to/deductions from WRS’ fiduciary net position
have been determined on the same basis as they are reported by WRS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
General Information About the Pension Plan
Plan description. The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS
benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms
may only be modified by the legislature. The retirement system is administered by the Wisconsin
Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of
Wisconsin, local government and other public employees. All employees, initially employed by a
participating WRS employer on or after July 1, 2011, and expected to work at least 1,200 hours a year
(880 hours for teachers and school district educational support employees) and expected to be employed
for at least one year from employee’s date of hire are eligible to participate in the WRS.
Vesting. For employees beginning participation on or after January 1, 1990, and no longer actively
employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a
retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1,
2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must
have five years of creditable service to be vested.
Benefits provided. Employees who retire at or after age 65 (54 for protective occupation employees, 62
for elected officials and State executive participants) are entitled to receive an unreduced retirement
benefit. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable service,
and (3) a formula factor.
Final average earnings is the average of the participant's three highest years' earnings. Creditable service
is the creditable current and prior service expressed in years or decimal equivalents of partial years for
which a participant receives earnings and makes contributions as required. The formula factor is a
standard percentage based on employment category.
Employees may retire at age 55 (50 for protective occupation employees) and receive reduced benefits.
Employees terminating covered employment before becoming eligible for a retirement benefit may
withdraw their contributions and forfeit all rights to any subsequent benefits. The WRS also provides death
and disability benefits for employees.
Employees may retire at age 55 (50 for protective occupation employees) and receive reduced benefits.
Employees terminating covered employment before becoming eligible for a retirement benefit may
withdraw their contributions and forfeit all rights to any subsequent benefits. The WRS also provides death
and disability benefits for employees.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 59
NOTE V – OTHER I NFORMATION (continued)
A. E MPLOYEES’ RETIREMENT SYSTEM (continued)
Post-Retirement adjustments. The Employee Trust Funds Board may periodically adjust annuity
payments from the retirement system based on annual investment performance in accordance with s.
40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains
(losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as
determined by the system’s consulting actuary. Annuity increases are not based on cost of living or other
similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law,
Core annuities cannot be reduced to an amount below the original, guaranteed amount (the “floor”) set at
retirement. The Core and Variable annuity adjustments granted during recent years are as follows:
Year
Core Fund
Adjustment
Variable Fund
Adjustment
2005 2.6% 7%
2006 0.8 3
2007 3.0 10
2008 6.6 0
2009 (2.1) (42)
2010 (1.3) 22
2011 (1.2) 11
2012 (7.0) (7)
2013 (9.6) 9
2014 4.7 25
Contributions. Required contributions are determined by an annual actuarial valuation in accordance with
Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially
determined contribution rate for general category employees, including teachers, and Executives and
Elected Officials. Required contributions for protective employees are the same rate as general
employees. Employers are required to contribute the remainder of the actuarially determined contribution
rate. The employer may not pay the employee required contribution unless provided for by an existing
collective bargaining agreement.
During the reporting period, the WRS recognized $602,861 in contributions from the City.
Contribution rates as of December 31, 2015 are:
Employee Employer
General (including teachers 6.8% 6.8%
Executives & Elected Officials 7.7% 7.7%
Protective with Social Security 6.8% 9.5%
Protective without Social Security 6.8% 13.1%
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 60
NOTE V – OTHER I NFORMATION (continued)
A. E MPLOYEES’ RETIREMENT SYSTEM (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At December 31, 2015, the City reported an asset of $1,521,669 for its proportionate share of the net
pension asset. The net pension asset was measured as of December 31, 2014, and the total pension
liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of
December 31, 2013 rolled forward to December 31, 2014. No material changes in assumptions or benefit
terms occurred between the actuarial valuation date and the measurement date. The utility’s proportion of
the net pension asset was based on the utility’s share of contributions to the pension plan relative to the
contributions of all participating employers. At December 31, 2014, the City of Muskego’s proportion was
0.061950310%, which was a decrease of 0.000397870% from its proportion measured as of December
31, 2013.
For the year ended December 31, 2015, the City recognized pension expense of $608,456.
At December 31, 2015, the utility reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred
Outflow of
Resources
Differences between expected and actual experience $ 220,595
Changes in assumptions -
Net differences between projected and actual earnings
on pension plan investments 736,866
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 10,788
Employer contributions subsequent to the
measurement date 565,424
Total $ 1,533,673
$565,424 reported as deferred outflows related to pension resulting from the WRS Employer’s
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability (asset) in the year ended December 31, 2016. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pension will be recognized in pension expense as
follows:
Year ended June 30:
Deferred Outflow
of Resources
2016 $ 236,969
2017 236,969
2018 236,969
2019 236,969
2020 20,373
Thereafter -
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 61
NOTE V – OTHER INFORMATION (continued)
A. E MPLOYEES’ RETIREMENT SYSTEM (continued)
Actuarial assumptions. The total pension liability in the December 31, 2014, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Valuation Date: December 31, 2013
Measurement Date of Net Pension Liability (Asset) December 31, 2014
Actuarial Cost Method: Entry Age
Asset Valuation Method: Fair Market Value
Long-Term Expected Rate of Return: 7.2%
Discount Rate: 7.2%
Salary Increases:
Inflation
Seniority/Merit
3.2%
0.2% - 5.8%
Mortality: Wisconsin 2012 Mortality Table
Post-retirement Adjustments* 2.1%
*No post-retirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience
and other factors. 2.1% is the assumed annual adjustment based on the investment return assumption and the post-retirement
discount rate.
Actuarial assumptions are based upon an experience study conducted in 2012 using experience from
2009 – 2011. The total pension liability for December 31, 2014 is based upon a roll-forward of the liability
calculated from the December 31, 2013 actuarial valuation.
Long-term expected Return on Plan Assets. The long-term expected rate of return on pension plan
investments was determined using a building-block method in which best-estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected rate
of return by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
Asset Class
Long-Term Real
Rate of Return
Target
Allocation
US Equities 5.3% 21%
International Equities 5.7% 23%
Fixed Income 1.7% 36%
Inflation Sensitive Assets 2.3% 20%
Real Estate 4.2% 7%
Private Equity/Debt 6.9% 7%
Multi-Asset 3.9% 6%
Cash 0.9% -20%
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 62
NOTE V – OTHER I NFORMATION (continued)
A. E MPLOYEES’ RETIREMENT SYSTEM (continued)
Single Discount rate. A single discount rate of 7.20% was used to measure the total pension liability. This
single discount rate was based on the expected rate of return on pension plan
investments of 7.20% and a long term bond rate of 3.56%. Because of the unique structure of WRS, the
7.20% expected rate of return implies that a dividend of approximately 2.1% will always be paid. For
purposes of the single discount rate, it was assumed that the dividend would always be paid. The
projection of cash flows used to determine this single discount rate assumed that plan member
contributions will be made at the current contribution rate and that employer contributions will be made at
rates equal to the difference between actuarially determined contribution rates and the member rate.
Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to
make all projected future benefit payments (including expected dividends) of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the City’s proportionate share of the net pension asset to changes in the discount
rate. The following presents the utility’s proportionate share of the net pension liability (asset) calculated
using the discount rate of 7.20 percent, as well as what the utility’s proportionate share of the net pension
liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20
percent) or 1-percentage-point higher (8.20 percent) than the current rate:
1% Decrease to
Discount Rate
(6.20%)
Current Discount
Rate (7.20%)
1% Increase To
Discount Rate
(8.20%)
City of Muskego’s proportionate
share of the net pension liability
(asset) $ 4,292,891 $ (1,521,669) $ (6,113,773)
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net
position is available in separately issued financial statements available at
http://legis.wisconsin.gov/lab/ and reference report number 15-11.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 63
NOTE V – OTHER I NFORMATION (continued)
B. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of
assets; errors and omissions; workers compensation; health care of its employees; and
environmental damages. All of these risks are covered through the purchase of commercial
insurance, with minimal deductibles. Settled claims have not exceeded the commercial coverage
in any of the past three years. There were no significant reductions in coverage compared to the
prior year.
C. Commitment and Contingencies
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments
are only reported in the governmental funds if it has matured. Claims and judgments are recorded
in the government-wide statements and proprietary funds as expenses when the related liabilities
are incurred.
From time to time, the City is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management that
the likelihood is remote that any such claims or proceedings will have a material adverse effect on
the City’s financial position or results of operations.
The City has received federal and state grants for specific purposes that are subject to review and
audit by the grantor agencies. Such audits could lead to the requests for reimbursements to the
grantor agency for expenditures disallowed under terms of the grants. Management believes
such disallowances, if any, would be immaterial.
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 64
NOTE V – OTHER I NFORMATION (continued)
C. C OMMITMENTS AND C ONTINGENCIES (continued)
Environmental Protection Agency
In 1983, the Environmental Protection Agency placed the Muskego Sanitary Landfill on the
National Superfund list. This prompted an investigation into alleged ground water contamination
emitting from the site. As a result of the initial investigation, the Environmental Protection Agency
named the City of Muskego as one of approximately 30 potentially responsible parties, in the
owner/operator group.
Another potentially responsible party, Waste Management of Wisconsin, Inc., has headed the
negotiations with the EPA relative to the preparation of a Remedial Investigation/Feasibility Study.
The City of Muskego is not a party to this stipulation regarding payment for this Study, which has
not yet been completed.
At December 31, 2015, the nature and extent of a potential liability for payment for the study as
well as payment for possible clean-up costs is unknown. The City has tendered the defense to its
insurance carriers but has not been advised as to its carrier’s position with respect to the potential
liability.
In addition, the City has received Notices of Claims and Claims from other property owners
alleging the City's involvement with ground water contamination. The Notices have been
forwarded to the City's insurance carrier and the questions of coverage, liability and damages are,
as yet, unresolved.
The City has an agreement with Waste Management wherein Waste Management shall indemnify
the City from any potential Superfund liability.
D. WATER AND SEWER U TILITY RATES
The Water Utility implemented current rates effective October 1, 2014.
Effective January 1, 2010 the sewer rate for a single family residence is $167.66 per quarter or
$670.64 per year. All industrial and commercial users were charge on actual metered use at $6.81
per 1,000 gallons plus a connection charge of $69.10 per quarter.
E. ANTENNA LEASE AGREEMENTS
The City has lease agreements with four cellular phone companies to lease a Utility water tower
as a site for cellular antennas. The initial term of the leases was 5 years with the right to extend
the leases for four additional 5-year terms.
Rental income from rental of the water tower reported in other water revenues amounted to
$118,293.
Future minimum rentals related to these leases and expected future extensions are as follows:
2016 $124,210
2017 130,420
2018 136,941
Total $391,571
City of Muskego
Notes to Financial Statements
As of and for the Year Ended December 31, 2015
Page 65
NOTE V – OTHER I NFORMATION (continued)
F. E FFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
Statement No. 72, Fair Value Measurement and Application
Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68
Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pensions
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions
Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State
and Local Government
Statement No. 77, Tax Abatement Disclosures
Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit
Pension Plans
When they become effective, application of these standards may restate portions of these
financial statements.
G. SUBSEQUENT EVENTS
The Water Utility implemented new rates effective January 1, 2016 which reflected a 3% increase.
On June 1, 2016, the Joint Review Board approved the project plan for the creation of Tax
Increment District No. 11.
On July 26, 2016, the City issued $7,125,000 in General Obligation Promissory Notes. These
notes will be used to fund the cost of construction and remodeling of a new City Hall, Police
Station and Public Works building.
REQUIRED SUPPLEMENTARY INFORMATION
Proportionate
Share of the Net Plan Fiduciary
Proportion Proportionate Pension Asset Net Position
of the Net Share of the as a Percentage as a Percentage
Fiscal Pension Net Pension Covered of Covered of the Total
Year Ending Asset Asset Payroll Payroll Pension Asset
12/31/15 0.06195031% 1,521,669$ 7,320,021$ 20.79% 102.74%
Contributions in
Relation to the Contributions
Contractually Contractually Contribution as a Percentage
Fiscal Required Required Deficiency Covered of Covered
Year Ending Contributions Contributions (Excess)Payroll Payroll
12/31/15 565,424$ (565,424)$ -$ 7,142,385$ 7.92%
For the Year Ended December 31, 2015
SCHEDULE OF EMPLOYER CONTRIBUTIONS - WISCONSIN RETIREMENT SYSTEM
City of Muskego
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION ASSET -
WISCONSIN RETIREMENT SYSTEM
For the Year Ended December 31, 2015
See independent auditors' report and accompanying notes to required supplementary information.
Page 66
City of Muskego
Notes to Required Supplementary Information
As of and for the Year Ended December 31, 2015
Page 67
NOTE I – WISCONSIN R ETIREMENT SYSTEM
The amounts determined for each fiscal year were determined as of the calendar year-end that
occurred within the fiscal year.
The City is required to present the last ten fiscal years of data; however accounting standards
allow the presentation of as many years as are available until ten fiscal years are presented.
Changes in benefit terms. There were no changes of benefit terms for any participating employer
in the Wisconsin Retirement System.
Changes in Assumptions. There were no changes in assumptions.
SUPPLEMENTARY INFORMATION
Landfill Well Land
Other Refuse/ Revolving Standing Stormwater Testing Open Space
Park Grant Recycling Loan Committee Management Reserve Conservation
Funds Fund Fund Fund Funds Fund Fund Fund
ASSETS
Cash and cash equivalents 937,418$ -$ 439,605$ 222,848$ 80,410$ 204,029$ 572,399$ 191,229$
Accounts receivable - net 6,785 - 274,891 374,606 - 58,397 - -
Loan receivables - - - - - - - -
Due from other governments - - - - - - - -
Prepaid Items - - - - - - - 175
Taxes receivable - - 55,778 - - - - -
TOTAL ASSETS 944,203$ -$ 770,274$ 597,454$ 80,410$ 262,426$ 572,399$ 191,404$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable 67,548$ -$ 82,024$ 3,204$ -$ 793$ -$ 344$
Due to other governments - - - 320,000 - - - -
Unearned revenues - - - - - - - -
Total Liabilities 67,548 - 82,024 323,204 - 793 - 344
Deferred Inflows of Resources
Unearned revenues - - - - - - - -
Unavailable revenues - - - - - - - -
Total Deferred Inflows of Resources - - - - - - - -
Fund Balances
Nonspendable - - - - - - - 175
Restricted - - - - - - - -
Committed 876,655 - 688,250 274,250 80,410 261,633 572,399 190,885
Total Fund Balances 876,655 - 688,250 274,250 80,410 261,633 572,399 191,060
TOTAL LIABILITIES, DEFFERED
INFLOWS OF RESOURCES AND
FUND BALANCES 944,203$ -$ 770,274$ 597,454$ 80,410$ 262,426$ 572,399$ 191,404$
As of December 31, 2015
City of Muskego
Combining Balance Sheet
Non-major Governmental Funds
Special Revenue Funds
Page 68
Big Muskego
Lake- Non-Major
Federated Bass Bay Tax Special
Compensated Recreational Cable Capital Library Protection and Increment Revenue
Absences Ticket TV Improvements System Rehabilitation Landfill District Fund
Fund Fund Fund Fund Fund District Fund Funds Total
ASSETS
Cash and cash equivalents 2,574,728$ -$ 109,784$ 502,691$ 118,352$ 123,061$ 1,955,407$ 524,627$ 8,556,588$
Accounts receivable - net - - - - - - 191,392 - 906,071
Loan receivables - - - 281,466 - - - - 281,466
Due from other governments - - - - 783 13,909 - - 14,692
Prepaid Items - - - - - - - - 175
Taxes receivable - - - - - - - 1,263,829 1,319,607
TOTAL ASSETS 2,574,728$ -$ 109,784$ 784,157$ 119,135$ 136,970$ 2,146,799$ 1,788,456$ 11,078,599$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable -$ -$ -$ -$ 772$ 11,644$ 4,705$ -$ 171,034$
Due to other governments - - - - - - - - 320,000
Unearned revenues - - - - - 101 - - 101
Total Liabilities - - - - 772 11,745 4,705 - 491,135
Deferred Inflows of Resources
Unearned revenues - - - - - - - 1,263,829 1,263,829
Unavailable revenues - - - - - 10,752 - - 10,752
Total Deferred Inflows of Resources - - - - - 10,752 - 1,263,829 1,274,581
Fund Balances
Nonspendable - - - - - - - - 175
Restricted - - - - - - - 524,627 524,627
Committed 2,574,728 - 109,784 784,157 118,363 114,473 2,142,094 - 8,788,081
Total Fund Balances 2,574,728 - 109,784 784,157 118,363 114,473 2,142,094 524,627 9,312,883
TOTAL LIABILITIES, DEFFERED
INFLOWS OF RESOURCES AND
FUND BALANCES 2,574,728$ -$ 109,784$ 784,157$ 119,135$ 136,970$ 2,146,799$ 1,788,456$ 11,078,599$
(Concluded)
As of December 31, 2015
City of Muskego
Combining Balance Sheet
Non-major Governmental Funds
Special Revenue Funds
Page 69
Non-Major
Industrial Capital
Park Capital Projects
Expansion Equipment Fund
Fund Fund Total
ASSETS
Cash and cash equivalents 6,216$ 720,483$ 726,699$
Accounts receivable - net - 2,037 2,037
Due from other governments - 164,000 164,000
TOTAL ASSETS 6,216$ 886,520$ 892,736$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable -$ 243,483$ 243,483$
TOTAL LIABILITIES - 243,483 243,483
Fund Balances
Assigned 6,216 643,037 649,253
TOTAL LIABILITIES AND
FUND BALANCES 6,216$ 886,520$ 892,736$
As of December 31, 2015
City of Muskego
Combining Balance Sheet
Non-major Governmental Funds
Capital Projects Funds
Page 70
Non-Major Non-Major
Special Capital Non-major
Revenue Projects Governmental
Fund Fund Funds
Total Total Total
ASSETS
Cash and cash equivalents 8,556,588$ 726,699$ 9,283,287$
Accounts receivable - net 906,071 2,037 908,108
Loan receivables 281,466 - 281,466
Due from other governments 14,692 164,000 178,692
Prepaid Items 175 - 175
Taxes receivable 1,319,607 - 1,319,607
TOTAL ASSETS 11,078,599$ 892,736$ 11,971,335$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable 171,034$ 243,483$ 414,517$
Due to other governments 320,000 - 320,000
Unearned revenues 101 - 101
Total Liabilities 491,135 243,483 734,618
Deferred Inflows of Resources
Unearned revenues 1,263,829 - 1,263,829
Unavailable revenues 10,752 - 10,752
Total Deferred Inflows of Resources 1,274,581 - 1,274,581
Fund Balances
Nonspendable 175 - 175
Restricted 524,627 - 524,627
Committed 8,788,081 - 8,788,081
Assigned - 649,253 649,253
Total Fund Balances 9,312,883 649,253 9,962,136
TOTAL LIABILITIES, DEFFERED
INFLOWS OF RESOURCES AND
FUND BALANCES 11,078,599$ 892,736$ 11,971,335$
City of Muskego
Non-major Governmental Funds
As of December 31, 2015
Combining Balance Sheet
Page 71
City of Muskego
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended December 31, 2015
Landfill Well Land
Other Refuse/ Revolving Standing Stormwater Testing Open Space
Park Grants Recycling Loan Committee Management Reserve Conservation
Fund Fund Fund Fund Fund Fund Fund Fund
REVENUES
Taxes -$ -$ -$ -$ -$ -$ -$ -$
Intergovernmental - - 73,127 - - 58,397 - -
