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COMMITTEE OF THE WHOLE Minutes - 9/8/2020 Approved CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES September 8, 2020 5:00 PM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 5:06 p.m. ROLL CALL Present: Alderpersons Wolfe, Terrence, Kapusta, Engelhardt, Kubacki, and Madden. Absent: Alderperson Hammel. Also present: Public Works and Development Director Kroeger, Finance and Administration Director Mueller, Finance and Administration Assistant Director Mustapich, City Attorney Warchol, Deputy Clerk Blenski, and Administrative Assistant Crisp. STATEMENT OF PUBLIC NOTICE Ms. Crisp stated that the meeting was noticed in accordance with the open meeting law. APPROVAL OF AGENDA Alderperson Kubacki moved to approve. Alderperson Wolfe seconded; motion carried. APPROVAL OF MINUTES – August 25, 2020 Alderperson Engelhardt moved to approve. Alderperson Madden seconded; motion carried. NEW BUSINESS Mayor's Proposed 2021 Budget Mayor Petfalski read his Summary Comments regarding the 2021 Proposed Budget, which are as follows: SUMMARY COMMENTS This year has proven to be an extremely challenging year with a number of negative factors affecting the 2021 city budget. This budget process started with over a $750,000 projected deficit. Revenues such as interest income is down significantly, a number of replacement vehicles had been put off a few years, levy caps in the past were not fully utilized and our growth and reliance on technology requires investments in hardware, software, training, and staffing. It is my hope that these investments will prove to be added benefits to the taxpayers in the near future as it should allow us to expand services and make employees more efficient. We also have been a growing community, which requires the maintaining and upkeep of more roads, parks, and city facilities. This 2021 city budget is built upon Council defined budget goals with desired outcomes in the best interest of Muskego taxpayers, and the 2021 Proposed Budget is consistent with that measure. September 8, 2020 2 Based on the agreed upon comprehensive goals of the Committee of the Whole, the balanced budget as prepared by the department heads and me is proposed to have a low mill rate of $4.56, which is one of the lowest mill rates of any municipality in Waukesha County. Following are the 2021 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 Budget Process: The Committee of the Whole will receive the 2021 Proposed Budget for initial review on Tuesday, September 8, 2020 (Tonight). Over the next two weeks we will still be making further budget adjustments with the goal of lowering the impact on the proposed tax levy. Committee of the Whole meetings will follow to further discuss, review, and finalize the budget. The goal is to have an approved budget by October 13 with a public hearing and budget adoption on Tuesday October 27, 2020. If there are specific questions regarding any line item, I encourage Council members to contact the respective Department Head in advance to discuss the item(s) to aid in identifying the precise information desired. Significant Changes from the 2020 to the 2021: Revenues The proposed 2021 general fund revenue budget reflects a tax levy increase of $330,420 or 3.068% as compared to the 2020 adjustment of $91,864; and is within the State levy limit. Increased revenue is derived from new growth; improved property market/assessed values; and a utilization of unused levy cap limit from previous years. The additional funds will be utilized to offset expenditure increases in technology personnel, DPW staffing, employee pay scale adjustments, and merit increases. Furthermore, a $190,355 transfer from the closed Community Development Authority special revenue fund will assist in funding the police vehicle replacement. Also to be noted, the State has not yet provided the estimates for Shared Revenues and Transportation Aids which are all subject to change. Expenditures The proposed 2021 general fund expenditure budget is in balance with the proposed revenue budget, resulting in a 3.08% increase over 2020. Due to rising costs and planned assessment revaluation, $141,000 was required for the assessment revaluation, IT network and programing, and Public Works contracted services and vehicle maintenance. 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 adjustment of 1% along with a maximum 1.5% merit pay increase based on the average within the survey results for non- represented employees. The ratified Police Union Agreement includes a 1.51% across the board increase and an additional 0.25% adjustment to the Detective and Specialist personnel. Personnel costs also include employee benefits, which fluctuate considerably from year to year. We are currently waiting from consultants to see if we can realize some significant savings in this area. Taxes Per the 2021 Budget Goals, the entire available net new growth is proposed to help fund increased expenditures within the general operating and debt service fund. In addition to the general fund levy September 8, 2020 3 increase of 3.068% noted above, the debt service levy includes a 2.283% or $50,000 adjustment in an effort to maintain and plan for affordable future debt levels, as well as prepare for rising principal and interest payments. Based upon Assessor provided data, the net impact will produce an estimated City tax rate of $4.56 per $1,000 of assessed value or an increase of $0.087 cents as compared to the prior year. A discussion with questions and answers for Director Mueller and the Mayor followed. It was noted that the following funding options were removed from the 2021 operating budget: New position of Computer Tech, a DPW vehicle, and the vacant Civil Tech Leader position will not be filled. In addition, there are other items that are currently not reflected in the budget document. The Mayor is reviewing and may make adjustments. Mayor Petfalski asked that the Council members review his Summary Comments for continued discussion at the next Committee of the Whole meeting. Discuss Polling Place Locations for the November Election. City Hall will be closed for all walk-in business on November 3 due to anticipated high turnout for the Election while maintaining social distancing guidelines. Director Mueller proposes to hold the November 3 Election at the Muskego Public Library for Districts 1 and 7 (the two largest Districts) with the remaining Districts to be held at City Hall. The polling locations used in the past are still not available due to COVID-19. It was agreed that City Hall would be closed for all walk-in business on Election Day. There were no objections to the polling place locations for the November 3, 2020 Election. Alderperson Engelhardt requested that the Library Board consider being closed to the public on Election Day due to traffic and parking concerns. COMMUNICATIONS AND MISCELLANEOUS BUSINESS None ADJOURNMENT Alderperson Wolfe made a motion to adjourn at 5:45 p.m. Alderperson Kubacki seconded; motion carried. Minutes recorded and transcribed by Christine Crisp.