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COMMITTEE OF THE WHOLE Packet - 6/27/2017 CITY OF MUSKEGO COMMITTEE OF THE WHOLE AGENDA June 27, 2017 6:30 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE APPROVAL OF AGENDA APPROVAL OF MINUTES - May 23, 2017 NEW BUSINESS 1.) Discuss Local Access Channel 2.) 2018 Budget Goals Discussion COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT Possible reconvening of the Committee of the Whole immediately following Common Council Meeting of the same date to continue work on agenda items NOTICE IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE. ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS SERVICE, MUSKEGO CITY HALL, (262) 679-4100. Unapproved CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES May 23, 2017 6:20 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 6:30 pm. PLEDGE OF ALLEGIANCE ROLL CALL Present: Alderman Hammel, Borgman, Kapusta, Engelhardt, Kubacki, Madden and Mayor Chiaverotti. Director Mueller was also present. Absent: Alderman Wolfe STATEMENT OF PUBLIC NOTICE Director Mueller stated that the meeting was properly noticed. APPROVAL OF AGENDA APPROVAL OF MINUTES - April 11, 2017 Alderman Borgman motioned to approve April 11, 2017 minutes. Alderman Kapusta seconded, minutes approved. NEW BUSINESS - Employee Health Insurance Update Director Mueller presented the WPS Health Plan renewal for July 1, 2017 and the HSA comparison proposal. WPS has proposed a 0% increase for the 2017-2018 renewal. HRA utilization is trending down by almost 5% compared to last year. Taking everything into consideration being the 0% increase, downward trend of HRA utilization, unknown future health care changes and positive budget results, leaving the insurance status quo is probably the most practical option at this point. Mayor Chiaverotti asked for a show of hands to renew current Health Plan and HRA as is. Consensus was unanimous to keep the Health Insurance status quo. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT Possible reconvening of the Committee of the Whole immediately following Common Council Meeting of the same date to continue work on agenda items Alderman Kapusta motioned to adjourn. Alderman Kubacki seconded motion, meeting adjourned at 7:05 pm. 2018 Budget Planning Calendar Monday, June 19th, 2017 – Staff to begin preparation work on proposed budget Tuesday, June 27th, 2017 – Committee of the Whole Meeting – Discuss Budget Goals Tuesday, July 11th, 2017 – Committee of the Whole Meeting – Recommend Budget Goals Monday, July 24th, 2017 – All Departmental Capital Budget and Personnel request forms due – submit copies to Mayor and Department of Finance & Admin. Monday, August 14th, 2017 – Departmental Operating and Special Revenue Budget request worksheets due – submit copies to Mayor and Department of Finance & Admin. July - August 2017 – Parks & Conservation Committee, Library Board & Safety Committee work on proposed budgets and forward recommendations to Mayor Thursday, August 17th, 2017 – Committee of the Whole meeting – Budget work to be accomplished: 1. Capital Projects Fund Budgets (Expenditure & Borrowing) Tuesday, August 22nd, 2017 – Committee of the Whole meeting – Budget work to be accomplished: 1. Capital Projects Fund Budgets – continue discussion Tuesday, August 22nd, 2017 – Big Muskego Lake Annual Meeting – 2018 Budget approval Tuesday, September 12th, 2017 – Committee of the Whole meeting - Budget work to be accomplished: 1. Capital Projects Fund Budgets – continue discussion Thursday, September 21st, 2017 – Committee of the Whole meeting – Budget work to be accomplished: Mayor’s Proposed Budget – Summary Comments including the following: 1. General Fund – revenue budget 2. General Fund – expenditure budget 3. Debt Service Fund Budgets 4. Special Revenue Fund Budgets Friday, September 22nd, 2017 – Water and Sewer operating budget worksheets due – submit copies to Mayor and Department of Finance & Admin. Tuesday, September 26th, 2017 – Committee of the Whole meeting – Budget work to be accomplished: 1. Finalize City Budget Work Thursday, October 5th, 2017 - Public Hearing Notice Published (must submit notification to paper by noon on September 28th) Tuesday, October 