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COMMITTEE OF THE WHOLE - MINUTES - 10/14/2004 COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved 11/11/2004 MINUTES OF MEETING HELD OCTOBER 14, 2004 Audio Available Mayor Slocomb called the meeting to order at 7:08 p.m. Committee members present were Ald. Buckmaster, Ald. Borgman, Ald. Melcher, Ald. Patterson, Ald. Salentine, Ald. Schroeder. Also present Finance Director Gunderson, Chief John Johnson, Guests Dom D’Acquisto, Jim Case, Ed Schaefer, Michael Kukowski. Absent Ald. Madden. All in attendance recited the Pledge of Allegiance. Mayor Slocomb noted the meeting was noticed in accordance with the Open Meeting Law. Ald. Salentine moved for approval of minutes of meetings held October 7, 2004. Ald. Buckmaster seconded. Upon a voice vote, the motion to approve the minutes of the October 7, 2004 meeting carried, 6- 0. Approval of Agenda Mayor Slocomb requested to change the sequence of items of Unfinished Business—first 2005 Operating Budget, second 2005 Special Revenue, and third 2005 Capital Budget reviews. There was no objection from the committee members. Unfinished Business Continued review on 2005 Operating Budget Finance Director Gunderson recapped the changes and summarized the information. Updated budget sheets were provided to the committee members. She shared that a big portion of the changes was associated with the insurance. There was an increase ($2,157) in the State-aid revenues, a reduction ($224) in the county radio cost, reductions ($10,300) with the Muskego Volunteer Fire Department, an addition ($5,000) for the police chief’s request for an adjustment on the radio tower, overestimated ($38,309) in transportation aids, transferred an additional ($39,282) from the cable. In working through the water utility budget, the city was able to reduce the hydrant rental ($34,406). A meeting was held with the insurance carrier and with their renewal quote, which was a 10% decrease in the rate; there is a reduction to the operating budget in the amount of $236,582. The final component was the computer replacement credit of $13,921. She summarized that at this time the recommended levy is $10,417,634. Mayor reviewed the insurance quote and gave a historical summary. The city has taken a proactive position by monitoring the claims, the incidences, the cost of cases, the prescriptions, etc. The Finance Director was assigned to keep in touch with the insurance company throughout the year on the issues and it has had an impact with the insurance company. Ald. Schroeder had a concern that if the city stays with the carrier, would the city, in the future, still be able to be a part of the coalition? Mayor Slocomb said the city would never be out of the coalition. Finance Director Gunderson reported that with the new numbers, the general levy has gone down and the tax rate is going down 1.3 percent and the debt service has gone up and administratively can’t change. Without a computer replacement credit, there is a tax rate increase of 5 cents or .8 percent tax rate less a 1 percent. With computer replacement, would be 4.2 cents increase at a .67 percent. In terms of dollars, tax levy dollars is increasing 3.28 percent with the computer replacement in place or $330,643, including debt. Total expenses are increasing $618,694 for a 4.3 percent increase. One budget amendment was done reflecting expenditure restraint. It was use of fund balance to increase contingency. From the amended budget, the expenses are increasing $16,241 or .11 percent and the published budget will reflect this. The net debt service, which is the operating, expenses without the debt because the debt is a substantial Committee of the Whole Page 2 Minutes of Meeting Held 10/14/04 portion of the increase. The debt service expenses for 2004 were $2,182,306 and in 2005, it will be $2,512,600. From the original budget, the operating expenses are increasing 2.36 percent or $288,400, the net debt service. Comparing it to the amended budget, it is minus $314,053 or a negative 2.45 percent. The levy for debt service increase is $215,631 of the $320,000. In regard to the Muskego Volunteer Fire Department’s request, they had provided more information on one- time expenses; ones in the 2005 budget that will not be ongoing. There were four items that are one-time and a couple that are increases to previous years. One-time expenses would be the painting of the interior of their station ($7,800), legal costs to do a reincorporation to allow them to qualify for additional grants ($2,500), an access control system in place which is a security control system on access into the building ($4,641) and a Knox key retention system for keys retained for the various businesses ($3,722), all totaling about $19,000. Two other items pointed out was the audit on their workman’s compensation premiums and responding to that audit increased their fees about $3,800 and this will be an ongoing cost and they also seen an actual cost in their utilities—gas and electricity. With these issues, there may not be enough in their 2004 budget to