CCM20081103 budget
COMMON COUNCIL - CITY OF MUSKEGO Approved: 11/25/2008
MINUTES OF SPECIAL MEETING HELD NOVEMBER 3, 2008
Mayor Johnson called the meeting to order at 6:30 p.m. Present were Ald. Schaefer,
Schneider, Werner, Borgman, Pavelko and Snead, Clerk-Treasurer Moyer, and Finance
Department Supervisor Mueller. Ald. Fiedler was excused. Those present recited the
Pledge of Allegiance. The Clerk stated that the meeting was noticed in accordance with
the open meeting law. Clerk-Treasurer Moyer was excused to prepare for the
Presidential election.
PUBLIC HEARING
To hear any citizen on the proposed 2009 City budget.
Finance Department Supervisor Mueller presented the 2009 City operating budget. She
stated that in preparing the budget, Mayor Johnson had the following goals:
to maintain City services at current level
to limit the use of fund balance to ensure the City’s sound fiscal health
to create efficiencies within City government
to present a proposed budget that includes no new debt
to provide alternative resources for economic development
to continue to financially plan for the Janesville Road downtown reconstruction
project
The 2009 budget as recommended by the Committee of the Whole majority reflects a
$0.35 or 7.48% decrease to the mill rate. This equates to a City tax rate of $4.34 per
$1,000 of assessed value. Ms. Mueller noted that the 2008 revaluation added $24,100
on average to the assessed property value. So while the City’ tax rate will decrease,
the average homeowner will probably pay an increase for City services compared to last
year.
Ms. Mueller stated that the City will continue to face ongoing challenges in the years to
come. These include:
Funding Source Reductions
State shared revenues
Transportation aids
The City is experiencing a much lower growth rate with net new construction, which
affects building permits and licenses. This is expected to continue on a downward
trend
Interest earnings due to the sharp decline in rates
Other Expenditure Considerations
Road program increase
Inflationary costs due to rising fuel, utilities and personnel costs.
Common Council Minutes Page 2
November 3, 2008
Ms. Mueller identified the actions that were taken to accomplish the Mayor’s goals,
which included the following:
An early retirement incentive program to reduce staffing through attrition
Partial and total contracting out of services provided by certain City departments
Departmental merging and shared staffing responsibilities
Position eliminations
The total of the above expenditure reductions amounted to approximately $440,000.
Other actions included minimal use of surplus funds totaling $127,000.
Ms. Mueller stated the following were the effects of the City’s efforts:
Total operating budget, not including debt service, is proposed at $13,449,511,
which is a decrease of $334,000 or 2.42% over the 2008 budget.
Total tax levy for 2009 includes the following:
$9.3 million to fund expenditures for basic City operations in the General Fund
and
$2.2 million for principal & interest payments of general obligation debt
Combined total of $11,521,054,
This represents an increase of $225,000 or 2% compared to the prior year, which
will be used to offset revenue reductions in interest earnings and State aids
Ms. Mueller reviewed several graphs at this time, which concluded the presentation of
the 2009 operating budget.
Ms. Mueller next reviewed debt service. She stated the fund is used to account for the
principal and interest payments on all general obligation debt with the exception of debt
issued for the sewer and water utilities. For 2009, no new debt is proposed. The City’s
total principal outstanding balance as of the end of 2009 will be $24,144,625. Of that
amount, $8.7 million or 36% is tax incremental district debt outstanding.
Ms. Mueller then noted that the proposed 2009 capital budget is $877,475. She stated
that this budget is divided into two capital funds based on financing. The items financed
mostly by landfill funds are part of the Capital Expenditure Fund. Items financed by
borrowings are part of the Capital Budget Fund. Ms. Mueller reviewed a summary of
the requested departmental capital projects and equipment for 2009. Funding for the
entire capital budget will come from surplus funds and additional landfill transfers.
Preliminary costs for the reconstruction of Durham Drive and Janesville Road are
included.
Lastly, the Finance Department Supervisor reviewed the special revenue funds, which
are programs where expenditures are supported by specific revenue dollars generated
for a specific purpose. Ms. Mueller reviewed a chart that listed various special revenue
funds, their 2009 beginning balance plus incoming revenues less expenditures and
other sources and uses. The projected grand total is $10.3 million. The major funds to
note are the Refuse and Recycling Fund and the Landfill Fund. Included with the
Refuse and Recycling Fund is a proposed rate increase in quarterly charges of $5.90 or
28.64%.
Common Council Minutes Page 3
November 3, 2008
The following citizens spoke:
Stella Dunahee, S82 W13431 Hi View Drive
Based on the information provided, Mrs. Dunahee could cut $31,000 from the
budget without affecting employee livelihood or City services.
Landfill funds must be spent on quality of life issues.
She believes the proposed expansion of the Plan Department to the Community
Development Department will take place at the cost of the IS Department.
Suzi Link, W172 S7297 Lannon Drive.
Location of the budget information on the City’s new website was not user friendly.
There are inconsistencies regarding the allocation of resources to members of the
community and outsiders. She recommends that the fee structure for park use be
reviewed.
She does not oppose the Community Festival but objects to tax dollars being given
to it. The festival needs to pay for itself.
Forget the development of Park Arthur and focus on the existing parks.
She also has concerns about the merger of the fire departments.
Eileen Madden, S110 W14800 Union Church Drive
Expressed appreciation for the budget, and knows difficult decisions need to be
made. She believes the City will come out ahead with some of the outsourcing.
She is concerned about the use of landfill funds. Continued landfill activity is not a
guarantee.
The Mayor declared the hearing closed.
ADJOURNMENT
Snead moved to adjourn at 6:59 p.m. Schaefer seconded; motion carried.
Janice Moyer, MMC, CMTW
Clerk-Treasurer