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COMMITTEE OF THE WHOLE Packet 06-22-2021CITY OF MUSKEGO COMMITTEE OF THE WHOLE AGENDA 06/22/2021 5:30 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL STATEMENT OF PUBLIC NOTICE APPROVAL OF AGENDA NEW BUSINESS Update on Enercon Development Discussion Regarding Solar Power at City Municipal Buildings Discuss 2022 Planning Calendar and Budget Goals Budget Timetable 2022 (6-22-21).pdf 2022 Budget Summary Guide Proposal (6-22-21).pdf COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ADJOURNMENT The Committee of the Whole may possibly reconvene immediately following the Common Council meeting of the same date to continue work on agenda items. NOTICE IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE -STATED MEETING TO GATHER INFORMATION; NO ACTION WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE -STATED MEETING OTHER THAN THE GOVERNMENTAL BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE. ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS SERVICE, CONTACT MUSKEGO CITY HALL, (262) 679-4100. �w. cry or VSKEGO 2022 Budget Planning Calendar Tuesday, June 22nd, 2021— Committee of the Whole Meeting — Distribute, Discuss & Recommend Budget Timetable and Budget Goals Friday, July 3011, 2021— All Departmental Capital Budget and Personnel request forms due — submit copies to Mayor and Finance. Tuesday, July 27t'`, 2021— Big Muskego Lake Annual Meeting — 2022 Budget approval July - August 2021— Parks & Conservation Committee & Library Board work on proposed budgets and forward recommendations to Mayor and Finance & Admin. Department. Tuesday, August 10', 2021— Committee of the Whole meeting — Budget work to be accomplished: 1. Capital Projects Fund Budgets — (Expenditure & Borrowing) Monday, August 23rd, 2021— Departmental Operating and Special Revenue Budget request worksheets due — submit copies to Mayor and Finance. Tuesday, August 24t'', 2020 — Committee of the Whole meeting - Budget work to be accomplished: 1. Capital Projects Fund Budgets — continue discussion Friday, September 1 Ot", 2021 — Water and Sewer operating budget worksheets due — submit copies to Mayor and Finance. Tuesday, September 28t", 2021— Committee of the Whole meeting — Budget work to be accomplished: Mayor's Proposed Budget — Summary Comments including the following: 1. General Fund — revenue budget 2. General Fund — expenditure budget 3. Debt Service Fund Budgets 4. Special Revenue Fund Budgets Tuesday, October 12t", 2021 — Committee of the Whole meeting —Budget work to be accomplished: 1. Finalize City Budget Work Friday, October 22n1, 2021 - Public Hearing Notice Published (must submit notification to paper by 2:00 p.m. on October 201n) Tuesday, October 26t", 2021— Committee of the Whole meeting — Budget work to be accomplished: 1. Finalize City Budget Work (Tentative meeting if needed) 2. Discuss/Review Water & Sewer Utility Budgets Tuesday, November 9t", 2021 - Public Hearing (6:00 p.m. start time) Tuesday, November 9th, 2021— Common Council Meeting — Adopt 2022 Budgets (City Operating & Debt Service, Special Revenue, Capital & Utilities) and set City tax levy and tax rate K � . ue c4 Of SKEGO 2022 S'UMMAR Y B UDGET GUIDE ■ Definition of the Budget Process The budget process consists of activities that encompass the development, implementation, and evaluation of a plan for the provision of services and capital assets. • Mission of the Budget Process To help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. ■ Key Characteristics of the Budget Process • Incorporates a long-term perspective; • Establishes linkages to broad organizational goals; • Focuses budget decisions on results and outcomes; • Involves and promotes effective communication with stakeholders; and • Provides incentives to government management and employees. BUDGET KICK-OFF Mayor, City Council & Staff Departments Prepare Finance Analyzes & Projects Estlrnates Revenue & Expenditure Budgets for Mayoral Review Finance Prepares Proposed Budgets Budgets Submitted to City Council holds Public Hearing followed by Budget Adoption Note: Definition, Mission and Key Characteristics are recommended practices from the National Advisory Council on State and Local Budgeting which was created and endorsed by the Governmental Finance Officers Association. 