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COMMITTEE OF THE WHOLE - MINUTES - 10/9/2003 COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved MINUTES OF MEETING HELD OCTOBER 9, 2003 Mayor Slocomb called the meeting to order at 7:05 PM. Also present were Ald. Petfalski, Ald. Patterson, Ald. Buckmaster, Ald. Damaske, Ald. Salentine, Ald. Schroeder, and Ald. Madden, Finance Director Dawn Gunderson, and those per attached list. All in attendance recited the Pledge of Allegiance. Mayor Slocomb noted the meeting was noticed in accordance with the Open Meeting Law. The minutes of the September 30, 2003 Committee of the Whole Meeting were reviewed. Ald. Patterson moved to approve the minutes. Seconded by Ald. Damaske. Motion carried 7 – 0. Unfinished Business 1. Continue discussion of 2004 Capital Budget 2. Continue discussion of 2004 Operating Budget 3. Continue discussion of 2004 Special Revenue Mayor Slocomb opened up meeting for discussion on 2004 Capital Budget, 2004 Operating Budget, and 2004 Special Revenue. Finance Director Gunderson stated that there were no changes to the Capital Budget since Thursday, October 2, 2003. She review with Committee proceeding with the borrowing for the Five Year Capital Budget Plan as present on October 2, 2003 and the impact it would have on the City’s debt service and debt service levy going out into the future. Discussion took place on Fast ID for Police Department and ArcInf Licenses for GIS. FAST ID added back in Capital Budget because the Police Department was unable to get grant to cover expense. Money funded from Asset Forfeiture Account. Mayor Slocomb to find out if two ArcINFO licenses are still needed due to the change in staffing of the Plan Department. The licenses are funded from GIS fees; this does not affect landfill or borrowing. Finance Director Gunderson presented debt service schedules prepared by Ehlers & Associates. Proposed is all the debt service borrowing be split into three issues: 2004 Tess Corners Station Number 1 loan repayment for $590,000.00 and Tess Corners Station Number 2 construction loan payoff; second issue is 2006 notes which would pick up the 2005 remaining projects and all the 2006 projects that have been identified for borrowing; and the third issue is projects being done in 2007 for 2007 and 2008 projects. Presented next was chart showing existing 2004 debt schedule, required principal and interest payments, total debt service obligation payments, and each of the notes as it would structure the borrowing and incorporate each of the principal and interest payments on each debt. Also presented was a historical debt service fund schedule covering 1992 thru 2017 and schedule incorporating all three issues into the forecast thru 2017. 2004 equalized value is actual value as reported by the State. Going forward from 2005 a two percent increase in equalized value was factored in. Finance Director Gunderson stated she is looking for a recommendation to Common Council for the approval of the 2004 Operating Budget including Debt Schedule, 2004 Capital Budget that includes a Station Number 2 obligation of $590,000.00, and 2004 Special Revenue Budget. Committee reviewed amount for Tess Corners Station 2. Finance Director to research what is included in the $1,454,000.00 for Tess Corners Station 2, up from $1,398,000.00 in the 2003 – 2007, 5 Year Capital Plan. Discussion continued on receiving spreadsheet in time to allow for review and holding one more Committee of the Whole meeting before Public Hearing. Chief Ed Schaefer and Dominic D’Acquisto were present from the Muskego Volunteer Fire Company to present presentation on replacing truck 1285, the 1982 equipment truck. The Fire Company has just learned that the truck, even striped of some of its equipment, is overweight and there is no room in any of the other trucks to carry equipment. Next to the front line engine it is probably the most frequently used truck. D’Acquisto presented a visual of the truck. The Fire Company wants to replace as quickly as possible. It was brought to their attention that it is possible to obtain a truck on a lease basis. The leasing would be an operating rather than capital expense. Neither the Fire Company nor the City would be able to write off depreciation. D’Acquisto spoke about how the cost could be brought down $11,000.00 or $12,000.00 by including some of the equipment in succeeding years. To purchase a ten year old used but serviceable truck it would cost about $285,000.00. Cost of new truck is approximately $350,000.00. The manufacture of the new truck the Fire Company is requesting to purchase had agreed to provide at no cost about $80,000.00 to $85,000.00 of equipment. The Fire Company has looked at other alternatives. Committee of the Whole Page 2 Minutes of Meeting Held October 9, 2003 The gross weight of the existing truck is 11,000 pounds. The load capacity of the proposed vehicle is 31,000 pounds. The estimated gross weight is 46,000 pounds and considered a heavy-duty truck. Ald. Schroeder asked if there was any option of going to half of what is being proposed or a 25,000-pound gross weight vehicle. If the