finish out the year. Ald. Buckmaster commented that the city is purchasing service from the two fire departments and he could not see why there should be a difference in their operating costs? Mayor Slocomb said one department could experience greater activity than the other which would increase their operating costs. He estimated that Tess Corners Fire Department realized about 120 calls where Muskego Fire Department had 160 calls. Ald. Schroeder asked for an explanation of the computer replacement credit? Mayor Slocomb stated that this was initiated when the State legislature passed a law taking computers out of the personal property tax used in manufacturing systems. In exchange to the municipality, the State pays a percentage of what the municipality would have received for personal property tax on this item if this legislation had not been enacted. Finance Director Gunderson added that the municipality has to prepare their budget first, calculate a tax rate, then apply the tax rate to the value of the replaced computers, generate a dollar and then plug the dollar amount in as revenue to reduce the levy accordingly. Ald. Patterson surmised that the $10,417,634 number gives a levy rate increase of about 3.28 percent. Finance Director concurred. Ald. Patterson asked what the dollar amount would have to be to get the levy rate down to under 3.00 or 2.95? Ald. Schroeder interjected if you reduce the funding sources by $150,000 which more or less means you will increase your levy by $150,000, where would we be? Finance Director said raising the levy by $150,000, the tax rate would go from a 4.2-cent increase to a 13.3-cent increase and take it to 2.12 percent on the rate. Ald. Schroeder referred to the September 16 meeting where increases were proposed and expense reduction and increased funding sources. Part of that was $50,000 use of fund balances from general fund and $100,000 use of fund balances from the debt service fund. His thought was not to use those two fund balances as the health insurance now outweighs those fund balances, may want to take those two fund balances out. The city should still be under a whole percentage point under where the city wanted to be. Ald. Salentine asked the purpose of the fund balances? Mayor Slocomb responded as a cushion, to be able to keep the rate as even as possible as there are some items that do spike, especially for debt service which right now is accelerating. Ald. Salentine then commented shouldn’t they be saved for when there are spikes? Ald. Schroeder said with the insurance issue, it brought it down to very reasonable and he thought to save the $150,000 for his prediction of tough years ahead. Chief Johnson addressed the committee on the continuing need of the liaison officers in the school system. Committee members were presented with a document containing the job description of the position, total costs, reasoning and necessity associated with the position, reasoning for an officer at each of the middle schools, and the impact each of these positions has on the police department’s daily operations. Ald. Schroeder in light that the officer spends five hours of his time doing school activities and Chief Johnson Committee of the Whole Page 3 Minutes of Meeting Held 10/14/04 said the officer actually does an eight-hour day for the school, his thought was to do a 50/50 split with the school district. The city may want to look at what other districts do. Ald. Salentine stated that during the summer, the city uses these officers on water patrol. Chief Johnson said that would be the city’s 57%. Ald. Schroeder, noting that the school like the officers for security, indicated perhaps hiring of a security guard during the times the officer would not be there would meet that need. Ald. Buckmaster queried is it safe to say without these liaison officers, the impact of another patrol officer on the street in lieu of these would have a net effect of nothing? Chief Johnson said that when the program started, for ¾ of the year, the school consumed one officer; however, if you went back before that time, you’d be sending patrol officers to the school. Ald. Patterson referred to the chief’s request for more officers on the street and asked how do they get more officers on the street now to help with that need? He thought that’s where this whole discussion regarding the liaison officers started. Considering the critical need of the person on the street versus the person in the school, do we need to put two or three people on the street to keep the city in the comfort level where we’ve been or can we slowly add people in to keep the city up? Chief Johnson referred to the formula submitted earlier to determine the officers needed on the street. He further mentioned that the city is increasing the number of residents with each subdivision that is developed and this is forcing the need for more officers on the street. In regard to the Community Resource Officer position, Chief Johnson stated someone witnesses every crime or violation. There is a need to get the community involved in how to fight crime. The