3 PROPOSED Comprehensive Goals ■ Apply Net New Growth as Allowed per State Levy Limit ■ Maintain High Bond Rating ■ Limit One -Time Funding Sources with Exception of Non - Recurring Capital Purchases ■ Avoid Depletion of Special Revenue Funds ■ Support Economic Drivers, Including TID Creations and Incentives ■ Strengthen Efficiencies through Implemented & Measurable Shared Services ■ Recognize and Respect the Expertise of Incumbent Employees thru Competitive Pay Increases & Benefit Package ■ Abide by General Operating Fund Balance Policy ■ Budget Goal Setting as a Collaboration between the Committee of the Whole, Mayor & Staff Outcome ➢Maintain and Enhance Services for a Growing Community ➢Low Interest Rates & Reduced Fees on Debt Issuance ➢Focus is on Ensuing Budget vs. Prior Year Deficit ➢Accountability of Funds for Purpose Intended ➢Ensure Long -Term Viability for Economic Development ➢Cost Savings & Improved Customer Service ➢Maintain and Recruit Quality Workforce ➢Reinforces City's Fiscal Health Preservation ➢Transparency and Inclusive Team Results 4 • BUDGET CATEGORIES As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. GENERAL DEPARTMENT/ FUND GOALS OUTCOME ACCOUNT CATEGORY Mayor/Council Finance & Administration GENERAL Assessor Law Shared Services and Cooperation between Efficient Services GOVERNMENT Non -Departmental Departments Municipal Court Building Maintenance Information Technology Police Patrol Civilian Patrol PUBLIC SAFETY Volunteer Fire Planned Sound Investment Safe Community Non -Departmental Public Works & Development - Building Inspection HEALTH & Animal Warden HUMAN Senior Taxi Aid in Specific Public Safety Resources Health & Safety References SERVICES Public Safety Supplies Engineering Public Works Divisions - Administrative Maintenance Street Signs Storm Water Snow Removal Develop & Support Plans Safe & Well Maintained Infrastructure and Facilities PUBLIC WORKS Street Lights & Machines & Equipment DEVELOPMENT Garage Bridges & Dams Weed Cutting Parks Conservation Planning Division - Support Economic Drivers thm Community Development Balanced Use of Incentives Increased Commercial Tax Base Economic Development CULTURE, Parade & LML Contribution Cooperative Programs with Non -Compete Equity Between Lake Districts with Repsonsible Use of Tax Dollars Efficient, Cost Effective & Quality Programs RECREATION & EDUCATION Library Policy (program space needs/level of sufficiency) Recreation Transparency and Accountability CAPITAL Information Technology Apply General Accepted Accounting Principles ➢ Annual Equipment Replacements OUTLAY Police ➢ Estimated Useful Life over 1 Year Public Works ➢ Cost in Excess of $5,000 (equipment) & $10,000 (infrastructure) Maintain Minimum Reserve Equal to 0.50% of CONTINGENCY Non -Departmental Avoidance of Emergency Outside Funding Operating Expenses for Unforeseen Events ■ BUDGET CATEGORIES (continued) As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. FUND DEPARTMENT/ ACCOUNT GOALS OUTCOME Park Dedication 10% Contribution from Landfill Tipping Fees Per Agreement for Parks Projects Complies with Agreement Park Improvement Fund Track Subdivider Fees Against Relative Projects Quality Parks Uses per Comp Plan Refuse & Recycling Maintain User Rates for Waste Removal Service Fees Quality Service & Reasonable Rates Revolving Loan Determine use of Residual Fund Balance resulting from DOA Closeoout Program Potential Funding Source for Future One -Time Capital Projects and/or Residential Loans for Sewage Backup Expenses — Formerly Funded Local Business Loans Emerald Park Inc. & Future