Loading...
COMMITTEE OF THE WHOLE Minutes - 9/19/2013 CITY OF MUSKEGO COMMITTEE OF THE WHOLE AGENDA September 19, 2013 5:30 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Those present recited the Pledge of Allegiance. ROLL CALL Present were Ald. Madden, Kubacki, Soltysiak, Glazier, Borgman, and Hammel, Director of Finance and Administration Mueller, and Deputy Clerk Blenski. Ald. Wolfe was absent. STATEMENT OF PUBLICE NOTICE The Deputy stated that the meeting was noticed in accordance with the open meeting law. APPROVAL OF AGENDA APPROVAL OF MINUTES - September 10, 2013 Alderman Kubacki made a motion to approve the September 10, 2013 minutes. Alderman Glazier seconded. Motion Passed 6 in favor<againsttext> 0 opposed</againsttext>. NEW BUSINESS 1. Review Proposed 2013 Refundings - Paul Thompson of Hutchinson, Shockey & Erley Mr. Paul Thompson of Hutchinson Shockey Erley Co. was present to review the proposed 2013 refinancings. (See Executive Summary.) The total net savings to refinance a 2003 CDA Lease Revenue Bond and outstanding 2001, 2003 and 2004 debt could result in savings of more than $915,000. Mr. Thompson is recommending that these refinancings be done in November. In addition, it is proposed that the City refinance the short term borrowing ($14.5 million) done in 2011 for major road reconstruction projects. The amount of the long-term bond can be reduced to $12,975,000. Mr. Thompson stated there is also a need for a new money issue of $1,325,000 for capital projects. Ms. Mueller stated this is a carryover for Janesville Road and other water projects. She stated the borrowing done in 2011 was to cover several major projects. The Common Council approved a short-term borrowing at the time because actual project costs were unknown. It did provide the City with flexibility because the project costs were unknown. She believes the right decision was made; the excess funds will reduce the long-term debt. Mr. Thompson clarified that none of the maturity terms are being extended. The projected interest rates are based on today’s market and could fluctuate. All six members expressed their support for the proposed refinancings.Final Vote Regarding Fire Department Request for Replacement Pumper Fire Chief Wojnowski was present. Ald. Soltysiak was not present at the previous meeting where the consensus vote was taken regarding the replacement pumper. The vote is currently tied. Ald. Soltysiak had several questions for Chief Wojnowski. The Chief stated that the 1996 (Freightliner) pumper proposed to be replaced has had transmission issues the last two years. Ald. Soltysiak stated he supported the purchase, but requested to see the NFPA reports in the future. 3. 2014 Operating Funds Budget Work The Mayor presented her comments regarding the 2014 proposed operating budget: During preparation of the 2014 budget, the Department Heads and I were able to achieve a balanced budget along with maintaining a fairly flat levy. Some measures to aid in balancing the budget include an upgraded phone system, full employee contributions to the Wisconsin Retirement System (WRS), and the removal of the revaluation cost due to 2014 being a maintenance year. Also contributing to the balancing of the budget is the merit pay program that now includes former represented employees in lieu of automatic cost of living increases. Employees are also contributing more toward their health care benefits facilitating a smaller increase of the City’s premium that stems from experience and the National Health Care Act fees. The State requirement to hold the City of Muskego tax levy increase to net new growth is 0.91% for the 2014 budget. A portion of the allowable net new growth is being utilized for Council authorized additional operating budget items including park maintenance for Park Arthur, K-9 Unit and High School Special Events Police Officer. Also included is the full year funding of the GIS Coordinator position that supports economic development to foster new growth for the future. This budget stays within the state imposed levy limit without reducing services that are important to the citizens. Additionally, this is the third consecutive budget proposal that reduces the use of prior years’ surplus. Goals My goals in the proposed 2014 budget were as follows: 1. Ensure the City’s continued sound fiscal health with not exceeding the mandated net levy increase to taxpayers (net new growth). 2. Maintain or improve services at the current level for this year and the future. 3. Limit the use of one time funding sources while avoiding the depletion of special revenue funds to ensure availability for emergencies. 4. Support and focus on economic growth utilizing net new growth for economic development. 