Licenses and permits 7,078 - - - - - - -
Public charges for services 336,214 - 994,893 - 10,000 - 33,000 242,078
Commercial revenue 8,573 - 43,568 5,819 28 273 722 200
Total Revenues 351,865 - 1,111,588 5,819 10,028 58,670 33,722 242,278
EXPENDITURES
Current
General government - - - - - - - -
Public Works - - - - - 18,329 - -
Health and sanitation - - 1,123,608 - - - - -
Conservation and development - - - 10,704 4,232 - - 113,058
Education and recreation - - - - - - - -
Capital Outlay 361,252 - - - - 114,167 - 4,222
Total Expenditures 361,252 - 1,123,608 10,704 4,232 132,496 - 117,280
Excess (deficiency) of revenues
over expenditures (9,387) - (12,020) (4,885) 5,796 (73,826) 33,722 124,998
OTHER FINANCING SOURCES (USES)
Transfers in 80,000 - - - - 120,000 - -
Transfers out - (10,950) - - - - - (50,000)
Proceeds from sale of capital assets - - - - - - - -
Total Other Financing Source (Uses) 80,000 (10,950) - - - 120,000 - (50,000)
Net Change in Fund Balance 70,613 (10,950) (12,020) (4,885) 5,796 46,174 33,722 74,998
FUND BALANCES - Beginning of Year 806,042 10,950 700,270 279,135 74,614 215,459 538,677 116,062
FUND BALANCES - END OF YEAR 876,655$ -$ 688,250$ 274,250$ 80,410$ 261,633$ 572,399$ 191,060$
Page 72
City of Muskego
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended December 31, 2015
(Concluded)
Big Muskego
Lake- Non-Major
Federated Bass Bay Tax Special
Compensated Recreational Capital Library Protection and Increment Revenue
Absences Ticket Cable TV Improvement System Rehabilitation Landfill District Fund
Fund Fund Fund Fund Fund District Fund Funds Total
REVENUES
Taxes -$ -$ -$ -$ -$ -$ -$ 1,234,868$ 1,234,868$
Intergovernmental revenues - - - - 3,710 - - 7,526 142,760
Licenses and permits - - - - - - - - 7,078
Public charges for services - - - - - 28,590 1,614,619 - 3,259,394
Commercial revenue 3,440 - - 6,243 3,467 401 2,704 - 75,438
Total Revenues 3,440 - - 6,243 7,177 28,991 1,617,323 1,242,394 4,719,538
EXPENDITURES
Current
General government 233,891 - 3,000 - - - - 18,150 255,041
Public Works - - - - - - - - 18,329
Health and sanitation - - - - - - 62,319 - 1,185,927
Conservation and development - - - 13,466 - 29,619 - - 171,079
Education and recreation - - - - 6,961 - - - 6,961
Capital Outlay - - - - - - - 450,000 929,641
Total Expenditures 233,891 - 3,000 13,466 6,961 29,619 62,319 468,150 2,566,978
Excess (deficiency) of revenues
over expenditures (230,451) - (3,000) (7,223) 216 (628) 1,555,004 774,244 2,152,560
OTHER FINANCING SOURCES (USES)
Transfers in 42,063 - - - - - - - 242,063
Transfers out - (6,651) - - - - (1,785,000) (951,126) (2,803,727)
Proceeds from sale of capital assets - - - - 994 - - - 994
Total Other Financing Source (Uses) 42,063 (6,651) - - 994 - (1,785,000) (951,126) (2,560,670)
Net Change in Fund Balance (188,388) (6,651) (3,000) (7,223) 1,210 (628) (229,996) (176,882) (408,110)
FUND BALANCES - Beginning of Year 2,763,116 6,651 112,784 791,380 117,153 115,101 2,372,090 701,509 9,720,993
FUND BALANCES - END OF YEAR 2,574,728$ -$ 109,784$ 784,157$ 118,363$ 114,473$ 2,142,094$ 524,627$ 9,312,883$
Page 73
Non-Major
Industrial Capital
Park Capital Projects
Expansion Equipment Fund
Fund Fund Total
REVENUES
Intergovernmental revenues -$ 414,458$ 414,458$
Commercial revenue 10 62,169 62,179
Total Revenues 10 476,627 476,637
EXPENDITURES
Capital Outlay
General government - 388,419 388,419
Public safety - 275,639 275,639
Public works 4,132 1,303,114 1,307,246
Education and recreation - 16,719 16,719
Total Expenditures 4,132 1,983,891 1,988,023
Deficiency of revenues
under expenditures (4,122) (1,507,264) (1,511,386)
OTHER FINANCING SOURCES
Transfers in - 1,585,000 1,585,000
Total Other Financing Sources - 1,585,000 1,585,000
Net Change in Fund Balance (4,122) 77,736 73,614
FUND BALANCES - Beginning of Year 10,338 565,301 575,639
FUND BALANCES - END OF YEAR 6,216$ 643,037$ 649,253$
City of Muskego
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the Year Ended December 31, 2015
Capital Projects Funds
Page 74
Non-Major Non-Major
Special Capital Non-major
Revenue Projects Governmental
Fund Fund Funds
Total Total Total
REVENUES
Taxes 1,234,868$ -$ 1,234,868$
Intergovernmental 142,760 414,458 557,218
Licenses and permits 7,078 - 7,078
Public charges for services 3,259,394 - 3,259,394
Commercial revenue 75,438 62,179 137,617
Total Revenues 4,719,538 476,637 5,196,175
EXPENDITURES
Current:
General government 255,041 - 255,041
Public works 18,329 - 18,329
Health and sanitation 1,185,927 - 1,185,927
Conservation and development 171,079 - 171,079
Education and recreation 6,961 - 6,961
Capital Outlay 929,641 1,988,023 2,917,664
Total Expenditures 2,566,978 1,988,023 4,555,001
Deficiency of revenues
under expenditures 2,152,560 (1,511,386) 641,174
OTHER FINANCING SOURCES (USES)
Transfers in 242,063 1,585,000 1,827,063
Transfers out (2,803,727) - (2,803,727)
Proceeds from sale of capital assets 994 - 994
Total Other Financing Source (Uses) (2,560,670) 1,585,000 (975,670)
Net Change in Fund Balance (408,110) 73,614 (334,496)
FUND BALANCES - Beginning of Year 9,720,993 575,639 10,296,632
FUND BALANCES - END OF YEAR 9,312,883$ 649,253$ 9,962,136$
Non-Major Governmental Funds
For the Year Ended December 31, 2015
City of Muskego
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Page 75
CITY OF MUSKEGO
Muskego, Wisconsin
COMMUNICATION TO THOSE CHARGED WITH GOVERNANCE
AND MANAGEMENT
As of and for the Year Ended December 31, 2015
CITY OF MUSKEGO
TABLE OF CONTENTS
Page No.
Required Communication of Internal Control Related Matters Identified in the
Audit to Those Charged with Governance 1
Internal Controls Over Financial Reporting 2
Other Communications to Those Charged with Governance
Two Way Communication Regarding Your Audit 3 – 4
Communication of Other Control Deficiencies, Recommendations and Informational Points
to Management that are not Material Weaknesses or Significant Deficiencies 5 – 9
Required Communications by the Auditor to Those Charged with Governance 10 – 13
Management Representations
REQUIRED COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS IDENTIFIED IN THE
AUDIT TO THOSE CHARGED WITH GOVERNANCE
Page 2
Auditing standards require that we perform procedures to obtain an understanding of your government
and its internal control environment as part of the annual audit. This includes an analysis of significant
transaction cycles and an analysis of the City’s year-end financial reporting process and preparation of
your financial statements.
INTERNAL CONTROL OVER FINANCIAL REPORTING
Properly designed systems of internal control provides your organization with the ability to process and
record monthly and year end transactions and prepare annual financial reports.
Our audit includes a review and evaluation of the city’s internal controls relating to financial reporting.
Common attributes of a properly designed system of internal control for financial reporting are as follows:
> There is adequate staffing to prepare financial reports throughout the year and at year-end.
> Material misstatements are identified and corrected during the normal course of duties.
> Complete and accurate financial statements, including footnotes, are prepared.
> Financial reports are independently reviewed for completeness and accuracy.
To accomplish the goal of establishing a sound system of internal control over financial reporting, will
require continuing education for the City’s Finance Director on courses directed at establishing and
improving knowledge of governmental generally accepted accounting principles and external reporting.
Management has also advised us to work closely the City’s Finance Director to provide her with
necessary technical guidance to help her develop the process for the complete preparation of all the
City’s financial statements by her department within the next few years.
In 2007, the Director of Finance & Administration began the process of preparing certain City financial
statements. We are pleased to report that in 2015, the Finance Department continues to improve on the
financial statement preparation process. The Director of Finance & Administration prepared the City’s
financial statements, with our assistance of certain required disclosures. We will continue to work with the
Director of Finance & Administration to ensure that all statements are materially accurate and prepared
independently by the City.
OTHER COMMUNICATIONS TO THOSE CHARGED WITH GOVERNANCE
Page 3
TWO WAY COMMUNICATION REGARDING YOUR AUDIT
As part of our audit of your financial statements, we are providing communications to you throughout the
audit process. Auditing requirements provide for two-way communication and are important in assisting
the auditor and you with more information relevant to the audit.
As this past audit is concluded, we use what we have learned to begin the planning process for next
year’s audit. It is important that you understand the following points about the scope and timing of our
next audit:
a. We address the significant risks of material misstatement, whether due to fraud or error, through
our detailed audit procedures.
b. We will obtain an understanding of the five components of internal control sufficient to assess the
risk of material misstatement of the financial statements whether due to error or fraud, and to
design the nature, timing, and extent of further audit procedures. We will obtain a sufficient
understanding by performing risk assessment procedures to evaluate the design of controls
relevant to an audit of financial statements and to determine whether they have been
implemented. We will use such knowledge to:
> Identify types of potential misstatements.
> Consider factors that affect the risks of material misstatement.
> Design tests of controls, when applicable, and substantive procedures.
We will not express an opinion on the effectiveness of internal control over financial reporting or
compliance with laws, regulations, and provisions of contracts or grant programs.
c. The concept of materiality recognizes that some matters, either individually or in the aggregate,
are important for fair presentation of financial statements in conformity with generally accepted
accounting principles while other matters are not important. In performing the audit, we are
concerned with matters that, either individually or in the aggregate, could be material to the
financial statements. Our responsibility is to plan and perform the audit to obtain reasonable
assurance that material misstatements, whether caused by errors or fraud, are detected.
d. Your financial statements contain components, as defined by auditing standards generally
accepted in the United States of America, which we also audit.
We are very interested in your views regarding certain matters. Those matters are listed here:
a. We typically will communicate with your top level of management unless you tell us otherwise.
b. We understand that the Common Council has the responsibility to oversee the strategic direction
of your organization, as well as the overall accountability of the entity. Management has the
responsibility for achieving the objectives of the entity.
c. We need to know your views about your organization’s objectives and strategies, and the related
business risks that may result in material misstatements.
d. Which matters do you consider warrant particular attention during the audit, and are there any
areas where you request additional procedures to be undertaken?
e. Have you had any significant communications with regulators or grantor agencies?
f. Are there other matters that you believe are relevant to the audit of the financial statements?
Page 4
TWO WAY COMMUNICATION REGARDING YOUR AUDIT (cont.)
Also, is there anything that we need to know about the attitudes, awareness, and actions of the City
concerning:
a. The City’s internal control and its importance in the entity, including how those charged with
governance oversee the effectiveness of internal control?
b. The detection or the possibility of fraud?
We also need to know if you have taken actions in response to developments in financial reporting, laws,
accounting standards, governance practices, or other related matters, or in response to previous
communications with us.
With regard to the timing of our audit, here is some general information. If necessary, we may do
preliminary financial audit work during the months of October-December, and sometimes early January.
Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report
deadlines. After fieldwork, we wrap up our financial audit procedures at our office and may issue drafts of
our report for your review. Final copies of our report and other communications are issued after approval
by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of
factors.
Keep in mind that while this communication may assist us with planning the scope and timing of the audit,
it does not change the auditor’s sole responsibility to determine the overall audit strategy and the audit
plan, including the nature, timing, and extent of procedures necessary to obtain sufficient appropriate
audit evidence.
We realize that you may have questions on what this all means, or wish to provide other feedback. We
welcome the opportunity to hear from you.
COMMUNICATION OF OTHER CONTROL DEFICIENCIES, RECOMMENDATIONS AND
INFORMATIONAL POINTS TO MANAGEMENT THAT ARE NOT MATERIAL WEAKNESSES OR
SIGNIFICANT DEFICIENCIES
Page 5
INFORMATIONAL POINTS
DECENTRALIZED CASH COLLECTIONS
Many governments collect cash at numerous decentralized locations that are separate from the primary
system of accounting procedures and controls. The opportunity for theft is often higher at those locations
because one person is frequently involved in most, if not all, aspects of a transaction (i.e. lack of
segregation of duties).
Examples in your government that fit this situation include: police department/court, parks and recreation
department.
Management is responsible for designing and implementing controls and procedures to detect and
prevent fraud. As a result, we recommend that management review its decentralized cash collection
procedures and controls on a periodic basis and make changes as necessary to strengthen the internal
control environment. Reviewing the adequacy of the controls is a responsibility of the governing body.
Below are example procedures and controls to help mitigate the risk of loss at decentralized cash
collection points:
Implement a centralized receipting process with adequate segregation of duties
For cash collections, ensure pre-numbered receipts are being used and all receipts in the
sequence are being reviewed by someone other than the person receipting the cash and receipts
tie to deposits
Perform surprise procedures at decentralized locations (cash counts, walkthrough of processes,
etc.)
Require regular cash deposits to minimize collection on-hand
Limit the number of separate bank accounts
Segregate duties as much as possible – the person receipting cash should be separate from the
person preparing deposits and the person reconciling bank accounts should be separate from the
cash collection activity
Perform a month-to-month or year-to-year comparisons to look for unusual changes in collections
If collecting from a drop box site, consider sending two people to collect the funds, especially
during peak times
As always, the cost of controls and staffing must be weighed against the benefits of safeguarding your
assets.
Page 6
INFORMATIONAL POINTS (cont.)
GASB UPDATES
The following is a schedule of GASB projects:
Task or Event Effective Date Impact
GASB 72 – Fair Value
Measurement and
Application
For financial
statements for periods
beginning after
June 15, 2015
Items that are now subject to fair value measurement
that weren’t before: private equity/hedge funds, real
estate investments, many investments that were
previously carried at cost or under the equity method,
derivatives will now be measured using exit price,
donated long term assets. Does not affect money
markets, investments in 2a7-like pools, or assets held
by the government that enhance the ability to provide
services.
GASB 73 –
Accounting and
Financial Reporting for
Pensions and Related
Assets That Are Not
within the Scope of
GASB 68, and
Amendments to
Certain Provisions of
GASB Statements 67
and 68
For fiscal years
beginning after June
15, 2016 for pensions
that are not within the
scope of GASB 68. For
fiscal years beginning
after June 15, 2015 for
pensions within the
scope of GASB 67 and
68.
Part I extends the approach of GASB 68 to all
pensions (with some modifications. Part II clarifies
certain requirements of GASB 67 and 68.
GASB 74 – Financial
Reporting for
Postemployment
Benefit Plans Other
Than Pension Plans
and GASB 75 –
Accounting and
Financial Reporting for
Postemployment
Benefits Other Than
Pensions
GASB 74: For fiscal
years beginning after
June 15, 2016
GASB 75: For fiscal
years beginning after
June 15, 2017
These standards have similarities to the previous
OPEB standards, most notably the definition of an
OPEB and the option of the alternative measurement
method for small governments. However, the
calculation and reporting of the OPEB liability and
various required disclosures will change under the
new standards, becoming similar to the pension
standards.
GASB 76 – The
Hierarchy of Generally
Accepted Accounting
Principles for State
and Local
Governments
For reporting periods
beginning after June
15, 2015
Officially established accounting principles – GASB
statements (Category A) and GASB Technical
Bulletins, implementation guides and literature of the
AICPA cleared by the GASB (Category B)
Page 7
INFORMATIONAL POINTS (cont.)
GASB UPDATES (cont.)
Task or Event Effective Date Impact
GASB 77 – Tax
Abatement
Disclosures
For financial
statements for periods
beginning after
December 15, 2015
Tax abatements are a reduction in tax revenue that
has the following characteristics: (1) An agreement
between one or more governments and an individual
or entity in which: (a) one or more governments
promise to forgo tax revenues to which they are
otherwise entitled and; (b) the individual or entity
promises to take specific action after the agreement
has been entered into that contributes to economic
development or otherwise benefits the governments
or the citizens of those governments.
This definition is limited and excludes many incentive
and other programs because they do not meet one or
more of the requirements.
GASB 78 – Pensions
Provided through
Certain Multiple-
Employer Defined
Benefit Pension Plans
For reporting periods
beginning after
December 15, 2015
This addresses a specific issue regarding the ability of
state and local governmental employers to obtain
necessary information related to pensions that are
provided through certain multiple-employer benefit
pension plans that are not a state or local
governmental pension plan.
GASB 79 – Certain
External Investment
Pools and Pool
Participants
For reporting periods
beginning after June
15, 2015, except for
certain provisions on
portfolio quality,
custodial credit risk,
and shadow pricing,
which are effective for
reporting periods
beginning after
December 15, 2015
It establishes criteria for an external investment pool
to qualify for making the election to measure all its
investments at amortized costs for financial reporting
purposes.
Current Agenda
Project: Blending
Requirements for
Certain Component
Units
Proposed effective
date – June 30, 2017
(Exposure Draft issued
in June 2015)
The objective of this project is to improve financial
reporting by addressing issues related to inconsistent
presentation of certain component units in financial
reporting of governments.
Current Agenda
Project: Pension
Issues
Proposed effective
date – June 30, 2017
(Exposure Draft issued
in December 2015)
The object of this project is to consider the need for
revisions to certain of the requirements in GASB 67
and 68, as a result of issues raised by stakeholders.
Page 8
INFORMATIONAL POINTS (cont.)
GASB UPDATES (cont.)
Task or Event Effective Date Impact
Current Agenda
Project: Irrevocable
Split-Interest
Agreements
Proposed effective
date – December 31,
2017 (Exposure Draft
issued in June 2015)
The objective of this project is to determine what
accounting and financial reporting guidance, if any,
should be established for irrevocable split-interest
agreements held for the benefit of governmental
entities.
Current Agenda
Project: Fiduciary
Activities
Proposed effective
date – December 31,
2018 (Exposure draft
issued December
2015)
This project is to develop guidance regarding whether
and how governments should report fiduciary activities
in their general purpose external financial reports.
Current Agenda
Project: Asset
Retirement Obligations
Proposed effective
date – December 31,
2018 (Exposure Draft
issued in December
2015)
The objective of this project is to improve financial
reporting by developing requirements on recognition
and measurement for asset retirement obligations,
other than landfills.
Current Agenda
Project: Leases
The GASB Board is
scheduled to issue an
Exposure Draft in
January 2016
The objective of this project is to reexamine issues
associated with lease accounting, considering
improvements to existing guidance.
Current Agenda
Project: Certain
Extinguishments Using
Existing Resources
The GASB Board is
scheduled to issue an
Exposure Draft in
August 2016
The project will consider improvements to the existing
guidance related to debt extinguishments using
existing resources. Debt extinguishments connected
with troubled debt restructurings and bankruptcy,
which are addressed in other pronouncements, are
not included.
The GASB has a project on hold (conceptual framework for recognition) pending the reexamination of the
financial reporting model.
The GASB revisits GASB standards ten (10) years after issuance. The GASB is currently revisiting GASB
Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis for State
and Local Governments, as well as reporting model-related pronouncements including Statements Nos.
