Loading...
CCM.2022.10.25 APPRAPPROVED CITY OF MUSKEGO 4 of COMMON COUNCIL MINUTES , October 25, 2022 USKEGO 6:00 PM'�.1IL Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 6:00 pm. ROLL CALL Present: Alderpersons Wolfe, Hammel, Terrence, Kapusta, Kubacki, and Madden. Absent: Alderperson Schroeder. Also present: Finance & Administration Director Mueller, Assistant Finance & Administration Director Mustapich, Lead Planner Trzebiatowski, and Assistant Deputy Clerk - Treasurer Crisp. STATEMENT OF PUBLIC NOTICE Assistant Deputy Clerk -Treasurer Crisp stated the meeting was noticed in accordance with the open meeting law. PUBLIC COMMENT None. COMMUNICATIONS FROM THE MAYOR'S OFFICE Mayor Petfalski stated that early voting started todayand will continue until the Friday before the election, November 4. City Newsletter went out last week. Leaf pickup is underway and will continue around the City with a final round beginning on November 28 weather permitting. The November 8 Common Council Meeting which falls on Election Day has been cancelled. CONSENT AGENDA Alderperson Hammel moved to Approve the following remaining items under Consent; Aide rperson Terrence seconded. Motion Carried. • Resolution #095-2022 - Approval of Amendment to the Municipal Ordinance Deposit and Forfeiture Schedule Regarding Use of Cigarettes, Nicotine, Tobacco, and Vapor Products • Resolution #096-2022 - Approval for a Letter of Intent to Purchase a Vactor Truck (2023 Capital Item) • Resolution #097-2022 - Approval of Dedication of Public Improvements for MK/S-EP, LLC (Mallard Reserve) • Resolution #098-2022 - Approval of Letterof Credit Reduction for MK/S-EP, LLC PUBLIC HEARING To hear any citizen on the proposed 2023 City Budget Mayor Petfalski opened the Public Hearing. Ms. Mustapich provided the following information: Budget Overview • This evening will provide a Budget Overview for the City's operations, which include the General, Debt Service, Special Revenue and Capital Project funds. As presented within the Mayor's proposed budget, the process began several months ago with a projected deficit of over$1.2 million due to on- going levy limit restrictions and rising inflationary rates. The measures taken to balance the budget included allocating personnel costs to the respective funds work is being performed, deferring the Common Council Meeting Minutes October 25, 2022 Page 12 new patrol officer position, and requesting various health insurance program proposals. These cost reductions allowed for inclusion of the Public Safety and Public Works vehicle replacements and additional funding for the road program, resulting in a balanced budget proposal. Financial Summary • This next chart provides a Financial Summary of the City funds as outlined in the budget overview and include 2021 Actual, 2022 Projected and 2023 Budgeted Revenues, Expenditures, Fund Balance, and Tax data. As noted, the 2022-23 Net Fund Balance reductions are contributed to the Veteran's Park playground upgrade, significant funding dedicated to road project improvemen ts, and various other public safety and public works equipment purchases. • The 2023 Levy adjustment includes approximately $150, 000 to partially offset capital outlay project costs within the General Operation fund. Wage and benefit increases are proposed to be funded with additional interest earnings, vacancies being filled with lower wage new hires, reallocations to Utility and Conservation funds & anticipated health insurance renewal savings as noted earlier. City Tax Levy/Rate • Since the City Tax Levy is restricted by State mandates, the allowable increase only amounted to $118, 250 and was based off of 0.865% of net newgrowth, of which the entire increase will be utilized to offset the items noted earlier. State Statutes also allow for an adjustment to utilize Prior Years Unused Levy Carryforward. This amount is determined by taking a percentage of the unused allowable levy and calculated on a five-year rolling average. The remaining balance of $31,443 will aid in offsetting inflationary expenditures, as wall as future operating budget increases. However, this option will require a two-thirds Common Council majority vote. • As a result of the minimal levy increases, the estimated City tax rate is anticipated to remain the same at $3.81/$1, 000 of assessed value. • Of the total $14 million tax levy, approximately $11.5 million will fund expenditures for basic operations in the General Fund, $2.2 million will be dedicated for Principal & Interest payments and $350, 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; as well as being the lowest mill rate within the City for over two decades. Revenue & Expenditure Categories • The following slides summarize the General Fund Revenue and Expenditure categories reflecting a balanced increase of $405,111 or 2.44%. The monthly cost of proposed operating expenditures amounts to approximately $55.90 per capita using the latest population estimate of 25,343 and is slightly higher than the prior year. • Of total revenues, approximately 81 % are generated from Taxes and Intergovernmental Aids. The increases shown in the Miscellaneous category is the result of rising investment earnings. • As in prior years, the largest City expenditures category continues to remain within the Public Safety divisions equating to 47% of total General Fund operating costs, which is a minimal increase over the prioryear,and includes Police, Dispatcher, Volunteer Fire and Building Inspection services. The reductions within the other categories reflects the personnel cost reallocation and anticipated health insurance benefit savings. 