COMMITTEE OF THE WHOLE -Minutes 0111011
COMMITTEE OF THE WHOLE (COW) – CITY OF MUSKEGO Approved as
Corrected 12/13/2011
MINUTES OF MEETING HELD OCTOBER 11, 2011
Mayor Chiaverotti called the meeting to order at 6:00 p.m. Present were Ald.
Schaumberg, Soltysiak, Werner, Borgman, Harenda and Snead, Community
Development Director Muenkel, Finance and Administration Director Mueller, Public
Utilities Superintendent Kloskowski and Deputy Clerk Blenski. Ald. Fiedler was absent.
The Deputy stated that the meeting was noticed in accordance with the open meeting
law.
APPROVAL OF MINUTES
Ald. Snead moved to approve the September 13 and 27, 2011 minutes. Ald.
Schaumberg seconded; motion carried.
NEW BUSINESS
Mayor Chiaverotti stated this would be the last budget meeting. Tonight, the Committee
will review the Operating, Water and Sewer Budgets.
2012 OPERATING BUDGET
CDD - Building & Plumbing Inspection Division
The Mayor stated elimination of the two building inspection positions was still on the
table as Ald. Soltysiak was not present at the September 27 meeting when this was
discussed. Discussion on this item was postponed because it was anticipated that one
of the affected employees wanted to be present.
Ms. Mueller continued the discussion regarding the operating budget. She stated there
was approximately $300,000 of additional revenue that wasn’t initially anticipated. She
noted that surplus funds from prior years in the amount of $356,000 would be used to
offset the 2012 budget.
At this time the Committee went back to the building inspection positions. Jason x was
present, but did not wish to speak. The Mayor stated that Mr. Muenkel was present if
there were any questions. Ald. Harenda stated the proposed savings by eliminating the
positions did not take into account any severance that would be paid out. Ms. Mueller
stated severance comes out of a special revenue account.
Ald. Borgman stated he has received several comments that the positions should
not be eliminated; it is a good expenditure of funds. The current employees are
very responsive to the needs of the residents. In the previous straw poll, he voted
to eliminate the positions, but would like to change his vote.
Ald. Soltysiak stated the correspondence received from contractors and builders
indicates that they prefer to deal with in house inspectors. He is concerned that
outsourced inspection services could be a hindrance to doing business in
Muskego. He does not want there to be any obstacles that would affect growth in
the City. He believes Muskego will grow in the near future and the number of
inspections will increase. He is not sure this is the best time to do this.
Committee of the Whole Page 2
October 11, 2011
The Mayor stated she made several contacts and the individuals she spoke with
admitted that they prefer to deal with in house inspectors; however, they don’t have
any issues with outsourced services.
Mr. Muenkel stated larger municipalities have used outsourcing and have not
experienced any problems. The reason this is being proposed is there will be
substantial savings.
Ald. Schaumberg suggested waiting another year. Mayor Chiaverotti stated that
delaying this for a year will not benefit anyone.
Ald. Werner stated he views this as an opportunity for the City to save money. If
the level of inspections increases, in house inspectors could be brought back.
Ald. Soltysiak would like to discuss reinstating the Point of Sale inspection. He
also would like to look at incentives that would encourage property owners to make
improvements. Both of these would increase the number of inspections.
Ald. Snead stated she is not a fan of outsourcing. She understands that the City
needs to save money. She also would like to discuss the Point of Sale inspection.
Ald. Werner stated that he supported eliminating the Point of Sale inspection. He
believed it did not serve a purpose and was just a revenue source for the City.
Mayor Chiaverotti stated the Point of Sale inspection could be reinstated whether it
would be done in house or with outsourcing.
Mr. Muenkel stated that he has spent a great deal of time to ensure that there will
not be any problems with the service that will be provided. He believes there will
be advantages. He stated that the contractors will get 45% of whatever the permit
fee is.
The Mayor stated this is a smart business decision. It is what the constituents
expect us to do.
Consensus:
Ald. Snead, Werner, Schaumberg, Fiedler Outsource
Ald. Harenda, Borgman and Soltysiak Opposed to Outsourcing
(Ald. Fiedler was not present, but stated his position at a previous meeting.)
Continue General Discussion Regarding the Budget
Pioneer Drive
Ald. Harenda asked if there was any information regarding the creation of a TIF District
for Pioneer Drive. Mr. Muenkel explained that he did discuss this with the City’s
financial consultant. A TIF District would not work for this project. The Mayor stated
that the project was in the Five-Year Capital Plan to be done in 2014. The project was
just moved up. Mr. Muenkel stated that whether the project is done next year, or would
have been done in 2014, the Council would still have to look at all the same factors with
the exception of burying the utilities.
Wages and Employee Issues
Ms. Mueller did note that there were funds in Contingency to cover most of the cost of
the pension for police personnel if negotiations do not result in them contributing
anything.
Committee of the Whole Page 3
October 11, 2011
Ald. Soltysiak made the following comments:
He opposes the creation of a new director position for the Engineering Dept.
The Library vacancies should be scrutinized. He believes the Library has been
operating fine without the positions.
The Parks Department may need additional resources in the future.
He believes the 2% wage increase across the board is high given the current
economic times. The increase should reflect the true cost of living, which he
believes is much lower.
Ald. Werner:
He stated he believes the Parks & Recreation Board as well as the Director will
plan accordingly to meet the future needs for the parks. He does not believe there
will be any issues in 2012.
He supports leaving the 2% wage increase in the budget. The City staff has done
a lot to keep the budgets in line over the past several years.
Consensus Regarding the 2% Wage Increase in the 2012 Budget:
Ald. Snead, Werner, Schaumberg Yes
Ald. Harenda, Borgman and Soltysiak No
WATER BUDGET
Ms. Mueller reviewed the proposed 2012 Water Utility Budget. The operating revenue
reflects a 3% increase, which was recently approved by the PSC. A net loss of
$388,335 is being projected. A rate increase would not result from the Pioneer Drive
project; however, rates are affected by weather and current economic conditions.
Superintendent Kloskowski stated that the State is pushing conservation. The utility has
experienced a substantial drop in usage.
SEWER BUDGET
Ms. Mueller also reviewed the proposed 2012 Sewer Utility Budget. The majority of
revenue is comprised of user fees. No rate increase is being proposed. Ms. Mueller
noted that the budget reflects a 3.13% in MMSD user charges, which results in a net
operating loss of $645,166. She stated that under the 2012 Capital Projects, it is
anticipated that the Private Property I & I will be completely funded by MMSD. The
MMSD capital charges are expected to increase substantially in 2013 through 2015.
SPECIAL REVENUE FUNDS
Ms. Mueller reviewed a few changes required by new accounting standards.
Mayor Chiaverotti stated that the public hearing for the 2012 budget would be held on
Monday, October 24 at 6:30 p.m. with adoption of the budgets on October 25.
ADJOURNMENT
Ald. Snead moved to adjourn at 7:28 p.m. Seconded by Ald. Schaumberg; motion
carried.
Minutes taken and transcribed by
Deputy Clerk Jill Blenski, CMC