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CCM2021.11.09CITY OF MUSKEGO APPROVED COMMON COUNCIL MINUTES November 9, 2021 k V* Cq W :°° PM il ' h USKEGO Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 6 pm. ROLL CALL Present: Alderpersons Madden, Kubacki, Engelhardt, Kapusta, Terrence, Hammel and Wolfe. Also Present: Attorney Warchol, Public Works and Development Director Kroeger, Lead Planner Trzebiatowski, Finance and Administration Director Mueller, Assistant Finance and Administration Director Mustapich, Captain Simuncak, Parks and Recreation Director Dunn, Library Director Larson, IT Director Louden, and Assistant Deputy Clerk Roller. STATEMENT OF PUBLIC NOTICE Assistant Deputy Clerk Roller stated the meeting was noticed in accordance with the open meeting law. PUBLIC COMMENT Mr. Jake Schwer, W172S7463 Center Drive spoke in favor of Ordinance #1466 stating it will be easier for property owners to make improvements. COMMUNICATIONS FROM THE MAYOR'S OFFICE None. PUBLIC HEARING Mayor Petfalski opened the Public Hearing. There were no speakers. Assistant Finance and Administration Director Mustapich provided the following information: Budget Overview • The Public Hearing this evening will provide a Budget Overview for the City's operations, which include the General, Debt Service, Special Revenue and Capital Project funds. The budget process began several months ago with setting Budget Goals to aid in the budget document preparation. Despite the challenges to balance the budget, the combined efforts of staff, the Mayor and Committee made for a fairly smooth process. The final COW budget meeting concluded on October 12'h whereby the Committee recommended the Operating Budget as presented move forward to the public hearing and Council adoption. Financial Summary • This next chart provides a Financial Summary of the City funds as outlined in the budget overview and include 2020 Actual, 2021 Projected and 2022 Budgeted Revenues, Expenditures, Fund Balance, and Tax data. As noted, the 2021 Net Fund Balance reduction resulted from dedicating existing funds to the Hillendale Road project, TCVFD fire gear and aerial ladder fire truck, Park Arthur field renovations and participation in the Muskego Norway School District field lighting project. The downward trend continues on into 2022 due to the closures of TID #8 & #9 and significant net scheduled debt payments. • The 2022 Levy adjustment includes an additional $300,000 for various General Operation expenditure increases listed in the chart below including two public safety positions, lake patrol, COMMON COUNCIL 2 1 P a g e November 9, 2021 a part-time court clerk and volunteer fire contracted services. The funds will also aid in offsetting the anticipated reduction in interest earnings. Please note that increased public safety fines; along with vacancies being filled with lower wage new hires will offset the recommended employee wage and benefit adjustments. City Tax Levy/Rate • As for the City Tax Levy, the State mandate restriction to net new growth amounted to $328,877 or 2.47%, of which the entire increase will be utilized to offset the items noted earlier, as well as future operating budget increases. • Besides the levy, the assessment revaluation also impacted the tax rate resulting in an average City-wide value increase of 22%. Additionally, the termination of Tax Increment Districts #8 & #9 added 0.60% or $80,000 to the allowable levy funding. As a result, the estimated City tax rate is anticipated to decrease by $0.74 cents to $3.81/$1,000 of assessed value. • So, unless improvements were made to your home, the City portion of your tax bill this year should have a minimal increase of which an owner of a $300, 000 home will pay an estimated $8 more for City services • Of the total $14 million tax levy, approximately $11.4 million will fund expenditures for basic operations in the General Fund, $2.2 million will be dedicated for Principle & Interest payments and $410,000 will be applied towards the active Tax District Increments. • In comparison to other surrounding municipalities, Muskego's tax rate continues to remain substantially less. Revenue & Expenditure Categories • The following slides summarize the General Fund Revenue and Expenditure categories reflecting a balanced increase of $154, 010 or 0.94%. The monthly cost of proposed operating expenditures amounts to approximately $54 per capita using the latest population estimate of 25,704 and remains status quo as compared to the prior year. • Of total revenues, approximately 82% are generated from Taxes and Intergovernmental Aids. The reductions shown in the Miscellaneous and Other Sources categories are a result of declining investment earnings. • As in prior years, the largest City expenditures category continues to remain within the Public Safety divisions equating to 46% of total General Fund operating costs; and include Police, Dispatcher, Volunteer Fire and Building Inspection services. Debt Service Fund • The next fund included in this Public Hearing is the Debt Service Fund, and is used to account for the principal & 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 principal balance outstanding is $34 million, leaving a debt capacity