37, 41, and No. 46 and Interpretation No. 6, Recognition and Measurement of Certain Liabilities and
Expenditures in Governmental Fund Financial Statements. The GASB has indicated that they are
revisiting the following major provisions of these standards: management’s discussion and analysis,
government-wide financial statements, fund financial statements, capital asset reporting, budgetary
comparisons, special purpose government reporting, and related notes to financial statements. In
addition, the GASB is revisiting debt extinguishments, which includes a reexamination of GASB
Statement Nos. 7, 23, and 62. We will share updates with you as they become available.
Full lists of projects, as well as many resources, are available on GASB’s website which is located at
www.gasb.org.
Page 9
INFORMATIONAL POINTS (cont.)
INTERPRETING YOUR FINANCIAL STATEMENTS POST-GASB NO. 68
Now that your financial statements reflect the new pension requirements of GASB Statement No. 68,
what has changed and how do you interpret this new information? In summary, GASB Statement No. 68
required governmental entities participating in the Wisconsin Retirement System (WRS) to report their
proportionate share of the plan’s activity and net pension asset.
As of the December 31, 2015 measurement date used for your 2015 financial statements, WRS reported
total resources available to provide pension benefits of $92.1 billion. They also reported a total liability for
pensions of $89.7 billion. This resulted in a net pension asset of $2.4 billion. Your government’s
proportionate share of the asset is $1,521,669 and is reported as a restricted asset. There are also
pension-related deferred outflows or inflows due to timing of contributions and smoothing of activity.
Pension activity under GASB Statement No. 68 is report in the government-wide financial statements and
proprietary fund financial statements, similar to long-term debt. The implementation of this new standard
does not affect how you fund or pay for your pension contributions to the WRS.
The accounting and reporting of pensions has become more complex with the implementation of GASB
Statement No. 68. We are available to answer any questions on how this new accounting standard
affects your financial statements.
CYBER RISK ASSESSMENT
Cybersecurity is a growing challenge for many governments as threats and vulnerabilities constantly
evolve. Information security is a significant issue for many organizations and is no longer considered to
be strictly an Information Technology (IT) issue. The potential impacts of a security breach can be
financial, operational, and reputational. Cyber risk should be a high priority and evaluated on a regular
basis.
Security breaches can come in a number of forms, which are continually evolving with advances in and
increased use of technology. It is important for governments to assess what types of information they
have that are vulnerable to cyber-attack. Items to consider include processing, collecting, and/or storing
personal information about employees, taxpayers, and/or customers. Social security numbers, bank
accounts, addresses, medical information, birth dates, and credit cards are all common examples of
information existing in systems of governmental entities. In addition, general ledger data and other
supporting files can be compromised. Several instances of ransomware have been reported in
governmental entities like yours during the last year. Ransomware restricts access to your files and
demands a ransom to the malware operator in order to release the restriction. It is important to take
inventory of all the information that flows through your systems in order to properly secure your data.
We recommend performing a cyber risk assessment to align the internal controls and processes with the
organizational objectives, initiatives, resources, and risk appetites with regards to cyber risk. We have
cybersecurity experts on staff that are available to assist with this assessment.
REQUIRED COMMUNICATIONS BY THE AUDITOR TO THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and the Common Council
City of Muskego
Page 11
QUALITATIVE ASPECTS OF THE ENTITY’S SIGNIFICANT ACCOUNTING PRACTICES
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. In accordance with
the terms of our engagement letter, we will advise management about the appropriateness of accounting
policies and their application. The significant accounting policies used by the City are described in Note I to
the financial statements. As described in Note I to the financial statements, the City changed accounting
policies related to financial reporting for pensions by adopting Statement of Governmental Accounting
Standards (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of
GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made
Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68 in 2015. Accordingly,
the accounting change has been retrospectively applied to prior periods presented as if the policy has
always been used. We noted no transactions entered into by the City during the year that were both
significant and unusual, and of which, under professional standards, we are required to inform you, or
transactions for which there is a lack of authoritative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimates affecting the financial statements were:
Accrued compensated absences for vacation and sick leave.
Management’s estimate of the net pension asset and the deferred outflows related to pensions which
impacts the reported pension expense are based on information provided by the Wisconsin Retirement
System.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
The disclosures in the notes to the financial statements are neutral, consistent, and clear.
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing our audit.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are trivial, and communicate them to the appropriate level of management.
There were no such misstatements identified.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that
could be significant to the financial statements or the auditors’ report. We are pleased to report that no such
To the Honorable Mayor and the Common Council
City of Muskego
Page 12
disagreements arose during the course of our audit.
CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. If a consultation involves application of an accounting principle to the governmental unit’s financial
statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the consultant has
all the relevant facts. To our knowledge, there were no such consultations with other accountants.
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter. This letter follows this required communication.
INDEPENDENCE
We are not aware of any relationships between Baker Tilly Virchow Krause, LLP and the City that, in our
professional judgment, may reasonably be thought to bear on our independence.
Relating to our audit of the financial statements of for the year ended December 31, 2015, Baker Tilly Virchow
Krause, LLP hereby confirms that we are, in our professional judgment, independent with respect to the City in
accordance with the Code of Professional Conduct issued by the American Institute of Certified Public
Accountants. We provided no services to the City other than audit services provided in connection with the audit
of the current year’s financial statements and the following nonaudit services which in our judgment do not
impair our independence.
Financial statement preparation
Compiled regulatory reports
CIVIC System software
None of these nonaudit services constitute an audit under generally accepted auditing standards, including
Government Auditing Standards.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
OTHER MATTERS
We applied certain limited procedures to the required supplementary information (RSI) that supplements the
basic financial statements. Our procedures consisted of inquiries of management regarding the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the
RSI.
To the Honorable Mayor and the Common Council
City of Muskego
Page 13
OTHER MATTERS (cont.)
We were engaged to report on the supplementary information which accompanies the financial statements but
is not RSI. With respect to the supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in relation to
our audit of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial statements
themselves.
RESTRICTION ON USE
This information is intended solely for the use of the City, Common Council and management and is not
intended to be, and should not be, used by anyone other than these specified parties.
We welcome the opportunity to discuss the information included in this letter and any other matters. Thank you
for allowing us to serve you.
Milwaukee, Wisconsin
August 18, 2016
MANAGEMENT REPRESENTATIONS
August 18, 2016
Baker Tilly Virchow Krause, LLP
777 E Wisconsin Ave
32nd Floor
Milwaukee, WI 53202
Dear Baker Tilly Virchow Krause, LLP:
We are providing this letter in connection with your audit of the financial statements of the City of Muskego
as of December 31, 2015 and for the year then ended and the Big Muskego Lake Bass Protection and
Rehabilitation District as of December 31, 2015 and the year then ended, for the purpose of expressing an opinion as to
whether the financial statements present fairly, in all material respects, the respective financial position of the
governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the City of Muskego and the Big Muskego Lake District and the
respective changes in financial position and cash flows, where applicable, in conformity with accounting principles
generally accepted in the United States of America. We confirm that we are responsible for the fair presentation of the
previously mentioned financial statements in conformity with accounting principles generally accepted in the United
States of America. We are also responsible for adopting sound accounting policies, establishing and
maintaining internal control over financial reporting, and preventing and detecting fraud.
Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in
the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the
information would be changed or influenced by the omission or misstatement. An omission or misstatement that is
monetarily small in amount could be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, the following representations made to you during your audit.
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter.
2. The financial statements referred to above are fairly presented in conformity with accounting principles generally
accepted in the United States of America. We have engaged you to advise us in fulfilling that responsibility. The
financial statements include all properly classified funds of the primary government and all component units
required by accounting principles generally accepted in the United States of America to be included in the
financial reporting entity.
3. We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
4. We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent
and detect fraud.
5. Significant assumptions we used in making accounting estimates, if any, are reasonable.
Department of Finance & Administration
Sharon Mueller
Finance & Administration Director
(262) 679-5622
smueller@cityofmuskego.org
6. All events subsequent to the date of the financial statements and for which accounting principles generally
accepted in the United States of America require adjustment or disclosure have been adjusted or disclosed. No
other events, including instances of noncompliance, have occurred subsequent to the balance sheet date and
through the date of this letter that would require adjustment to or disclosure in the aforementioned financial
statements.
7. All material transactions have been recorded in the accounting records and are reflected in the financial
statements.
8. The effects of all known actual or possible litigation, claims, and assessments have been accounted for and
disclosed in accordance with accounting principles generally accepted in the United States of America.
9. Guarantees, whether written or oral, under which the City is contingently liable, if any, have been properly
recorded or disclosed.
Information Provided
10. We have provided you with:
a. Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of
the financial statements, such as financial records and related data, documentation, and other matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit
evidence.
d. Minutes of the meetings of the Common Council and Public Utilities Committee or summaries of actions of
recent meetings for which minutes have not yet been prepared.
11. We have disclosed to you results of our assessment of the risk that the financial statements may be materially
misstated as a result of fraud.
12. We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
a. Management,
b. Employees who have significant roles in internal control, or
c. Others where the fraud could have a material effect on the financial statements.
13. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in
communications from employees, former employees, regulators, or others.
14. We have no knowledge of known instances of noncompliance or suspected noncompliance with provisions of
laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when
preparing financial statements.
15. There are no known related parties or related party relationships and transactions of which we are aware.
Other
16. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies
in, financial reporting practices.
17. We have a process to track the status of audit findings and recommendations.
18. We have identified to you any previous financial audits, attestation engagements, and other studies related to
the audit objectives and whether related recommendations have been implemented.
19. The City has no plans or intentions that may materially affect the carrying value or classification of assets,
liabilities, or equity.
20. We are responsible for compliance with federal, state, and local laws, regulations, and provisions of contracts
and grant agreements applicable to us, including tax or debt limits, debt contracts, and IRS arbitrage
regulations; and we have identified and disclosed to you all federal, state, and local laws, regulations and
provisions of contracts and grant agreements that we believe have a direct and material effect on the
determination of financial statement amounts or other financial data significant to the audit objectives, including
legal and contractual provisions for reporting specific activities in separate funds.
21. There are no:
a. Violations or possible violations of budget ordinances, federal, state, and local laws or regulations (including
those pertaining to adopting, approving and amending budgets), provisions of contracts and grant
agreements, tax or debt limits, and any related debt covenants whose effects should be considered for
disclosure in the financial statements or as a basis for recording a loss contingency, or for reporting on
noncompliance, except those already disclosed in the financial statement, if any.
b. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by accounting
principles generally accepted in the United States of America.
c. Nonspendable, restricted, committed, or assigned fund balances that were not properly authorized and
approved.
d. Rates being charged to customers other than the rates as authorized by the applicable authoritative body.
e. Violations of restrictions placed on revenues as a result of bond resolution covenants such as revenue
distribution or debt service funding.
22. In regards to the nonattest services performed by you listed below, we have 1) accepted all management
responsibility; 2) designated an individual with suitable skill, knowledge, or experience to oversee the services;
3) evaluated the adequacy and results of the services performed, and 4) accepted responsibility for the results of
the services.
a. Financial statement preparation
b. Compiled regulatory reports
c. Civic Systems software
None of these nonattest services constitute an audit under generally accepted auditing standards, including
Government Auditing Standards.
23. The City of Muskego has satisfactory title to all owned assets, and there are no liens or encumbrances on such
assets nor has any asset been pledged as collateral.
24. The City of Muskego has complied with all aspects of contractual agreements that would have a material effect
on the financial statement in the event of noncompliance.
25. The financial statements include all component units. There are no joint ventures with an equity interest, other
joint ventures or other related organizations.
26. The financial statements properly classify all funds and activities.
27. All funds that meet the quantitative criteria in GASB Statement No. 34 and No. 37 for presentation as major are
identified and presented as such and all other funds that are presented as major are particularly important to
financial statement users.
28. Components of net position (net investment in capital assets; restricted; and unrestricted) and components of
fund balance (nonspendable, restricted, committed, assigned and unassigned) are properly classified and, if
applicable, approved.
29. The City of Muskego has no derivative financial instruments such as contracts that could be assigned to
someone else or net settled, interest rate swaps, collars or caps.
30. Provisions for uncollectible receivables, if any, have been properly identified and recorded.
31. Expenses have been appropriately classified in or allocated to functions and programs in the statement of
activities, and allocations have been made on a reasonable basis.
32. Revenues are appropriately classified in the statement of activities within program revenues and general
revenues.
33. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported.
34. Deposits and investment securities are properly classified as to risk, and investments are properly valued.
Collateralization agreements with financial institutions, if any, have been properly disclosed.
35. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if
applicable, depreciated/amortized. Any known impairments have been recorded and disclosed.
36. Tax-exempt bonds issued have retained their tax-exempt status.
37. The operations and rate setting process meet the condition for application of accounting for regulated
operations as outlined in GASB No. 62. All regulatory items included in the financial statements have been
approved and are being accounted for in accordance with specific action taken by the regulatory body and as
such the expectation of future recovery or refund is reasonable.
38. We have appropriately disclosed the City of Muskego's policy regarding whether to first apply restricted or
unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net
position are available and have determined that net position were properly recognized under the policy. We
have also disclosed our policy regarding which resources (that is, restricted, committed, assigned or
unassigned) are considered to be spent first for expenditures for which more than one resource classification is
available.
39. We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and
presented within prescribed guidelines and the methods of measurement and presentation have not changed
from those used in the prior period. We have disclosed to you any significant assumptions and interpretations
underlying the measurement and presentation of the RSI.
40. With respect to the supplementary information, (SI):
a. We acknowledge our responsibility for presenting the SI in accordance with accounting principles generally
accepted in the United States of America, and we believe the SI, including its form and content, is fairly
presented in accordance with accounting principles generally accepted in the United States of America. The
methods of measurement and presentation of the SI have not changed from those used in the prior period,
and we have disclosed to you any significant assumptions or interpretations underlying the measurement and
presentation of the supplementary information.
Memo
To: Finance Committee
From: Tom Zagar
CC: Jeff Muenkel
Date: August 10, 2016
Re: Tree Planting (EAB Mitigation) Grant
Request
Recommend Approval of a Resolution to apply for a 2016 Emerald Ash Borer (EAB)
Mitigation Grant.
Background
The Wisconsin regional planning commissions and DNR are providing financial assistance to
communities have lands within the Great Lakes Basin to plant trees to mitigate the loss of
ash trees from EAB. The program provides 75% cost share for eligible tree planting
projects. We are requesting funding to plant 30 trees in park land that lies within the Root
River watershed. It is planned that these trees would be installed by a landscape contractor.
Financial Implications
It is estimated that trees will cost $300 each for a total outlay of $9000. Through this grant we
will recover $6750 (75% of costs). The net $2250 cost will be covered by the 2017 Urban
Forestry operating budget or, if approved, by the requested tree planting capital budget item.
Community Development Department
CITY OF MUSKEGO
DEPARTMENT OF FINANCE AND ADMINISTRATION
W182 S8200 RACINE AVENUE, MUSKEGO, WI 53150
PHONE: 262-679-5625 FAX: 262-679-4106
MEMORANDUM
TO: Mayor and Finance Committee
FROM: Jill Blenski, CMC
DATE: August 16, 2016
RE: Exemption from Waukesha County Library Levy for 2017
A Notice of Exemption must be filed annually no later than September 30 with
the Waukesha County Federated Library System to obtain an exemption from
the county library levy. The notice must be supported by an ordinance or
resolution enacted by the governing body. The Council has adopted a resolution
in the past and this year’s resolution is on the August 23 agenda.
For your information, the City is pledging to appropriate the expenditure of no
less than a rate of $0.283021 per $1,000 of the actual state Equalized Value
amount ($2,766,764,000), which equals $783,052. The 2016 adopted library
budget was $1,233,258.
cc: Pete Loeffel (e-mail)
File (Clerk-Treasurer)
T\Departments\FinanceAdmin\Clerk\Clerk-Treasurer: Memo-FC-library
CITY OF MUSKEGO
EDGEWATER HEIGHTS & EDGEWATER HEIGHTS ADDITION #1 SUBDIVIDER'S AGREEMENT
This Agreement, made this _____ day of ___________, 2016 by and between Edgewater Heights,
LLC, (the "Subdivider") and the City of Muskego, a municipal corporation of the State of Wisconsin,
located in Waukesha County, (the "City").
W I T N E S S E T H
WHEREAS, the Subdivider has submitted for approval by the City the Preliminary Plat for the
Edgewater Heights Subdivision (the “Subdivision”), a part of the lands described as:
LEGAL DESCRIPTION :
WHEREAS, Section 236.13 of the Wisconsin Statutes provides that as a condition of plat approval, the
governing body of the City may require that the Subdivider make and install certain public improvements
reasonably necessary for the Subdivision and further, may require dedication of public streets, alleys or
other ways within the Subdivision, to be conditioned upon the construction of said improvements
according to municipal specifications without cost to said municipality; and
WHEREAS, The City's Engineers, the City's Public Works Committee, and Finance Committee have
duly approved, contingent on certain other approvals, Subdivider's plans and specifications for
subdivision improvements, and
WHEREAS, The City's Plan Commission and Common Council have duly approved the preliminary plat
of the Edgewater Heights Subdivision and as per Section 18.31(2)e of the Muskego Chapter 18 Land
Division ordinance, the developer wishes to start improvements for the subdivision before the approval
of the final plat.
WHEREAS, Starting improvements before Final Plat approvals from the Council is permitted as long as:
Approval is found of the construction plans by the Public Works Director, and the Public Works
Committee; A Developer’s Agreement agreeing to install the required improvements is approved and
recorded between the Subdivider and City; and, a letter of credit, cash or certified check meeting the
approval of the City Attorney in an amount equal to 120% of the estimated cost of the improvements is
given.
SECTION I : PHASING
1. Subdivider and City agree that this agreement is for the installation of public and private
improvements described in Section III for Phases 1 and 2 (Addition #1) of the Edgewater Heights
Development, which consists of the area legally described herein above and found on the
Preliminary Plat approved per Council Resolution #035-2016 on May 10th, 2016.
2. The platting of this development will take place in two phases consisting of the Edgewater Heights
Final Plat and the Edgewater Heights Addition #1 Final Plat. The City will only approve, sign, and
record each Final Plat upon Public Works Director and Common Council Acceptance of
Improvements for each specific area.
SECTION II : PLATTING
1. This Subdivider’s Agreement addresses the development of parcels platted for single family
Page 2
Edgewater Heights Sub-divider Agreement
residential use, all being under the Provisions of Chapters 17 and 18 of the Municipal Code, and
under the auspices of a Conservation Planned Development District – CPD-6 zoning.
a) Single-family parcels shall conform to the zoning requirements of a CPD-6 Conservation Planned
Development District. The CPD zoning is allowed per Common Council approval and the CPD
can permit flexibility in the underlying zoning requirements. The Edgewater Heights CPD allowed
increased densities resulting in parcels generally being a minimum of 18,000 square feet in area,
100 feet in average lot width, having street yard setbacks of 40 feet, side yard offsets of 15 feet
on one side and 10 feet on all other sides.
b) Outlots shall be reserved for open space management and stormwater purposes consistent with
CPD Planned Development overlay zoning requirements and per the Preliminary Plat approved
per Council Resolution #035-2016 on May 10th, 2016.
2. Subdivider shall entirely at its expense:
a) As per Section 18.31(2)d of the Muskego Chapter 18 Land Division ordinance, have the
Edgewater Heights Final Plat submitted and approved. The Subdivider shall cause the Final Plat
of Edgewater Heights to be executed and recorded, and shall provide City with evidence of
recording. Note: The Final Plat cannot be approved until after the improvements, found in
Section V of this agreement, are accepted to ensure that no lots are sold until said acceptance is
complete.
b) Concurrent with the execution of this Agreement tender an Irrevocable Standby Letter of Credit in
the amount required herein for the construction of improvements required by this Agreement. No
construction activity may commence until this Agreement has been executed and recorded, and
the Letter of Credit has been tendered.
c) Provide the City with title evidence showing that upon recording the Final Plat s, the City will have
good, indefeasible title to all interests in land dedicated or conveyed to the City by the Plats.
d) Before any improvements found in Section III of this agreement begin, the Subdivider shall
execute this Agreement, shall cause this Agreement to be recorded at the Waukesha County
Register of Deeds, and shall provide City with evidence of recording.
e) Place and install monuments required by State Statute or City Ordinance.
