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COMMITTEE OF THE WHOLE Minutes - 9/18/2014 Approved CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES September 18, 2014 6:00 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 6:08 p.m. PLEDGE OF ALLEGIANCE Those present recited the Pledge of Allegiance. ROLL CALL Present were Aldermen Madden, Kubacki, Engelhardt, Di Pronio, Borgman, Hammel and Wolfe. Also present were Director of Finance and Administration Mueller and Deputy Clerk Blenski. STATEMENT OF PUBLIC NOTICE The Deputy stated that the meeting was noticed in accordance with the Open Meeting Law. APPROVAL OF AGENDA There were no issues with the agenda. APPROVAL OF MINUTES - 8/21/2014, 8/26/2014 & 9/09/2014 Alderman Engelhardt made a motion to approve the August 21, 2014, August 26, 2014 and September 9, 2014 minutes. Alderman Kubacki seconded. Motion Passed 7 in favor. NEW BUSINESS Capital Fund Budgets - Expenditures & Borrowing (continued discussion) Mayor Chiaverotti stated there were a few Capital items to finalize. She noted that the Committee allocated $15,000 for the Police Department HVAC. The Chief received a quote for less, but she recommends that the $15,000 remain in the budget. DPW -Skidster The City Engineer is requesting that the Committee budget $70,000 for a skidster. He has not had an opportunity to research if the equipment is needed and the cost. Prior to purchasing, he will come back to the Committee even if it is under the $50,000 threshold. The equipment would be used to clear the sections of sidewalks on Janesville and Pioneer that are City- owned as well as the recreational trails. Consensus: 7 in favor The Committee also unanimously was in favor of adopting an ordinance that required property owners to clear the sidewalks that abut their properties. Facilities Study The Mayor stated that a new Police Department building has been in the 5-year capital plan. It is scheduled to be done in 2017. The Committee unanimously agreed to maintain the campus arrangement for the Police Department and City Hall facilities. The discussion about facilities will be discussed in the future after the budget process. Overview of 2015 Proposed Operating Budget The Mayor presented her comments regarding the 2015 proposed operating budget: “Based on the agreed upon Common Council budget goals, the Department Heads and I were able to prepare a balanced 2015 budget staying within the mandated net new growth levy increase. The tax rate is proposed with a slight reduction from the 2014 budget. After the advice and consent of the Council, measures to aid in a balanced budget include contracting the Assessor service along with the consolidation of the parks maintenance with the Department of Public Works. Also aiding the balanced budget is the reduction in WRS contributions and minimal increase to the City’s health care premium. The health care premium increase is credited to the National Health Care Act Fees. Employees continue contributing to health care benefits. Recognizing and respecting the expertise of incumbent employees is a budget goal. In addition to step increases for new hires and progression within the merit pay program for managerial and specialist staff, this budget reflects a wage increase up to 3% for non-represented employees. Due to compression issues and market comparisons, the budget also reflects a 1% cost of living increase for represented police personnel. Employee pay increases averaged 1% per year from 2011 – 2014 while contributing more to WRS and health care benefits and it is time to recognize their efforts. This is the second consecutive year of utilizing the merit pay program in lieu of automatic cost of living increases. The State requirement to hold the City of Muskego tax levy increase to net new growth is 1.1% for the 2015 budget. A portion, .95%, of new growth is being utilized. Through utilizing contracted services and shifting of parks maintenance responsibilities, we are able to absorb the Council authorized budgeted additions of park maintenance for Park Arthur, recreation trail maintenance and a new position in the Public Works Department allowing for servicing police vehicle maintenance in-house for additional long-term savings. This budget stays within the state imposed levy limit without reducing services that are important to the citizens. Additionally, this is the second consecutive budget proposal that does not use prior years’ surplus. Per agreed upon budget goals, Council should consider reserving prior years’ surplus for future facilities needs or capital investments.” Goals Budget Goals for 2015:  Apply Net New Growth as Allowed per State Levy Limit to Maintain and Enhance Services for a Growing Community  Maintain High Bond Rating  Limit One-Time Funding Sources  Avoid Depletion of Special Revenue Funds and Utilize for the Purpose Created  Support Economic Drivers to Ensure Long-term Viability, Including TID Creations and Incentives  Strengthen Efficiencies  Recognize and Respect the Expertise of Incumbent Employees  Abide by General Operation Fund Balance Policy  Support Budget Category Goals Significant Changes from the 2014 to the 2015 Revenues The proposed 2015 general fund revenue budget is $212,605 or 1.48% compared to the 2014 level of $14,389,739. The primary reasons for the change are the projected increase in building permits and license issuance, additional revenue generated from court fines and forfeitures and application of net new growth as allowed per the State levy limit to maintain and enhance services for a growing community. Expenditures The proposed 2015 general fund expenditure budget is in balance with the proposed revenue budget, resulting in a 1.48% increase over 2014. Again, the increase in budget categories reflects additional costs resulting from maintenance of the newly created Park Arthur, trail/sidewalk maintenance, the newly created position in DPW allowing for in-house police vehicle maintenance as a cost saving measure and public safety expenses to maintain a high ranking of one of the safest cities in Wisconsin per “Safewise.” Additional inflationary costs include utilities and a slight increase in health care premiums. Contributing to expenditure reductions is the decrease in City contributions to the WRS program, contracting the assessment services, transitioning the parks maintenance and planning to the Department of Public Works and Community Development Department and merging two clerical positions in the Finance and Administration Department. 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. As recommended by the Department of Transportation, a conservative amount is reflected in the budget, which reduced revenues by $68,600. Mayor Chiaverotti reiterated that the proposed tax rate of $4.90 reflected a slight decrease from last year. Discussion regarding the budget will continue at the September 23 meeting. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT Alderman Kubacki made a motion to adjourn at 7:02 p.m. Alderman Hammel seconded. Motion Passed 7 in favor. Minutes taken and transcribed by Jill Blenski, Deputy Clerk