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COMMITTEE OF THE WHOLE -Minutes 20061005 COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved MINUTES OF MEETING HELD OCTOBER 5, 2006 Mayor Charles H. Damaske called the meeting to order at 6:00 PM and led those present in the Pledge of Allegiance. ROLL CALL Present: Mayor Damaske, City Administrator Sheiffer, Ald. Borgman, Ald. Buckmaster, Ald Madden, Ald. Melcher, Ald. Schaefer, and Ald. Snead. Also present were those listed on the attached sheet. Ald. Salentine was excused. STATEMENT OF PUBLIC NOTICE Mayor Damaske stated that the meeting was noticed in accordance with the opening meeting law. APPROVAL OF AGENDA Ald. Madden moved for approval of the October 5, 2006 agenda. Ald. Melcher seconded. Motion to approve the agenda carried unanimously. REVIEW MINUTES OF PREVIOUS MEETING Ald. Borgman moved for approval of the September 14, 2006 minutes. Ald. Madden seconded. Motion to approve the minutes carried unanimously. UNFINISHED BUSINESS UNFINISHED BUSINESS - Discussion, update and possible action may be taken on any or all of the following: Complete work on proposed ordinance #1237 to Establish the Salary for Mayor for 2008-2011 Term Ald. Buckmaster asked for clarification on effective date. It was clarified that this would become effective in April of 2008. The proposed 2007 budget has the full amount budgeted. He felt that the part-time position would make it possible for the Mayor to meet with developers and the City Administrator would take care of the day-to-day operations. Ald. Melcher agreed that the Mayor would be involved with Economic Development. Ald. Buckmaster and Ald. Melcher felt the salary should be in the $16,000 range. It was agreed that this is the next step after receiving input, through the recent referendum, that the voters are in favor of a part-time Mayor. Ald. Madden felt it was necessary for the Mayor to be available. Ald. Borgman felt the committee should defer and requested a job description for the Mayor is provided to all members. NEW BUSINESS – Discuss The New Zoning Code Plan Director Jeff Muenkel presented the committee with a proposed schedule for future public hearings to be held at the Library. It was agreed to schedule a Wednesday or Committee of the Whole Page 2 October 5, 2006 possibly a Thursday evening in December at the Performing Arts Center of the Muskego High School. He also supplied the committee with a copy of the November newsletter article outlining what will be discussed at the public hearing. Jeff went over the zoning code binder pointing out amendments made by the Plan Commission. He noted most districts did not change. There are proposed zoning changes in the areas adopted by the Comprehensive Plan to bring them into compliance with the plan. He highlighted the downtown zoning district, the zoning for lake lots, and the gateway to the City on Racine Avenue. Jeff asked that any alderman who has questions or concerns, please notify him. There will be more information required from the developer for planned unit development. The Committee thanked Jeff and his staff for the wonderful job done on the revised zoning code. Fire Department Budgets & Fire Department Requests for 2007 Funding City Administrator Sheiffer noted that what shows up in the proposed 2007 operating budget is the same as the 2006 operating budget. It was also noted that information requested from the Tess Corners Volunteer Fire Department on rescue billing was provided in tonight’s packet. She noted that TCVFC budget will remain constant but they wanted to know how their vehicle request would be handled as that would affect a decision on possible debt service being added to this operating budget. She also reminded the committee that assurances were needed from the Muskego Volunteer Fire Company on their fire inspections. It needs to be rectified so that revenues are not lost. Jeff Verburgt, representing the Tess Corners Volunteer Fire Department, was present to answer questions on line item budgeting. He noted that the medical reports are beginning to be recorded electronically. Ald. Schaefer questioned the $100,000 difference in 2005 revenue figures and expenditures. Finance Supervisor Mueller pointed out the revenues and the timing difference but explained that it equals out in the end. Ald. Schaefer also questioned the revenues coming from the cellular tower on the property. Jeff Verburgt explained that he does not know the actual monies as the contract is being worked out with attorneys. City Administrator Sheiffer asked the committee if they would like to address the potential of debt service with capital expenditures with the Muskego Volunteer Fire Company. Jeff explained that for the past 10 years they have had a need for an aerial apparatus and have been putting it aside. With Tudor Oaks renovation and future building, we need to address this need. It usually takes 10 to 12 months to receive this equipment. If they were going to be denied this under capital budget, they would like to put a debt retirement into the operating budget. If the Council is going to approve this aerial apparatus under capital budget, that item will not be added to the operating budget. City Administrator Sheiffer brought to the committee’s attention the supplemental information provided by the Muskego Volunteer Fire Company. Their operational Committee of the Whole Page 3 October 5, 2006 request is higher than last year. They need additional assistance in the fire assistance area. All would be new to completing the fire inspections. That additional request is not as of yet in the operating budget. Ald. Madden questioned whether or not Tess Corners Volunteer Department is able to keep up with fire inspections and Jeff advised that four people are currently doing the inspections. The State would have to be negotiated with as currently inspections are done by the separate departments. Ald. Schaefer questioned if any grants have been applied for and Jeff advised that they are hoping to be able to apply for a