SECTION III : IMPROVEMENTS
Subdivider shall entirely at its expense:
A. ROADS AND STREETS:
1. Grade and improve all roads and streets in accordance with the plans and specifications approved
by the Public Works Committee including off-site improvements necessary to provide such roads
and streets, including grading and gravel, curb and gutter, and asphalt street improvements, as
approved by the Public Works Director or his designee and Public Works Committee as indicated in
the plans and specifications on file with the Engineering Department.
2. Restore any damage to existing pavement, curb, gutter, and landscaping which may result from
construction of subdivision improvements.
Page 3
Edgewater Heights Sub-divider Agreement
3. Reimburse the City for the cost of all street signs, street lights, traffic signs and posts, including the
cost of their installation.
4. Contractors working at the Subdivision or on individual lots are required to clean up all mud, dirt,
stone or debris on the streets no later than the end of each working day. In addition, the Subdivider
shall have ultimate responsibility for cleaning up any and all mud, dirt, stone or debris on the streets
until Final Acceptance has been granted by the City Council as described in Section VII. The City
shall make a reasonable effort to require the contractor that placed the mud, dirt, stone or debris on
the street, to clean up the same or to hold the subject property owner who hired the contractor
responsible. The Subdivider and/or subject property owner shall clean up the streets within twenty-
four (24) hours after receiving a notice from the City. If said mud, dirt, stone or debris are not
cleaned up after notification, the City may do so at the Subdivider’s and/or subject property owner's
expense, at the option of the City.
B. STORM AND SURFACE WATER DRAINAGE AND MASTER GRADING PLAN:
1. Construct, install, furnish and provide facilities as approved by the Public Works Director or his
designee and Public Works Committee for storm and surface water drainage throughout the entire
Subdivision and off site improvements as necessary, and a Master Grading Plan providing for sump
pump discharge to a tile or storm sewer system, all in accordance with the plans and specifications
on file in the Building and Engineering Department. The City retains the right to require the
Subdivider to install at Subdivider’s cost additional storm drainage and erosion control measures
prior to acceptance of improvements by the City of Muskego.
2. Grade and improve all lots, on and off site, in conformance with the Master Grading Plan as
approved by the Public Works Director or his designee and Public Works Committee in accordance
with the plans and specifications on file in the City Engineering Department . Restore with topsoil and
seed. Establish dense vegetation.
3. The City retains the right to require Subdivider to install within the development (and immediately
adjacent area if applicable and necessary), additional surface and storm water drainage measures if
it is determined by the City Engineer that the original surface and storm water drainage plan as
designed and/or constructed does not provide reasonable stormwater drainage pursuant to the City’s
ordinances, written procedures and policies.
4. Clean all Storm Sewers prior to acceptance of improvements and the issuance of building permits by
the City.
5. Execute and record a Maintenance Agreement as approved by the Public Works Director or his
designee relating to privately owned storm water appurtenances, and provide proof of recording prior
to sale of lots in the Subdivision. Keep and maintain all storm sewers, retention or detention ponds,
and surface water drainage features which are outside of the rights-of-way in perpetuity, as provided
for in the Maintenance Agreement.
6. Submit an as-built grading plan that meets all City requirements.
C. SANITARY SEWER:
1. Construct, install, furnish, and provide without cost to City, a complete sanitary sewage collection
system throughout the entire Subdivision, and including off site improvements necessary to provide
such system, as approved by the Public Works Director or his designee and the Public Works
Page 4
Edgewater Heights Sub-divider Agreement
Committee in accordance with the plans, specifications and drawings on file in the City Engineering
Department.
2. Complete, to the satisfaction of the Public Works Director or his designee, any remaining punch list
items concerning the Sanitary Sewer System prior to the connection of any structure to the sanitary
sewer systems.
3. Clean all sanitary sewers in the Subdivision prior to acceptance of the Improvements and issuance of
building permits by the City.
4. Request televising of the sanitary system by the City of Muskego and reimburse the City for costs to
complete the televising.
D. WATER MAIN:
1. Construct, install, furnish, and provide without cost to City, a complete system of water supply and
distribution, throughout the entire Subdivision, and including off site improvements necessary to
provide such system, as approved by the Public Works Director or his designee and Public Works
Committee and in accordance with the plans and specifications on file in the City Engineering
Department.
2. Apply for and pay for all necessary permits to use water from hydrants for construction permits, as
may be required by the City.
3. Complete to the satisfaction of the City any punch list items concerning the water system prior to
connection of any building to the water system.
E. LANDSCAPING:
1. Preserve existing trees outside of the public right-of-way to the maximum extent possible, when
installing the Subdivision improvements. Replace trees in accordance with plans to be approved by
the Plan Commission.
2. Remove and lawfully dispose of destroyed trees, brush, tree trunks, shrubs and other natural growth,
and all rubbish.
3. Plant street trees without cost to City in accordance with Section 18.60 of the Muskego Land Division
Ordinance and the adopted Urban Forestry Management Plan and Urban Forestry Strategic Plan
dated March 28, 2000 and adopted by the Common Council on July 11, 2000 and in accordance with
street tree and landscape plans on file in the City Building and Engineering Department that were
approved by the Community Development Director and City Forester prior to the signing of this
agreement. The planting of the street trees shall occur shortly before the installation of the final
course of pavement.
4. The City has the right to trim and remove any landscaping features which would interfere with safe
operation and maintenance of the City right-of-ways and drainageways.
F. EROSION CONTROL MEASURES:
1. The Subdivider shall cause all grading, excavation, open cuts, side slopes and other land surface
disturbances to be so seeded and mulched, sodded or otherwise protected that erosion, siltation,
Page 5
Edgewater Heights Sub-divider Agreement
sedimentation and washing are prevented in accordance with the plans and specifications reviewed
and approved by the City Engineer, the State of Wisconsin Department of Natural Resources, and
Army Corps of Engineers, if applicable.
2. Construct, install, furnish and provide without cost to City, a complete system of Erosion Control
Devices or measures in specified areas of the Subdivision, on and off -site, in accordance with the
Erosion Control Plan as approved by the Public Works Director or his designee and Public Works
Committee and in accordance with the plans and specifications on file in the City Engineering
Department.
3. Install silt fencing in conformance with the approved Erosion Control Plan prior to the grading and
construction work. Such fences shall be maintained by the Subdivider until such time as vegetative
cover is established in the Subdivision. Install mulching and seeding of all disturbed areas to comply
with Municipal Code Chapter 29.
SECTION IV: ADDITIONAL IMPROVEMENTS
The Subdivider hereby agrees that if, at any time after plan approval and during construction of the
Improvements, the City Engineer determines that modifications to the plans including additional
Improvements such as additional drainage ways, erosion control measures, and surface and storm
water management measures are necessary in the interest of public safety, are necessary in order to
comply with current laws or are necessary for implementation of the original intent of the Improvement
plans, the City is authorized to order Subdivider, at Subdivider’s expense, to implement the same. If
Subdivider fails to construct the additional Improvement within a reasonable time under the
circumstances, the City may cause such work to be carried out and shall charge against the financial
guarantee held by the City pursuant to this Agreement. The requirement by the City of such additional
Improvements as set forth herein must not negatively impact the Subdivision or cause or result in the
loss of a lot within the Subdivision that was intended for the construction of a single family home.
SECTION V : TIME OF COMPLETION OF IMPROVEMENTS
The improvements set forth in Section II, except for final surface course of pavement as described
herein, shall be completed by the Subdivider within one (1) year from the signing of this Agreement
except if an earlier date is provided for in the Agreement. If the construction of this development will take
place in phases, the time of completion for each phase shall be one year from commencement of the
construction activities, with all improvements, excluding surface course completed by October 31, 2018.
The final surface course of pavement must be deferred until ninety percent (90%) of the homes have
been substantially completed, or twenty-four (24) months after the date of acceptance of improvements,
whichever comes first.
If the final surface course of pavement, is not completed within twelve (12) months of the date of this
Agreement, the Subdivider shall extend the Letter of Credit in a form acceptable to the City until such
time as the final surface course of pavement is completed.
If the City receives notice of the intention to terminate the Letter of Credit prior to completion of the final
surface course pavement, such notice shall be considered a failure to complete improvements in
accordance with this agreement and shall entitle the City to immediately draw against the Letter of
Credit.
SECTION VI : AS-BUILT CONSTRUCTION PLANS
Page 6
Edgewater Heights Sub-divider Agreement
Subdivider authorizes the City to prepare all necessary as-built construction plans for improvements to
be dedicated to the City. Subdivider agrees to reimburse City for all costs incurred in the preparation
and distribution of as-built data, including collection of data, revisions to construction documents and
upload of data to City’s Geographic Information System, and City may utilize Subdivider’s Developers
Deposit account for all charges related hereto.
Subdivider authorizes the City to convert digital files submitted by Subdivider pursuant to Section
18.32(3)(i) of the Municipal Code of the City of Muskego and Common Council Resolution No. 196-2002
to any format deemed necessary by City. Subdivider agrees to reimburse City for all costs incurred in
said conversions and City may utilize Subdivider’s Developers Deposit account for all charges related
hereto.
SECTION VII : FINAL ACCEPTANCE
Throughout this Agreement, various stages of the development will require approval by the City. “Final
Acceptance” as used herein, however, shall be the ultimate acceptance of all of the Improvements in the
completed development as a whole, with the exception of the final lift of asphalt on the public streets,
and shall be granted specifically by resolution of the Common Council. Final Acceptance shall be
granted when substantial completion occurs, as determined by the Common Council pursuant to the
definition of substantial completion shown in Wisconsin Statutes Section 236.13(2)(a)2. Granting Final
Acceptance does not relieve the Subdivider of any obligations of this Agreement for uncompleted
Improvements, and does not constitute a waiver, in particular, of the Subdivider’s obligation to complete
the surface course of the public streets or any other Improvements or obligations that may be
outstanding at the time that Final Acceptance is granted.
SECTION VIII : DEDICATION AND ACCEPTANCE OF IMPROVEMENTS
Subject to all of the other provisions of this agreement, Subdivider shall, without charge to the City, upon
completion of the above described improvements, unconditionally give, grant, convey and fully dedicate
the streets, sanitary sewers, water mains, storm water drainage facilities (excluding those facilities which
are to be owned and maintained by the Edgewater Heights Homeowners Association, Inc.) to the City,
its successors and assigns, forever, free and clear of all encumbrances (except those encumbrances
that may be acceptable to the City) whatsoever, together with and including, without limitation because
of enumeration, any and all land, buildings, structures, mains, conduits, pipes lines, plant, machinery,
equipment, appurtenances and hereditaments which may in any way be a part of or pertain to such
improvements and together with any and all necessary easements for access thereto. The City will be
receptive to the dedications of improvements, except private storm water drainage facilities, after the
first lift of bituminous concrete pavement has been installed, when all said utilities have been completed
and approved by the Public Works Directors and other agencies as applicable.
Dedication shall not constitute acceptance of any improvement by the City. The City shall not accept the
dedication of any improvements which do not fully comply with City standards and specifications. Claims
of financial hardship by the Subdivider shall not be considered a reason for the City to accept
substandard materials or work.
The City shall have the right to connect to or integrate other utility facilities with the improvements
provided herein without payment, award, or consent required of the Subdivider.
At such time as all improvements are completed and acceptable as called for under this Agreement, and
all approvals have been received from regulatory agencies, such improvements shall be accepted by the
City by separate Resolution. Acceptance shall not occur until after the items listed below have taken
place OR if the Public Works Director deems other items relating to the construction of the subdivision
necessary:
Page 7
Edgewater Heights Sub-divider Agreement
1. The sanitary sewer, water, and surface water drainage facilities required to serve such homes are
connected with an operational system as required herein, and the installation of the bituminous
concrete base course pavement has been properly installed, and
2. Deed Restrictions and the Stormwater Management Maintenance Agreement have been recorded
and a copy of the recorded documents are delivered to the Community Development Department,
and
3. Video tape of sanitary sewer system has been completed by the Utilities Department, and the results
found acceptable by the Utility Superintendent, and
4. Certification is provided to the Public Works Director or his designee by a Registered Land Surveyor
that all lot grades conform to the Master Grading Plan or the Interim Master Grading Plan and the
as-built grading plan has been submitted to the Director of Public Works and he/she has verified all
grades meet City standards.
SECTION IX: INSPECTION AND ADMINISTRATION FEES
Subdivider shall pay and reimburse the City in advance of the signing of the Agreement, in accordance
with Section 18.14 of the Land Division Ordinance and Ordinance No. 909, and at times specified herein,
but in any event, no later than thirty (30) days after billing, all fees, expenses and disbursements which
shall be incurred by the City prior to and following the date hereof in connection with or relative to the
construction, installation, dedication and acceptance of the improvements covered by Section III,
including without limitation by reason of enumeration, design, engineering, preparing, checking and
review of designs, plans and specifications, supervision, inspection to insure that construction is in
compliance with the applicable plans, specifications, regulations and ordinances; and legal,
administrative and fiscal work undertaken to assure and implement such compliance. Failure to pay or
reimburse the City in a timely manner may cause the City to cease all construction inspections until such
time as all anticipated or outstanding inspection and administration fees have been satisfied.
SECTION X: MISCELLANEOUS REQUIREMENTS
The Subdivider shall:
1. Easements: Provide any easements on Subdivider's land deemed necessary by the Public Works
Director or his designee prior to the Final Plat being signed, provided such easements are along lot
lines or to the rear of the lots and are not any more restrictive to the building of homes beyond the
applicable side yard and offset distances required by the zoning for such lots.
2. Manner of Performance: Cause all construction called for by this Agreement to be carried out and
performed in a good and workmanlike manner.
3. Survey Monuments: Properly place and install any lot, block or other monuments required by State
Statute, City Ordinance or the City Engineer.
4. Underground Utilities: Install all electrical, telephone, cable and gas utilities underground.
Coordination of installation and all costs shall be the responsibility of the Subdivider.
5. Permits: Provide and submit to the City upon the City’s request, valid copies of any and all
governmental agency permits.
Page 8
Edgewater Heights Sub-divider Agreement
6. Removal of Topsoil: The Subdivider agrees that no topsoil shall be removed from the Subdivision
without approval from the City Engineer of which said approval shall not be unreasonably withheld.
7. Debris: Have ultimate responsibility for cleaning up debris that has blown from buildings under
construction, owned by Subdivider, within the Subdivision until such time as all Improvements have
been installed and Final Acceptance has been granted by the Common Council as described in
Section VII. The City shall make a reasonable effort to require the contractor responsible for the
debris to clean up the debris or to hold the subject property owner who hired the contractor
responsible. The subject property owner shall clean up the debris within forty-eight (48) hours after
receiving a notice from the City Engineer. If said debris is not cleaned up after notification, the City will
do so at the subject property owner's expense.
8. Public Construction Projects: If any aspect of the development involves a public construction
project subject to the State law, all requirements of the State Public Construction Bidding Law must be
satisfied, including but not limited to, providing a performance bond.
9. Prevailing Wage Rates and Hours of Labor: If any aspect of the development involves a project of
public works that is regulated by Wisconsin Statutes Section 66.0903, then: (1) The Subdivider shall
pay wage rates not less than the prevailing hourly wage rate as described and regulated pursuant to
such statutes and related laws; and (2) The Subdivider shall comply with the prevailing hours of labor
as described and regulated pursuant to such statutes and related laws; and (3) The Subdivider shall
fully comply with the reporting obligations, and all other requirements of such laws; and (4) The
Subdivider shall ensure that the Subdivider’s subcontractors also fully comply with such laws. The
Subdivider’s General Indemnity obligation of this Agreement shall apply to any claim that alleges that
work contemplated by this Agreement is being done, or has been done, in violation of prevailing wage
rates, prevailing hours of labor, or Wisconsin Statutes Section 66.0903 for any work arising out of this
agreement.
SECTION XI: GENERAL CONDITIONS AND REGULATIONS
Municipal Codes and Ordinances: All the provisions of the City's ordinances are incorporated herein by
reference, and all such provisions shall bind the parties hereto and be a part of this Agreement as fully
as if set forth at length herein. This Agreement and all work and improvements requir ed hereunder shall
be performed and carried out in strict accordance with and subject to the provisions of said ordinances.
SECTION XII: GUARANTEES
The Developer agrees to guarantee all improvements installed by the Developer against defects
in materials or workmanship which appear within a period of fourteen (14) months from the date
of substantial completion.
1. For a period of fourteen (14) months following substantial completion of the
improvements, the Developer shall be responsible to repair or replace all improvements and,
facilities installed by the Developer, and appurtenances thereof, which the City Engineer
determines to be defective.
SECTION XIII : GENERAL INDEMNITY
In addition to, and not to the exclusion or prejudice of, any provisions of this Agreement or documents
incorporated herein by reference, Subdivider shall indemnify and save harmless, and agrees to accept
tender of defense and to defend and pay any and all reasonable legal, accounting, consulting,
Page 9
Edgewater Heights Sub-divider Agreement
engineering and other expenses relating to the defense of any claim asserted or imposed upon the City
its officers, agents, and employees, and independent contractors growing out of this Agreement as
stated above by any party or parties except those claims asserted by Subdivider against City, its officers,
agents and employees in an effort to enforce this Agreement. The Subdivider shall also name as
additional insured on its general liability insurance the City, its officers, agents, and employees, and any
independent contractors hired by the City to perform service as to this Subdivision and give the City
evidence of the same upon request by the City. The Subdivider shall provide all endorsements to its
general liability insurance as requested by the City.
a) Hold Harmless. The Subdivider shall indemnify and hold harmless the City, its officers, agents,
independent contractors, and employees from and against all claims, damages, losses, and
expenses, including attorney’s fees, arising out of or resulting from the performance of the Work,
provided that any such claim, damage, loss, or expense (i) is attributable to bodily injury,
sickness, disease, or death, or to injury to or destruction of tangible property (other than the
Work itself) including the loss of use resulting therefrom, and (ii) is caused in whole or in part by
any negligent act or omission of the Subdivider, its officers, agents, independent contractors, and
employees or anyone for whose acts any of them may be made liable, regardless of whether or
not it is caused in part by a party indemnified herein. In any and all claims against the City, its
officers, agents, independent contractors, and employees by the Subdivider, its officers, agents,
independent contractors, employees, and anyone directly or indirectly employed by any of them
or anyone for whose acts any of them may be held liable, the indemnification obligation under
this section shall not be limited in any way by any limitation on the amount or type of damages,
compensation, or benefits payable by or for the Subdivider, its officers, agents, independent
contractors, employees under Workers’ Compensation Acts, disability benefit acts, or other
employee benefit acts.
b) Personal Liability of Public Officials. In carrying out any of the provisions of this Agreement or in
exercising any power or authority granted to them thereby, there shall be no personal liability of
the City officers, agents, independent contractors, or employees, it being expressly understood
and agreed that in such matters they act as agents and representatives of the City.
c) Indemnification for Environmental Contamination. The Subdivider shall indemnify, defend, and
hold City and its officers, agents, independent contractors, and employees harmless from any
claims, judgments, damages, penalties, fines, costs, or loss (including reasonable fees for
attorneys, consultants, and experts) that arise as a result of the presence or suspected presence
in or on the real property dedicated or conveyed to the City by, under, pursuant to, or in
connection with the Plat and this Agreement (including but not limited to street right -of-way) of
any toxic or hazardous substances arising from any activity occurring prior to the acceptance of
all improvements. Without limiting the generality of the foregoing, the indemnifica tion by the
Subdivider shall include costs incurred in connection with any site investigation or any remedial,
removal, or restoration work required by any local, State, or Federal agencies because of the
presence or suspected presence of toxic or hazardous substances on or under the real property,
whether in or on the soil, groundwater, air, or any other receptor. The City agrees that it will
immediately notify Subdivider of the discovery of any contamination or of any facts or
circumstances that reasonably indicate that such contamination may exist in or on the real
property. Upon receipt of notice from the City or other entities, Subdivider shall investigate and
rectify conditions which indicate the presence of or suspected presence of contamination on the
subject property as identified by local, state, or federal agencies in order to comply with
applicable laws.
d) Subdivider shall, at its expense, obtain and carry comprehensive general liability insurance with
combined single limits of at least One Million Dollars ($1,000,000.00) for one person and at least
Page 10
Edgewater Heights Sub-divider Agreement
Five Million Dollars ($5,000,000.00) per occurrence, and at least One Million Dollars
($1,000,000.00) property damage (or such higher amounts as the City shall from time to time
deem reasonable). Such policy shall cover both Subdivider and the City and its agents,
employees, and officials, and all insurers shall agree not to cancel or change the same without at
least thirty (30) days written notice to the City. A certificate of Subdivider’s insurance sh all be
furnished to the City upon execution of this Agreement. Each such policy shall provide that no
act or default of any person other than the City or its agents shall render the policy void as to the
City or effect the City’s right to recover thereon. The City shall be named as additional insured by
endorsement on subdivider’s general liability and auto liability insurance policies. The subdivider
shall obtain an umbrella policy over and above its provided insurance in the amount of
$5,000,000.00. Endorsements to the policies stating that the Subdivider’s Insurance is primary
and a waiver of subrogation as to the City shall be provided.
