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COMMITTEE OF THE WHOLE Minutes - 9/25/2018 Unapproved CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES September 25, 2018 5:30 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 5:37 p.m. ROLL CALL Present: Alderpersons Wolfe, Hammel, Borgman, Kapusta, Engelhardt, Kubacki and Madden. Also present: City Attorney Warchol, Finance and Administration Director Mueller, Finance and Administration Assistant Mustapich, Library Director Larson, IT Director Loudon, Public Works and Development Director Kroeger, and Deputy Clerk Blenski. STATEMENT OF PUBLIC NOTICE The Deputy Clerk stated the meeting was noticed in accordance with the open meeting law. APPROVAL OF MINUTES – June 12, 2018, August 28, 2018 and September 11, 2018 Alderperson Madden made a motion to approve. Alderperson Kapusta seconded; motion carried. NEW BUSINESS The Mayor noted that the Library’s Capital Budget quote for furniture did include State pricing. Mayor’s Proposed 2019 Budget Mayor Chiaverotti read the following “Summary Comments” from the 2019 Proposed Budget: Each budget is built upon Council defined budget goals with desired outcomes, and the 2019 Proposed Budget is consistent with that measure. This team approach process has proven to be fundamental for long-term success. Based on the agreed upon comprehensive goals of the Committee of the Whole, the balanced budget as prepared by the department heads and I is proposed to maintain a low mill rate (tax rate) while keeping within the mandated net new growth levy increase. A Council goal for consideration but not addressed in the proposed budget is equity between Lake Districts (see attached for complete Summary Budget Guide). The budget reflects $50,000, the same as 2018 budget for contribution to Little Muskego Lake District (LMLD). Equity and consistency for Lake Districts and tax payers would constitute approximately $10,640 in lieu of $50,000 which is consistent with the per parcel fee implemented by each Lake District. 2 September 25, 2018 Following are the 2019 Comprehensive Budget Goals as approved by the Committee of the Whole:  Apply Net New Growth as Allowed per the State Levy Limit  Maintain High Bond Rating  Limit One-Time Funding Sources  Avoid Depletion of Special Revenue Funds  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 Packages  Abide by the General Operation Fund Balance Policy  Budget Goal Setting as a Collaboration between the Committee of the Whole, Mayor & Staff Significant Changes from the 2018 to the 2019: Revenues The proposed 2019 general fund revenue budget reflects a tax levy increase of $200,000 or 1.585% as compared to the 2018 adjustment of $205,000; and is within the State levy limit. Increased revenue is derived from new growth, improved property market/assessed values, and interest earnings. The additional funds will be utilized to offset expenditure increase for the Volunteer Fire Service, a new public safety dispatcher, employee pay scale adjustments and merit increases, and capital outlay equipment purchases. Also to be noted is the estimate for Transportation Aids has not yet been provided; and is subject to change for this year as well as future years. Expenditures The proposed 2019 general fund expenditure budget is in balance with the proposed revenue budget, resulting in a 1.77% increase over 2018. An increased expenditure of $33,000 is included for the contracted fire service as approved by the Common Council. In addition, $69,000 is allocated for Police and Public Works vehicle replacements. In support of the goal to recognize and respect the expertise of incumbent employees this budget reflects the Committee of the Whole recommended pay scale adjustments based on the completed salary study. Also included is a 2.5% merit pay increase which was based on lower- st end average survey results; along with a $750.00 lump sum payment on January 1, 2019 and st with a 1.0% rate increase on July 1, 2019 for the represented police personnel as determined per the union negotiated contract. Personnel costs also include a proposed Dispatcher position with an effective start date of July st 1, 2019. Furthermore, overall staffing costs are comprised of employee benefits which fluctuate considerably from year to year. 3 September 25, 2018 Taxes Recent State Levy Limit mandates include a new reduction to the allowable increase for personal property aid in the amount of $49,802. Although the State requirement to hold the City of Muskego tax levy increase to net new growth is 2.05%, the actual allowable levy increase has been reduced to 1.65% due to the personal property aid adjustment. Of this total, only 1.585%, of new growth is being utilized per the budget goals resulting in an estimated City tax rate of $4.50; and amounts to a marginal increase of $0.09 cents as compared to the 2018 rate. Like previous adopted budgets, this proposed budget stays within the state imposed levy limit and does not utilize any allowable unused prior years levy capacity; while enhancing services for a growing community that are important to the citizens and achieves the Council goals. There is also no utilization of prior years’ surplus funds. The Mayor encouraged the Committee members to reach out to the Department Heads if there are questions regarding the proposed budget. The Department Heads can also be requested to attend the next meeting. Discussion took place regarding some of the increases for personnel expenditures. Director Mueller stated that the amounts reflect wages and benefits. Health insurance costs can fluctuate significantly depending on what option employees choose. While health insurance rates increased, the total expenditure for 2019 decreased because more employees are taking the payment offered in lieu of coverage. Ms. Mueller stated that the City’s proposed 2019 mill rate is still lower than previous years as well as those of other municipalities. ADJOURNMENT Alderperson Madden made a motion to adjourn at 5:59 p.m. Alderperson Kubacki seconded; motion carried. Minutes taken and transcribed by Jill Blenski, Deputy Clerk.