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FCM20110823 CITY OF MUSKEGO Approved 9/13/2011 FINANCE COMMITTEE MINUTES Tuesday, August 23, 2011 Muskego City Hall Mayor Chiaverotti called the meeting to order at 5:31 p.m. Committee Members Ald. Schaumberg, Fiedler and Werner were present as well as Finance and Administration Director Mueller and Deputy Clerk Blenski. Also present: Ald. Snead, Harenda and Borgman, City Engineer Simpson and City Accountant Mustapich. Those present recited the Pledge of Allegiance. The Deputy Clerk noted that the meeting was noticed in accordance with the Open Meeting Law. APPROVAL OF MINUTES Ald. Schaumberg moved for approval of the minutes of July 12, July 26 and August 9, 2011. Ald. Werner seconded; motion carried. LICENSE APPROVALS Operators Ald. Fiedler moved to recommend approval of an Operator’s License for Laura Brzostowicz, Kallie Hunt, David Karpinski, Sandina Oxford, Christine Vance and Nicole Wyss subject to the licensing requirements being completed prior to issuance. Ald. Werner seconded; motion carried. PRESENTATION OF THE ANNUAL AUDIT REPORT BY VICKI HELLENBRAND AND IRINA MYASKOVSKY OF BAKER TILLY VIRCHOW KRAUSE, LLP Ms. Vicki Hellenbrand and Ms. Irina Myaskovsky of Baker, Tilly, Virchow, Krause were present to review the highlights of the City’s 2010 financial statements. Ms. Hellenbrand stated the audit went very well; the audit team received full the cooperation of staff. The City’s financial condition is very good. Ms. Hellenbrand stated that the City is in a good position with the amount of unreserved general fund balance. It gives the City the ability to handle contingencies if needed. In these economic times, the auditors recommend being more conservative and do not encourage municipalities to spend fund balance. The City’s Finance and Administration Director prepared the 2010 financial statements for the Water and Sewer Utilities, as she has done in the past. In 2010, she also prepared the City’s financial statements with some assistance from Baker Tilly Virchow Krause. The auditors praised the exceptional work done by Ms. Mueller, and acknowledged that she continues to take on more responsibility for the preparation of the financial statements. Ms. Hellenbrand did comment on the financial status of the City Water Utility. The last time rates were increased was in 2008. Increases are governed by the PSC. There are two concerns that Ms. Hellenbrand stated. One is the rate of return and the other is sufficient cash flow to make sure that money does not have to be borrowed from another fund. She recommends at least a 3% rate increase. Ms. Mueller stated she has applied for a simplified rate case with the PSC. She is not certain when the increase will be able to be implemented as she is waiting for approval from the PSC, which is backlogged. The City Sewer Utility is very financially healthy at this time. Mayor Chiaverotti thanked Ms. Hellenbrand and Ms. Myaskovksy for their attendance. Finance Committee Meeting Page 2 August 23, 2011 NEW BUSINESS Recommendation Regarding Acceptance of DNR Grant for the Durham Drive Boat Launch Overflow Parking Area City Engineer Simpson stated that Parks and Recreation Director Anderson applied for a grant to provide financial assistance for paving the overflow parking area at the Durham Drive Boat Launch. He stated the project was proposed because of the Durham Drive reconstruction project. The City was recently notified that it was awarded a grant in the amount of 41.5% ($35,000) of the project cost. The Common Council previously discussed this and requested that the issue be brought back once it was determined if the City was awarded the grant. The City has to accept the grant by September 10. Ald. Werner moved to recommend acceptance. Ald. Fiedler seconded; motion carried. Recommendation to Accept Improvements Done as Part of Well #5, Well #9 and Well #13 Project Mr. Simpson stated work was done regarding Well #5, Well #9 and Well #13 as one project that was part of the American Recovery and Reinvestment Act. The project is now complete. Mr. Simpson is in the process of finalizing the paperwork and the improvements must be accepted. Ald. Fiedler moved to accept the improvements done as part of the Well #5, Well #9 and Well #13 project. Ald. Schaumberg seconded; motion carried. Recommend Approval to Convey Easements and Permanent Right-of-Way for Janesville Road Reconstruction Project (City Engineer) Mr. Simpson stated the County has requested that the City convey either temporary limited easements (TLE) or permanent right-of-way for the Janesville Road Reconstruction Project. The affected properties are: Library Property 0.05 Acres of TLE Well #4 Property (on Bay Lane) 153 Square Feet of TLE Retention Pond (Martin & Janesville) 0.12 Acres of TLE, 0.02 PLE and 0.09 Acres of Acqusition Ald. Fiedler moved to recommend approval. Ald. Werner seconded; motion carried. The Mayor asked if any of the aldermen present wanted the City Engineer to stay for the Common Council meeting. Those present responded no and the City Engineer was dismissed. VOUCHER APPROVAL Ald. Schaumberg moved to recommend approval of Utility Vouchers in the amount $8,951.00. Ald. Fiedler seconded; motion carried. Ald. Schaumberg moved to recommend approval of General Vouchers in the amount $107,097.63. Ald. Fiedler seconded; motion carried. Finance Committee Meeting Page 3 August 23, 2011 FINANCE DIRECTOR’S REPORT Ms. Mueller stated that staff has been working on a revised purchasing policy and she and the Mayor are working on the grievance procedure required by the State budget changes. Both will come forward at a future meeting. ADJOURNMENT Ald. Fiedler moved to adjourn the meeting at 6:00 p.m. Ald. Schaumberg seconded; motion carried. Minutes taken and transcribed by Jill Blenski, Deputy Clerk.