SECTION XIV : CITY RESPONSIBILITY FOR IMPROVEMENTS:
The City shall not be responsible to perform repair or maintenance on any Improvements until the final
surface course of pavement has been completed and accepted by the City.
SECTION XV : RISK OF PROCEEDING WITH IMPROVEMENTS
PRIOR TO APPROVALS OF FINAL PLAT:
If a Subdivider proceeds with the installation of Improvements or other work on the site prior to approval
of the final plat, it proceeds at its own risk as to whether or not the final plat will receive all necessary
approvals. The Subdivider, prior to commencement of the installation of Improvements or other work on
site, shall notify the City of the Subdivider’s intention to proceed with the installation of Improvements or
other work on site, prior to approval of the final plat. Additionally, Subdivider shall make arrangements
to have any Improvements and/or other work on site inspected by the City Engineer.
SECTION XVI: AGREEMENT FOR BENEFIT OF PURCHASERS:
The Subdivider shall agree that in addition to the City's rights herein, the provisions of this Agreement
shall be for the benefit of the purchaser of any lot or any interest in any lot or parcel of land in the
Subdivision. Further, that the sale of any lot or parcel shall not release the Subdivider from completing
the work provided for under this Agreement, by applicable Ordinances and as set forth in the plans and
specifications on file in the City Engineering Department.
SECTION XVII : CONSTRUCTION PERMITS, ETC...
The City shall, within its authority:
1. Issue such permits, adopt such resolutions, and execute such documents as may be necessary to
permit the Subdivider to construct the improvements in accordance with the plans and specifications
called for by this Agreement, upon Subdivider's compliance with any deposit provisions or other
requirements of the applicable ordinances or regulations.
2. Furnish the Subdivider such permits or easements as may be required to enter upon and install the
previous described improvements in any public street or public property.
3. Cooperate with the Subdivider in obtaining similar permits, resolutions and documents as may be
necessary from other authorities having jurisdiction in the premises.
Page 11
Edgewater Heights Sub-divider Agreement
4. Make available to the Subdivider or their nominee, successors or assigns, permits for the
construction of single-family residences subject to the provision of Section XIII.
SECTION XVIII : BUILDING AND OCCUPANCY PERMITS:
It is expressly understood and agreed that no building permits shall be issued for any homes until the
Public Works Director or his designee has determined that:
1. A letter of credit or subdivision bond remains on file for the remaining Improvements.
2. The Final Plat is recorded and the appropriate copies and mylar of the recorded plat are
delivered to the Community Development Department.
3. The Resolution of the Final Acceptance of improvements is approved by the City.
4. Any negative balance in Developer's Deposit is satisfied unless otherwise authorized by the
Community Development Director.
5. The Subdivider is not in default of any aspect of this Agreement.
6. There is no default of any aspect of this Agreement.
It is expressly understood and agreed that no occupancy permits shall be issued for any homes until the
Community Development Director has determined that:
1. Street Tree Plans as required by Section III E (3) of this Agreement have been approved.
SECTION XIX : RESERVATION OF RIGHTS AS TO ISSUANCE OF BUILDING PERMITS:
The City reserves the right to withhold issuance of any and all building permits if Subdivider is in violation
of this Agreement, but no permits shall be unreasonably withheld.
SECTION XX : FINANCIAL GUARANTEES:
1. FINANCIAL GUARANTEE: Concurrent with the execution of this Agreement by the City, the
Subdivider shall file with the City either a Subdivision Bond or a Letter of Credit, in the City Attorney
approved form, setting forth terms and conditions in the amount of $_______.__ as a guarantee that
the required plans and Improvements will be completed by the Subdivider and its subcontractors no
later than one (1) year from signing of the Agreement, except if another date is provided within this
Agreement and as a further guarantee that all obligations to the subcontractors for work on the
Subdivision are satisfied. If at any time:
a) The Subdivider is in default of any aspect of this Agreement, or
b) The Subdivider does not complete the installation of the Improvements within one (1) year
from the signing of this Agreement unless otherwise extended by this Agreement or by action
of the Common Council, or
c) The letter of credit or bond on file with the City is dated to expire sixty (60) days p rior to the
expiration of the same if the same has not been extended, renewed or replaced, per the
terms of this Agreement or
Page 12
Edgewater Heights Sub-divider Agreement
d) The Subdivider fails to maintain a cash deposit, bond or letter of credit in an amount
approved by City Engineer, and in a form approved by the City Attorney, to pay the costs of
Improvements in the Subdivision per the terms of this Agreement,
the Subdivider shall be deemed in violation of this Agreement and the Common Council shall have
the authority to draw upon the financial guarantee.
a) Invoices: Invoices documenting public Improvements addressed and not addressed in the
Letter of Credit or the Subdivision Bond, but attributable to the subject development shall be
provided to the City.
b) Reduction Of Either Subdivision Bond or Letter Of Credit Balance: The Subdivider shall
provide Public Works Director or his designee with a written request accompanied by:
invoices for work completed for which a release is being requested, breakdown of invoices in
the format of the Public Improvement Cost Breakdown form, and signed original lien waivers
for all work which is subject of the release request. The Public Works Director or his
designee will process all requests in accordance with policies adopted by the Finance
Committee, as may be amended from time to time.
2. DEVELOPER'S DEPOSIT: The Subdivider shall maintain a $10,000.00 balance in the Developer's
Deposit. No reduction of either the Subdivision Bond or the Letter of Credit balance shall be
entertained until the Developer's Deposit is satisfied unless otherwise authorized by the Common
Council following a recommendation of the Finance Committee.
3. PRESERVATION OF ASSESSMENT RIGHTS:
a) Waiver of Notice. In addition to other remedies provided to the City by this Agreement, the City
shall have the right, without notice or hearing, to impose special assessments for any amount to
which the City is entitled by virtue of this Agreement upon the Subdivision. This provision
constitutes the Subdivider’s consent to the installation by the City of all Improvements required by
this Agreement and constitutes the Subdivider’s waiver of notice and consent to all special
assessment proceedings as described in Section 66.0703(7)(b), Wis. Statutes.
b) Remedies not exclusive. The City may use any other remedies available to it under the
Agreement or in law or equity in addition to, or in lieu of, the remedies provided herein.
SECTION XXI : PARTIES BOUND:
Subdivider or its assignees shall be bound by the terms of this Agreement or any part herein as it
applies to any phase of the development. This section allows for the City to enforce the terms and
conditions of this agreement against all such assignees, but does not grant rights to assignees absent
the City’s written consent as described in Section XVI. Approval by the City shall not be deemed a
waiver as the ultimate responsibility for the proper design and installation of streets improvements, drive
and parking areas, drainage facilities, ditches, landscaping and all other improvements shall be t he
Subdividers. The fact that the City or it's engineers, or it's attorney, or it's staff may approve a specific
project shall not constitute a waiver, or relieve the Subdivider from ultimate responsibility for the design,
performance, and function of the Development and related infrastructure.
SECTION XXII : EXCULPATION OF CITY CORPORATE AUTHORITIES:
The parties mutually agree that the Mayor and/or the City Clerk, entered into and are signatory to this
Agreement solely in their official capacity and not individually, and shall have no personal liability or
Page 13
Edgewater Heights Sub-divider Agreement
responsibility hereunder; and personal liability as may otherwise exist, being expressly released and/or
waived.
SECTION XIII : AMENDMENTS AND ASSIGNMENT:
Subdivider shall not assign this Agreement without the written consent of the City. The City and the
Subdivider, by mutual consent, may amend this Agreement, by written agreement between the City and
the Subdivider.
SECTION XIV: SALE OF LOTS:
No lots in the Subdivision may be sold until final acceptance of the improvements has been granted by
the City, unless otherwise expressly approved in writing by the City Council.
SECTION XV: PUBLIC CONSTRUCTION PROJECTS:
If any aspect of the development involves a public construction project subject to the State law, all
requirements of the State public construction bidding law must be satisfied, including, but not limited to,
providing a performance bond.
SECTION XVI: PREVAILING WAGE RATES AND HOURS OF LABOR:
If any aspect of the development involves a project of public works that is regulated by Wisconsin
Statutes Section 66.0903, then: (1) the Subdivider shall pay wage rates not less than the prevailing
hourly wage rate as described and regulated pursuant to such statutes and related laws; and (2) the
Subdivider shall comply with the prevailing hours of labor as described and regulated pursuant to such
statutes and related laws; and (3) the Subdivider shall fully comply with the reporting obligations and all
other requirements of such laws; and (4) the Subdivider shall ensure that the Subdivider’s
subcontractors also fully comply with such laws. The Subdivider’s general indemnity obligation of this
agreement shall apply to any claim that alleges that work contemplated by this agreement is being done,
or has been done, in violation of prevailing wage rates, prevailing hours of labor, or Wisconsin Statutes
Section 66.0903, for any work arising out of this agreement.
SECTION XVII : NOTICES AND CORRESPONDENCE
Unless otherwise stated in this Agreement, the delivery of all notices and correspondence shall only be
effective upon being delivered personally, sent by prepaid United States Postal Service certified mail
with return receipt requested, sent by facsimile with transmission confirmation, or sent by electronic mail
with return receipt requested, to all parties as follows:
To City:
Community Development Department
City of Muskego
POB 749
W182 S8200 Racine Avenue
Muskego, WI 53150-0749
(262) 679-4136
(262) 679-5614 facsimile
To Subdivider:
Edgewater Heights, LLC
N27 W24075 Paul Court, Suite 200
Pewaukee, WI 53072
Page 14
Edgewater Heights Sub-divider Agreement
Attn: Matt Neumann
(262) 542-9200
(262) 349-9324
All notices shall be considered to have been delivered at the time such notices are personally delivered
to each party, facsimile transmission, or electronic mail, or three (3) days after the date of postmark on
any prepaid certified letter.
Parties to this Agreement shall give fifteen (15) days notice of any change of mailing address, telephone
or facsimile number, or electronic mail address. Failure to provide said notice may constitute a default
by the party.
SECTION XVIII : RECORDING
This Agreement shall be recorded against the Subdivision property and shall run with the land.
SECTION XXIX : PARTIES TO THE AGREEMENT
IN WITNESS HEREOF, Subdivider has caused this Agreement to be signed by its appropriate officers
and their seals to be hereunto affixed in duplicate original counterparts on the date and year first written
above.
A. Edgewater Heights, LLC
By: _______________________________
Matt Neumann, Member
STATE OF WISCONSIN )
SS
WAUKESHA COUNTY )
PERSONALLY came before me this _____ day of _____________, 20__, Matt Neumann, President, to
me known to be the person who executed the foregoing instrument and acknowledged the same.
Notary Public-State of Wisconsin
My Commission Expires
Page 15
Edgewater Heights Sub-divider Agreement
MORTGAGEE CONSENT
The undersigned Mortgagee of the Subdivision lands consents to this Developer’s Agreement, and
agrees that its lien of mortgage shall be subordinate to the rights of the City of Muskego granted by this
Developer’s Agreement.
TITLE: ___________________________________________
BY: ___________________________________________
Dated this _____ day of ____________________________, 2016.
STATE OF WISCONSIN)
SS
WAUKESHA COUNTY )
PERSONALLY came before me this _____ day of ______, 20__, __________________, to me known
to be the person who executed the foregoing instrument and acknowledged the same.
Notary Public-State of Wisconsin
My Commission Expires
Page 16
Edgewater Heights Sub-divider Agreement
IN WITNESS HEREOF, City has caused this Agreement to be signed by its appropriate officers and
their seals to be hereunto affixed in duplicate original counterparts on the date and year first written
above.
B. CITY OF MUSKEGO:
BY:
Kathy Chiaverotti, Mayor
BY:
Sharon Mueller, City Clerk-Treasurer
STATE OF WISCONSIN )
SS
WAUKESHA COUNTY )
PERSONALLY came before me this _____ day of ______, 2016, the above named Kathy Chiaverotti,
Mayor, and Sharon Mueller, City Clerk-Treasurer of the City of Muskego, to me known to be the persons
executed the foregoing instrument, and to me known to be such Mayor and City Clerk -Treasurer of said
municipal corporation, and acknowledged that they executed the foregoing instrument as such officers
as the deed of said municipal corporation by its authority and pursuant to the authorization by the
Common Council from their meeting on the _____ day of ______, 2016.
Notary Public-State of Wisconsin
My Commission Expires
CERTIFICATION
This is to certify that the foregoing is a true and correct copy of the Subdivider's Agreement for
Edgewater Heights Subdivision, Muskego, Wisconsin, as entered into on the _____ day of
____________, 20__, by and between _________________ and the City Of Muskego, pursuant to the
authorization by the Common Council from their meeting on the _____ day of ____________, 20__.
BY THE COMMON COUNCIL
________________________
Sharon Mueller, City Clerk-Treasurer
SUBSCRIBED AND SWORN TO BEFORE ME
This _____ day of ______, 20__.
My commission expires
This instrument drafted by Jeff Muenkel, AICP
City of Muskego PO Box 0749 Muskego, WI 53150-0749
Page 17
Edgewater Heights Sub-divider Agreement
Exhibit A
Conditional Approval of Preliminary Plat (City Resolution #035-2016)
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #035-2016
APPROVAL OF PRELIMINARY PLAT
FOR THE EDGEWATER HEIGHTS SUBDIVISION
WHEREAS, A preliminary plat was submitted by Neumann Companies for the Edgewater Heights Subdivision
located in the NW and NE ¼ of Section 21 (Tax Key Number 2241.999); and
WHEREAS, Said plat proposes the development of 37 single-family residential parcels and 4 outlots; and
WHEREAS, The Plan Commission has recommended approval of the preliminary plat subject to the conditions of
adopted Resolution #P.C. 028-2016; and
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the
recommendation of the Plan Commission, does hereby approve the preliminary plat for the Edgewater Heights
Subdivision in the NW and NE ¼ of Section 21 subject to each of the following conditions being met:
1. Developer completing all subdivision improvements prior to approval of the final plat.
2. All of the subdivision improvements shall be made only after approval of the landscape plans by the City
Forester and only after the approval of the construction plans by the City Engineer, the Public Works
Committee and a Developer’s Agreement between the City and Subdivider agreeing to install the required
improvements is entered, approved by the City and recorded and a letter of credit, performance bond, cash
or certified check meeting the approval of the City Attorney in an amount equal to 120% the estimated cost
of the improvements is given.
3. Pursuant to §18.31(2)(d) of the Muskego Chapter 18 Land Division ordinance, the final plat must be
submitted and approved within thirty-six months of the preliminary plat approval. The final plat will not be
approved until after the acceptance of improvements to insure that no lots are sold until all improvements
are accepted by the City.
4. Approval is subject to receipt of the submittal fees and favorable reports from all approving and objecting agencies.
5. That a digital file of the preliminary plat shall be submitted to the City in accordance with Common Council
Ordinance #1118 and Resolution #196-2002.
DATED THIS 10th DAY OF MAY , 2016.
Page 18
Edgewater Heights Sub-divider Agreement
Exhibit B
Conditional Approval of Final Plat
(will not exist until binder course of pavement is installed and final plat is submitted and approved by the City)
Council Date AUGUST 23, 2016
Total Vouchers All Funds $203,523.27
Total Voucher Approval
Utility Vouchers (Approve Separately)
Water Vouchers $12,261.47
Water Wire Transfers
Total Water $12,261.47
Sewer Vouchers 18,934.22
Sewer Wire Transfers
Total Sewer $18,934.22
Net Total Utility Vouchers $ 31,195.69
#1 - Utility Voucher Approval
Tax Vouchers - Refunds & Tax Settlements (Approve Separately)
Tax Vouchers $12,701.00
Tax Void Checks ()**
Total Tax Vouchers $ 12,701.00
#2 - Tax Voucher Approval
Total General Fund Vouchers (Approve Separately)
General Fund Vouchers $158,136.00
General Fund Void Checks ()**
Total General Fund Vouchers $ 158,136.00
#3 - General Voucher Approval
Big Muskego Lake Vouchers $1,490.58
.
Wire transfers (Approve Separately):
Tax Settlements $
Debt Service $
Payroll/Invoice Transmittals $321,336.46
#4 - Wire Transfers Approval
Void Checks Since Last Report
Check #Amount Check #Amount
Total ***
Total 0.00 *Total ***
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 1
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Report Criteria:
Detail report.
Invoices with totals above $0 included.
Paid and unpaid invoices included.
[Report].Description = {<>} "1099 adjustment"
Invoice Detail.Type = {>} "adjustments"
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
ACE HARDWARE - WINDLAKE
705427 1 Invoice ELBOWS,BUSHINGS,NIPPLES, VA 07/22/2016 08/23/2016 140.48 816 601.61.61.16.5411
705427 2 Invoice PAPER TOWELS 07/22/2016 08/23/2016 89.70 816 601.61.61.12.5702
705427 3 Invoice WRENCH 07/22/2016 08/23/2016 18.99 816 601.61.61.12.5702
Total ACE HARDWARE - WINDLAKE:249.17
ADAMSON, JACOB
AD082316 1 Invoice Adv. Warriors Tennis Camp Instructi 08/12/2016 08/23/2016 145.00 816 100.05.72.13.5110
Total ADAMSON, JACOB:145.00
ADVANCED DISPOSAL - MUSKEGO-C6
C60001352334 1 Invoice REFUSE - JULY 08/18/2016 08/23/2016 42,052.50 816 205.03.30.00.5820
C60001352334 2 Invoice RECYCLING - JULY 08/18/2016 08/23/2016 23,152.50 816 205.03.00.00.5820
C60001352334 3 Invoice YARD WASTE - JULY 08/18/2016 08/23/2016 1,378.59 816 205.03.00.00.6056
Total ADVANCED DISPOSAL - MUSKEGO-C6:66,583.59
ALSCO
42510/082316 1 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 71.00 816 601.61.61.12.5702
42510/082316 2 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 71.00 816 605.56.09.21.5835
42510/082316 3 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 232.24 816 100.04.51.07.5704
42511/082316 1 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 176.21 816 100.04.51.07.5704
42511/082316 2 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 41.16 816 601.61.61.12.5702
42511/082316 3 Invoice 7/16 UNIFORM RENTAL 07/30/2016 08/23/2016 41.16 816 605.56.09.21.5835
Total ALSCO:632.77
AMERICAN LITHO, INC.
