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COWM.2023.09.05 (Appr- BUDGET MTG_2)CITY OF MUSKEGO COMMITTEE OF THE WHOLE MINUTES September 5, 2023 5:15 PM Muskego City Hall, W182 S8200 Racine Avenue CALL TO ORDER Mayor Petfalski called the meeting to order at 5:30 p.m. APPROVED ` v n W SKEGO ROLL CALL Present: Alderperson Wolfe, Alderperson Hammel, Alderperson Terrence, Alderperson Schroeder, Alderperson Kubacki, and Alderperson Madden. Absent: Alderperson Kapusta Also present: City Attorney Warchol, Public Works and Development Director Kroeger, Finance & Administrative Director Mueller, Assistant Finance & Administrative Director Mustapich, Planning Manager Trzebiatowski, Library Director Larson, Information Technologies Director Louden, Chief Westphal, Captain Fons, Sergeant Monreal, Sergeant Pelock and City Clerk Roller. STATEMENT OF PUBLIC NOTICE City Clerk Roller stated that the meeting was noticed in accordance with the open meeting law. APPROVAL OF AGENDA Moved by Alderperson Madden; seconded by Alderperson Schroeder to Approve. Motion Passed: 6 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Terrence, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None APPROVAL OF MINUTES Approval of Committee of the Whole Meeting Minutes - August 15, 2023 COWM.2023.08.15 (DRAFT - BUDGET MTG).docx Moved by Alderperson Kubacki; seconded by Alderperson Schroeder to Approve. Motion Passed: 6 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Terrence, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None NEW BUSINESS 2024 Capital Projects Fund Budgets: 2024-2028 Capital Budget DRAFT.pdf 1. Public Works and Development Divisions Mr. Kroeger spoke regarding changes to budget items that were discussed at the last meeting. 2. Library (Pages 34 - 35). Library Director Larson presented the requests. Project Name Expenditure Public Restroom Renovation *see notes below $10,000 Parking Lot Light & Safety Railing Maintenance $40,723 TOTAL $50,723 Notes *Public Restroom Renovation - adjusted to $10,000 from $181,447 (Adjusted TOTAL = $50,723 from $222,170). Consensus: 6 in favor Committee of the Whole Meeting Minutes — September 5, 2023 Page 12 Mayor Petfalski stated he was putting the meeting into recess at 6:03 pm to conduct the City Council Meeting. Committee of the Whole reconvened at 6:07 pm. NEW BUSINESS (continued) 3. Information Technology (Pages 5 - 8). IT Director Laudon presented the department requests. Project Name Expenditure Fiber Buildout — Park Arthur $43,900 Website Provider $26,970 Public Side Infrastructure $18,700 Disaster Recovery $18,000 TOTAL $107, 570 Consensus: 6 in favor 4. Police Department (Pages 17 - 28). Police Chief Westphal presented the requests. Project Name Expenditure Body Worn Cameras $75,871 Crossmatch $23,000 Squad Radio $8,500 SCIT Vests $12,000 SCIT Headsets $12,500 Handguns and Optic Changeover $65,000 Ammunition $100,000 Laser Radar Unit x2 $9,000 Rifle & Scope x2 $12,650 Radar Signs $7,065 Decor $6,000 Fence $60,000 TOTAL $391,586 Consensus: 6 in favor Mayor's Proposed 2024 Budget - Summary Comments including the following: --General Fund - Revenue Budget --General Fund - Expenditure Budget --Debt Service Fund Budgets --Special Revenue Fund Budgets Mayor Petfalski read his Summary Comments regarding the 2023 Proposed Budget. SUMMARY COMMENTS Last year 1 pointed out that the way we fund local government in Wisconsin was broken and the way we rely on the local property tax is not sustainable. This past summer the legislature responded after a coordinated effort by the League of Wisconsin Municipalities, many of my collegues from other communities and myself to push for an increase in state shared revenue. The legislature passed Act 12, which among many other things dedicates 20% of the state sales tax to local government funding, commonly referred to as shared revenue. While this added revenue is welcomed, shared revenue accounts for less than 5% of our budget and will only serve as a 1 to 2 year band aide and not a long term solution. To impact real changes to the budget issues local governments are facing, the state needs to look at re -implementing a levy increase Committee of the Whole Meeting Minutes — September 5, 2023 Page 13 floor to keep up with CPI and possibly look at a local sales tax solution to reduce the local property tax and allow communities to compete for revenue by becoming more business friendly. As we continue to grow as a community, we need to continue to monitor the investments in the services we provide to the taxpayers. Those services by and large are the product of our hardworking employees. We need continue to find ways to maintain our existing staff as well as recruit the best and brightest for open positions. This budget makes a priority of those goals so we can maintain the image of being a great community to live and raise a family. This 2024 city budget is built upon Council defined budget goals with desired outcomes in the best interest of Muskego taxpayers, and the 2024 Proposed Budget is consistent with that measure. Based on the agreed upon comprehensive goals of the Committee of the Whole, the balanced