5. Provide service in support of our most valuable resource, our employees. Significant Changes from the 2013 to the 2014 Revenues The proposed 2014 general fund revenue budget is $14,384,310, which reflects an increase of 0.52% as compared to the 2013 budget. The primary reasons for the change are the increased interest on investments, additional revenue generated from court fines and forfeitures and significantly less use of surplus funds generated from prior years. Expenditures The proposed 2014 general fund expenditure budget is in balance with the proposed revenue budget, resulting in an equivalent increase of $73,725 or 0.52% over 2013. The slight increase reflects additional costs resulting from maintenance of the newly created Park Arthur, K-9 Unit, High School Special Events Police Officer and full funding for the GIS Coordinator which was created mid-year 2013. Contributing to expenditure reductions is an approximate $150,000 decrease in City contributions to the WRS program due to System strides towards making the duty disability program fully funded, a $12,000 savings in phone charges resulting from the new phone system and $100,000 for property revaluation fees, as 2014 is a maintenance year. Additional contributions to employee health care also contribute to a balanced budget. In lieu of automatic cost of living adjustments (COLA), this budget reflects wage increases based on the Pay for Performance merit pay plan up to 1% for general employees and up to 3% for managerial and specialists. The new Pay for Performance plan provides an annual reward in lieu of compounding wage increases for all employees that have reached the top of their wage scale. This budget does not reflect $106,000 in the Volunteer Fire Service Operations account for the vehicle debt retirement costs of the requested pumper fire truck should the Council not approve the replacement as part of the capital budget. Also to be noted is Transportation Aid estimates have not yet been provided and are subject to change for this year as well as future years. LEVY The net tax levy is comprised of two components, being the general levy and debt service levy. The 2014 proposed General Fund levy includes an increase of 0.91% along with no increase to the Debt Service Fund levy, for a total net levy increase of 0.748% which is well within the allowable State levy limit requirement of 0.91% net new growth for the City of Muskego. The tax rate is based off of assessed property values and is necessary to raise sufficient funds to meet the levy. As a result of the recent revaluation, the total City assessed value established was reduced significantly and the tax rate must be adjusted accordingly as communicated in the State of Wisconsin Guide for Property Owners. All considered for the 2014 budget, the City tax rate is estimated to be $4.91, which is an increase of $0.51 or 11.52% as compared to the prior year. To maintain the 2013 tax rate of $4.40, the levy would need to be reduced by approximately $1,159,000. This is a significant sum that would impact services and quality of life for the residents of Muskego. The use of Landfill Reserves could be considered to achieve an easing of the tax rate over the next four years until the next city-wide revaluation. DISCUSSION/COMMENTS Ald. Soltysiak stated he believed the Court Fines and Forfeitures revenue would be greater as a result of the part time clerk position being made full time. Ald. Borgman asked about Compensated Absences. Ms. Mueller stated the City has designated all the money needed to fund the Compensated Absences. This has been recommended by the City’s financial consultants and does affect the bond rating. Ald. Soltysiak questioned the increase of $27,000 for Computer Replacements as well as the new category, Mobile Devices, which reflects an $8,000 expenditure. Ms. Mueller stated that mobile devices are proposed for some department heads. The department head will be able to take the device in the field or any other location. This transition would be phased in. Ald. Soltysiak requested more information. Ald. Glazier requested more information regarding Programming and Consulting for the IT Department. He would like John Wisniewski to highlight what his department is doing. Ms. Mueller stated that the amount for state transportation aids will be available in October. 4. Establish a Segregated Fund for Park & Rec Maintenance/Repairs Funded by Landfill for Use after Landfill is Closed (Ald. Soltysiak) Ald. Soltysiak stated amenities continue to be added to the park and recreation system. All of these items require continuous maintenance. Landfill funds have been used to pay for the maintenance. There will be a point in time when revenue from the landfill ends. He proposes that money from the landfill be set aside annually in a segregated account to be used for future park and recreation maintenance (capital items). The Mayor agrees with the concept; however, the existing agreement must be followed. She will proceed to do the necessary research. Ald. Glazier agrees with putting funds aside, but is not sure it should be designated for any specific purpose. He noted that if people want parks, they have to realize that there will be a cost to maintain COMMUNICATIONS AND MISCELLANEOUS BUISNESS AS AUTHORIZED BY LAW Ald. Glazier stated Dr. Jodie will sponsor an event to support the K-9 unit. He encouraged people to continue to donate. 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 Glazier made a motion to adjourn at 7:08 pm. Alderman Kubacki seconded. Motion Passed 6 in favor<againsttext> 0 opposed</againsttext>. 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.