250702-01 1 Invoice Program Guide Printing - Fall 08/17/2016 08/23/2016 3,339.00 816 100.05.72.10.5820
Total AMERICAN LITHO, INC.:3,339.00
AMERICAN STATE EQUIP INC
P31689 1 Invoice HOSE 08/04/2016 08/23/2016 61.71 816 100.04.51.07.5405
Total AMERICAN STATE EQUIP INC:61.71
ASSOCIATED TRUST CO
3791 1 Invoice PROMISSORY NOTE ACCEPTANC 08/12/2016 08/23/2016 325.00 816 605.56.09.21.6056
Total ASSOCIATED TRUST CO:325.00
AT & T
262679410608/1 Invoice Monthly Charge 08/11/2016 08/23/2016 608.44 816 100.01.05.00.5601
Total AT & T:608.44
ATONEMENT LUTHERAN CHURCH
AT082316 1 Invoice PARTISAN PRIMARY - CUSTODIAL 08/16/2016 08/23/2016 50.00 816 100.01.03.00.5704
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 2
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total ATONEMENT LUTHERAN CHURCH:50.00
AVANT GRAPHICS
2100 1 Invoice NNO tshirts 08/15/2016 08/23/2016 2,531.70 816 505.00.00.00.2638
Total AVANT GRAPHICS:2,531.70
BAKER & TAYLOR COMPANY
2032189151 1 Invoice PRINT 08/15/2016 08/23/2016 1,716.04 816 100.05.71.01.5711
2032194645 1 Invoice PRINT 08/15/2016 08/23/2016 739.18 816 100.05.71.01.5711
2032199109 1 Invoice PRINT 08/15/2016 08/23/2016 140.60 816 100.05.71.01.5711
2032204509 1 Invoice PRINT 08/15/2016 08/23/2016 260.20 816 100.05.71.01.5711
5014212472 1 Invoice PRINT 08/15/2016 08/23/2016 59.16 816 100.05.71.01.5711
5014221140 1 Invoice PRINT 08/18/2016 08/23/2016 171.06 816 100.05.71.01.5711
Total BAKER & TAYLOR COMPANY:3,086.24
BAKER & TAYLOR ENTERTAINMENT
B21757710 1 Invoice AV 08/15/2016 08/23/2016 13.64 816 100.05.71.02.5711
B21859400 1 Invoice AV 08/15/2016 08/23/2016 11.89 816 100.05.71.02.5711
B21859401 1 Invoice AV 08/15/2016 08/23/2016 93.56 816 100.05.71.02.5711
B21859402 1 Invoice AV 08/15/2016 08/23/2016 67.03 816 100.05.71.02.5711
B21859403 1 Invoice AV 08/15/2016 08/23/2016 14.39 816 100.05.71.02.5711
B21909810 1 Invoice AV 08/15/2016 08/23/2016 14.39 816 100.05.71.02.5711
B22048460 1 Invoice AV 08/15/2016 08/23/2016 9.33 816 100.05.71.02.5711
Total BAKER & TAYLOR ENTERTAINMENT:224.23
BLACK TIE AUTO SERVICES INC
00003715 1 Invoice A/C REPAIR SQUAD 12 08/18/2016 08/23/2016 250.15 816 100.02.20.01.5405
Total BLACK TIE AUTO SERVICES INC:250.15
BLAZE LANDSCAPE CONTRACTING INC
8878 1 Invoice 2016 MAINTENANCE PAYMENT 3 08/11/2016 08/23/2016 8,375.00 816 100.01.06.00.5820
Total BLAZE LANDSCAPE CONTRACTING INC:8,375.00
BSN SPORTS
98067504 1 Invoice Warriors Football Camp Class T-shirt 08/16/2016 08/23/2016 376.35 816 100.05.72.13.5702
Total BSN SPORTS:376.35
CENTURY LINK
1383531049 1 Invoice Monthly Charge 08/11/2016 08/23/2016 3.75 816 100.01.06.00.5601
Total CENTURY LINK:3.75
CERTIFIED LABORATORIES
2356678 1 Invoice BIO LAST 06/21/2016 08/23/2016 1,428.97 816 601.61.61.12.5750
2377684 1 Invoice HEALTHY HANDS 07/12/2016 08/23/2016 321.33 816 601.61.61.12.5702
2408495 1 Invoice STING AEROSOL 08/05/2016 08/23/2016 275.75 816 100.04.51.08.5704
Total CERTIFIED LABORATORIES:2,026.05
CGC, INC
44832 1 Invoice GEOTECHNICAL REPORT/BORIN 08/15/2016 08/23/2016 8,440.83 816 410.08.90.09.6550
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 3
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total CGC, INC:8,440.83
COMMUNITY MEMORIAL HOSPITAL
1470981 1 Invoice Blood Draw 08/18/2016 08/23/2016 60.00 816 100.02.20.01.5722
1932311 1 Invoice Blood Draw 08/18/2016 08/23/2016 60.00 816 100.02.20.01.5722
2610633 1 Invoice Blood Draw 08/18/2016 08/23/2016 60.00 816 100.02.20.01.5722
359146 1 Invoice Blood Draw 08/18/2016 08/23/2016 60.00 816 100.02.20.01.5722
Total COMMUNITY MEMORIAL HOSPITAL:240.00
COMPLETE OFFICE OF WIS
623328 1 Invoice MISC OFFICE SUPPLIES 08/15/2016 08/23/2016 62.64 816 100.05.71.00.5701
624255 1 Invoice Staples 08/16/2016 08/23/2016 9.54 816 100.01.08.00.5701
627354 1 Invoice GENERAL OFFICE SUPPLIES - NO 08/12/2016 08/23/2016 28.87 816 100.01.06.00.5701
629150 1 Invoice MISC OFFICE SUPPLIES 08/18/2016 08/23/2016 19.56 816 100.05.71.00.5701
629150 2 Invoice PROMOTIONAL MATERIALS 08/18/2016 08/23/2016 47.90 816 100.05.71.00.6062
631230 1 Invoice LABELING SUPPLIES 08/16/2016 08/23/2016 119.15 816 100.01.06.00.5701
Total COMPLETE OFFICE OF WIS:287.66
CORELOGIC, INC.
CO082316 1 Invoice TAX REFUND/135 - MSKC2174880 08/16/2016 08/23/2016 1,225.00 816 501.00.00.00.2120
CO082316 2 Invoice TAX REFUND/135-MSKC21920860 08/16/2016 08/23/2016 673.00 816 501.00.00.00.2120
Total CORELOGIC, INC.:1,898.00
CULLIGAN OF WAUKESHA
05708698/0823 1 Invoice FILTER EQUIPMENT RENTAL JEN 08/15/2016 08/23/2016 45.21 816 100.04.51.08.5415
Total CULLIGAN OF WAUKESHA:45.21
DEMCO EDUCATIONAL CORP
5926171 1 Invoice MISC OFFICE SUPPLIES 08/15/2016 08/23/2016 142.68 816 100.05.71.00.5701
5932427 1 Invoice PROCESSING SUPPLIES 08/18/2016 08/23/2016 203.38 816 100.05.71.00.5701
Total DEMCO EDUCATIONAL CORP:346.06
DIVERSIFIED BENEFIT SERV INC.
225920 1 Invoice HRA FEES - AUGUST 08/12/2016 08/23/2016 372.00 816 100.01.06.00.5203
Total DIVERSIFIED BENEFIT SERV INC.:372.00
EAGLE MEDIA, INC.
00122535 1 Invoice SIGNAGE 08/18/2016 08/23/2016 52.00 816 100.05.71.00.5701
Total EAGLE MEDIA, INC.:52.00
ECITY TRANSACTIONS LLC
4020-13 1 Invoice AUGUST MONTHLY 08/12/2016 08/23/2016 300.00 816 100.01.06.00.6014
4020-13 2 Invoice PARK & REC ADD ON AUGUST 08/12/2016 08/23/2016 150.00 816 100.05.72.10.5506
Total ECITY TRANSACTIONS LLC:450.00
EDWARDS, WILLIAM
ED082316 1 Invoice Program Guide Ads 08/12/2016 08/23/2016 90.00 816 100.05.72.10.5820
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 4
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total EDWARDS, WILLIAM:90.00
ELLIOTT'S ACE HARDWARE
601005/082316 1 Invoice CITY HALL MAINT 08/12/2016 08/23/2016 80.75 816 100.01.09.00.5415
601005/082316 2 Invoice LIBRARY MAINT 08/12/2016 08/23/2016 67.82 816 100.05.71.00.5415
601005/082316 3 Invoice WATER SUPPLIES 08/12/2016 08/23/2016 87.89 816 605.52.06.25.5702
601005/082316 4 Invoice CONSERVATION SUPPLIES 08/12/2016 08/23/2016 9.68 816 215.06.00.00.5704
601005/082316 5 Invoice SEWER SUPPLIES 08/12/2016 08/23/2016 5.49 816 601.61.61.16.5411
Total ELLIOTT'S ACE HARDWARE:251.63
F & W LANDSCAPE SPECIALISTS
63 1 Invoice GRASS CUTTING 08/11/2016 08/23/2016 150.00 816 100.00.00.00.1304
Total F & W LANDSCAPE SPECIALISTS:150.00
FAIRCHILD EQUIPMENT
457234 1 Invoice 4000 LB GANTRY/HAND HOIST 08/02/2016 08/23/2016 6,984.00 816 601.00.00.00.1924
457234 2 Invoice FREIGHT 08/02/2016 08/23/2016 375.46 816 601.00.00.00.1924
Total FAIRCHILD EQUIPMENT:7,359.46
FBINAA
FB082616 1 Invoice FBI shoot - Constantineau 08/18/2016 08/23/2016 20.00 816 100.02.20.01.5301
FB082616-1 1 Invoice FBI shoot - Moser 08/18/2016 08/23/2016 20.00 816 100.02.20.01.5301
Total FBINAA:40.00
FERGUSON WATERWORKS #2516
198989 1 Invoice LOCATOR REPAIR 06/28/2016 08/23/2016 198.00 816 601.61.63.43.5801
198989 2 Invoice LOCATOR REPAIR 06/28/2016 08/23/2016 198.00 816 605.54.06.41.5870
198989 3 Invoice LOCATOR REPAIR 06/28/2016 08/23/2016 44.00 816 100.04.51.04.6026
Total FERGUSON WATERWORKS #2516:440.00
FICKAU INC.
73437 1 Invoice FLATTENED METAL 07/13/2016 08/23/2016 2,816.56 816 100.04.51.07.5405
Total FICKAU INC.:2,816.56
FINDAWAY WORLD,LLC
191141 1 Invoice AV 08/18/2016 08/23/2016 39.99 816 100.05.71.02.5711
191393 1 Invoice AV 08/15/2016 08/23/2016 35.99 816 100.05.71.02.5711
Total FINDAWAY WORLD,LLC:75.98
FIRST BUSINESS
0000/082316 1 Invoice CHIEF'S CONFERENCE GREEN B 07/27/2016 08/23/2016 135.00 816 100.02.20.01.5303
0018/082316 1 Invoice JETZ - CAR WASHES 07/27/2016 08/23/2016 102.00 816 100.02.20.01.5405
0042/082316 1 Invoice WATER SAMPLES 07/27/2016 08/23/2016 111.80 816 605.56.09.23.5865
0042/082316 2 Invoice CAPPER ADA GALV TEE 07/27/2016 08/23/2016 141.97 816 601.61.61.16.5411
0042/082316 3 Invoice TAPE CONDUIT 07/27/2016 08/23/2016 13.50 816 601.61.61.16.5411
0042/082316 4 Invoice GALV NIPPLE ELBOW 07/27/2016 08/23/2016 20.36 816 601.61.61.16.5411
0042/082316 5 Invoice PRINTER 50%07/27/2016 08/23/2016 30.00 816 601.61.63.42.5701
0042/082316 6 Invoice PRINTER 50%07/27/2016 08/23/2016 29.99 816 605.56.09.21.5712
0059/082316 1 Invoice LB TANK 07/27/2016 08/23/2016 32.58 816 100.04.51.07.5735
0059/082316 2 Invoice BOARDWALK VET PARK 07/27/2016 08/23/2016 163.36 816 100.04.51.08.5415
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 5
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
0059/082316 3 Invoice TIME CLOCK RACK & SUPPLIES 07/27/2016 08/23/2016 30.59 816 100.04.51.01.5701
0067/082316 1 Invoice GO DADDY RENEWAL 07/27/2016 08/23/2016 132.22 816 100.01.14.00.5507
0067/082316 2 Invoice CDWG-EXTERNAL DVD DRIVE-PD 07/27/2016 08/23/2016 25.44 816 100.02.20.01.5504
0067/082316 3 Invoice AMAZON-PORTABLE PA SYSTEM 07/27/2016 08/23/2016 65.14 816 100.05.71.00.5505
0067/082316 4 Invoice CDWG-IPAD CHARGERS-DPW 07/27/2016 08/23/2016 29.19 816 100.01.14.00.5506
0075/082316 1 Invoice ICSC - CHICAGO RETAIL CONNEC 07/27/2016 08/23/2016 90.00 816 215.06.00.00.5303
0075/082316 2 Invoice ICMA - ECON DEV MEMBERSHIP 07/27/2016 08/23/2016 200.00 816 100.06.18.01.5804
0075/082316 3 Invoice ACCESSLINE - TOLL FREE NUMB 07/27/2016 08/23/2016 14.83 816 100.06.18.01.5704
0075/082316 4 Invoice ICMA - ECON DEV APPLIED KNO 07/27/2016 08/23/2016 75.00 816 100.06.18.01.5804
0286/082316 1 Invoice PRAIRIE CEMETERY CASE 07/27/2016 08/23/2016 100.42 816 100.06.18.01.5704
0286/082316 2 Invoice LEXIS NEXIS SUBSCRIPTION 07/27/2016 08/23/2016 254.81 816 100.01.05.00.5701
3889/082316 1 Invoice MISC OFFICE SUPPLIES 07/27/2016 08/23/2016 7.35 816 100.05.71.00.5701
3889/082316 2 Invoice AV 07/27/2016 08/23/2016 106.05 816 100.05.71.02.5711
3889/082316 3 Invoice AV 07/27/2016 08/23/2016 75.92 816 100.05.71.02.5711
3905/082316 1 Invoice FOL - PR TOTAL 07/27/2016 08/23/2016 180.37 816 100.05.71.00.5752
3905/082316 2 Invoice RETURNS FOL 07/27/2016 08/23/2016 6.47-816 100.05.71.00.5752
3905/082316 3 Invoice ELECTRONIC MATERIAL 07/27/2016 08/23/2016 689.29 816 100.05.71.03.5711
3905/082316 4 Invoice PRINT MATERIAL 07/27/2016 08/23/2016 27.77 816 100.05.71.01.5711
3913/082316 1 Invoice FOL - PR 07/27/2016 08/23/2016 248.93 816 100.05.71.00.5752
3913/082316 2 Invoice BRIDGES GRANT 07/27/2016 08/23/2016 149.55 816 100.05.71.00.5740
3913/082316 3 Invoice REFUND - BRIDGES GRANT 07/27/2016 08/23/2016 29.91-816 100.05.71.00.5740
3913/082316 4 Invoice ELECTRONIC MATERIALS 07/27/2016 08/23/2016 2.99 816 100.05.71.03.5711
3921/082316 1 Invoice BIG MUSKEGO TOUR KAYAK REN 07/27/2016 08/23/2016 570.24 816 100.05.72.18.5820
3921/082316 2 Invoice FIELD TRIPS 07/27/2016 08/23/2016 2,088.00 816 100.05.72.16.5820
3921/082316 3 Invoice PLAYGROUND EQUIPMENT/SUPP 07/27/2016 08/23/2016 129.38 816 100.05.72.16.5702
3921/082316 4 Invoice IDLE ISLE PARKING TICKETS/REC 07/27/2016 08/23/2016 164.35 816 100.05.72.10.5701
3939/082316 1 Invoice VENDING SUPPLIES 07/27/2016 08/23/2016 251.79 816 100.01.06.00.5702
3939/082316 3 Invoice CITY HALL MAINT 07/27/2016 08/23/2016 408.90 816 100.01.09.00.5415
3939/082316 4 Invoice TOWN HALL MAINT 07/27/2016 08/23/2016 11.10 816 100.05.71.00.5415
3939/082316 5 Invoice LIBRARY SUPPLIES 07/27/2016 08/23/2016 119.40 816 100.05.71.00.5701
7106/082316 1 Invoice COTTON SWABS - GUN CLEANIN 07/27/2016 08/23/2016 1.05 816 100.02.20.01.5722
7106/082316 2 Invoice DIVIDERS FOR FTO BINDERS 07/27/2016 08/23/2016 16.80 816 100.02.20.01.5722
7106/082316 3 Invoice BINDERS FTO 07/27/2016 08/23/2016 27.16 816 100.02.20.01.5722
9960/082316 1 Invoice BABYSITTING COURSE BOOKS 07/27/2016 08/23/2016 1,032.93 816 100.05.72.14.5730
9960/082316 2 Invoice NOTARY RENEWAL - JILL 07/27/2016 08/23/2016 20.00 816 100.01.03.00.5305
9960/082316 3 Invoice APT-US&C MEMBERSHIP-SHARO 07/27/2016 08/23/2016 185.00 816 100.01.03.00.5305
9960/082316 4 Invoice CMC DESIGNATION-SHARON 07/27/2016 08/23/2016 50.00 816 100.01.03.00.5305
9960/082316 5 Invoice WMCA CONFERENCE-KIM 07/27/2016 08/23/2016 160.00 816 100.01.03.00.5303
9960/082316 6 Invoice GB HOTEL CREDIT-DONNA 07/27/2016 08/23/2016 66.75-816 100.01.03.00.5303
9994/082316 1 Invoice PETZ/SIPPEL FTO TRNG HOTEL 07/27/2016 08/23/2016 328.00 816 100.02.20.01.5301
9994/082316 2 Invoice AUTOZONE AIR COND RECHARG 07/27/2016 08/23/2016 40.49 816 100.02.20.01.5405
Total FIRST BUSINESS:8,787.88
FOTH INFRASTRUCTURE &
48903 1 Invoice COMMERCE CENTER PKWY SANI 08/15/2016 08/23/2016 375.04 816 230.08.91.19.6520
48906 1 Invoice OAKRIDGE GLEN SURFACE PAVI 08/15/2016 08/23/2016 930.00 816 507.00.00.00.2675
Total FOTH INFRASTRUCTURE &:1,305.04
FOX RIVER CHRISTIAN CHURCH
FO082316 1 Invoice PARTISAN PRIMARY - CUSTODIAL 08/16/2016 08/23/2016 50.00 816 100.01.03.00.5704
Total FOX RIVER CHRISTIAN CHURCH:50.00
GEO-SYNTHETICS LLC
123257-000 1 Invoice 8' BLANKET 08/10/2016 08/23/2016 70.00 816 100.04.51.04.5744
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 6
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total GEO-SYNTHETICS LLC:70.00
GERARDIN, JAY
GE082316 1 Invoice Adv. Warriors Tennis Camp Instructi 08/12/2016 08/23/2016 165.00 816 100.05.72.13.5110
Total GERARDIN, JAY:165.00
GERTH HEATING
P16-191090 1 Invoice GERTH HEATING PERMIT REFUN 08/18/2016 08/23/2016 120.00 816 100.02.25.00.4250
Total GERTH HEATING:120.00
GLEASON REDI MIX
241582 1 Invoice REDI MIX 07/28/2016 08/23/2016 91.00 816 100.04.51.04.5744
241741 1 Invoice REDI MIX 07/26/2016 08/23/2016 91.00 816 100.04.51.04.5744
262160 1 Invoice REDI MIX 08/05/2016 08/23/2016 91.00 816 100.04.51.04.5744
Total GLEASON REDI MIX:273.00
GRAINGER
9192512698 1 Invoice REP BUNG ADAPTOR 08/10/2016 08/23/2016 22.21 816 601.61.61.16.5411
Total GRAINGER :22.21
GREAT LAKES TV SEAL INC.