Fire Company were to purchase a 25,000-pound vehicle it would have a vehicle that does not meet it’s long term needs. The new truck would be built to accommodate future equipment. The proposed truck has a module for a 300-gallon pump that added $12,000.00 to the cost of the truck. The module typically sells for $50,000.00. Discussion took place on when the pump module would be used. Ald. Petfalski asked if there is anywhere in the Fire Company’s Operating Budget to reduce operating costs to offset future capital cost? Chief Schaefer has met with staff to reduce operating costs wherever they can. Ald. Schroeder stated his concern about the cooperation levels between the two fire departments. D’Acquisto talked about how the cooperation level between the two departments has improved significantly. There are volunteers on both departments that feel at some point in time they will become one department. Ald. Schroeder spoke about both departments working on a 5-year capital plan together. D’Acquisto stated both departments are operated as a business and are membership driven. The membership does not always accept what the board presents. Sometimes issues are driven by the membership. Ald. Petfalski felt no one was comfortable saying no to the proposed vehicle and no one was comfortable saying yes. He wished there were other options to explore. D’Acquisto explained that the specifications started at $465,000.00 and were bargained down to $354,000.00. Ald. Patterson stated he was sure the price is good for what the Fire Company is asking for. He does not think the City needs what they are asking for and is having a problem supporting the proposed vehicle. Ald. Salentine noted the Fire Company has gotten twenty years out of the existing truck and if the Fire Company purchases the cheaper vehicle the City will expect twenty years out of it also. She is not saying that the Fire Company shouldn’t look and deal or trade in for the best possible cost. Discussion continued on purchasing 20,000 to 25,000 pound truck vs. 46,000-pound truck. Ald. Schroeder would like to see, for comparison, the cost of a 20,000 to 25,000 gross vehicle weight pound truck without pumper. Grants and funding were discussed. D’Acquisto brought up taking money from the 2004 Capital Budget request for Opticons and using it for Firehouse Software and some of the infrastructure. Ald. Patterson asked about the Firehouse software installed at Tess Corners Fire House and working with them. D’Acquisto mentioned that both departments are required to maintain and submit records. Tess Corners has sized their hardware to meet their needs. Every time Muskego had to use the software a member of Muskego Fire Company would have to go to Tess Corners Fire House and ask to use there computers. Mayor Slocomb to contact Information Systems Director Joe Sommers for breakdown of $9,000.00. $3,200.00 is for software. Discussion continued on wireless Internet service and VPN access. When asked, D’Acquisto stated the monthly cost of the Fire Company’s Wireless Internet access is approximately $250.00 that includes VPN’ing the second building. Ald. Petfalski asked if it would be cheaper to buy two separate software packages and have Road Runner Internet access rather than VPN access. D’Acquisto will follow up on this. Mayor Slocomb to follow up with Information Systems Director Sommers on this and other options. D’Acquisto stated the Firehouse Software and infrastructure are a higher priority than the Opticons. Mayor Slocomb stated the big issue is the fire truck and the committee needs to give direction as to what they are looking for. The Committee is looking for a cost comparison with a 20,000 to 25,000 gross vehicle weight pound truck without pumper. D’Acquisto stated that NFPA makes specifications for fire trucks, they generally fall into different classes and so what is available will fit into one of their standards. General discussion continued on Capital Budget items. Tess Corners Fire Department has to be called to see if the 800 Mhz radios $80,000.00, can be split into two years. Discussion took place on pull behind litter alternatives. Also discussed was Road Programs and adding all the unanticipated additional transportation aid (approximately $136,000.00) back into road program. Mayor Slocomb stated you could move budget items or adjustments for the short term put because Muskego is a growing community and the needs continue to go, you can’t move budget items for the long term. The committee would be fooling themselves if they thought in the future the City could operate on less money. Ald. Petfalski thought the committee should look at restoring the Intern Position in the Planning Department. Ald. Schroeder agrees with restoring the position. Aldermen Buckmaster, Patterson, Damaske, Salentine, and Madden disagree. Ald. Petfalski noted the current intern is more a part time employee than Intern and works primarily with GIS. Associate Planner Muenkel, whose primary roll has been with GIS has been reassigned to a different roll, and therefore removed from doing GIS work. You are now looking at one person to handle GIS work that