COMMON COUNCIL Minutes 20111024
COMMON COUNCIL - CITY OF MUSKEGO Approved 11/22/11
MINUTES OF MEETING HELD OCTOBER 24, 2011
Mayor Chiaverotti called the meeting to order at 6:30 p.m. Present were Ald. Fiedler,
Schaumberg, Soltysiak, Werner, Borgman, Harenda, Finance and Administration
Director Mueller and Assistant Deputy Clerk Chavie. Ald. Snead was absent. Those
present recited the Pledge of Allegiance. The Assistant Deputy Clerk stated that the
meeting was noticed in accordance with the open meeting law.
COMMUNICATIONS FROM THE MAYOR’S OFFICE
Mayor noted that residents will be able to view the 2012 City budget information on the
City of Muskego website.
PUBLIC HEARING
To hear any citizen on the proposed 2012 City budget.
Ms. Mueller presented the 2012 Budget. She stated that in preparing the budget, Mayor
Chiaverotti had the following objectives:
to ensure the City’s continued sound fiscal health
to keep within mandated levy increase of net new growth
to continue all present services and programs
to support economic growth
to limit the use of the one-time funding sources
Ms. Mueller reviewed the actions taken to accomplish the Mayor’s goals within the 2012
budget included:
Increasing the employee pension contributions including police personnel
Employing contracted services within the Building Inspection Department
Using prior years’ surplus funds to give back to taxpayers and apply towards
road program costs
Promoting the City Engineer to Public Works Director/Engineer
Reorganizating the Information Technology Department
However, the impact of Wisconsin Act 10 & 32 to the City’s annual revenue sources
created new challenges in an effort to balance the budget with an approximate
$160,000.00 reduction in state shared revenues and transportation aids. In addition
interest income and net new growth have continued on a downward trend. The other
challenges include the expenditure considerations in the road program and assessment
revaluation fees which amounted to an additional $261,000.00 within the expenditure
budget as compared to the prior year.
The outcome of the 2012 budget sessions as proposed by Mayor Chiaverotti and
recommended by the Committee of the Whole majority improved upon the original goal
of keeping within the levy limit of 1.06% of net new growth and allowed for a zero
increase to the levy. This resulted in a City tax rate decrease of $0.02/$1000 or a
0.47% reduction as compared to the prior year and this equates to a City tax rate of
$4.41 per $1k of assessed value.
Also of the total 2012 tax levy, $9.8 million will fund expenditures for basic operations in
the general fund budget, which is proposed at $14,031,076, and 2.1 million will fund
principle and interest payments of general obligation debt for a combined net levy total
of $11,935,917.
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What this means to City of Muskego Taxpayers
What this means to the City of Muskego taxpayers is that the City portion of your tax bill
this year, not including any other taxing district rates, will decrease by just under ½ of a
%, unless improvements were made to your home that would have added assessed
value. As an example, an owner of an average valued home of $293,100 will pay an
estimated $6 less for City services as compared to last year.
Ms. Mueller presented a graph that provided a five-year history of the City’s tax rates.
She noted that the 2012 proposed tax rate is the same rate adopted two years ago back
in 2010.
Debt Service
Debt Service 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 utility
enterprise funds. For 2011, the City is in the process of issuing $14.5kk of General
Obligation notes, in which 71% of this debt will fund the Durham Drive & Janesville Rd
reconstruction projects. The City’s past practice of land purchases for conservancy
purposes, such as the Borst Property Purchase, has been to pay back the debt service
fund from Landfill host fees dedicated to the Land and Open Space Conservation
Special Revenue fund over the term of the loan.
Also, in response to past budget discussions and noted during the 2011 Budget Public
Hearing, a $2kk transfer from the Landfill fund is reflected within the capital borrowing
fund strictly as a non-committed available funding source for future projects discussed
but not yet officially approved and pending Council adoption.
The City’s total principal balance outstanding as of the 2012 year end is projected to be
$35,240,000 of which 30% of this total is outstanding Tax Incremental District debt. In
addition, including the proposed issue, the City is well below the $131kk debt limit with
an available debt capacity of $96 million or 73%.
Ms. Mueller stated this basically summarizes the City’s operating and Debt Service
Budgets.
Capital Budget
Ms. Mueller noted that the 2012 Capital Budget is proposed at $10,849,789. In order to
reflect the most recent project cost estimates as well as other projects that have only
gone through the initial stages of the approval process and are pending further Council
approval, the 2012 Capital Budget has been updated since the last COW budget
meeting and will be reflected as such on the 2012 Capital Budget Resolution.
Special Revenue Funds
Lastly, Ms. Mueller reviewed the Special Revenue Funds, which include programs
where the expenditures are supported by specific revenue dollars generated for a
specific purpose. The 2012 beginning balance plus incoming revenues less
expenditures and Other Sources and Uses, which has resulted in a projected grand
total for all fund balances combined of $6.2 million. Overall, with the exception of the
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$2kk Landfill Fund transfer to the Capital Borrowing fund, all other Special Revenue
Fund balances are status quo and reflect no major changes.
Summary
In summary, pending Common Council approval, the tax rate as presented for 2012
equates to $4.41/$1000 of assessed value with a tax levy of $11,935,917.
The following citizens spoke:
Scott Dickmann, S69 W17945 Muskego Drive
Commented on the new city logo
Property tax levy at zero is positive
Auditors at a previous meeting mentioned the city is in good financial heath and
recommended not spending funds unless necessary
Opposes spending 2.5 million for Pioneer Drive
The elimination of the building department saves about $98,000.00 which is
minimal amount of money when you are talking about a 14 million dollar budget
More cost saving if the City would look at outsourcing other departments such as
the Information System and Planning Dept.
The City of Muskego website needs to be updated to get information out to the
citizens
Questioned what is the city going to do with the additional 4 or 5 million dollars
borrowed? Put it in a slush fund?
Opposes borrowing and setting aside funds for projects that the city does not
have to come back and address the types of expenditures
Suggested borrowing only the funds that are needed and allocate where the
funds are being spent
He feels moving money from one spot to another is not being fiscally responsible
William Schneider, S75 W20101 Ridge Road
Reviewed the budget, looks good and feels the City is heading in the right
direction
In favor of moving forward and completing the Dillworth Property (Park), Pioneer
Drive and Janesville Road projects which would define our downtown area
Suzi Link, W172 S7297 Lannon Drive
Feels the City is going in circles
About a year ago, the City consolidated staff under the Plan Director and now the
City wants to split off the City Engineer to oversee the Department of Public
Works
Compensation for elected official cannot be increased during their term
Not enough time has been spent on the budget, moving too quickly and haste
makes waste
Opposes of having a public hearing on a Monday night
Questioned why the city would pay interest on borrowed funds now and not use
the funds until 2013
Taxpayers in this community are struggling to stay in their homes and now is not
the time to spend money on a new city logo
Government should stay in line with the taxpayers
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The Mayor declared the public hearing closed.
COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
Ald. Fiedler noted that Durham Drive paving will start this week and will be completed
early November. Mayor stated comments and questions can be addressed at the
.
Common Council meeting on October 25
ADJOURNMENT
Ald. Fiedler moved to adjourn at 7:03 p.m. Ald. Werner seconded; motion carried.
Minutes taken and transcribed
by Kim Chavie, Assistant Deputy Clerk