grant through the vendors. Muskego Volunteer Fire Chief Schaefer advised that fire inspection issues are being addressed with the State, but there is a need for additional manpower to work with the Building/Engineering Department to resolve concerns with that department. Continued Study Session on proposed 2007 Budget Debt Service –City Administrator Sheiffer stated that the City’s budget does not include any new borrowing, but there is a bit of a bump in the debt service related to past payment schedules already established. She distributed a visual of the levies relating to existing debt service. She explained her rationale for the increase in building permit revenue. She stated she is very comfortable with the projections. The committee recessed for a break at 7:46 PM. Cathie Anderson transcribed the above minutes from recording. Following information provided, in writing, by City Administrator and Finance Supervisor: Administrator Sheiffer reviewed Section 8 of the Mayor’s Proposed 2007 Budget entitled Debt explaining there is no debt included in the proposed budget. The increase in debt service of $58,656 results from prior debt service obligations. Finance Department Supervisor Mueller handed out a new graphic that shows the debt service levy broken down between general fund, debt service and TID. Finance Department Supervisor Mueller reviewed Section 9 of the Mayor’s proposed 2007 Budget notebook entitled Special Revenue Funds. Administrator Sheiffer explained the Park Dedication Fund is the one affected by the recent change in law regarding impact fees and fees in lieu of dedication. Proposed 2007 Special Revenue Fund Budgets – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Park Dedication Funds – The major source of revenue had been from Subdivider’s Fees. As a conservative approach, the 2007 budget will no longer recognize these fees due to current legislation. Further discussion is expected to take place early next year that may result in a change of how we budget for those fees in Committee of the Whole Page 4 October 5, 2006 2008. The expenses are made up of various projects that will help improve the City’s Parks. Occasionally, the expenses may include acquisition costs to purchase land. The other revenue source comes from the Landfill Fund, which is equal to 10% of the landfill host fees received. At the end of 2007, we have projected $125,000 will be available for future projects. Special Assessment Fund – Reflects the final assessment payment on the Movie Plex property for the grading work handled by the City. The remaining fund balance of $4,093 will be transferred to the Capital Improvement Fund. Refuse/Recycling Fund – Where most of the revenue source is generated from fees charged to residents for this service. With the increase in number of customers, it is projected this fund will continue to operate with a positive fund balance while maintaining the present rate. The expenses are mainly made up of wages and benefits for leaf collecting, administrative functions and outside service costs. Since we are projecting no transfers out in 2006, $80K has been budgeted for 2007. This is a catch- up for prior year’s administrative and operating costs that had not been accounted for. Revolving Loan Fund – Originally set up with State funding of $320K, which is owed back to the State if this fund were every closed out. Last year, a loan was approved for $100K to Dr. Gruenstein (Animal Doctor, Inc.). The interest on this loan will make up the major source of revenue for this fund. EPI Standing Committee Fund – Set up to track revenue and expenses related to monitoring the landfill operations. We receive $10K annually from Onyx under terms of the contract. The expenditures reflect administrative and committee expenses. Priority Lakes Fund – Will be completely exhausted by the end of 2006 since State funded programs and assistance grants are no longer available. For 2007, wages and benefits of the Conservation Coordinator have been budgeted entirely out of the Conservation Fund. Cable Fund – Revenues recognized in this fund had been from franchise fees. For 2007, it has been recommended those fees be deposited directly to the General Fund. A transfer from the General Fund to cable will cover expenses, which are made up of a percent of recreational staff wages and benefits, audit costs and cable club operating expenses. Franchise fees may be non-existent in the future. Landfill Fund – The main source of funding is host fees received from Onyx. Projected for 2006 are approximately $1.342 million dollars, based on 536K tons of waste. For 2007, we have budgeted a 5% increase in tons disposed of, which equates to $1.482 million to be received. Expenditures have increased significantly to reflect attorney, engineering and landfill oversight fees related to contract negotiations. Other activity in this fund is the several transfers out to other funds. Two of the transfers are driven by contract obligations. Those are to the Parks Dedication Fund and Land Conservancy Fund, which is equal to 10% of the host fees received. Since the City is still in the process of establishing more reserves for the Well Protection Fund, $33K will be transferred to that fund. The Storm Water Fund is budgeted to receive $365,550 to cover future projects and debt service obligations. Last year, the committee recommended continuing funding the Compensated Absences Fund until enough reserves were set aside to cover a significant portion of that liability. $300K has been budgeted for 2007. The last transfer is to the Capital Equipment Fund for $275K. At the time this budget was prepared, the capital project requests were still being worked on. Currently there is enough set aside in the Capital Expenditure Fund to cover the 2007 requests. Committee of the Whole Page 5 October 5, 2006 Future Parkland Committee Fund – This fund has had very little activity, but will continue to cover the expenses of the Standing Committee; mainly being the consultant engineering fees (Briggs & Stratton). Well