Parkland Administrative Engineering & Committee Fees to Monitor Landfill Operations Under Terms of Contract Accountability Standing Committees Maintain minimum $1,000,000 Fund Balance Under Terms of Contract Funds for Unforeseen Events Landfill SPECIAL Well Testing Reserve Contribution from Landfill Tipping Fees for Necessary Well Maintenance Complies with Agreement REVENUE FUNDS Land & Open Space Conservation 10% Contribution from Landfill Tipping Fees pp g Per Agreement for Respective Projects Conservation Initiatives/Comp Plan Storm water Priority Funding Per Landfill Agreement to Manage Storm Water Issues Complies with Agreement Retain & Increase Commercial Tax Base Residual TIF/capital Improvement Designated for Local Business Loan & Grant PYOgram -Recover Fund Balance with Tax Increments Potential Funding Source for Future One -Time Ca ital Projects and/or Residential p � Loans for Sewage Backup Expenses Tax Increment Districts Unless Added Value, Dedicate Tax Increments for Debt Payments & Maintain Closing Date Utilization of Tax Revenues by All Entities Anticipated TID Closing Date - Value to be Added to Tax Base (amount based off of 2020 data) / Actual Tax Increment: • TID #8 - Freedom Square 12/31/2021 - Increment Value = $9,299,800 / Taxes = $131,852 • TID #9 - CDA 12/31/2021 - Increment Value = $30,887,800 / Taxes = $437,924 • TID #10 - Moorland Gateway 10/31/2027 -Increment Value = $66,608,100 / Taxes = $944,363 • TID #I I - Parkland Towne Center 12/31/2037 -Increment Value = $23,843,100 / Taxes = $338,045 Community Development Authority Operating Expenses Incurred by Authority Supports Development of Identified Areas Compensated Absences Fund Maintain Full Funding in Reserve Utilization for Employee Payouts/Accountability *On -Going Fund Proposals - *Assessment Fund ➢Allocate $25K for Contracted Property Revaluation Expense Balanced Budgeting ➢Allocate $25K for Various Equipment Needs, including VFD *Equipment Fund Balanced Budget and EAuipment Investment • BUDGET CATEGORIES (continued) As defined per State Statute, the City's budgets are presented using budget categories which include various departments & accounts. The following chart provides brief comprehensive objectives for budget development of each category. FUND DEPARTMENT/ GOALS OUTCOME ACCOUNT Limit Debt Issuance to Long -Term Projects not Sound Fiscal Policy with Future User Contributions Utilizing Current Revenues Total Long -Term Obligations should not exceed Statutory Limit of 5% of the Equalized Fair and Equitable Taxation DEBT SERVICE General Obligation, Notes & Refundings Valuation of Taxable Property FUNDS Cap Total Annual General Obligation Debt (30% of Revenues)ity Financial Sustainabil Maintain Communications with Bond Rating Agencies & Provide for Full Continuing Transparency & Accountability Disclosure CAPITAL Existing Public Safety Building Evaluate Future Use Serving the Public Cost Effectively BORROWING/ EXPENDITURE Recreation Facilities Evaluation of Programs and Facilities Facilities that Serve Effective Programs FUNDS • FUND BALANCE The City's fund balance policy addresses the ideal level of fund balance to be maintained in the General Fund which is the primary operating fund of the City, as well as Committed Special Revenues. In general, as recommended by the City Auditors and GAAP, the policy objectives are to provide for the following: • Working capital to meet cash flow needs during the year (2 to 4 months of budgeted expenditures from the subsequent year) • Preserving the City's credit rating for borrowing monies at favorable interest rates and minimizing fees • Comfortable margin of safety to address unanticipated expenditures / emergencies and unexpected declines in revenue due to economic downturns, natural disasters, etc. • Resource to stabilize annual fluctuations in the property taxes paid by the City of Muskego taxpayers • Unfunded portion of accrued compensated absences liability