COWM20090910
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO Approved 9/24/09
MINUTES OF MEETING HELD SEPTEMBER 10, 2009
Mayor Johnson called the meeting to order at 6:15 p.m. Present were Ald. Fiedler,
Schaumberg (arrived at 6:30 p.m.), Schneider, Werner, Borgman, Harenda and Snead,
Finance Director Mueller, Deputy Clerk Blenski and Public Works Secretary Zaremba.
Those present recited the Pledge of Allegiance. The Deputy Clerk stated that the
meeting was noticed in accordance with the open meeting law.
There were no issues with the agenda.
APPROVAL OF MINUTES
Ald. Snead moved for approval of the August 11, 13 and 20, 2009 minutes. Ald.
Schneider seconded; motion carried.
NEW BUSINESS
Presentation and Review of Proposed 2010 Operating Budget
Mayor Johnson acknowledged the work done by Sharon Mueller to prepare the
proposed 2010 budget. He also recognized the efforts of the Department Heads for
exercising restraint regarding their budget requests. In addition, the Mayor noted that
the entire staff has worked with less this year, and next year will not be any better.
The Mayor outlined his goals for the 2010 budget:
1. Maintain City services at the current level.
2. Limit the use of one time funding sources.
3. Continue to create efficiencies within the City.
The following are some of the proposals to achieve those goals:
Reducing the use of consultants.
Consolidating departments.
Combining positions.
Outsourcing when possible.
Establishing a Wellness Program.
Focusing on ways to save energy.
Reducing the amount of paper.
The Mayor stated that the Finance Director would now present a brief overview of the
2010 operating budget. Ms. Mueller began with a review of the General Fund
Revenues, which are broken down into nine categories. “Taxes” and
“Intergovernmental Revenues” are the largest funding source for the entire operating
budget. Preparation of the 2010 budget was more challenging as a result of the loss in
State Shared Revenue in the amount of $93,000, the reduction in building related
permits in the amount of $84,000, and an estimated shortfall in interest earnings in the
amount of $125,000. To help offset the revenue reduction of over $300,000, the Mayor
proposes a levy increase of approximately $307,000 or 3.31%. In order to maintain a
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September 10, 2009
levy within the limits, a zero levy increase has been proposed in the Debt Service Fund.
The combined overall net levy increase is 2.67%, or an estimated City tax rate of $4.41
per $1,000 of assessed value.
Ms. Mueller then focused on the Expenditures. She stated that the budget process
began with a deficit of $480,000. In order to balance the budget, a reduction of
approximately $405,000 of personnel related expenditures has been proposed. Of this
total, $305,000 reflects position eliminations or reductions that equate to 5.73 full-time
employees. In addition, $80,000 of nonpersonnel costs has been eliminated. Ms.
Mueller stated that the Mayor would discuss the significant changes in detail.
Mayor Johnson reviewed the Expenditure budget in more specific detail including the
proposed reductions.
General Government - Reduction of $60,412
Elimination of Mayor’s Executive Assistant position. The clerical/receptionist
functions will be shared by the existing Assessment Technician and Building Clerk
positions. The human resource functions will be performed by the Finance
Department.
Reduction of the Assessment Technician work hours in the Assessor’s Department
from 40 to 20/week.
Elimination of the Secretary in the Clerk-Treasurer’s Department. The Building Clerk
position will be assigned to the Clerk-Treasurer’s Department 30 hours/week.
Elimination of the Part-Time Maintenance position.
Public Safety - Reduction of $139,820
Delay hiring of a replacement Police Officer until July 1, 2010.
Elimination of the Building Clerk position from the Community Development
Department budget.
Reduction of the Deputy Court Clerk/Police Clerk work hours from 40 to 20/week.
(Police Clerk functions will be reduced.)
Public Works - Reduction of $89,417
Elimination of the Urban Drainage account. Expenditures will be taken from the
Stormwater Management account.
Funding 50% of the replacement patrol truck from the Contingency Fund, if unused
by mid 2010.
Elimination of the Public Works/Utilities Secretary position. Those work functions
will be transferred to the existing Utility Account Clerk position. (Savings will also be
recognized in the Refuse/Recycling and Utility Funds.)
The Mayor noted that the DPW Director has proposed that the Sewer Utility pay for part
of the replacement patrol truck (approx. 10% or $14,000) to fund the DPW portion of the
secretarial position.