Testing Reserve Fund – This is used for funding the costs of testing private wells once the landfill closes. The main sources of revenue are the transfer in from the Landfill Fund of interest income. Land & Open Space Conservation Fund – 2006 revenue includes $3K for grant funding and a projected amount of $87,680 for conservation and trail fees. Due to current legislation, nothing has been budgeted for fees as a conservative approach. The wage and benefit expenditures have increased to reflect 100% of the Conservation Coordinator’s position, which is no longer funded out of the Priority Lakes Fund. The other source of funding is the transfer from landfill. Most of this amount is transferred out to the debt service fund for future debt obligations (related to the 2003 borrowing for the purchase of the Ewald/Engle property - $893,322). Storm Water – Several projects have been budgeted in this fund for an estimated total of $534,164. Our Building/Engineering Director expects the cost of the Lakewood Meadows Pond Dredging Project to be paid for by assessments to the surrounding property owners. Funding for the other projects will come from a transfer from the landfill fund, interest income and capital borrowing. This fund also includes a transfer out to debt service for its portion of future debt obligations (related to 2003 Borrowing of $893,500 for Storm Water Management projects). Rescue Fund – Historically, the City of Muskego billed customers for ambulance services provided by Tess Corners. National EMS Billing, Inc is now handling this process. Through their service, Medicare/Medicaid uncollectible amounts are now determined at the time of billing, which allows the amounts to be posted against revenue, rather than shown separate in an uncollectible account. The only other new activity in this fund is the $25K transfer to the general fund, which accounts for the cost of prior year’s administration of this fund. Capital Improvement Fund – Has funded the cost of computer replacements over the last few years. Also include in this fund are the transfers of tax increment positive distributions which are projected to be $454,445 for 2006. $200K is budgeted to be transferred to the general fund to help fund the increase in the road program expenditures. This will leave a reserve of approximately $450K of tax increment dollars. The remaining fund balance is designated for computer replacement costs. Grant Fund – This fund will always have a zero fund balance. The grant funding brought into this fund is also paid out as an expense. Most of these funds are coming from the Police Department. GIS Fund – Set up last year in response to the committee’s recommendation to set aside funds for computer related expenses that will improve GIS operations. The main funding source is from GIS land record fees. Recreation Ticket Sales Program – Operated under the Clerk-Treasurer’s Department and no longer administered by the Recreation Department. This fund is expected to increase by approximately $2,000 annually. CDA Fund – Was initially supported by transfers in from the general fund. Future funding may come from property sales or leasing. All wages and benefit expenditures have been removed from this fund and placed in the general fund. The remaining expenditures are mostly for Professional Service and Supplies. Now that TID #9 is experiencing a positive tax increment, those dollars are being transferred in from Committee of the Whole Page 6 October 5, 2006 that fund only to be transferred out to debt service for future CDA lease revenue debt obligations. Compensated Absences Fund – Revenue sources are from the landfill fund and interest earnings. An additional $1.1 million of transfers would be necessary to have enough in reserve to fund the City’s entire accrued liability. The expenditures recognized by this fund are payouts to terminated and retired employees. It was noted the Lakes Project Coordinator and Conservation Technician positions are both funded from the Land and Open Space Conservation Fund while two other positions that were being partially funded from this fund have been moved to the general fund. The goal would be to move all staffing costs out of this fund, as we are able to do so. Alderman Madden stated her concern regarding the compensated absence reserve. While recognizing the need for it, she felt it should be funded by other than landfill dollars. Proposed Tax Increment Fund #8 Finance Department Supervisor Mueller reviewed Section 10 of the Mayor’s Proposed Budget Notebook entitled TIF District 8. She reviewed a memo concerning the status of the one approved project currently underway (Forest Glen Subdivision – storm water management facility – pond 5 that should be completed in late 2006 or in 2007. Supplemental Memos Section 11 of the Mayor’s Proposed 2007 Budget Notebook, entitled Supplemental Memos, have all been reviewed as the topics came up in the last budget study session held on September 14, 2006. Alderman Buckmaster requested for the next meeting information on what would occur with the tax rate if part of the surplus from 2006 were used to reduce the tax rate even further than proposed. Following discussion, staff was directed to bring forward at the next meeting some options to setting aside the 2006 surplus for the future Janesville Road Project as proposed in the 2007 budget. Discussion occurred concerning the need to have an updated policy on the appropriate amount the City should have in undesignated fund balance. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW The Committee discussed the Committee of the Whole meeting scheduled for the balance of October. The meeting tentatively set for October 12 will not be needed and is therefore cancelled. The next budget study session will be the Committee of the Whole meeting set for October 26. ADJOURNMENT Committee of the Whole Page 7 October 5, 2006 Ald. Madden moved to adjourn at 9:28 PM. Seconded by Ald.Borgman, motion carried. Respectfully submitted, Cathie Anderson Transcribing Secretary