17722 1 Invoice EPOXY LINE 2 MANHOLES 07/29/2016 08/23/2016 6,560.00 816 601.61.61.16.5427
Total GREAT LAKES TV SEAL INC.:6,560.00
HAWKINS, INC.
3933179 1 Invoice AZONE 08/10/2016 08/23/2016 1,280.20 816 605.53.06.31.5750
Total HAWKINS, INC.:1,280.20
HAYES, RICHARD
HA082316 1 Invoice Adv. Warriors Tennis Camp Instructi 08/12/2016 08/23/2016 165.00 816 100.05.72.13.5110
Total HAYES, RICHARD:165.00
HD SUPPLY WATERWORKS, LTD
F847293 1 Invoice SEWER PIPE 07/27/2016 08/23/2016 825.00 816 100.04.51.04.5745
F906267 1 Invoice PVC - PIPE - PARTS 08/05/2016 08/23/2016 2,482.52 816 100.04.51.04.5745
Total HD SUPPLY WATERWORKS, LTD:3,307.52
HECKER, MARSHALL
HE082316 1 Invoice TEMPORARY LIMITED EASEMENT 08/15/2016 08/23/2016 300.00 816 202.08.94.74.6573
Total HECKER, MARSHALL:300.00
HOOVER, MARY
HO082316 1 Invoice Jazzercise Class Instruction 08/16/2016 08/23/2016 225.00 816 100.05.72.13.5110
Total HOOVER, MARY:225.00
HOWITT, H. JAMES
16-10266 1 Invoice Court Ordered Restitution 08/16/2016 08/23/2016 5.66 816 100.01.08.00.4269
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 7
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total HOWITT, H. JAMES:5.66
HUMPHREY SERVICE PARTS
1119629 1 Invoice PAPER TOWEL & TP - PARKS 08/03/2016 08/23/2016 260.40 816 100.04.51.08.5415
1120260 1 Invoice GLOVES 08/10/2016 08/23/2016 33.46 816 100.04.51.01.5228
1120416 1 Invoice 12 LOLA X 50' SU 08/12/2016 08/23/2016 62.80 816 100.04.51.07.5405
1120516 1 Invoice BUCKET PUMP 08/12/2016 08/23/2016 38.48 816 100.04.51.07.5405
Total HUMPHREY SERVICE PARTS:395.14
IIMC
225920 1 Invoice ANNUAL MEMBERSHIP - SHARON 08/12/2016 08/23/2016 220.00 816 100.01.03.00.5305
Total IIMC:220.00
JANI-KING INC- MILW REGION
MIL08160546 1 Invoice Park Restroom Cleaning and Lock-u 08/12/2016 08/23/2016 1,326.00 816 100.04.51.01.5820
Total JANI-KING INC- MILW REGION:1,326.00
JM BRENNAN, INC.
SALES000077 1 Invoice PUMP REPAIR 08/18/2016 08/23/2016 6,616.28 816 100.05.71.00.5415
Total JM BRENNAN, INC.:6,616.28
JOURNAL SENTINEL INC
700556/082316 1 Invoice MISC PUBLICATIONS 08/15/2016 08/23/2016 232.59 816 100.01.06.00.6001
700556/082316 2 Invoice ELECTIONS 08/15/2016 08/23/2016 81.03 816 100.01.03.00.5704
700556/082316 3 Invoice DEV DEPOSIT #871 EDGEWATER 08/15/2016 08/23/2016 137.50 816 507.00.00.00.2672
700556/082316 1 Invoice MISC PUBLICATIONS 08/18/2016 08/23/2016 643.80 816 100.01.06.00.6001
700556/082316 2 Invoice NORTH CAPE RD BID ADS 08/18/2016 08/23/2016 94.22 816 202.08.94.74.6573
70556/082316 1 Invoice BIG LAKE BUDGET PUBLICATION 08/16/2016 08/23/2016 118.00 816 250.01.00.00.5710
Total JOURNAL SENTINEL INC:1,307.14
KAY TOLEDO TAG INC
106257 1 Invoice Idle Isle Parking Receipt Books 08/12/2016 08/23/2016 164.35 816 100.05.72.10.5701
Total KAY TOLEDO TAG INC:164.35
KETTLE MORAINE LAND STEWARDS
382016 1 Invoice DENOON PARK SPRAYING INVASI 08/18/2016 08/23/2016 3,905.00 816 215.06.00.00.6008
Total KETTLE MORAINE LAND STEWARDS:3,905.00
KOTARAK, JERICA
KO082316 1 Invoice Muskego Track Club Program Instru 08/16/2016 08/23/2016 250.00 816 100.05.72.13.5110
Total KOTARAK, JERICA:250.00
KURTH, KERRY
KU82316 1 Invoice REIMB LICENSE 08/09/2016 08/23/2016 75.26 816 100.04.51.01.5228
Total KURTH, KERRY:75.26
LAKESIDE INTERNATIONAL TRUCKS
2037367 1 Invoice REPAIR #13 05/13/2016 08/23/2016 23.93 816 100.04.51.07.5405
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 8
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
2113648P 1 Invoice TRUCK 16 TUBE 05/11/2016 08/23/2016 41.64 816 100.04.51.07.5405
2118811P 1 Invoice TRUCK 15 4/O RED 07/20/2016 08/23/2016 172.61 816 100.04.51.07.5405
2118812P 1 Invoice GRILL ASSEMBLY CHROME 07/22/2016 08/23/2016 1,877.07 816 100.04.51.07.5405
2118977P 1 Invoice TRUCK 11 BRAKE DRUM, SHOES 07/25/2016 08/23/2016 616.04 816 100.04.51.07.5405
CM2106708P 1 Invoice CREDIT TRUCK 16 CORE RETURN 03/03/2016 08/23/2016 465.50-816 100.04.51.07.5405
Total LAKESIDE INTERNATIONAL TRUCKS:2,265.79
LAMERS BUS LINES INC.
495051 1 Invoice Field Trip Busing - Sand Model at Co 08/12/2016 08/23/2016 602.70 816 100.05.72.16.5820
Total LAMERS BUS LINES INC.:602.70
LEGACY RECYCLING
0824 1 Invoice EMERALD PARK LANDFILL 08/15/2016 08/23/2016 2,073.23 816 205.03.00.00.5820
Total LEGACY RECYCLING:2,073.23
M&M OFFICE INTERIORS, INC
150892 1 Invoice DESIGN SERVICES 08/15/2016 08/23/2016 1,068.75 816 410.08.90.09.6550
Total M&M OFFICE INTERIORS, INC:1,068.75
MARK J. RINDERLE TIRE INC.
120143 1 Invoice TRAILER/CHIPPER 08/02/2016 08/23/2016 256.00 816 100.04.51.07.5735
120169 1 Invoice #11 TIRES 08/08/2016 08/23/2016 464.00 816 100.04.51.07.5735
Total MARK J. RINDERLE TIRE INC.:720.00
MENARDS
02121 1 Invoice SUPPLIES 08/11/2016 08/23/2016 82.01 816 215.06.00.00.5704
Total MENARDS:82.01
MICROMARKETING LLC
631585 1 Invoice AV 08/15/2016 08/23/2016 39.99 816 100.05.71.02.5711
632422 1 Invoice AV 08/15/2016 08/23/2016 39.99 816 100.05.71.02.5711
Total MICROMARKETING LLC:79.98
MINDWORKS PHOTOGRAPHY
20160815 1 Invoice Class Instruction -Zentangle 08/17/2016 08/23/2016 360.00 816 100.05.72.12.5110
Total MINDWORKS PHOTOGRAPHY:360.00
MINNESOTA/WISCONSIN PLAYGROUND
2016312 1 Invoice GAME NETS 08/12/2016 08/23/2016 327.01 816 100.04.51.08.5415
Total MINNESOTA/WISCONSIN PLAYGROUND:327.01
MOSER, CRAIG A.
MO082316 1 Invoice Chiefs Conf. Meals 08/18/2016 08/23/2016 26.40 816 100.02.20.01.5301
Total MOSER, CRAIG A.:26.40
MUENKEL, JEFF
MU082316 1 Invoice CHICAGO CONFERENCE 08/11/2016 08/23/2016 22.16 816 100.06.18.01.5804
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 9
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total MUENKEL, JEFF:22.16
MURPHY, JIM
MU082316 1 Invoice Witness Fees 08/18/2016 08/23/2016 16.45 816 100.01.08.00.6004
Total MURPHY, JIM:16.45
MUSKEGO HIGH SCHOOL
MU082316 1 Invoice Adv. Warriors Tennis Camp Instructi 08/12/2016 08/23/2016 680.00 816 100.05.72.13.5110
Total MUSKEGO HIGH SCHOOL:680.00
NAPA AUTO PARTS/ #26 & 27
174075 1 Invoice #22 BATTERY 08/08/2016 08/23/2016 107.10 816 601.61.61.21.5306
Total NAPA AUTO PARTS/ #26 & 27:107.10
NATIONAL ELEVATOR INSPECTION SERVICE INC
0241059 1 Invoice N.S. 4S INSPECTION 08/09/2016 08/23/2016 83.00 816 601.61.61.15.5415
Total NATIONAL ELEVATOR INSPECTION SERVICE INC:83.00
OLSON'S OUTDOOR POWER
74131 1 Invoice 18" EXTENSION 08/18/2016 08/23/2016 63.08 816 215.06.00.00.5704
74391 1 Invoice RETAINING PIN 08/18/2016 08/23/2016 18.96 816 215.06.00.00.5704
Total OLSON'S OUTDOOR POWER:82.04
ORG DEVELOPMENT CONSULTANTS
11743 1 Invoice Socolick Psych 08/15/2016 08/23/2016 675.00 816 100.02.20.01.5845
Total ORG DEVELOPMENT CONSULTANTS:675.00
OSG STATEMENT SRV
0000038306 1 Invoice BIG LAKE PUBLIC HEARING POST 08/16/2016 08/23/2016 129.26 816 250.01.00.00.5710
Total OSG STATEMENT SRV:129.26
OSG STATEMENT SRV. (postage)
54111 1 Invoice POSTAGE FOR POSTCARDS - PU 08/12/2016 08/23/2016 171.82 816 250.01.00.00.5710
Total OSG STATEMENT SRV. (postage):171.82
OUR WISCONSIN
OU082316 1 Invoice PRINT 08/18/2016 08/23/2016 18.98 816 100.05.71.01.5711
Total OUR WISCONSIN:18.98
PAETEC
59618304 1 Invoice Monthly Charge 08/11/2016 08/23/2016 1,068.43 816 100.01.06.00.5601
Total PAETEC:1,068.43
PARADISE POOLS & SPAS
17396 1 Invoice TEST SAMPLES 08/10/2016 08/23/2016 15.75 816 605.56.09.23.5865
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 10
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total PARADISE POOLS & SPAS:15.75
PARTSMASTER
23048191 1 Invoice BOLTS 07/28/2016 08/23/2016 203.40 816 100.04.51.07.5405
Total PARTSMASTER:203.40
PAYNE & DOLAN OF WISCONSIN
1433885 1 Invoice 18.19 TON ASPHALT 07/28/2016 08/23/2016 844.43 816 100.04.51.02.5740
1433909 1 Invoice 4.03 TON ASPHALT 07/28/2016 08/23/2016 206.54 816 100.04.51.02.5740
Total PAYNE & DOLAN OF WISCONSIN:1,050.97
PENGUIN RANDOM HOUSE LLC
1088150685 1 Invoice AV 08/18/2016 08/23/2016 40.00 816 100.05.71.02.5711
Total PENGUIN RANDOM HOUSE LLC:40.00
PETZ, MICHAEL
PE082316 1 Invoice Training Meals - Petz 08/18/2016 08/23/2016 85.00 816 100.02.20.01.5301
Total PETZ, MICHAEL:85.00
PORT-A-JOHN
1259071-IN 1 Invoice DENOON PARK HANDICAP REST 08/15/2016 08/23/2016 225.00 816 100.04.51.01.5820
1259072-IN 1 Invoice MOORELAND PARK HANDICAP R 08/15/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259280-IN 1 Invoice RESTROOM AT BADERTSCHER 08/11/2016 08/23/2016 75.00 816 215.06.00.00.5801
1259480-IN 1 Invoice HARDTKE DR HANDICAP RESTRO 08/15/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259481-IN 1 Invoice BIG MUSKEGO HANDICAP RESTR 08/15/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259482-IN 1 Invoice BOXHORN LAUNCH HANDICAP R 08/15/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259842-IN 1 Invoice JENSEN PARK HANDICAP RESTR 08/18/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259843-IN 1 Invoice MANCHESTER HILL HANDICAP R 08/18/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259844-IN 1 Invoice MILL VALLEY HANDICAP RESTRO 08/18/2016 08/23/2016 75.00 816 100.04.51.01.5820
1259845-IN 1 Invoice ENGEL RESTROOMS 08/18/2016 08/23/2016 75.00 816 215.06.00.00.5801
Total PORT-A-JOHN:900.00
POSTMASTER OF MUSKEGO
PO082316 1 Invoice RENEWAL FIRST CLASS PERMIT 08/15/2016 08/23/2016 215.00 816 100.01.06.00.5710
Total POSTMASTER OF MUSKEGO:215.00
PREFERRED FITNESS
PR082316 1 Invoice W/SP/Sum Fitness Class Instruciont 08/12/2016 08/23/2016 1,251.00 816 100.05.72.13.5110
Total PREFERRED FITNESS:1,251.00
PROHEALTH CARE
201607-0 1 Invoice Blood Draws 08/15/2016 08/23/2016 105.00 816 100.02.20.01.5722
Total PROHEALTH CARE:105.00
PROHEALTH CARE MEDICAL ASSC
285761 1 Invoice socolick blood/med sullivan med 08/15/2016 08/23/2016 249.00 816 100.02.20.01.5845
Total PROHEALTH CARE MEDICAL ASSC:249.00
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 11
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
PROMISING PICASSOS INC
2013-1933 1 Invoice Promising Picassos Class Instruction 08/16/2016 08/23/2016 468.00 816 100.05.72.12.5110
Total PROMISING PICASSOS INC:468.00
PROVEN POWER INC
02-195864 1 Invoice FUEL TANK 08/04/2016 08/23/2016 35.57 816 100.04.51.07.5405
Total PROVEN POWER INC:35.57
R.S. PAINT & TOOLS LLC
739760 1 Invoice MARKING PAINT - PINK 08/08/2016 08/23/2016 78.72 816 100.04.51.04.6026
739760 2 Invoice MARKING PAINT - BLUE 08/08/2016 08/23/2016 157.44 816 605.54.06.41.5870
739760 3 Invoice MARKING PAINT - GREEN 08/08/2016 08/23/2016 196.80 816 601.61.63.43.5801
Total R.S. PAINT & TOOLS LLC:432.96
RED THE UNIFORM TAILOR
00W63861 1 Invoice Patterson pants 08/15/2016 08/23/2016 71.95 816 100.02.20.01.5151
Total RED THE UNIFORM TAILOR:71.95
RICOH AMERICAS CORP/CHICAGO
5043685052 1 Invoice ASSESSOR'S OFFICE COPIER 08/12/2016 08/23/2016 5.46 816 100.01.04.00.5701
Total RICOH AMERICAS CORP/CHICAGO:5.46
SAFEWAY PEST MANAGEMENT INC.
533224 1 Invoice Pest control 08/15/2016 08/23/2016 38.00 816 100.02.20.01.5415
533225 1 Invoice PEST CONTROL 08/15/2016 08/23/2016 30.00 816 100.05.71.00.5415
533226 1 Invoice PEST CONTROL - CITY HALL JULY 08/12/2016 08/23/2016 32.00 816 100.01.09.00.5415
Total SAFEWAY PEST MANAGEMENT INC.:100.00
SCHRADER, RICHARD
SC082316 1 Invoice REFUND OVERCHARGE 08/15/2016 08/23/2016 25.00 816 100.01.08.00.4272
SC082316 2 Invoice REFUND OVERCHARGE 08/15/2016 08/23/2016 1.50 816 100.01.06.00.6014
Total SCHRADER, RICHARD:26.50
SHERWIN-WILLIAMS CO.
