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CCM20061120 COMMON COUNCIL - CITY OF MUSKEGO Approved: 11/28/2006 MINUTES OF MEETING HELD NOVEMBER 20, 2006 The meeting was called to order at 6:05 PM by Mayor Johnson. Present were Ald. Buckmaster, Madden, Melcher, Salentine, Schaefer, and Snead, City Administrator Sheiffer, Finance Department Supervisor Mueller, Acting Police Chief Geiszler and Deputy Clerk Blenski. Ald. Borgman was absent. Those present recited the Pledge of Allegiance. The Deputy Clerk stated that the meeting was noticed in accordance with the open meeting law on 11/15/2006. NEW BUSINESS Reso. #206-2006 - Approval of 2007 General Fund Operating Budget. Buckmaster moved for adoption. Salentine seconded. City Administrator Sheiffer reviewed recommended changes. With the City receiving an additional $44,585 from the Department of Transportation, the revenue line item for transportation aids should be increased. To offset that, the revenue line item “use of fund balance” could be reduced or the line item for building permit fees could be reduced. On the expenditure side, the money allocated for 2007 health insurance should cover the anticipated costs now that the Finance Committee has given staff direction to move forward with a Health Reimbursement Arrangement (HRA). In addition, the City’s various insurance premiums (property, workers’ compensation, etc.) will be less than budgeted so $116,269 could be shifted to create a contingency fund. The proposed 2007 budget provided zero for contingency. Several Council members recommended that some of the $116,269 be used to fund other purposes. Ald. Melcher - would like additional money allocated to the Road Program. Ald. Snead - would like to see the funds cut from the Parks & Recreation budget ($3,000) be put back in. Ms. Sheiffer noted that there is a process in place that allows department heads to come forward and request money from contingency during the course of the year. Ald. Buckmaster - would like to see additional funds budgeted to expedite the IS Department’s network replacement project. The City Administrator noted that was a capital budget item. Mayor Johnson asked if there was any objection to allow the Acting Police Chief to address the Council; there was none. Paul Geiszler addressed the Council regarding eliminating the consulting services of Ron Gifford in 2007. The majority of the work that Mr. Gifford does is for the Police Department. He currently works approximately eight hours a week. Mr. Gifford takes care of the CAD system, Crimes program and does computer updates. He distributed a sample of the information that is provided to police officers and firefighters to assist them in finding a specific location in an emergency. It was noted that this type of information is unique to Muskego. Acting Police Chief Geiszler stated that the department does not have the manpower or level of expertise to take on this work. The Information Systems personnel cannot do it either. He requested the Council consider putting funds back in the budget to cover at least four Common Council Minutes Page 2 November 20, 2006 hours for Mr. Gifford to continue this work in 2007. Salentine suggested purchasing the Phoenix software in 2007 rather than waiting until 2008. The Mayor noted that even if that were done, Mr. Gifford’s services would still be required for at least part of the year. He recommended the purchase be discussed under the Capital Budget. Acting Police Chief Geiszler left the meeting. Melcher moved to amend the operating budget to include $6,500 for the consulting services of Ron Gifford for 2007. Madden seconded; motion carried. Salentine moved to allocate an additional $44,585 to the Road Improvement program and increase Revenues by $44,585. Buckmaster seconded; motion carried. Melcher moved to allocate $109,769 to the Contingency Fund. Schaefer seconded; motion carried. Snead moved to increase the Parks & Recreation budget by $3,000, which represents the $2,000 taken out of Buildings and Maintenance and $1,000 taken out of Bank Fees. Melcher seconded; motion carried. It was noted that motion reduced the amount in the Contingency Fund to $106,769. Buckmaster discussed the amount of funds that should be in the Undesignated Fund Surplus. Ms. Sheiffer stated that depends on the philosophy of the local governing body. Information will be compiled for discussion at a future meeting. Melcher expressed concern about the projected revenue for Building Permits. Ms. Sheiffer stated that in the past the numbers projected for Building Permits has been low. For 2007, an attempt was made to bring the budgeted numbers more in line with the anticipated revenue. She believes that the projected revenue of $375,000 is fine. If the Council wants to take a more conservative approach, the number could be lowered a bit. However, the City should not underestimate revenues as has occurred in the past. Ms. Sheiffer also noted that the Parade of Homes would be in Muskego, which will begin to generate revenue already this year. The Council took a brief recess to allow the Finance Department Supervisor to obtain the year-to-date numbers for building permits. Upon reconvening, Ms. Mueller reported that the building fees to date total $343,887 and electrical permits total $90,155. With the receipt of this information, the Council determined that an adjustment was not necessary. Motion to adopt Reso. #206-2006, as amended, carried. Reso. #207-2006 - Approval of 2007 Capital Budget. Buckmaster moved for adoption. Madden seconded. Buckmaster recommended that following the findings of the fire/rescue study, the Council consider purchasing the Phoenix software for the Police Department in 2007 rather than 2008. City Administrator Sheiffer reviewed some options for the 2006 surplus. The Finance Department Supervisor recommends that the Common Council Minutes Page 3 November 20, 2006 Council not take any action regarding the 2006 surplus until the actual amount is determined in the early part of 2007. Motion to adopt Reso. #207-2006 carried. Reso. #208-2006 - Approval of 2007 Water Utility Budget and Rates. Salentine moved for adoption. Madden seconded; motion carried. Reso. #209-2006 - Approval of 2007 Sewer Utility Budget and Rates. Madden moved for adoption. Melcher seconded. Ms. Mueller stated that the City’s subsidies from TIF will end in 2006 and other funding sources are being depleted. In light of that, she requested that the Council consider a 3% increase in sewer rates. She believes users will find it more acceptable to incur smaller rate increases. Madden moved to increase the 2007 rates by 3%. Salentine seconded; motion carried. Ms. Mueller noted that the 3% increase would result in a single-family residential user paying an additional $19 annually. Motion to adopted Reso. #209-2006, as amended, carried. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW Ald. Buckmaster announced that he would not seek re-election as the District 2 aldermanic representative. His term expires in April of 2007. ADJOURNMENT Buckmaster moved to adjourn at 7:43 PM. Schaefer seconded; motion carried. Respectfully submitted, Jill Blenski, CMC Deputy Clerk