goal is to get people telling the police what is going on in their neighborhoods, a block at a time and that will reduce crime. The city needs someone outside in the community to organize it, to police it, to market it and to sell the program. It needs to be the right person. He said he would seek such a person first within the department and if the right person cannot be found internally, then he would go outside to seek the proper person so the job can be done properly. Ald. Schroeder questioned if this program could be done be a group of officers/staff? Chief Johnson replied this would mean pulling someone off the street from other duties and he did not think the dedication would be the same as having one person committed to the program. On his capital requests, Chief Johnson advised the committee members that the president of the college (Waukesha County Technical College) is coming out to look at the police range. They are looking at Briggs and Stratton to buy some property and put a campus there. In regard to the generator, Ald. Salentine asked how many had a problem with the generator? No response. Chief Johnson had received another estimate in the amount of $25,000 and he guesstimated that the mechanical and electrical costs would be $10,000, plus $1,000 for the gas pipe so it could be around $35,000. The aldermen again discussed the pros and cons of purchasing the generator for the police department building. Chief Johnson made his case once again for the need to have the generator citing no ventilation in the building, no air-conditioning and heat, and the danger to the equipment when there is a power outage. Mayor Slocomb said they had received some additional information from the MVFC (Muskego Fire Department) with respect to their issues. Ald. Buckmaster stated the need to have information to justify the operating and capital requests and he was fine with Mayor Slocomb’s continuing work on getting more information. Finance Director Gunderson said the city will be publishing the operating, the special revenue and presented the capital budget. She stated the committee needed to agree to send these to the public hearing and have it published; however, the capital budget is not published in detail. Mayor Slocomb said these budgets are all subject to adjustments until the Common Council adopts. The committee recessed from 8:51 p.m.-9:08 p.m. Committee of the Whole Page 4 Minutes of Meeting Held 10/14/04 Committee addressed the request for the additional building inspector. It is in the budget for a July 1 start at a budget amount in 2005 for $35,000. Mayor Slocomb said the issue in building inspection is doing all the current inspections, using current staff and the contract people. It is so compressed that there is no room to do anything else. It’s also taking up a fair amount of time from the engineering department that consists of the director himself putting in about 10 hours a week, the project engineer putting in 2-4 hours a week and the tech putting in 3-5 hours a week. He said the city needs to get the director off from doing inspections, and he can only off load to the building inspection supervisor and the building inspection superintendent and they can off load to someone else. The last year the city contracted through September, 712 hours and on an annual basis, that is 950 hours of sub-contracting inspections. The amount of time that is being put in by engineering staff is 624 hours versus the 780 hours that cannot be offloaded. The work year is 2,080 hours, of which 1,900 is actual work hours taking into consideration holidays, 24 hours sick time and 80 hours vacation time. The city needs 1,574 hours right now that the city should be putting there. Ald. Buckmaster argued that the position is supported by the fees that are charged for permits. Ald. Schroeder said for staffing another building inspector, you had to take into account another vehicle, office space, desk, telephone, lights. Mayor Slocomb said the revenues are in excess to the direct expenses paid. The city has not looked at all the indirect expenses, but it does have to have a very reasonable relationship to the benefit. If it does not, then the charge is too much. The city has not look at all the indirect costs for the position. Ald. Schroeder recommended that the Finance Committee review the fees again to see if they will stand up statutorily and if they are reasonable. Committee members discussed the cost of contracted services and staffing another position. Mayor Slocomb indicated that there doesn’t appear to be anyone else outside interested in doing inspections on a contract basis. He indicated that the city could not get more hours out of the current contracted personnel. Ald. Schroeder said between January and July, he would like to see an ad go into the paper for subcontracting inspection help and have interviews and see if there are people qualified and further so there is fairness in the process to have an alderman involved so a good faith effort is realized. This should be done before the process starts to hire a person. Ald. Buckmaster