1418-3 1 Invoice CREDIT ON 8630-7 08/01/2016 08/23/2016 33.90-816 100.04.51.08.5415
1421-7 1 Invoice CREDIT ON 5927-0 08/01/2016 08/23/2016 71.23-816 100.04.51.08.5415
1422-5 1 Invoice CREDIT ON 6138-3 08/01/2016 08/23/2016 .98-816 100.04.51.08.5415
1426-6 1 Invoice CREDIT ON 0867-2 08/01/2016 08/23/2016 .02 816 100.04.51.08.5415
1427-4 1 Invoice CREDIT ON 6205-0 08/01/2016 08/23/2016 33.90-816 100.04.51.08.5415
8578-8 1 Invoice PAINT - PARKS BUILDINGS 07/26/2016 08/23/2016 216.90 816 100.04.51.08.5415
8630-7 1 Invoice PAINT - PARKS BUILDINGS 07/27/2016 08/23/2016 198.90 816 100.04.51.08.5415
8673-7 1 Invoice PAINT - PARKS BUILDINGS 07/28/2016 08/23/2016 165.00 816 100.04.51.08.5415
8700-8 1 Invoice PAINT - PARKS BUILDINGS 07/28/2016 08/23/2016 170.00 816 100.04.51.08.5415
8889-9 1 Invoice PAINT - PARKS BUILDINGS 08/01/2016 08/23/2016 6.99 816 100.04.51.08.5415
8919-4 1 Invoice PAINT - PARKS BUILDINGS 08/01/2016 08/23/2016 9.99 816 100.04.51.08.5415
8994-7 1 Invoice WHITE DOT 08/02/2016 08/23/2016 264.00 816 100.04.51.02.5742
9049-9 1 Invoice STRIPPING - LIQUID SHIELD 08/03/2016 08/23/2016 38.51 816 100.04.51.02.5742
9106-7 1 Invoice SEWER - BUILDINGS 08/04/2016 08/23/2016 113.52 816 601.61.61.15.5415
Total SHERWIN-WILLIAMS CO.:1,043.82
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 12
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
SOMAR TEK LLC/ ENTERPRISES
99867 1 Invoice Jones Replacement Flashlight batter 08/15/2016 08/23/2016 13.99 816 100.02.20.01.5151
99871 1 Invoice Petz return/addtl purchase nylon gea 08/15/2016 08/23/2016 21.25 816 100.02.20.01.5151
99884 1 Invoice Uniform - Sullivan 08/18/2016 08/23/2016 146.37 816 100.02.20.01.5151
99885 1 Invoice Knife - Sullivan 08/18/2016 08/23/2016 74.99 816 100.02.20.01.5151
99886 1 Invoice Baton rings 08/18/2016 08/23/2016 29.97 816 100.02.20.01.5722
Total SOMAR TEK LLC/ ENTERPRISES:286.57
SPOK
Z0282335H 1 Invoice PAGERS AUGUST 2016 08/01/2016 08/23/2016 8.14 816 601.61.63.42.5701
Z0282335H 2 Invoice PAGERS AUGUST 2016 08/01/2016 08/23/2016 8.14 816 605.56.09.21.5607
Total SPOK:16.28
ST. PAULS EV. LUTHERAN CHURCH
ST082316 1 Invoice PARTISAN PRIMARY - CUSTODIAL 08/16/2016 08/23/2016 50.00 816 100.01.03.00.5704
Total ST. PAULS EV. LUTHERAN CHURCH:50.00
TESS CORNERS VOL FIRE DEPT
TE082316 1 Invoice PAGERS - BAYCOM 08/16/2016 08/23/2016 1,025.00 816 410.08.91.21.6503
Total TESS CORNERS VOL FIRE DEPT:1,025.00
THE ALSTAR CO INC
4938 1 Invoice ALTERNATOR 08/12/2016 08/23/2016 249.00 816 100.04.51.07.5405
Total THE ALSTAR CO INC:249.00
TOWN OF BURLINGTON
10700 1 Invoice Corinne Ostmann warrant Twn Brlng 08/15/2016 08/23/2016 190.00 816 100.01.08.00.4272
Total TOWN OF BURLINGTON:190.00
TRANSUNION RISK & ALTERNATIVE
911461/082316 1 Invoice Phone number reverse lookup 08/15/2016 08/23/2016 25.00 816 100.02.20.01.5722
Total TRANSUNION RISK & ALTERNATIVE:25.00
TUDOR OAKS
TU082316 1 Invoice PARTISAN PRIMARY - CUSTODIAL 08/16/2016 08/23/2016 50.00 816 100.01.03.00.5704
Total TUDOR OAKS:50.00
TYLER TECHNOLOGIES, INC
060-5736 1 Invoice ASSESSMENT SERVICES 2016 08/12/2016 08/23/2016 3,680.00 816 100.01.04.00.5801
Total TYLER TECHNOLOGIES, INC:3,680.00
U.S. CELLULAR
0148850909 1 Invoice Monthly Charge -Planning 08/11/2016 08/23/2016 25.00 816 100.06.18.01.5601
0148850909 2 Invoice Monthly Charge -Police 08/11/2016 08/23/2016 250.00 816 100.02.20.10.5604
0148850909 3 Invoice Monthly Charge -Water Scada 08/11/2016 08/23/2016 70.00 816 605.56.09.21.5607
0148850909 4 Invoice Monthly Charge -Sewer SCADA 08/11/2016 08/23/2016 70.00 816 601.61.63.42.5606
0148850909 5 Invoice Monthly Charge -Election Phones 08/11/2016 08/23/2016 5.71 816 100.01.03.00.5704
0148850909 6 Invoice Monthly Charge -IS 08/11/2016 08/23/2016 80.00 816 100.01.14.00.5601
0148850909 7 Invoice Monthly Charge -Engineering 08/11/2016 08/23/2016 50.00 816 100.04.19.00.5601
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 13
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
0148850909 8 Invoice Monthly Charge -Library 08/11/2016 08/23/2016 25.00 816 100.05.71.00.5602
0148850909 9 Invoice Monthly Charge -Dept. Finance 08/11/2016 08/23/2016 25.00 816 100.01.04.00.5601
Total U.S. CELLULAR:600.71
USA FIRE PROTECTION
249314 1 Invoice AUGUST 2016 ANNUAL SPRINKLE 08/18/2016 08/23/2016 390.00 816 100.01.09.00.5415
Total USA FIRE PROTECTION:390.00
USDA - APHIS
US082316-1 1 Invoice GOOSE ROUNDUP 08/18/2016 08/23/2016 1,071.50 816 100.04.51.08.5415
US082316-2 1 Invoice GOOSE ROUND UP 08/18/2016 08/23/2016 1,071.50 816 250.01.00.00.6605
Total USDA - APHIS:2,143.00
VOGEL, SUSAN
VO082316 1 Invoice Adv. Warriors Tennis Camp Instructi 08/12/2016 08/23/2016 195.00 816 100.05.72.13.5110
Total VOGEL, SUSAN:195.00
WAUKESHA COUNTY
00 4188 1 Invoice RECORDING FEES 08/11/2016 08/23/2016 60.00 816 507.00.00.00.2665
Total WAUKESHA COUNTY:60.00
WAUKESHA COUNTY TREASURER
2016-0000014 1 Invoice Prisoner Housing 08/18/2016 08/23/2016 432.12 816 100.01.08.00.6017
WA082316 1 Invoice TAX PMT MSKC2210989001 SENG 08/11/2016 08/23/2016 1,000.00 816 501.00.00.00.1201
WA082316 2 Invoice TAX PMT MSKC2196970 HAVEN S 08/11/2016 08/23/2016 1,337.00 816 501.00.00.00.1201
WA082316 3 Invoice TAX PMT MSKC2257026 DILLETT 08/11/2016 08/23/2016 2,005.00 816 501.00.00.00.1201
WA082316 4 Invoice TAX PMT MSKC2251992 ROZESKI 08/11/2016 08/23/2016 2,027.00 816 501.00.00.00.1201
WA082316 5 Invoice TAX PMT MSKC2200037 HOURIET 08/11/2016 08/23/2016 1,550.00 816 501.00.00.00.1201
WA082316-2 1 Invoice TAX PMT MSKC2203191 SINGER 08/11/2016 08/23/2016 2,184.00 816 501.00.00.00.1201
WA082316-2 2 Invoice TAX PMT MSKC2199080 YOUNG 08/11/2016 08/23/2016 700.00 816 501.00.00.00.1201
Total WAUKESHA COUNTY TREASURER:11,235.12
WE ENERGIES
0000-020-351/1 Invoice 6/16 WELLS ELECTRIC 07/29/2016 08/23/2016 7,609.53 816 605.52.06.22.5910
0000-020-351/2 Invoice 6/16 WELLS GAS 07/29/2016 08/23/2016 12.88 816 605.52.06.22.5910
0456-343-427/1 Invoice PIONEER JULY 08/08/2016 08/23/2016 42.24 816 601.61.61.20.5910
3665-286-012/1 Invoice STREET LIGHTING 08/11/2016 08/23/2016 2,376.67 816 100.04.51.06.5910
3836-104-158/1 Invoice 7/16 GROUP 4S ELECTRIC & GAS 08/02/2016 08/23/2016 684.44 816 601.61.61.20.5910
5693-322-650/1 Invoice CITY GARAGE ANNEX - GAS 08/16/2016 08/23/2016 5.03 816 100.04.51.08.5910
5693-322-650/2 Invoice CITY GARAGE ANNEX - GAS 08/16/2016 08/23/2016 2.52 816 601.61.61.20.5910
5693-322-650/3 Invoice CITY GARAGE ANNEX - GAS 08/16/2016 08/23/2016 2.51 816 605.56.09.21.5910
6673-530-586/1 Invoice RACINE JUNE 08/08/2016 08/23/2016 35.54 816 601.61.61.20.5910
9026-628-301/1 Invoice WELL 7, 8 & 12 ELEC - JULY 2016 08/11/2016 08/23/2016 1,111.88 816 605.52.06.22.5910
9409-468-890/1 Invoice CITY GARAGE ANNEX - ELECTRIC 08/16/2016 08/23/2016 24.95 816 100.04.51.08.5910
9409-468-890/2 Invoice CITY GARAGE ANNEX - ELECTRIC 08/16/2016 08/23/2016 12.47 816 601.61.61.20.5910
9409-468-890/3 Invoice CITY GARAGE ANNEX - ELECTRIC 08/16/2016 08/23/2016 12.47 816 605.56.09.21.5910
Total WE ENERGIES:11,933.13
WEST ALLIS POLICE DEPARTMENT
10691 1 Invoice Jake Leighton Warrant WAPD 08/15/2016 08/23/2016 214.00 816 100.01.08.00.4272
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 14
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Total WEST ALLIS POLICE DEPARTMENT:214.00
WI STATE LAB OF HYGIENE
467927 1 Invoice 16-13671 bailjumping blood draw 08/15/2016 08/23/2016 50.00 816 100.02.20.01.5722
Total WI STATE LAB OF HYGIENE:50.00
WIND LAKE AUTO PARTS
1975/082316 1 Invoice TRUCK 24 AND 29 PARTS 07/30/2016 08/23/2016 105.83 816 601.61.61.21.5306
1975/082316 2 Invoice TRUCK 24 AND 29 PARTS 07/30/2016 08/23/2016 105.83 816 605.56.09.33.5405
1975/082316 3 Invoice SQ 15 ROTOR AND PADS 07/30/2016 08/23/2016 129.50 816 100.02.20.01.5405
1975/082316 4 Invoice TRUCK 3,15 KUBOTA 07/30/2016 08/23/2016 1,292.35 816 100.04.51.07.5405
Total WIND LAKE AUTO PARTS:1,633.51
WIND LAKE AUTOMOTIVE INC
28411 1 Invoice ALIGNMENT 2012 CAPRICE 08/05/2016 08/23/2016 60.00 816 100.02.20.01.5405
Total WIND LAKE AUTOMOTIVE INC:60.00
WOLFGRAM, CARI
WO082316 1 Invoice Training meals 08/18/2016 08/23/2016 25.11 816 100.02.20.01.5301
Total WOLFGRAM, CARI:25.11
WONDERWARE MIDWEST
Q13813 1 Invoice RENEW AGREEMENT 07/05/2016 08/23/2016 1,010.00 816 601.61.63.42.5509
Q13813 2 Invoice RENEW AGREEMENT 07/05/2016 08/23/2016 1,010.00 816 605.56.09.23.5620
Total WONDERWARE MIDWEST:2,020.00
WORD SYSTEMS, INC
IN16711 1 Invoice Phillips Maintenance Contract 08/15/2016 08/23/2016 719.10 816 100.02.20.01.5504
Total WORD SYSTEMS, INC:719.10
WORLDWIDE INFORMATION
7396 1 Invoice WW DL & MVR 08/11/2016 08/23/2016 478.00 816 100.02.20.01.5504
Total WORLDWIDE INFORMATION:478.00
YOUSSI, DENNIS
YO082316 1 Invoice BLACK - BOOTS 08/12/2016 08/23/2016 116.03 816 100.04.51.01.5225
Total YOUSSI, DENNIS:116.03
Grand Totals: 203,523.27
CITY OF MUSKEGO Payment Approval Report - Board Report Alpha Page: 15
Report dates: 8/10/2016-8/23/2016 Aug 18, 2016 04:06PM
Invoice Number SeqNo Type Description Invoice Date Payment Due Date Total Cost GL Period GL Account Number
Report Criteria:
Detail report.
Invoices with totals above $0 included.
Paid and unpaid invoices included.
[Report].Description = {<>} "1099 adjustment"
Invoice Detail.Type = {>} "adjustments"
OVER ->
City of Muskego
Finance & Administration Department
Sharon Mueller
Finance & Administration Director
Finance & Administration Department Quarterly Report
August 23rd, 2016, Finance Committee Meeting
Major Projects and Activities being worked on within the Finance & Administration Department:
Elections – Implementation of the new election equipment and voting system have continued to improve as the poll
workers gain more experience with each upcoming election. Other procedural changes include setting-up the polling
place the day prior to the election and providing additional assistance to the poll workers with the return of the heavy
equipment and supplies once the polls have closed. This has allowed for greater focus on activating the tabulator
before the polls open and expediting the closing process. The upcoming elections will include the following:
November 8th Fall General Election.
Tax Roll/Rates/Bills – Final settlement with Waukesha County was reconciled and balanced on August 15th.
2015 Audit (Operating, Special Revenue, Capital, BML, Sewer & Water Utility – As reported in the first quarter,
field work began on April 25th and was completed by May 2nd. First draft financial statements were completed on
May 18th with the Management Discussion and Analysis (MD&A) finalized on June 30th, two weeks earlier than the
prior year. The audit presentation is scheduled to take place at the August 23rd Finance Committee meeting.
Preliminary results remain positive, including continued movement toward working capital recovery within the Water
Utility.
Budgets – The 2017 Capital Budget and 5-Year Summary was distributed on August 12th for discussion at the August
18th COW meeting. Staff is currently working with the Mayor on preparing the proposed Operating, Debt Service,
Special Revenues, Big Muskego Lake and Water & Sewer Utility Budgets. The budgets will be based on goals which
were set by the Committee of the Whole on July 12th.
Payroll/Benefit Administration –
• 2nd Quarter Federal and State payroll tax reports reconciled and submitted to the IRS and DOR on July 22nd.
• The City Wellness Program Health Risk Assessment took place the third week in May. Total employee
participation was 97%. Final assessment reports have continued positive trend results and employee
feedback.
• As communicated to the Committee of the Whole, health insurance rate renewal negotiations resulted in no
increase to the current premiums. Various health insurance options were reviewed by the Committee of the
Whole resulting in a consensus for benefits to remain status quo until the 2018 budget process.
Investments – Interest earnings are holding steady with no increase in rates to report.
Debt Issuance – The Resolution to Authorize the Issuance and Sale of $7,125,000 General Obligation Promissory
Notes was approved by Council on July 12th, with the funds wired to the City on July 26th.
2nd Quarter Utility Bills – Billings and collections processed in a timely manner with no issues to report.
FINANCE & ADMIN. DIRECTOR’S REPORT 08/23/16
PAGE 2
2
Licensing – Various licenses and permits, including liquor and fireworks, were all processed and issued on a timely
basis.
Board of Review – The first meeting to consider filed objections took place on June 15th with two heard by the
Board, resulting in an overall property assessment valuation adjustment of $122,400. The change in value was
recorded with the County and reflected in the Statement of Assessment which was filed with the State on June 24th.
Other Projects – Continued progression within the following applications: Electronic Payment processing – test
pilot underway for residents to access their account information; and Document Management/Work Flow – working
with a new vendor to address resolution for on-going issues.
2nd Quarter, 2016 General Fund Operating Results – See attached.
As reported, the year-to-date expenditures are under budget by (-) 56.99% which is within 0.09% of the prior year.
The results reflect a ‘leveling-off’ of the saving recognized from the consolidation of the Parks Department with
DPW, reorganization of the Recreation Department and contracted Assessor services.
Second quarter revenues over expenditures resulted in an increase of $146,203. Although mid-year, it should be
noted there are several accounts under budget either due to the timing of funds received or project status. These
accounts would include the road program, vehicle replacements and water tax equivalent. Current projections
continue to indicate positive results.
Please email or contact me at (262) 679-5622 with any questions. Thank you.
June 30, 2016
Budget Actual Over/(Under) % Over/(Under)Revenue Comparison
Taxes $10,251,398 $10,261,429 $10,031 0.10%
Intergovernmental $1,824,559 $733,159 -$1,091,400 -59.82%
Licenses and Permits $747,712 $349,850 -$397,862 -53.21%
Fines, Forfeits and Penalties $207,000 $222,594 $15,594 7.53%
Public Charges for Services $671,831 $505,912 -$165,919 -24.70%
Intergov. Charges for Services $146,200 $74,010 -$72,190 -49.38%
Miscellaneous $237,870 $174,875 -$62,995 -26.48%
Other Financing Sources $574,000 $0 -$574,000 -100.00%
Interdepartmental $217,150 $37,244 -$179,906 -82.85%
Total Revenue
$14,877,720 $12,359,074 ($2,518,646) -16.93%
2016 Budget Quarter 2 Results: REVENUES
General Fund -
Annual Operating Results
83%
6%
3%
2%4%
1%
1%
0%
0%
Taxes
Intergovernmental
Licenses and Permits
Fines, Forfeits and Penalties
Public Charges for Services
Intergov. Charges for Services
Miscellaneous
Other Financing Sources
Interdepartmental
June 30, 2016
General Government Budget Actual Over/(Under) % Over/(Under)Actual Cost Breakdown
Common Council/Mayor $205,578 $99,180 -$106,398 -51.76%
Finance & Administration $612,038 $272,641 -$339,397 -55.45%
Assessor $147,375 $67,429 -$79,946 -54.25%
Attorney $110,133 $68,505 -$41,628 -37.80%
Non-Departmental $574,517 $386,986 -$187,531 -32.64%
Municipal Court $195,228 $94,562 -$100,666 -51.56%
Building Maintenance $192,162 $84,770 -$107,392 -55.89%
Information Technology $339,739 $117,878 -$221,860 -65.30%
Bank Service Charges $18,000 $11,587 -$6,413 -35.63%
Total $2,394,770 $1,203,539 -$1,191,232 -49.74%
Public Safety Budget Actual Over/(Under) % Over/(Under)
Police - Sworn Officers $4,639,586 $2,157,442 -$2,482,144 -53.50%
Police - Dispatch & Clerical $666,501 $311,374 -$355,127 -53.28%
Volunteer Fire $790,765 $232,500 -$558,265 -70.60%
Non-Departmental $20,511 $19,031 -$1,480 -7.22%
Building Inspection $247,443 $111,582 -$135,862 -54.91%
Total $6,364,807 $2,831,929 -$3,532,878 -55.51%
Health & Human Services Budget Actual Over/(Under) % Over/(Under)
Animal Warden $3,600 $3,581 -$19 -0.53%
Public Safety Supplies & Expenses $50 $0 -$50 -100.00%
Total $3,650 $3,581 -$69 -1.89%
Public Works Budget Actual Over/(Under) % Over/(Under)Budget vs. Actual
Engineering $196,512 $91,069 -$105,443 -53.66%
Public Works $2,381,604 $1,129,764 -$1,251,840 -52.56%
Total $2,578,116 $1,220,833 -$1,357,283 -52.65%
Culture, Recreation & Education Budget Actual Over/(Under) % Over/(Under)
Parade Fund & Little Lake District $59,500 $9,000 -$50,500 -84.87%
Library $1,233,258 $561,168 -$672,090 -54.50%
Recreation $594,039 $209,163 -$384,876 -64.79%
Total $1,886,797 $779,331 -$1,107,466 -58.70%
Conservation & Development Budget Actual Over/(Under) % Over/(Under)
Planning, Conservation & Development $381,244 $182,471 -$198,773 -52.14%
Total $381,244 $182,471 -$198,773 -52.14%
Capital Outlay-Operations Budget Actual Over/(Under) % Over/(Under)
Computer Replacements $18,000 $7,678 -$10,323 -57.35%
Police Vehicle Replacements $77,700 $75,071 -$2,629 -3.38%
Road Program $700,000 $94 -$699,906 -99.99%
Public Works Vehicle Replacements $185,000 $95,100 -$89,900 -48.59%
Contingency $74,025 $0 -$74,025 -100.00%
Trf to Capital from GF $213,610 $0 -$213,610 -100.00%
Total $1,268,335 $177,943 -$1,090,392 -85.97%
Total Expenditures Budget Actual Over/(Under) % Over/(Under)
$14,877,719 $6,399,626 ($8,478,093)-56.99%
2016 Budget Quarter 2 Results: EXPENDITURES
General Fund -
Annual Operating Results
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Budget Actual
19%
44%0%
19%
12%3%3%
General Government
Public Safety
Health & Human Services
Public Works
Culture, Recreation & Education
Conservation & Development
Capital Outlay-Operations
June 30, 2016
2016 2015 Comparison Revenues vs. Expenditures
Total Revenues $12,359,074 $12,120,988 $238,086
Total Expenditures $6,399,626 $6,307,743 $91,883
Total
Surplus/(Deficit)
$5,959,447 $5,813,244 $146,203
General Fund -
Annual Operating Results
Quarter 2 Budget Results - 2016 vs. 2015
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2016 2015