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 $33 million, leaving a debt capacity limit of $175 million or 83. 47%, which amounts to a 4% increase over the prior year. The $5 million debt reduction over the prior year is contributed to the refunding of the 2013 $12, 625,000 General Obligation Bonds, resulting in a Net Interest Cost of 1.79% and Net PV Savings of $813, 000. • Future b orrowing plans, refinancing and deb t levy projections continue to indic ate 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 2023 resulted in a projected grand total for all funds combined of approximately $4.4 million and include Tax Increment related debt payments, various Park Common Council Meeting Minutes October 25, 2022 Par 13 improvements, and increased refuse and recycling hauling fees due to inclusion of the State tipping fees and residential growth within the community. Capital Projects • The Final Budget for reviewat this public hearing is the 2023 Capital Projects, and amounts to a net total of approximately $2.4 million, which is equivalent to the prior year. • Financing for the majority of items will be funded b y Landfill Host Fees and consist of various technology related and equipment requests from the Information Technology, Public Safety and Public Works departments; as well as $1 million dedicated to road project improvements which will be partially funded by the tax increment residual fund. Conclusion • This concludes the 2023 Budget Public Hearing Presentation. All proposed balanced budgets; including the tax levy, will be considered for approval by the Common Council this evening. No one wished to speak; Mayor Petfalski declared this Public Hearing closed at 6:12 pm. To consider the petition of Briohn Building Corporation on behalf of JiIly's LLC concerning the following area described as: Tax Key No. 2169.999.011 located at Commerce Center Parkway (Vacant) — to be granted a rezoning from BP-1 - Business and Office Park Support District to B-3 - General Business District for the purpose of allowing a future car wash. Mr. Trzebiatowski stated that the project has been proposed to the Plan Commission and has received PC approval. No one wished to speak; Mayor Petfalski declared this Public Hearing closed at 6:15 pm. To consider the petition of Jeffrey Natrop of Renner Architects concerning the following area described as: Tax Key No. 2169.993.014 located at Commerce Drive (Vacant) —to be granted a rezoning from BP-3 - Business Park District to B-3 - General Business District for the purpose of allowing a future car wash. Mr. Trzebiatowski stated that the project has been proposed to the Plan Commission and has received PC approval. No one wished to speak; Mayor Petfalski declared this Public Hearing closed at 6:16 pm. NEW BUSINESS Resolution #091-2022 - Approval of 2023 General Fund Operating Budget and Tax Levy. Alderperson Kubacki moved to Approve; Alderperson Wolfe seconded. Motion Carried. Resolution #092-2022 - Approval of 2023 Capital Budget Alderperson Hammel moved to Approve; Alderperson Terrence seconded. Motion Carried. Resolution #093-2022 - Approval of 2023 Sewer Utility Budget and Rates Alderperson Madden moved to Approve; Alderperson Kapusta seconded. Motion Carried. Resolution #094-2022 - Approval of 2023 Water Utility Budget and Rates Alderperson Kubacki moved to Approve; Alderperson Hammel seconded. Motion Carried. REVIEW OF COMMITTEE REPORTS Finance Committee Meeting Minutes - September 27, 2022 Common Council Meeting Minutes October 25, 2022 Page 14 FIRST READING OF ORDINANCES AND SECOND READING IF RULES ARE WAIVED Ordinance #1478 - An Ordinance to Amend the Zoning Map of the City of Muskego (BP-1 to B- 3/Jilly's LLC) Ordinance #1479 - An Ordinance to Amend the Zoning Map of the City of Muskego (BP-3 to B- 3/Natrop-Renner Architects) VOUCHER APPROVAL Alderperson Kubacki moved to approve Utility Vouchers in the amount of $424,059.85. Alderperson Wolfe seconded; motion carried. Alderperson Kubacki moved to approve General Fund Vouchers in the amount of $510,178.68. Alderperson Madden seconded; motion carried. Alderperson Kubacki moved to approve Wire TransfersforPayroll/invoice Transmittals in the amount of $369,059.25. Alderperson Terrence seconded; motion. CITY OFFICIALS' REPORTS None. COM M UNICATIONS AND M ISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW Updates from Aldermanic Liaisons None. FUTURE AGENDA ITEMS Alderperson Kubacki requested the status of the health insurance. ADJOURNM ENT Alderperson Terrence moved to adjourn at 6:19 p.m. Alderperson Kubacki seconded; motion carried. Minutes taken and transcribed by Assistant Deputy Clerk -Treasurer Crisp.