Library - Reduction of $84,456
Elimination of the Assistant Library Director position.
The Mayor noted that Library Director Genzel stated there is an existing library
employee who will be receiving a Bachelor’s Degree in Business Administration. That
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September 10, 2009
individual may be able to perform some of the administrative duties that the assistant
director would have done. The Mayor stated he supports pursuing this option.
Community Development - Reduction of $13,316
Elimination of the Intern position.
The Mayor noted that the Intern inputs the necessary data into the City’s GIS. He
stated that IS/GIS Coordinator Wisniewski has expressed concern that eliminating the
position will cause a delay in the data that is input into the City’s GIS. Ald. Snead asked
if the duties of the Coordinator and Computer Specialist could be reorganized to cover
the work that was done by the Intern.
Other Miscellaneous Financing/Expenditure Items - Reduction of $94,579
Savings of $32,500 by not providing merit increases to nonrepresented employees.
Mayor Johnson did note that by not providing the merit increases, those employees will
not move through their respective salary ranges.
Reduction of $15,000 for City Attorney. The attorney will not be required to attend
all meetings and will perform limited agenda review.
The Mayor noted that beginning in 2010, the expenditure for the City Attorney will be
allocated to the departments that utilize the services. Those departments will be held
accountable. Ald. Fiedler suggested an alternative method to paying the attorney by the
hour be explored.
Inclusion of $15,000 for a Wellness Program in 2010.
Mayor Johnson stated other employers have benefited from this type of program. He
believes it is a good investment; it will take time to reap the benefits.
Reduction in COLA for all employees from 2.5% in 2009 to an average 1.5% in
2010.
Ald. Borgman complimented the Mayor for his efforts regarding the proposed budget.
The Mayor acknowledged that the last few budgets have been very difficult.
Finance Director Mueller then reviewed the City’s debt service obligations (Debt Service
Funds Summary - Section 8). She noted that the fund consists of General Debt, which
is supported by tax levy dollars and CDA Lease Revenue, which is funded by TIF
District 9. No new debt is proposed for 2010. In 2011, $10 million or more may be
borrowed for the road reconstruction projects. The projected ending fund balance at
December 31, 2010 will be $1,709,831.
Ms. Mueller next reviewed the Special Revenue Funds Summary - Section 9. The
special revenue funds are used to account for the proceeds of specific revenue sources
and are legally restricted for specific purposes. The Finance Director stated she wanted
to focus on three of the funds: Refuse & Recycling, Landfill and Rescue.
Refuse & Recycling - A possible rate increase ($14/yr.) may be proposed for
2011 as a result of the increase in tipping fees. The Mayor stated in 2010
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September 10, 2009
available funds would be used to offset the expenditures of the Refuse/Recycling
Fund.
Landfill - Revenue is on a downward trend. She projects a decrease of 20% in
2010. Revenue from this source is used to financially support four or five other
funds.
Rescue - This fund is projected to have a significant decrease. Ms. Mueller is
working with the billing company to determine if a rate increase is needed. The
Mayor noted that the City incurs the cost of the rescue call if the individual is not
transported to a medical facility.
Ald. Werner asked if employee furloughs were explored? The Mayor responded yes,
but he does not support their use. His first loyalty is to the citizens. The proposed 2010
budget will maintain the City’s existing services. Some municipalities are able to utilize
furloughs because they have more employees than they need. Many of the City’s
departments are already operating with minimal staff. Ald. Werner stated he would like
to see data regarding furloughs so he can review that as an option. Mayor Johnson
stated he strongly opposes furloughs because services to the community will be cut.
He and the Finance Director did explore the option; furloughs could not be used with
Police personnel. Ms. Mueller stated that when the option was examined, the number
of days each employee would have to be off was significant. The Mayor also noted that
the option would have to be negotiated with the bargaining units. Ald. Harenda stated
that the work remains and still has to get done. Ald. Werner would like to review the
furlough option to potentially avoid some of the proposed layoffs.
The Mayor noted that the next meeting was scheduled for Thursday, September 24.
ADJOURNMENT
Ald. Snead moved to adjourn at 7:52 p.m. Seconded by Ald. Fiedler, motion carried.
Jill Blenski, CMC
Deputy Clerk