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COMMON COUNCIL Minutes - 10/21/2019 Unapproved CITY OF MUSKEGO COMMON COUNCIL MINUTES October 21, 2019 6:00 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Chiaverotti called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Those present recited the Pledge of Allegiance. ROLL CALL Present: Alderpersons Wolfe, Hammel, Borgman, Kapusta, Engelhardt, Kubacki and Madden. Also present: Finance and Administration Director Mueller, Finance and Administration Assistant Director Mustapich. STATEMENT OF PUBLIC NOTICE Director Mueller stated the meeting was noticed in accordance with the open meeting law. PUBLIC HEARING To hear any citizen on the proposed 2020 City Budget. Mayor Chiaverotti declared the hearing open. Ms. Mustapich reviewed an overview of the proposed 2020 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 funds. At the October 8, 2019 Committee of the Whole meeting, certain amendments to the General Operating Budget were recommended, which include an increase to the Mayoral and Municipal Judge salaries, additional contributions to the Senior Taxi Program, Little Muskego Lake District and Lake Denoon Lake District, and lastly a 3% Hydrant Rental adjustment to reflect the proposed Simplified Water Utility Rate increase. Financial Summary The 2020 Levy adjustment includes a $64,911 reduction of Tax Increment District funding, a $50,655.00 Debt Service Levy increase to maintain and plan for affordable future debt levels, and an additional $91,864.00 for various General Operations expenditure increases. It should be noted that reduction in net Liability Insurance, Inspection Service Fees and Recreation Program Expenditures will offset the proposed employee wage and benefit adjustments. Common Council Minutes 2 October 21, 2019 City Tax Levy/Rate As for the City Tax Levy, the State mandate restriction to net new growth amounted to $184,768.00 or 1.049%. However, due to prior year levy limit legislative changes, this amount is further reduced by an additional $42,249.00 of Personal Property aid. In order to fund the inflationary expenditure increases noted earlier, the 2020 budget is proposed to utilize the entire allowable amount of $142,519.00. Conversely, the estimated City tax rate is anticipated to decrease by $0.03 cents to $4.47/$1,000 of assessed value mainly because of the approximate $180 million increase in equalized value. Of the total $13.4 million tax levy, $10.8 million will fund expenditures for basic operations in the General Fund, $2.2 million will be dedicated for Principle & Interest payments and $483,000.00 will be applied towards the active Tax District Increments. Revenue and Expenditure Categories Ms. Mustapich next reviewed the slides that summarized the General Fund Revenue and Expenditure categories reflecting a balanced increase of $216,660.00 or 1.37%. This increase amounts to a monthly cost of approximately $53 per capita using the latest population estimate of 24,999, and remains equal to the prior year calculation. Of total revenues, approximately 80.5% are generated from Taxes and Intergovernmental State Aids. The reductions shown in Public Charges for Services and Permits are offset by relative decreases in recreational expenditures resulting from competitive summer program activities, as well as Building Inspection service fees due to a slight decline in development. The leading City expenditures continue to be within the Public Safety category, amounting to 45.8% of total General Fund Operating Costs, and include Police, Dispatcher, Volunteer Fire and Building Inspection Services. Debt Service Fund The Debt Service Fund is used to account for the principal and interest payments on all General Obligation debt. Funding sources include property taxes, tax incremental financing, conservation fund reimbursement and interest earnings. For the current year, the City’s total principal balance outstanding is $46 million, leaving a debt capacity limit of $111 million or 71.21%. Future borrowing plans and debt levy projections continue to indicate minimal increases. Special Revenue Funds The expenditure activities for 2020 resulted in a projected grand total for all funds combined of approximately $5.6 million, which is up by $300,000.00 as compared to Common Council Minutes 3 October 21, 2019 the prior year. The majority of this increase is due to Tax Increment related debt payments and various park improvements, including the Park Arthur baseball field, which the Committee of the Whole intends to further discuss alternatives. Capital Projects Finally, the 2020 Capital Projects were reviewed, which amount to a net total of approximately $1.1 million. The entire financing for all items will be funded by Landfill Host Fees and consist of various technology related and equipment requests from the Finance, Information Technology, Public Safety and Public Works Departments. Conclusion The 2020 Budget Public Hearing Presentation was concluded. It was noted that all proposed budgets will be considered at the October 22, 2019 Common Council meeting. Link to PowerPoint Presentation: https://www.cityofmuskego.org/DocumentCenter/View/6867/Public-Hearing---2020- Budget-Presentation Citizen Input Jen Mortonson, W158 S7669 Quietwood Drive Jason Scafe, S73 W14960 Cherrywood Drive Ms. Mortonson was representing MAA Baseball. Mr. Scafe was representing Muskego Warriors. A representative from Muskego Storm could not attend the public hearing. They are requesting the City offset the cost of participant registration for 2020 because of the increase in field preparation fees for the three baseball organizations. The Mayor declared the hearing closed. ADJOURNMENT Alderperson Kubacki made a motion to adjourn at 6:12 p.m. Alderperson Madden seconded; motion carried. Minutes transcribed by Jill Blenski, Deputy Clerk.