limit of $138 million or 79.40%. This amounts to a $4 million debt reduction over the prior year and is contributed to the final payment of the 2013 GO Refunding Bonds and prior year refunding of a TID related GO Bond. • Future borrowing plans, refinancing and debt levy projections continue to indicate minimal increases. Special Revenue Funds • Summarized in this following chart are the Special Revenue Funds, otherwise known as Specific Purpose Programs. • The expenditure activities for 2022 resulted in a projected grand total for all funds combined of approximately $2.6 million and include Tax Increment related debt payments, various Park improvements, and increased refuse and recycling hauling fees due to inclusion of the State tipping fees. Capital Projects • The Final Budget for review at this public hearing is the 2022 Capital Projects, and amounts to a net total of approximately $2.2 million, down from the prior year due to the completion of the Hillendale Road project. COMMON COUNCIL November 9, 2021 3 1 P a g e • Financing for the majority of 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 • This concludes the 2022 Budget Public Hearing Presentation. All proposed balanced budgets; including the tax levy, will be considered for approval by the Common Council this evening. Mayor Petfalski closed the Public Hearing at 6:10 pm. CONSENT AGENDA Alderperson Kubacki moved to approve the following items under Consent Agenda. Alderperson Hammel seconded; motion carried. • Approval of Common Council Minutes: October 12, 2021, October 26, 2021, & October 27, 2021 • Resolution #100-2021 - Approval of Parks & Recreation Athletic Field Usage Policies and Procedures • Resolution #101-2021 - Re -Approval of Certified Survey Map and Condominium Plat - The Glen at Muskego Lakes Development • Resolution #102-2021 - Approval of a Preliminary Plat for the Apple Hills Subdivision NEW BUSINESS Resolution #103-2021 - Approval of 2022 General Fund Operating Budget and Tax Levy Alderperson Engelhardt moved to approve. Alderperson Madden seconded; motion carried. Resolution #104-2021 - Approval of 2022 Capital Budget Alderperson Wolfe moved to approve. Alderperson Kubacki seconded; motion carried. Resolution #105-2021 - Resolution Authorizing Special Quarterly Charges for Garbage and Refuse Disposal and Recycling Service Alderperson Madden moved to approve. Alderperson Hammel seconded; motion carried. Resolution #106-2021 - Approval of 2022 Sewer Utility Budget and Rates Alderperson Madden moved to approve. Alderperson Terrence seconded; motion carried. Resolution #107-2021 - Approval of 2022 Water Utility Budget and Rates Alderperson Hammel moved to approve. Alderperson Engelhardt seconded; motion carried. UNFINISHED BUSINESS Ordinance #1464 - An Ordinance to Establish Aldermanic District Boundaries in the City of Muskego. Second Reading. Alderperson Kubacki moved to approve. Alderperson Madden seconded. Motion passed 6 to 1 with Alderperson Engelhardt voting no. Ordinance #1465 - An Ordinance to Amend Chapter 30, Sections 30-1 & 30-2.A. (Polling Places & Election Officials). Second Reading. Alderperson Madden moved to approve. Alderperson Kubacki seconded; motion carried. Ordinance #1466 - An Ordinance to Amend Various Sections of Chapter 400 of the Municipal Code of the City of Muskego. Second Reading. Alderperson Engelhardt moved to approve. Alderperson Madden seconded; motion carried. COMMON COUNCIL 4 1 P a g e November 9, 2021 REVIEW OF COMMITTEE REPORTS • Finance Committee Minutes - October 12, 2021 • Plan Committee Minutes - October 5, 2021 LICENSE APPROVAL Approval of Change of Agent (Alicia H. Alexander) for the "Class B" held by Parkland Lodge LLC (Lucky's at the Lodge.) Alderperson Hammel moved to approve carried. VOUCHER APPROVAL Alderperson Terrence seconded; motion Utility Vouchers - $45,767.40 Alderman Kubacki moved to approve of Utility Vouchers in the amount of $45,767.40. Alderperson Engelhardt seconded; motion carried. General Fund Vouchers - $912,282.69 Alderman Kubacki moved to approve of General Fund Vouchers in the amount of $912,282.69. Alderperson Terrence seconded; motion carried. Wire Transfers for Payroll/Invoice Transmittals - $355,448.63 Alderman Kubacki moved to approve of Wire Transfers for Payroll/Invoice Transmittals in the amount of $355,448.63. Alderperson Hammel seconded; motion carried. CITY OFFICIALS' REPORTS None. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW Little Muskego Lake District - Alderperson Engelhardt reported they held their monthly meeting Ryan Wachholz is now chairperson, Patrick Moore continues as Treasurer and Jared Stawicki is the Secretary. The Mayor stated December Committee of the Whole items to be addressed will be confirming Lake District contribution fees for Lake Denoon versus Little Muskego, sewer expansions and ARPA funds. FUTURE AGENDA ITEMS Alderman Kubacki requested an HR Audit Update. Finance and Administration Director provided information the audit should be starting in the next two weeks. The audit should be completed by the end of the year. ADJOURNMENT Alderperson Madden moved to adjourn at 6:30 pm. Alderperson Wolfe seconded; motion carried. Minutes taken and transcribed by Assistant Deputy Clerk Roller.