FCM20111011
CITY OF MUSKEGO Approved 10/25/2011
FINANCE COMMITTEE MINUTES
Tuesday, October 11, 2011
Muskego City Hall
Mayor Chiaverotti called the meeting to order at 5:30 p.m. Committee Members Ald.
Schaumberg and Werner were present as well as Finance and Administration Director
Mueller and Deputy Clerk Blenski. Committee Member Ald. Fiedler was absent. Also
present: Parks & Recreation Director Anderson, Community Development Director
Muenkel, Ald. Snead and Borgman. Ald. Harenda and Soltysiak arrived at 5:40 p.m.
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 September 27, 2011. Ald.
Werner seconded; motion carried.
LICENSE APPROVALS
Operators
Ald. Werner moved to recommend approval of an Operator’s License for Linda
Reinke, Suzette Roushia and Robert Skinner subject to the licensing
requirements being completed prior to issuance. Ald. Schaumberg seconded;
motion carried.
Temporary “Class B” License for Friends of the Muskego Public Library
An application was submitted on behalf of the Friends of the Muskego Public Library for
the “Murder and Mayhem” event to be held on November 11, 2011. Ald. Schaumberg
moved to recommend approval of a Temporary License for the Sale of Fermented
Malt Beverages and Wine for the Friends of the Muskego Public Library for
November 11, 2011. Ald. Werner seconded; motion carried.
NEW BUSINESS
Recommendation Regarding Initiating the Process for the Potential City Purchase
of Boxhorn Launch
Mr. Anderson stated the Parks and Recreation Board is recommending that the City
pursue acquisition of the Boxhorn Boat Launch. The City has attempted to acquire the
property or extend the lease for the past seven years. Ten years remain on the current
lease. People would like to see public improvements made to the launch site. The
Parks and Recreation Board has been reluctant to do that because funding from the
DNR Waterways Commission is not available because the City has a current lease of
less than 20 years. The owner of the property, Art Dumke, has indicated that he will
reinvest the funds from the sale into the gun club, which he now owns. The cost for the
appraisals should not exceed $10,000, which will come from Park Dedication funds. A
letter of retroactivity from the DNR has been received, which will allow the City to apply
for grant funding to defray the cost of the purchase.
Mr. Anderson noted that the property owner has indicated that if the gun club does not
remain viable, he will explore development of the property including the existing launch
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October 11, 2011
area. This means it would not be available to the City. The City will pay approximately
$32,000 in lease payments over the next ten years if the property is not purchased. Mr.
Anderson stated that this is the best launch site on Big Muskego Lake. He also noted
that 47 parking stalls are required for Big Muskego regardless of how many launch sites
there are. The City is currently 17 stalls short. The Boxhorn site is not large enough to
accommodate the total number of parking stalls required. This is why the grant
received for the Durham Overflow Lot is important because it will provide the additional
17 stalls that are needed. Ald. Werner moved to recommend pursuing acquisition
of the property. Ald. Schaumberg seconded; motion carried.
Recommendation Regarding the Issuance and Sale of $2,750,000 Water System
Revenue Refunding Bonds
Ms. Mueller stated that a refinancing of three outstanding water revenue bonds is being
proposed. This would result in a savings of approximately $392,000 because of low
interest rates. Mr. Paul Thompson of Hutchinson, Shockey, Erley & Co. was present.
He stated that the outstanding issues have various interest rates ranging from 4.79% to
5.8%. They can be refinanced with a new bond issue with an interest rate estimated to
be 2.41%. The total savings of $392,236 is comprised of $80,000, which will come from
the current reserve fund and $312,236 due to lower interest rates. Because of lower
interest costs, the $80,000 is no longer needed in the reserve fund and can be applied
to the outstanding principal amount. Ald. Schaumberg moved to recommend
approval to move forward. Ald. Werner seconded; motion carried.
Recommendation Regarding Issuance and Sale of $14,500,000 General Obligation
Promissory Notes
Ms. Mueller distributed the following itemization to reflect what projects the $14,500,000
will cover:
COST
2011 2012 2013 TOTAL
PROJECT
Durham Drive $2,600,000 $300,000 $2,900,000
Janesville Road $1,385,900 $3,843,055 $1,835,000 $7,063,955
Pioneer Drive $80,000 $2,495,080 $2,575,080
Borst Property Purchase $1,243,648 $1,243,648
Borst Grant -$400,000 -$400,000
Boxhorn Launch $500,000 $500,000
Misc. Contingency* $617,317 $617,317
Total $5,409,548 $6,638,135 $2,452,317 $14,500,000
* Available funding for other future capital projects such as public safety radios,
trails, flood related issue resolution, Lake property purchase, VFD truck, water tower
tower painting . . . Or lowering the refunding amount.
She noted that initially a borrowing of $15 million was anticipated. However, she and
the Mayor reviewed the dollar amounts closer. The Mayor has recommended that the
total amount be reduced by $500,000. Mr. Thompson stated this is a two year
borrowing. He explained the State regulations regarding borrowing for a period of less
than ten years, which allows the City flexibility in spending the funds. The short term
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October 11, 2011
borrowing will also allow the City to take advantage of a declining future debt service
payment on its current indebtedness. The interest rate is estimated to be 2%. Ald.
Werner moved to recommend approval to move forward. Ald. Schaumberg
seconded; motion carried. Mayor Chiaverotti thanked Sharon Mueller for reviewing
the total amount to be borrowed so it could be reduced. Mr. Thompson noted that final
interest rates will be presented at the October 25 Council meeting. Ms. Mueller stated
the importance of moving forward with the borrowing as the City has substantial bills for
some of the 2011 projects.
Update Regarding Personnel Changes within the Library
The Mayor stated that Library Board Present Josephine Scalzo was present. Mayor
Chiaverotti noted that the Library Board recently accepted the resignation of Jane
Genzel as Library Director. Ms. Genzel will resume her former position as Librarian III -
Head of Reference and Adult Services. The Board will be working on hiring an interim
director. Ms. Scalzo stated the Board has established a search committee to recruit a
permanent library director. She stated that Tom Hennen, System Director of the
Waukesha County Federated Library System, will also provide assistance. The Mayor
thanked Ms. Scalzo for the time she has devoted to the library.
Recommendation Regarding Developer’s Agreement for Steve Anderson
Mr. Muenkel stated the Common Council already approved a certified survey map for
the Anderson property on Tess Corners Drive. The Developer’s Agreement is for a
small sewer extension. The agreement language is standard. Ald. Werner moved to
recommend approval. Ald. Schaumberg seconded; motion carried.
Recommendation Regarding Utility Easements on City-Owned Property
Mayor Chiaverotti stated WE Energies has requested that the City convey easements
for Library property and the retention pond property on Martin Drive. The easements
are for the burial of overhead facilities for the Janesville Road Reconstruction project.
Ald. Werner moved to recommend approval. Ald. Schaumberg seconded; motion
carried.
VOUCHER APPROVAL
Ald. Schaumberg moved to recommend approval of Utility Vouchers in the
amount $119,883.79. Ald. Werner seconded; motion carried.
Ald. Schaumberg moved to recommend approval of General Vouchers in the
amount $770,625.79. Ald. Werner seconded; motion carried.
FINANCE DIRECTOR’S REPORT
Ms. Mueller stated that she will need to spend time to prepare for the Moody’s call to
determine the City’s bond rating.
ADJOURNMENT
Ald. Schaumberg moved to adjourn the meeting at 5:55 p.m. Ald. Werner
seconded; motion carried.
Minutes taken and transcribed by Jill Blenski, Deputy Clerk.