asked if Public Works Committee would be okay to oversee the process? Ald. Schroeder indicated it would be fine. If there is qualified people to subcontract, it would probably clear out the hours at a lower cost. Ald. Salentine surmised that the city would leave the $35,000 in the budget in case they needed it. In the event the city does hire, Ald. Schroeder questioned if the indirect costs were in the operating budget? Mayor Slocomb stated the employee would use one of the vehicles already available and share a work station. Ald. Buckmaster moved, Ald. Salentine seconded to send the operating budget to public hearing. On sending the operating budget to the public hearing, Ald. Schroeder questioned if the committee wanted to have the 2.7 percent increase or not take from debt service and general fund and have a 2.1 percent increase? Ald. Buckmaster commented that wasn’t a bad idea, take $100,000 from debt service and $50,000 from general fund. Ald. Melcher stated he would like to see what the total levy would be before voting on anything. Mayor Slocomb said with the $50,000 restored to the general fund and $100,000 restored to debt service fund, the rate would be 2.12 percent. Ald. Buckmaster asked what it would be not restoring the $50,000 to the general fund? Finance Director Gunderson replied, 1.63 percent. Ald. Buckmaster asked if they took $35,000 out of the general fund, what would it be? Finance Director Gunderson said 1.97. Ald. Schroeder asked what would be the total levy at 2 percent? Finance Director Gunderson stated it would be 4.62. Ald. Buckmaster amended the motion to include to drop $100,000 out of debt service and drop $35,000 out of general fund. Ald. Salentine seconded the amendment. Upon a voice vote, the amended motion carried 5-1, with Ald. Patterson voting nay. Continued review of 2005 Capital Budget Committee of the Whole Page 5 Minutes of Meeting Held 10/14/04 Finance Director Gunderson reviewed the changes reflected in the 2005 capital budget. Committee had questioned previously the sign for Tess Corners Fire Station #2 and she shared what her research revealed on the signs requested at the time of building the new station. It was originally $15,000 for two signs, and $7,087 for one sign, but a final quote now was for $4,700. Committee members again discussed the need for an illuminated sign and what the Plan Commission is allowing at this time for signs. Ald. Melcher moved for the non-illuminated sign for $5,000 for Tess Corners Fire Station #2. Ald. Borgman seconded. Upon a voice vote, the motion carried. (Later in the meeting, the Committee of the Whole decided it would be $5,000 for the sign and to comply with the building, site and operation plan for the building.) Continuing, Finance Director Gunderson said she readded the item for the firing range utilities which was funded in the capital plan a number of years ago and the funds are still there and requires no financing in 2005. She lowered the Tess Corners lights from the $400,000 to $320,000. She moved the $120,000 item for the Muskego Police Department hardware out of 2005 to 2006 and based on the chief’s request last time, there was $100,000 more for the UPS. Also, removed the $20,925 for the mobile data computing for the police department and, too, the $15,000 for the historical society paths. This brings the total to $814,500. Ald. Schroeder asked if $10,000 was a respectable number for the replacement of the barn roof for the historical society. Mayor Slocomb said they have not received a bid that low. Ald. Schroeder asked if they wanted to adjust it? Ald. Salentine said they would need to adjust it. Mayor Slocomb recommended $11,000. Ald. Slocomb moved to adjust the amount for the replacement of the barn roof to $12,000. Ald. Salentine seconded. Committee members recognized that the bids and the final amount would go before the Finance Committee. Upon a voice vote, the motion carried 5-1, with Ald. Melcher voting no. Ald. Schroeder asked about the phone system? Mayor Slocomb stated they didn’t know yet. If they can get what the city wants, for the price the city wants, it’s in the city’s best interest not to pass it up. Ald. Schroeder surmised that it would have to go through Finance Committee for a final decision. In reviewing the historical society’s requests, Ald Patterson moved to remove the ornamental lighting for $10,000 from 2006. Ald. Schroeder seconded. Ald. Patterson said they traditionally have been coming for large dollar amount items. He would like to see them raise the money. On an ongoing basis, the city has never supported them to this extent. Ald. Borgman commented that in view of the Parks and Recreation Department using one of the facilities for programming, the lighting might be needed. Ald. Patterson said he would rather have such a request for lighting for the safety of the people come from that department. Finance Director Gunderson interjected that the city will be finalizing the capital budget plan after the first of the year. Further the members had agreed that there would be no other commitments to the capital