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COMMITTEE OF THE WHOLE -Minutes 092821 CITY OF MUSKEGO Approved COMMITTEE OF THE WHOLE MINUTES September 28, 2021 5:30 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 5:32 pm. ROLL CALL Present: Alderpersons Hammel, Terrence, Kapusta, Engelhardt, Kubacki, and Madden. Also present: City Attorney Warchol, Public Works and Development Director Kroeger, Lead Planner Trzebiatowski, Finance & Administration Director Mueller, Assistant Finance & Administration Director Mustapich, Recreation Director Dunn, Library Director Larson, Police Chief Westphal, and Assistant Deputy Clerk Roller. Absent: Alderperson Wolfe. APPROVAL OF AGENDA Alderperson Kubacki moved to approve. Alderperson Terrence seconded; motion carried. APPROVAL OF MINUTES Alderperson Madden moved to approve September 14, 2021 Meeting Minutes. Alderperson Engelhardt seconded; motion carried. STATEMENT OF PUBLIC NOTICE The Assistant Deputy Clerk stated the meeting was noticed in accordance with the open meeting law. NEW BUSINESS Review Agreement with Tyler Technologies, Inc. for Assessment Services Marty Kuehn and Nick DePalma, Tyler Technologies were present. Mr. Kuehn spoke on behalf of Assessor Mark Link. He explained the proposed increase in service costs over the next 4 years. The increase is $1,500 per year; 2022 - $76,000, 2023 - $77,500, 2024 - $79,000, and 2025 - $80,500. Additionally, the cycle for the next revaluation will be 4 years and that will add a one-time cost of $62,000. A proposal to update the digital imaging over the next 3 years would cost $19,000. Alderperson Madden moved to recommend approval of the Agreement with Tyler Technologies, Inc. for Assessor Services. Alderperson Kubacki seconded; motion carried. Review Agreements with Tess Corners Volunteer Fire Department for Fire Protection and Ambulance Services Tess Corners Fire Chief Marty Rukavina, and Tess Corners Fire Department Board Members, Jeff Verburgt, Chairman of the Board and Dave Van Zeeland, Treasurer were present. Mr. Van Zeeland provided a brief summary explaining the increase of $100,000 to $598,000. The last couple of years the Fire Department has been operating in the red and pulling funds from their reserves. The main reason for the increase in expenses is Committee of the Whole 2 | P a g e September 28, 2021 due to the department shifting from a volunteer department to paid on call. Calls have drastically increased over the last couple of years. Approximately 70% of those calls are Medicare / Medicaid. The charges for those calls are reduced because of Federal Government guidelines not allowing the fire department to collect the full amount charged. Mayor's Proposed 2022 Budget Mayor Petfalski read his Summary Comments regarding the 2022 Proposed Budget. SUMMARY COMMENTS This year has proven to be an extremely challenging year with a number of factors affecting the 2022 city budget. The budget process started with over a $1,125,000 projected deficit, the largest in recent history. Through prioritizing the requested initiatives, we are presenting a balanced budget for the council’s consideration. As we continue to grow as a community, we need to monitor investments in police, fire and public works. This budget makes a priority in those services so we can maintain the image of being a safe community to live and raise a family. This 2022 city budget is built upon Council defined budget goals with desired outcomes in the best interest of Muskego taxpayers, and the 2022 Proposed Budget is consistent with that measure. 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 have a low mill rate of $3.80, which again is one of the lowest mill rates of any municipality in Waukesha County. Following are the 2022 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  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 and Staff Budget Process: This evening, the Committee of the Whole received the 2022 Proposed Budget for initial review. We will however, continue researching further budget adjustments with the goal of lowering the impact on the proposed tax levy. The goal is to have an approved budget on November 9th with a public hearing and budget adoption that evening. 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 2021 to the 2022: Revenues The proposed 2022 general fund revenue budget reflects a tax levy increase of $328,878 or 2.47% and is within the State levy limit. Increased revenue is derived from new growth. The additional funds will be utilized to offset expenditure increases in additional police officers, fire protection, technology personnel, HR personnel, employee pay scale adjustments and merit increases, as well as make up for significant lower non-tax revenues, such as investment income, which has decreased over $100,000. Also to be noted, the Statement of Assessment Value has not yet been determined due to the delayed Board of Review meeting to review assessment objections. The final value could have a slight impact to the estimated city tax rate. Committee of the Whole 3 | P a g e September 28, 2021 Expenditures The proposed 2022 general fund expenditure budget is in balance with the proposed revenue budget, resulting in a .94% increase over 2021. In support of the goal to recognize and respect the expertise of incumbent employees this budget reflects a recommended pay scale adjustment of 1.5% along with a maximum 1% merit pay 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. This year we were able to negotiate a 2.5% increase in our health insurance costs. As a reference, according to the US Bureau of Labor Statistics, The Consumer Price Index for all Urban Consumers rose 5.3% for the 12 months ending 8/31/21. Taxes Per the 2022 Budget Goals, the entire available net new growth is proposed to help fund increased expenditures within the general operating and debt service fund. Based upon Assessor provided data, the net impact will produce an estimated City tax rate of $3.80 per $1,000 of assessed value or a decrease of $0.75 cents as compared to the prior year. Chief Westphal made a few comments regarding the Police Department budget explaining his reasons for requesting 3 additional full-time personnel, 1 investigator and 2 patrol officers. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW None ADJOURNMENT Alderperson Engelhardt made a motion to adjourn at 6:08 pm. Alderperson Madden seconded, motion carried. Minutes taken and transcribed by Assistant Deputy Clerk Roller.