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COMMITTEE OF THE WHOLE Packet - 6/23/2020CITY OF MUSKEGO COMMITTEE OF THE WHOLE AGENDA 06/23/2020 5:30 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE APPROVAL OF AGENDA APPROVAL OF MINUTES NEW BUSINESS Discuss 2021 Planning Calendar and Budget Goals Discuss Polling Place Locations for the August Election. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT The Committee of the Whole may possibly reconvene immediately following the 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, CONTACT MUSKEGO CITY HALL, (262) 679-4100. Packet Page 1 2021 Budget Planning Calendar Tuesday, June 23rd, 2020 – Committee of the Whole Meeting – Distribute, Discuss & Recommend Budget Timetable and Budget Goals Friday, July 17th, 2020 – All Departmental Capital Budget and Personnel request forms due – submit copies to Mayor and Finance. Tuesday, July 28th, 2020 – Committee of the Whole meeting – Budget work to be accomplished: 1. Capital Projects Fund Budgets – (Expenditure & Borrowing) Tuesday, July 28th, 2020 – Big Muskego Lake Annual Meeting – 2021 Budget approval July - August 2020 – Parks & Conservation Committee & Library Board work on proposed budgets and forward recommendations to Mayor and Finance & Admin. Department. Monday, August 10th, 2020 – Departmental Operating and Special Revenue Budget request worksheets due – submit copies to Mayor and Finance. Tuesday, August 25th, 2020 – Committee of the Whole meeting - Budget work to be accomplished: 1. Capital Projects Fund Budgets – continue discussion Tuesday, September 8th, 2020 – 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 11th, 2020 – Water and Sewer operating budget worksheets due – submit copies to Mayor and Finance. Tuesday, September 22nd, 2020 – Committee of the Whole meeting – Budget work to be accomplished: 1. Finalize City Budget Work Wednesday, October 7th, 2020 - Public Hearing Notice Published (must submit notification to paper by noon; no later than 4:00pm, on September 30th) Tuesday, October 13th, 2020 – 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 Tuesday, October 27th, 2020 – Public Hearing (6:00 p.m. start time) & Common Council Meeting – Adopt 2021 Budgets (City Operating & Debt Service, Special Revenue, Capital & Utilities) and set City tax levy and tax rate Page 1 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 2 ▪ 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 2021 SUMMARY BUDGET GUIDE Page 2 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 3 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 with Exception of Non-Focus is on Ensuing Budget vs. Prior Year Deficit Recurring Capital Purchases ■ Avoid Depletion of Special Revenue Funds Accountability of Funds for Purpose Intended ■ Support Economic Drivers, Including TID Creations and Incentives ■ Strengthen Efficiencies through Implemented & Measurable Shared Services ■ Recognize and Respect the Expertise of Incumbent Employees thru Competitive Pay Increases & Benefit Package ■ Abide by General Operating Fund Balance Policy Reinforces City's Fiscal Health Preservation ■ Budget Goal Setting as a Collaboration between the Committee of the Whole, Mayor & Staff Cost Savings & Improved Customer Service Ensure Long-Term Viability for Economic Development Maintain and Recruit Quality Workforce Transparency and Inclusive Team Results Outcome PROPOSED Page 3 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 4 ▪ 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 Senior Taxi Public Safety Supplies Engineering Public Works Divisions - Administrative Maintenance Street Signs Storm Water Snow Removal Street Lights Machines & Equipment Garage Bridges & Dams Weed Cutting Parks Conservation Planning Division - Community Development Economic Development Parade & LML Contribution Equity Between Lake Districts with Repsonsible Use of Tax Dollars 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) PUBLIC WORKS & DEVELOPMENT Efficient, Cost Effective & Quality Programs Increased Commercial Tax Base Cooperative Programs with Non-Compete Policy (program space needs/level of sufficiency) PUBLIC SAFETY Support Economic Drivers thru Balanced Use of Incentives DEPARTMENT / ACCOUNT CULTURE, RECREATION & EDUCATION CAPITAL OUTLAY Apply General Accepted Accounting Principles Maintain Minimum Reserve Equal to 0.50% of Operating Expenses for Unforeseen EventsCONTINGENCYNon-Departmental GOALS Avoidance of Emergency Outside Funding HEALTH & HUMAN SERVICES GENERAL GOVERNMENT GENERAL FUND CATEGORY OUTCOME Efficient Services Safe Community Shared Services and Cooperation between Departments Planned Sound Investment Aid in Specific Public Safety Resources Health & Safety References Develop & Support Plans Safe & Well Maintained Infrastructure and Facilities Page 4 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 5 ▪ 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. ~ Formerly Funded Local Business Loans Potential Funding Source for Hillendale Road Project vs. Debt Issuance ▪ TID #8 - Freedom Square → 07/31/2021 - Increment Value = $7,665,500 / Taxes = $113,692 ▪ TID #9 - CDA → 12/31/2021 - Increment Value = $28,255,700 / Taxes = $419,079 ▪ TID #10 - Moorland Gateway → 10/31/2027 - Increment Value = $63,974,400 / Taxes = $948,847 ▪ TID #11 - Parkland Towne Center → 12/31/2037 - Increment Value = $18,807,800 / Taxes = $278,950 *On-Going Fund Proposals - *Assessment Fund Balanced Budgeting *Equipment Fund Balanced Budget and Equipment Investment OUTCOME Allocate $25K for Contracted Property Revaluation Expense Allocate $25K for Various Equipment Needs, including VFD Priority Funding Per Landfill Agreement to Manage Storm Water IssuesStorm Water Complies with Agreement Landfill Maintain minimum $1,000,000 Fund Balance Under Terms of Contract Funds for Unforeseen Events Contribution from Landfill Tipping Fees for Necessary Well MaintenanceWell Testing Reserve Conservation Initiatives/Comp Plan Determine use of Residual Fund Balance resulting from DOA Closeoout Program Refuse & Recycling 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 2019 data) / Actual Tax Increment: Designated for Local Business Loan & Grant Program - Recover Fund Balance with Tax Increments Residual TIF/Capital Improvement Unless Added Value, Dedicate Tax Increments for Debt Payments & Maintain Closing Date Utilization of Tax Revenues by All Entities Park Improvement Fund Quality Parks Uses per Comp Plan Quality Service & Reasonable Rates Administrative Engineering & Committee Fees to Monitor Landfill Operations Under Terms of Contract Accountability Complies with AgreementSPECIAL 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 Track Subdivider Fees Against Relative Projects Retain & Increase Commercial Tax Base and/or Potential Funding Source for Hillendale Road Project vs. Debt Issuance Revolving Loan Emerald Park Inc. & Future Parkland Standing Committees Land & Open Space Conservation Maintain User Rates for Waste Removal Service Fees Page 5 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 6 ▪ 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 Facilities that Serve Effective ProgramsRecreation Facilities 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 CAPITAL BORROWING/ EXPENDITURE FUNDS Existing Public Safety Building Evaluate Future Use Evaluation of Programs and Facilities Transparency & Accountability Serving the Public Cost Effectively GOALS OUTCOME DEBT SERVICE FUNDS FUND DEPARTMENT / ACCOUNT Maintain Communications with Bond Rating Agencies & Provide for Full Continuing Disclosure General Obligation, Notes & Refundings Page 6 of 6 Discuss 2021 Planning Calendar and Budget Goals Packet Page 7