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.