plan until they met with the members of the Muskego Historical Society. Ald. Patterson said if they were not approving the 2006 budget now, he would remove the motion from the floor. Mayor Slocomb said they were just doing 2005. Ald. Patterson removed the motion from the floor. Ald. Schroeder agreed. Assessor’s request for data update for $150,000, split out through a three-year time period was discussed. Ald. Schroeder moved that if the data update can be done in two years by the assessor’s staff and the outside contractor, then move it to 2006 ($75,000) and 2007 ($75,000); if it can’t, then leave it at 2005 ($50,000), 2006 ($50,000) and 2007 ($50,000). Ald. Buckmaster seconded. Upon a voice vote, the motion carried 6-0. Committee of the Whole Page 6 Minutes of Meeting Held 10/14/04 Planning and Building’s need for a shared copier was explained by Ald. Schroeder. Ald. Patterson asked if they had looked at the contracts and costs of running the current copier? Ald. Schroeder said the information wasn’t available at the first meeting. They did upgrade because they needed to do color issues and Kinko’s cost are up. He said the specs on the new machine would be available at the Finance Committee level. Committee discussed again the generator request for the police department building. Mayor Slocomb surmised that the money would be allocated, but the type of generator yet to be determined. Finance Director Gunderson shared her conversation with Mayor Slocomb relative to what type of vehicles he would support for the fire departments and in what years. This information was supplied to both fire departments. It was reviewed and between themselves was okay with the reallocation of the items. They agreed to flip-flop vehicles between two years. The vehicle for Tess Corners was in 2006 and for Muskego was 2007 and they added the caveat that if the Beacon Square development should take place, the pumper that is in TCFD for $475,000 in 2007 may need to be moved. Ald. Buckmaster asked if there was the possibility, it would be covered under TIF? Finance Director Gunderson said it would not be an eligible TIF expenditure. Ald. Buckmaster would like to see possibly impact fees for structures to alleviate the fire departments’ need for general debt funding. This to be discussed at a future Committee of the Whole meeting. On the TCFD’s request for 9-1-1 dispatch center upgrade, Ald. Schroeder moved to move the item to 2006. Ald. Buckmaster seconded. Ald. Schroeder’s concern was that if the city purchases the item, then the city purchases a 9-1-1 system that’s not compatible or it has it in it. He thought that the system they are using right now for 90% of the time is working. He talked with Mayor Slocomb that if it breaks down, there are other options they can use. Ald. Patterson asked if one option was the way they used to do it, using the book? Ald. Schroeder commented it was adding that there are other things that tie together with the system and it needs to be done at the same time. Ald. Patterson asked if MVD used the same system? MVFC does not. Ald.Schroeder thought it would also be used by MVFC. Mr. D’Acquisto from MVFC shared that one of the TCFC printers is in their station #1 which is TCFC’s station #3. TCFC’s need for the equipment is more acute due to the volume of rescue calls. Ald. Schroeder said that if they need to, they could use the book system. Mayor Slocomb said they are using the book system right now for fires, but the book system doesn’t work that well for rescues. He thought they could get by until 2006. Finance Director Gunderson informed the committee that with the CAD system, they are also picking up the connection with the parks garage. Then, to add a personal computer to MVFC #2, it would be approximately $8,000-$9,000. Upon a voice vote, the motion carried 6-0. Ald. Schroeder questioned what they pulled out of the furnishings for the TCFC station #2, what as the dollar amount when they did the financing? Finance Director Gunderson stated they pulled out the building costs and put them in future capital budgets, $103,136. Items, totaling about $8,500, were tail pipe exhaust system which was grant funded, suppressors, laundry equipment, projection screens, video equipment, and kitchen equipment. These were funded by another source. Originally, a letter had been sent to the fire company regarding the funding of items whether they would be capital or operating. Ald. Patterson asked what was included in the RIT equipment? Finance Director Gunderson said this was the two small generators, an infrared camera, ropes, harnesses, bags, etc. The biggest item was the infrared camera. MVFC provided more information relative to their request for a utility vehicle. Ald. Schroeder moved to approve at the lowest amount. Ald. Salentine seconded. Ald. Patterson had done some research last Committee of the Whole Page 7 Minutes of Meeting Held 10/14/04 year and found a basic utility vehicle for $150,000 and this year, he talked to a current chief and one chief retired from a volunteer company, and they indicated you could get a vehicle for $140,000 but if you deck it out, you could pay $200,000. He had discussed this with Mr. D’Acquisto and they could not agree. Ald. Patterson thought the cost they requested was more than they needed. Ald. Salentine was in favor of the truck. Ald. Borgman thought they had not totally understood what the committee was asking for last year and came back with something totally different than what the committee expected. Ald. Melcher would like to review the new information before making a decision. Committee members recessed from 11:00 p.m.