was done by three people. The one person can’t handle all the GIS work. An Intern or part time employee would help give the person relief with GIS duties. Ald. Buckmaster said he would look internally for support. A recess was taken at 8:30 PM. Committee of the Whole Page 3 Minutes of Meeting Held October 9, 2003 At 8:42 PM meeting reopened to continue discussion of Budgets. Tess Corners Fire Departments Station One and Two are the two 2004 items scheduled to be borrowed for. The Fire Truck if approved would be added to borrowing. Ald. Patterson felt the Fire Company should be able to find a used ambulance or another truck. The Fire Company could then have two additional trucks available. Ald. Patterson anticipates that they can get some sort of truck for less than $100,000.00. Discussion continued on purchasing used vehicles and the practicality and maintenance of them. Ald. Buckmaster is not willing to add anything to borrowing. Additional discussion took place on taking money from another requested budgeted item, for example: Muskego Channel. Landfill money is for items the City wouldn’t fund off of general tax base. Developing a Stormwater Utility was discussed. The City has a 12% commercial base of which a lot had been completed in the last five years and they had to provide for their stormwater as they expanded. Therefore, these businesses are exempt from taxation because they had to do their own stormwater. Stormwater would then be put onto residential base. Mayor Slocomb stated the only room to provide for the Fire Truck is to say yes through borrowing or no the City does not purchase a Fire Truck. Ald. Patterson felt the attitude of the Council and citizens is a different mind set than one year ago. Right now it is no tax increase. Ald. Buckmaster is interested in truck but not borrowing for it. Ald. Damaske, Ald. Petfalski, Ald. Salentine, Ald. Madden, and Ald. Schroeder expressed interest in fire truck by borrowing. Ald. Patterson stated no. Finance Director Gunderson handed out and reviewed updated summary of the Operating Budget. The tax rate is $6.28. Discussion took place on keeping a Planning Department Intern for 2004. Ald. Buckmaster and Ald. Salentine felt it should go to fund balance. Ald. Petfalski, Ald. Schroeder, and Ald. Patterson were in favor of adding a Plan Intern. Ald. Damaske and Ald. Madden were undecided. Ald. Madden later felt a Plan Intern should be added. Ald. Damaske stated later he would not be in favor of a Plan Intern for 2004. The Plan Intern would be paid $9.00 per hour with a not to exceed amount of $16,375.00 for the year. Ald. Buckmaster expressed his concern at hearing after the fact that the Plan Intern was specifically needed. The Plan Department will have to continue providing the essential serves; Statutory Requirements, Economic Development, and long term benefits of mechanization. Ald. Schroeder stated that tonight he was going to bring up funding a Plan Intern; this was even before he knew funds were available. Finance Director Gunderson reviewed Special Revenue. Water and Sewer Utility Budgets are in the process of being finalized. With the Budgets being finalized the amount was finally determined as to what was needed from the TIF Funds and RCA Funds to fund the capital projects at MMSD. Land Conservation and Stormwater Funds were also reviewed. Discussion continued on use of Landfill dollars and time span available. As of right now the Landfill dollars will be available for length of contract, 2010, after that the City does not know. The Committee was okay with the Special Revenue Funds, as presented. Ald. Petfalski moved to present Special Revenue Funds for Public Hearing with the possibility of one change in Landfill from Park Dedication. Ald. Salentine seconded. Ald. Petfalski withdrew his motion. Ald. Salentine withdrew her second. Finance Director Gunderson can proceed with changes to Landfill and motion will take place at next Committee of the Whole meeting on October 16, 2003. Committee felt Operating Budget was okay with addition of Intern to be presented for Public Hearing. The Committee is waiting for additional information from Muskego Volunteer Fire Company before finalizing Capital Budget for Public Hearing. Discussion continued on Historical Site and Old Town Hall, including letter about electric, gravel, and allocating City resources. With the employee cut in Public Works Department it will not be feasible to allocate their resources. Ald. Schroeder mentioned he forwarded an application last spring for the Historical Society to complete for a grant from the National Wisconsin Antique Dealers Association. Their profits throughout the year are given in grants to Historical Societies. Ald. Schroeder mentioned that the Historical Society has never turned in an application. The deadline for this years grant is October 31, 2003. New Business Communications and Miscellaneous Business as Authorized by Law Adjournment Being no further business to discuss, Ald. Petfalski moved to adjourn the meeting at 11:02 PM. Seconded by Ald. Madden. Motion carried 7 - 0. Respectfully submitted, Dawn R. Gunderson, CPFO Finance Director