10th, 2017 – Committee of the Whole meeting – Budget work to be accomplished: 1. Finalize City Budget Work (Tentative meeting if needed) 2. Discuss/Review Water & Sewer Utility Budgets Monday, October 23th, 2017 - Public Hearing (6:00 p.m. start time) Tuesday, October 24th, 2017 – Common Council Meeting – Adopt 2018 Budgets (City Operating & Debt Service, Special Revenue, Capital & Utilities) and set City tax levy and tax rate ▪ Definition of the Budget Process The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. ▪ Mission of the Budget Process To help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. ▪ Key Characteristics of the Budget Process ● ● ● ● ●Provides incentives to government management and employees. Note: Definition, Mission and Key Characteristics are recommended practices from the National Advisory Council on State and Local Budgeting which was created and endorsed by the Governmental Finance Officers Association. Incorporates a long-term perspective; Establishes linkages to broad organizational goals; Focuses budget decisions on results and outcomes; Involves and promotes effective communication with stakeholders; and 2018 SUMMARY BUDGET GUIDE Comprehensive Goals ■ Apply Net New Growth as Allowed per State Levy Limit Maintain and Enhance Services for a Growing Community ■ Maintain High Bond Rating Low Interest Rates & Reduced Fees on Debt Issuance ■ Limit One-Time Funding Sources Allows Focus on Ensuing Budget vs. Prior Year Deficit ■ Avoid Depletion of Special Revenue Funds Accountability of Funds for Purpose Intended ■ Support Economic Drivers, Including TID Creations and Incentives ■ Strengthen Efficiencies through Implement Shared Services Cost Savings & Improved Customer Service ■ Recognize and Respect the Expertise of Incumbent Employees thru Competitive Pay Increases & Benefit Packages ■ Abide by General Operating Fund Balance Policy Promote City's Fiscal Health Preservation ■ Budget Goal Setting as a Collaboration between the Committee of the Whole, Mayor & Staff Ensure Long-Term Viability for Economic Development Maintain and Recruit Quality Workforce Transparency and Inclusive Team Results Outcome PROPOSED ▪ BUDGET CATEGORIES As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. Mayor/Council Finance & Administration Assessor Law Non-Departmental Municipal Court Building Maintenance Information Technology Police Patrol Civilian Patrol Volunteer Fire Non-Departmental Public Works & Development - Building Inspection Animal Warden Public Safety Supplies Engineering Public Works Divisions - Administrative Maintenance Street Signs Storm Water Snow Removal Street Lights Machines & Equipment Garage Bridges & Dams Weed Cutting Conservation Planning Division - Community Development Economic Development Parade & LML Contribution Library Recreation Transparency and Accountability Information Technology  Annual Equipment Replacements Police  Estimated Useful Life over 1 Year Public Works  Cost in Excess of $5,000 (equipment) & $10,000 (infrastructure) Increased Commercial Tax Base Efficient, Cost Effective & Quality Programs CAPITAL OUTLAY Apply General Accepted Accounting Principles Maintain Minimum Reserve Equal to 0.50% of Operating Expenses for Unforeseen EventsCONTINGENCYNon-Departmental Avoidance of Emergency Outside Funding HEALTH & HUMAN SERVICES GENERAL GOVERNMENT GENERAL FUND CATEGORY OUTCOME Improved Efficiencies & Services Safe Community Shared Services and Cooperation between Departments Proactive Equipment Investment Provide Area Resources Enhanced Web Page Listings & Links Develop & Support Plans Safe & Well Maintained Infrastructure and Facilities DEPARTMENT / ACCOUNT GOALS CULTURE, RECREATION & EDUCATION Cooperative Programs with Non-Compete Policy (program space needs/level of sufficiency) PUBLIC WORKS & DEVELOPMENT PUBLIC SAFETY Support Economic Drivers thru Balanced Use of Incentives ▪ BUDGET CATEGORIES (continued) As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. ▪ TID #8 - Freedom Square ▪ TID #9 - CDA ▪ TID #10 - Moorland Gateway ▪ TID #11 - Parkland Towne Center *On-Going Fund Proposals - *Assessment Fund Balanced Budgeting *Equipment Fund Balanced Budget and Equipment Investment *Facilities