- 11:06 p.m. to review the additional information provided by the fire company. Ald. Melcher stated they need the equipment, but it was an expensive price tag. He felt the quality of the equipment was important. He did asked where most of the equipment items were carried at the moment? Mr. D’Acquisto said they were stored at the firehouse or in the other fire company vehicles. Ald. Patterson said he had great reservations on the dollar amount. He recommends putting the money in contingency and see if the MVFC can get it at a lower price. Mayor Slocomb stated that since it is going to be a borrowed item, does he want to borrow the money? Ald. Patterson questioned if the whole amount could be borrowed and then some of it put in contingency? Finance Director Gunderson said the city could not do it that way under general obligation borrowing. Upon a roll call vote, the motion carried 5-1 with Ald. Patterson voting no. Mayor Slocomb said that under the Public Works requests, the road program, vehicle replacement, urban and rural drainage, would be funded by general tax dollars. He stated that there was a definite need for the loader. This year they rented one. The decorated tree lighting in Tess Corners area had been discussed at earlier meeting. Mayor Slocomb reviewed briefly the items for the Storm Water Management Fund for 2005. Committee members had no objection to the amounts. Finance Director Gunderson asked if there was anything else that needs to be addressed for the Industrial Park? Ald. Schroeder had contacted the Chamber of Commerce and basically, their priority is the driveway. They agreed to make the driveway a priority and then they will talk about work on the other issues throughout the next year. They would decide if they can be done and how they can be done. Knowing that there is a fund, about $80,000, these can be used if there are real safety issues. The Chamber of Commerce wanted to move forward on all the issues, but Ald. Schroeder advised them they had to move slowly or they may lose support. Continued 2005 Special Revenue Finance Director Gunderson distributed information on the 5-Year Park Dedication Fund projections for the committee’s information and an update on the funds as reviewed last week. Two funds would be presented differently at the public hearing as follows: The Sewer Utility Special Debt Service Fund which is also referred to as the RCA. The fund is made up of non-TIF and TIF-related RCAs. The non-TIF RCAs were moved out into the sewer utility with the understanding from the CPA that the city would continue to do the accounting in the same fashion. In discussion with them again, it was determined that the city should budget in that fashion where the non-TIF RCAs are in the sewer utility and not in this fund. She has changed the budgeting and she informed the CPA that the city was more comfortable in changing the accounting as it is easier to work off the ledger system in establishing the budgets. In the 2003, there is a transfer of subsidy for $2,984,670 which is the non-TIF that actually got transferred to sewer utility in 2005. All the money coming in and going out for non- TIF-related RCAs will be reflected in that operating budget and no longer in special revenue. Committee of the Whole Page 8 Minutes of Meeting Held 10/14/04 The second fund was the Cable Fund. Expenditures from this fund will be allocated towards a percentage of the Parks and Recreation Director and Secretary’s time spent on cable-related issues. Continuing, she advised that all the insurance-related changes that were put through the general fund are stated a little big higher. Because of the lateness of getting the new information, there wasn’t time to process new reports. Ald. Salentine moved to take the Special Revenue Budget to public hearing. Ald. Buckmaster seconded. Upon a voice vote, the motion carried 6-0. New Business Review request to fill Community Resources Officer This request was reviewed under the operating budget review. There was no objection to allow the chief to go ahead and fill the position. Communications and Miscellaneous Business as Authorized by Law Discussion on the TCFC sign occurred. It was the members’ understanding that it would be an amount of $5,000 to get any type of sign in accordance with the BSO. The next meeting is scheduled for Thursday, November 11, 2004. Adjournment Ald. Salentine moved to adjourn at 11:36 p.m. Seconded by Ald. Melcher. Motion carried 6-0. Stella Dunahee, CPS Recording Secretary Committee of the Whole Page 9 Minutes of Meeting Held 10/14/04