COWM20090924
COMMITTEE OF THE WHOLE – CITY OF MUSKEGO A pproved 10/13/2009
MINUTES OF MEETING HELD SEPTEMBER 24, 2009
Mayor Johnson called the meeting to order at 6:17 p.m. Present were Ald. Borgman,
Fiedler (excused at 8:10 p.m.), Harenda, Schaumberg, Schneider, Snead, Werner and
Finance Director Mueller. Those present recited the Pledge of Allegiance. The
Recording Secretary stated that the meeting was noticed in accordance with the open
meeting law.
Guests: 36 city employees
There were no issues with the agenda.
APPROVAL OF MINUTES
Ald. Snead moved for approval of the September 10, 2009 minutes. Ald.
Schneider seconded; motion carried.
NEW BUSINESS
Discussion of the 2010 General Fund and Capital Budget
Mayor Johnson welcomed the presence of the city employees. He reviewed briefly how
the municipal budgets were presented in the past based on the wants and needs of the
community and the community accepted the levy and the tax increases. Economic
times, State caps have changed how they deal with budgeting.
Summary of Updated Information and 2010 Proposed Budget Revisions
Public Policy Forum Meeting
Since the last meeting, Finance Director Mueller and Mayor Johnson attended a
session on furloughs and Finance Director Mueller also attended a meeting on future
municipal finances. Further, Mayor Johnson reviewed the Ehlers & Associates
Municipal Budgeting Seminar which advised what the municipalities should be looking
at and the options. He commented on the following:
Not a short-term budget trend, trend is at least 3-5 years out.
Growth needs to be looked at in terms of getting out of the situation; needs to be
beyond 3%.
In his opinion, the next Governor would be Republican and the caps would stay;
the municipality would have to stay within the 3%.
In 2012-2014, the State will have a two billion-four billion deficit which will cost
the city more money in 2012.
Need to focus on long-term solutions for the problem; not do the short-term fixes.
Be creative in ways to increase revenues.
Reduce expenditures.
Referendum to increase the levy or reduce services.
Continue to look for efficiencies.
Explore outsourcing.
Look at employee costs.
Committee of the Whole Page 2
September 24, 2009
Finance Director Mueller shared the following highlights from the public policy forum
meeting:
Future economic outlook is projected to be worse than the 80’s;
Anticipate government budget balancing issues to be ongoing for 3 years or
more;
Even if economy improves, increases in public service fees and interest earnings
will be offset by reductions in State-shared revenues and levy limits which will not
help future budgets;
In balancing budgets, their recommendations were:
Not using fund balance; this should be reserved for cash flow, emergencies and
maintaining debt ratio for bond rating purposes;
Not defer capital costs or maintenance costs;
Limit debt when possible;
Build reserves to help offset future expenditure increases in health insurance,
pensions, etc.;
Long-term planning, not short-term planning (furloughs);
Share staffing and merge resources (internal and external);
Aggressive health insurance management (wellness programs, employee
education, etc.)
Plan as if nothing will change for the better;
Other personnel-related expenditure reductions, i.e., pension and/or health
contribution increases, wage freezes, etc.;
Create new revenue streams, i.e. storm water utilities, road maintenance user
fees, provide services to other communities, etc.
Ald. Snead inquired if the health wellness program budgeted at $15,000 would
significantly decrease the insurance costs? Finance Director Mueller stated as it is a
long-term planning, one would not recognize any decrease in cost for 1-2 years. Mayor
Johnson added that over time, the program reduces the costs communities pay for
insurance. Ald. Snead asked how the wellness program would affect the cost to the
employee? Mayor Johnson stated that if they do not participate, their cost goes up
another percent and is not capped.
Furloughs
In response to the committee’s request to know what one furlough day would save,
Finance Director Mueller calculated that it would be $10,565 or $12,535 with benefits,
excluding the protective services staff. Then, to fund the positions removed from the
budget would require 13.4 furlough days, excluding unfilled patrol officer and library
assistant. She added that if a furlough was implemented in 2009, the city would
definitely be looking at additional furlough days and additional staff cuts probably an
additional deficit in excess of $200,000. Her meeting notes included 23 issues to be
addressed when considering furloughs. The main point of a furlough is it is really
designed to fund short-term emergency situations as a last resort and should not be
ongoing. Mayor Johnson said he had talked to the labor attorney who basically stated
that furloughs are one-time things and if you go beyond a year, then the city would have
to negotiate with the unions. Mayor Johnson did not believe that furlough days would
solve the problem.
Committee of the Whole Page 3
September 24, 2009
Budget Revisions
Finance Director Mueller reported that within the proposed budget are three one-time
funding sources:
$56,000 = 50% patrol officer
$80,000 = DPW vehicle replacement and urban drainage
$29,000 = allocation of Debt Service tax levy to General Fund
and for 2011, this will create a deficit of $165,000 before the budget process even
begins. The transportation aids revision and recommendation to eliminate one-time
funding sources are as follows:
$62,000 reduction in transportation aids
fund 100% of the DPW vehicle with $150,000 of landfill funds (for 2011, the city
will analyze to find the appropriate funding source for the road program in order
to set the future vehicle replacement cost)
eliminate the one-time funding source of the patrol officer by filling 100% of that
position on January 1 by permanently reducing the Community Resource Officer
by 20 hours per week, a minimal savings of $44,512.
DPW vehicle replacement funded by landfill reserves (originally removed from
the budget), $72,995
Excess of $16,016 to be placed in the Contingency account for future emergency
reserves, etc.
Ald. Fiedler inquired about the Community Resource Officer (CRO) position. Mayor
Johnson will speaking with Chief Geiszler about the position. The city’s proposing to
replace the position by a part-time contract civilian position.