Needs Fund Dedicate up to 10% as Funds Become Available Quality Facilities & Enhanced Services OUTCOME Allocate $25K for Contracted Property Revaluation Expense Allocate $25K for Various Equipment Needs, including VFD Priority Funding Per Landfill AgreementStorm Water Manage Storm Water Issues Landfill Maintain minimum $1,000,000 Fund Balance Under Terms of Contract Funds for Unforeseen Events 10% Contribution from Landfill Tipping Fees Per Agreement for Private Well TestsWell Testing Reserve Necessary Well Maintenance Fund Document Management Project & Associated Fees to Enhance Program Less Impact to Users Internal and External Efficiencies/Transparency Operating Expenses Incurred by Authority Supports Development of Identified AreasCommunity Development Authority Complies with Agreement Compensated Absences Fund Maintain Full Funding in Reserve Utilization for Employee Payouts/Accountability Anticipated TID closing date & value to be added to tax base (amount based off of 2015 data): →07/31/2027 (Increment = $6,347,500 / Taxes = $104,506) →12/31/2018 - $227,975 (Increment = $13,846,700 / Taxes = $227,975) →10/31/2027 - $863,162 (Increment = $52,426,600 / Taxes = $863,162) →12/31/2031 -> 12/31/2036 - (Increment = $31,940,000 supplied by Developer / Taxes = $525,865) Designated for Local Business Loan & Grant Program (Resolution #105-2009)Residual TIF/Capital Improvement Retain Business & Increase Commercial Tax Base Unless Added Value, Dedicate Tax Increments for Debt Payments & Maintain Closing Date Utilization of Tax Revenues by All Entities Park Improvement Fund Refuse & Recycling Revolving Loan Emerald Park Inc. & Future Parkland Standing Committees Cable TV Conservation Initiatives Already Incurred/Comp PlanLand & Open Space Conservation State Funding Loaned at a Discounted Rate to Promote Local Growing Businesses Retain Business & Increase Commercial Tax Base Administrative Engineering & Committee Fees to Monitor Landfill Operations Under Terms of Contract Accountability Tracks Subdivider Fees Against Relative Projects - Earmarked for 'Sandhill'Quality Parks per Comp Plan Maintain User Rates for Waste Removal Service Fees SPECIAL REVENUE FUNDS Tax Increment Districts DEPARTMENT / ACCOUNTFUND GOALS Park Dedication 10% Contribution from Landfill Tipping Fees Per Agreement for Parks Projects 10% Contribution from Landfill Tipping Fees Per Agreement for Respective Projects ▪ BUDGET CATEGORIES (continued) As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. ▪ FUND BALANCE The City's fund balance policy addresses the ideal level of fund balance to be maintained in the General Fund which is the primary operating fund of the City, as well as Committed Special Revenues. In general, as recommended by the City Auditors and GAAP, the policy objectives are to provide for the following: ▪ Working capital to meet cash flow needs during the year (2 to 4 months of budgeted expenditures from the subsequent year) ▪ Preserving the City's credit rating for borrowing monies at favorable interest rates and minimizing fees ▪ Comfortable margin of safety to address unanticipated expenditures / emergencies and unexpected declines in revenue due to economic downturns, natural disasters, etc. ▪ Resource to stabilize annual fluctuations in the property taxes paid by the City of Muskego taxpayers ▪ Unfunded portion of accrued compensated absences liability Shared Costs & Improved LiabilityRecreation Facilities CAPITAL BORROWING/ EXPENDITURE FUNDS Police & City Hall Facilities Maintain Campus Location Evaluation Cost Sharing Program with School District and Other Partners Transparency & Accountability Quality Facilities, Enhanced Services & Cost Effective GOALS OUTCOME Limit Debt Issuance to Long-Term Projects not Utilizing Current Revenues Sound Fiscal Policy with Future User Contributions Total Long-Term Obligations should not exceed Statutory Limit of 5% of the Equalized Valuation of Taxable Property Fair and Equitable Taxation Cap Total Annual General Obligation Debt (30% of Revenues)Financial Sustainability DEBT SERVICE FUNDS FUND DEPARTMENT / ACCOUNT Maintain Communications with Bond Rating Agencies & Provide for Full Continuing Disclosure General Obligation, Notes & Refundings