COMMON COUNCIL Minutes 20121022
COMMON COUNCIL - CITY OF MUSKEGO Approved: 11/13/2012
MINUTES OF SPECIAL MEETING HELD
OCTOBER 22, 2012
Mayor Chiaverotti called the meeting to order at 6:30 p.m. Present were Ald. Madden,
Schaumberg, Soltysiak, Glazier, Borgman, Harenda, and Wolfe, Finance and
Administration Director Mueller and Deputy Clerk Blenski. Those present recited the
Pledge of Allegiance. The Deputy Clerk stated that the meeting was noticed in
accordance with the open meeting law.
COMMUNICATIONS FROM THE MAYOR’S OFFICE
Mayor Chiaverotti stated the purpose of the meeting is to hear any citizen on the
proposed 2013 City budget. If any questions are proposed, staff will respond if able.
Otherwise, they will be addressed tomorrow evening at the Council meeting.
PUBLIC HEARING
Mayor Chiaverotti declared the hearing open. She stated she received an e-mail
regarding the budget that she forwarded to the Aldermen. It is available to the public if
someone requests it.
BUDGET PRESENTATION
Ms. Mueller reviewed the proposed 2013 budget with the use of a Power Point
presentation. The following were the key points:
Proposed Budget Objectives
The budget process began this past May - identifying future City goals and outlining
potential actions in order to achieve those results. For 2013, Mayor Chiaverotti’s
objectives were to:
Support and focus net new growth for economic development
Maintain or improve services at the current level for 2013 and future years
Limit the use of one time funding sources while avoiding depletion of special
revenue funds to sustain availability for emergencies
Ensure the City’s continued sound fiscal health while not exceeding the mandated
net levy increase to taxpayers
Provide service in support of the City’s most valuable resource, being active
employees and lastly,
While in favor of rewarding employees, Mayor Chiaverotti recommended that the
determination of any cost of living adjustments or merit pay be a joint effort decision,
rather than an individual recommendation.
Actions Taken to Meet Goals
Increasing employee pension contributions by adding police personnel, which was
accomplished through a negotiated settlement with the bargaining unit
Eliminating the full-time Floater position and replacing it with a part-time clerical
position in order to maintain customer service levels
The mid-year creation of a GIS/Planner position to address the needed support for
the advancement of economic development with recommended funding from
additional tax levy revenues
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Common Council Meeting
October 22, 2012
Inclusion of Waukesha County Library funding and relative expenditures into the
operating budget for transparency purposes as well as simplifying reporting.
Applying the use of prior years’ surplus funds towards assessment revaluation fees,
initial costs associated with road reconstruction landscaping, and contingency
funding for emergency purposes or any unanticipated expenditures that may arise
throughout the year.
Current and Ongoing Challenges
Levy limit restrictions, accompanied by an extremely low growth rate with net new
construction, and continued downward trend in interest earnings.
State Shared Revenue has remained fairly constant - anticipating probable
reductions in the years ahead.
Continual inflationary costs in fuel, utilities and employee benefits
Outcome of the Budget Sessions
The 2013 budget as proposed by Mayor Chiaverotti and recommended by the
Committee of the Whole majority resulted in:
Minimal change to tax levy limit of .72% net new growth; increase of .591%. City tax
rate decrease of $0.01/$1000 or a 0.17% reduction as compared to the prior year.
City tax rate of $4.40 per $1k of assessed value.
Of total tax levy, $9.8 million funds expenditures for basic operations in the General
Fund budget, proposed at $14,310,585.
$2.1 million for principle & Interest payments of General Obligation Debt.
Combined net levy total of $12,006,452.
Impact to Muskego Taxpayer
The City portion of tax bill, not including any other district rates, decrease by just
under ¼ of a %, unless improvements made.
Example, an owner of a $300,000 home will pay an estimated $2 less for City
services as compared to last year.
Graph
5-year history of the City’s tax rates - remained relatively flat.
City continued to hold a positive financial position due in part to sound financial
operations and trend of sustaining reserves which act as an offset for unforeseen
events or expenditure spikes.
General Long-Term Obligations
To account for principal & interest payments on GO debt.
2013 - Process of refunding the $14.5kk G.O. Notes issued in 2011 for the financing
of Durham Drive & Janesville Rd reconstruction, the Borst property purchase and
various trails throughout the City.
Common Council to evaluate updated project cost estimates to determine long-term
borrowing level, anticipated not to have an impact on future debt service levy
amounts.
Due to a sound pace of amortization, long-term planning and maintaining reserves
within this fund.
Principal balance outstanding projected at $33,240,000.
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Common Council Meeting
October 22, 2012
29% = Tax Incremental District debt outstanding.
Continue to remain well below the $125kk million debt limit with an available debt
capacity of $91 million or 73%.
Capital Budget = $2,918,496
With the exception of Janesville Road Reconstruction Phase II and carryover of the
Woods trail project, funding for remaining capital requests from prior years’
unexpended capital funds, additional Special Revenue funding from Landfill host
fees, the Cable Club and Library contributions, require no new debt.
Special Revenue Funds = Programs where expenditures are supported by
specific revenues, generated for a particular purpose.
Chart lists summarized Special Revenue Fund activities, projected grand total for all
fund balances combined of $6.7 million.
Basic activities not changed, with exception of Park Dedication and Landfill Fund,
due to numerous requests for park development.
Response, Committee of the Whole recommended substantial funding dedicated for
park improvements = Park Arthur, Idle Isle, Boxhorn Launch, and recreation trails.
Additional funding for park amenities included, in total amount to approximately $1.8
million.
Rather than issue additional debt, Committee of the Whole recommended funding
source be from landfill host fee transfers.
Summary
Pending Council approval,
The 2013 tax rate will be $4.40/$1000 of assessed value with tax levy of
$12,006,452.
Comments
Ald. Soltysiak read the following comments he received from two constituents:
Tom Bykowski S78 W21013 Burningwood Court
Opposed to the 1% COLA in the 2013 budget.
Kathleen McGillis S78 W20226 Monterey Drive
Supports funding for the recreational trail along Racine Avenue
No one present requested to speak. The Mayor declared the public hearing closed.
ADJOURNMENT
Ald. Harenda moved to adjourn at 6:44 p.m. Ald. Wolfe seconded; motion carried.
Minutes taken and transcribed
by Jill Blenski, Deputy Clerk