Open Discussion on Operating Budget
GIS Intern
IS/GIS Coordinator John Wisniewski petitioned the committee to reconsider the
elimination of the GIS Intern position. He felt it would result in major cuts to services as
far as the GIS program is concerned. He elaborated on the technical expertise of the
person in that position. With the existing staffing in his department, IS/GIS Coordinator
Wisniewski spends most of his time on networking issues, servers, PCs, clerical, with
about 5% spent on GIS. Established in 2001, there has been a lot of time and
resources in the GIS program to get it where it is today. He indicated a couple of
options:
Disseminate the GIS responsibilities and train other staff
Explore consulting services which may end up costing more than the position
Mayor Johnson stated that the Engineering Tech may be able to take over some of the
GIS responsibilities.
Audience
Judge Berigan spoke on the budgetary issues and the impact that cutting the hours of
his clerk would have on the court system. He explained the court system with pre-trials,
trials and court and the staffing. Court staff would be reduced 25%. He mentioned that
the State requires to do certain things at certain times and if not done in a timely
manner, the municipal court could face sanctions. Right now, the court runs at peak
efficiency which may change as cuts are made.
Committee of the Whole Page 4
September 24, 2009
Several employees addressed the committee and offered the following relative to the
budget and employee issues:
Less employees, less customer service for increased population
Freeze wages, no longer insure spouse if spouse’ employer offers insurance
Eliminate in lieu of insurance payment
Open up union contracts to freeze wages
Taking stimulus money to create jobs and then eliminating positions
Utility funding for the Public Works/Public Utilities Secretary
Cut in pay for Public Works/Public Utilities Secretary
Take some money from the road program to save jobs; put the DPW truck off for
another year
Services are lost, but citizens don’t realize it because the loss is in small
increments (i.e., call to the Mayor’s office doesn’t get answered during office
hours as there is no staff)
Projects for DPW are not done during a calendar year; things are delayed
Talking to employees about cuts has never been done; there is a big separation
between city hall and the employees;
Unions weren’t asked about furloughs or wage freezes, not discussed at
negotiations
City hall and employees not communicating as there have been promises made
in the past, then there’s a new council and nobody remembers what was said;
there is skepticism.
Ald. Werner commented that if the employees were in a position to come up with ideas
for something they can do and come up with a plan. The Council doesn’t want to
eliminate positions, but does need to balance the budget.
(Committee members took a break from 8:03 p.m.-8:10 p.m.)
2010 Capital Budget
Police
Captain Moser provided additional information on the police department’s recorder and
the warranty. He stated that the warranty over a four-year period would cost $5,480. He
talked to a representative from the NICE systems and this can be purchased anytime
over the first year or during the first five years. This is almost 40% of the total
equipment cost. The warranty would be for the hardware; the software updates are
included with equipment. Captain Moser thought the equipment would last 10 years.
IS/GIS Coordinator Wisniewski was asked for his opinion. His dealings with NICE is if
they need to be brought in, it is expensive with per hour fee and if needed, lodging costs
as no local vendor and the person may have to travel. They do not give out manuals or
documents so unable to fix the unit in house. The cost to repair is high in relation to
labor costs. Ald. Werner stated as the initial warranty is one year, to not buy the
additional warranty, examine the equipment within the one year to see if they want the
extended warranty; if so, then purchase it. Ald. Snead agreed with Ald. Werner. Captain
Moser added that in checking with other communities, they have had no problem with
the equipment. The consensus of the group was that the final budget would contain the
$12,000, not the $17,000.
Committee of the Whole Page 5
September 24, 2009
GIS/IS & Clerk-Treasurer
Agenda Management Software
Community Development Director Muenkel presented the additional information on the
software. The cost of the software is $20,000 with the annual $3,000 reoccurring
maintenance cost starting in 2011. Additional expenses would be for laptops at $1400
each. He was recommending the laptops rather than the existing surplus computers in
the Muskego Room. Ald. Werner inquired if the Council member could take the laptop
home to do business. Community Development Director Muenkel stated it was
discussed and the laptops would be staying at city hall as there are various committee
meetings and those members needing the laptops. IS/GIS Coordinator Wisniewski
advised to establish a secure wireless network at city hall. This would enable the
laptops to connect wirelessly to the paperless packet at the various meetings.
Network/Internet connectivity would be maintained when transporting the laptops from
committee to Council meetings. The cost projected for the network is $13,000 with an
annual $550 reoccurring maintenance cost starting in 2011. Ald. Harenda asked if this
wireless was a need or a want, and is it something they can do without for next year?
IS/GIS Coordinator Wisniewski indicated it was a want and to do without, using the
cables, etc. would not be a clean environment in the Aldermen’s Room and could cause
some complications. Having no consensus on this issue at this time, the item which is
roughly $64,000, will be placed on the October 8 agenda for continued discussion and
action.
Software for Licensing
Clerk-Treasurer Moyer reported she had contacted Phoenix to see if they could provide
the licensing service. She found out that they cannot do it. They could create a program
but that would be more costly than what her office is currently doing.
Security Camera and City Hall Pass System
Clerk-Treasurer Moyer stated that they are at a point where work needs to be done
before it is brought forward for their review. She was not able to get the safety report
from the police department. She felt that the safety report and the input of all of the
departments in city hall should be considered before a solution is presented. At this
time, she was asking for them to reserve the funds as it will be brought back to the
committee once the additional information is received. Ald. Borgman stated to earmark
$15,000 in the budget for this project.
ADJOURNMENT
Ald. Snead moved to adjourn at 9:03 p.m. Seconded by Ald. Schneider, motion carried.
Stella Dunahee, CPS
Recording Secretary