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COMMON COUNCIL Minutes - 10/22/2018 Unapproved CITY OF MUSKEGO COMMON COUNCIL MINUTES October 22, 2018 6:00 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 6:01 p.m. PLEDGE OF ALLEGIANCE Those present recited the Pledge of Allegiance. ROLL CALL Present: Alderpersons Wolfe, Hammel, Borgman, Engelhardt, Kubacki and Madden. Also present: Finance and Administration Director Mueller, Finance and Administration Assistant Mustapich and Library Director Larson. Absent: Alderperson Kapusta. STATEMENT OF PUBLIC NOTICE The meeting was noticed in accordance with the open meeting law. PUBLIC HEARING To hear any citizen on the proposed 2019 City Budget. Mayor Chiaverotti declared the hearing open. Ms. Mustapich reviewed highlights of the proposed 2019 budget with the use of a Power Point presentation. The presentation provided a summary of the General Operating, Debt Service, Special Revenue and Capital Budget outcomes achieved through a cooperative approach which comprise a team including the Mayor, Committee of the Whole and key staff members. The final Committee of the Whole budget meeting was held October 9, 2018. Certain adjustments to the General Operating Budget were recommended to offset the updated State revenue funding decrease. The proposed tax levy is $13,364,447. Of that total, $10.7 million will fund expenditures for basic operations in the General Fund, $2.1 million will be dedicated for Principle and Interest payments and $548,000 will be applied towards the active Tax District Increments. As for the City Tax Rate, recent State Levy Limit mandates included a new reduction to the allowable increase for Personal Property Aid. Although net new construction amounted to a 2.045% increase, the City was restricted to a 1.65% levy limit due to the newly implemented adjustment. For 2019, the City will utilize 1.585%, which resulted in an estimated City Tax Rate of $4.50 per $1,000.00 of assessed value; this reflects a nine cent increase from the prior year. Ms. Mustapich next reviewed the Debt Service Fund, which is used to account for the principle and interest payments on all General Obligation debt. Funding sources include property taxes, tax increment financing, conservation fund reimbursement and interest earnings. For the current year, the City’s total principle balance outstanding is $46 million, leaving a debt capacity limit of $110 million or 70.43%. The recent Debt Refunding will support the current Common Council Minutes 2 October 22, 2018 Facility Projects and two major upcoming road improvement projects. Future borrowing plans and debt levy projections continue to indicate minimal increases. Special Revenue Funds, otherwise known as Specific Purpose Programs, were reviewed next. The expenditure activities for 2019 resulted in a projected grand total for all funds combined of approximately $5.3 million, which is up by $1.1 million as compared to the prior year. The majority of this increase is due to the Landfill funding for the Tess Corners Volunteer Fire Department Capital Equipment purchases. Finally, the 2019 Capital Budgets were reviewed, which are proposed at $10.8 million. The major items to be financed by $8.5 million of General Obligation Debt include the Bay Lane Reconstruction Project and continuation of the construction phases for the Police Department facility. The remaining items will be funded by $2.3 million of Landfill Host Fees and consist of various equipment requests from the Finance, Information Technology, Library, Public Safety and Public Works Departments. The 2019 Budget Public Hearing Presentation was concluded. It was noted that all proposed budgets will be considered at the October 23, 2018 Common Council meeting. The Muskego Senior Taxi Director, Karin Nickel, was present. She thanked the Council for its continued support. She outlined the need for the taxi service in the community for both the elderly and young adults with disabilities. Several young adults and their parents spoke in favor of the service. The following also spoke in support of the service: David Espurova Joy Hemmer Jim Nichols Brian Kramer The Mayor declared the hearing closed. ADJOURNMENT Aldeperson Kubacki made a motion to adjourn at 6:37 p.m. Aldeperson Madden seconded; motion carried. Minutes transcribed by Jill Blenski, Deputy Clerk.