budget as prepared by the department heads and I is proposed to once again maintain a low mill rate of $3.80, which again is one of the lowest mill rates of any municipality in Waukesha County. This is the 3rd year in a row of maintaining this low rate. Following are the 2024 Comprehensive Budget Goals as approved by the Committee of the Whole: • Apply Net New Growth as Allowed per the State Levy Limit • Maintain High Bond Rating • Limit One -Time Funding Sources • Avoid Depletion of Special Revenue Funds • Recognize and Respect the Expertise of Incumbent employees thru Competitive Pay Increases & Benefit Packages • Abide by the General Operation Fund Balance Policy • Budget Goal Setting as a Collaboration between the Committee of the Whole, Mayor and Staff Budget Process: This evening, the Committee of the Whole received the 2024 Proposed Budget for initial review. We will, however, continue researching further budget adjustments as we go through this process. The goal is to have an approved budget on October 10th with a public hearing and budget adoption that evening. If there are specific questions regarding any line item, I encourage Council members to contact the respective department head in advance to discuss the item(s) to aid in identifying the precise information desired. Significant Changes from the 2023 to the 2024: Revenues The proposed 2024 general fund revenue budget reflects increase in shared revenue of $552, 000 from the passing of Act 12, investment earnings increase of $354, 000 and a tax levy increase of $140,115 and is within the State levy limit. The additional funds will be utilized to offset expenditure increases in protected services, technology, human resources, employee pay scale adjustments and merit increases. The added state shared revenue funding gives the City of Muskego just under $600, 000 in new revenue from the state. Since this funding source is tied to sales tax, it will grow with the economy. In addition, our net new construction has increased from about .86% last year to 1.61 this year, which allows for a levy increase of $140,115. Committee of the Whole Meeting Minutes — September 5, 2023 Page 14 Expenditures The proposed 2024 general fund expenditure budget is in balance with the proposed revenue budget, resulting in a 4.65% increase over 2023. In support of the goal to recognize and respect the expertise of incumbent employees this budget reflects a recommended cost of living adjustment of 2% in January and 2% additional in July pay for non -represented employees. The Police Union Agreement is tentatively approved by the bargaining committee, union leadership and just approved by membership. This agreement is a 3-year agreement calls for the following wage increases (2023 Jan 3%, July 1 %) (2024 Jan 2%, July 2%) (2025 Jan 2%, July 2%.) Employee recruitment and retention is important to continuing our mission to serve our citizens and as such we want to make sure our employees are being compensated in a fair manner when compared to other communities. To ensure that we are, the HR department is in the process of conducting a compensation study. Our goals are to adjust salary ranges and correct any positions whose salaries are out of our policies ranges and make sure job levels are equated to job duties. Due to the growth in the Recreation Department needs additional support carrying out the general office duties including answering phones, registrations, park shelter rentals, baseball field use entry, social media posting, invoicing/billing, covering office when staff are out in the field and more, we have included a part-time position to assist the recreation staff with these duties, allowing them to concentrate on more revenue generating programing. Finally, as discussed last fall, with the 2023 budget we had projected a significant savings in our healthcare cost, which ultimately were never realized we have a $260, 000 increase in the budgeted amount for health insurance. It should be stated, however, that our 2024 rates will have a 10% savings over our actual premiums. These expenses, along with added costs for elections, fuel & utilities, building maintenance and costs increases amount to a net expenditure increase of $790, 000 for 2024. Taxes Per the 2024 Budget Goals, the entire available net new growth is proposed to help fund increased expenditures within the general operating and debt service fund. Based upon Assessor provided data, the net impact will again produce an estimated City tax rate of $3.80 per $1, 000 of assessed value the same rate compared to the prior two years. Discuss / Review / Recommend 2023 Water and Sewer Utility Budgets Finance & Administration Director Mueller stated the Utility Budget will be shared electronically with the Alderpersons by the end of the week. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW None/No action taken. ADJOURNMENT Moved by Alderperson Wolfe; seconded by Alderperson Schroeder to Approve at 7:02 pm. Motion Passed: 6 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Terrence, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None Minutes transcribed and recorded by City Clerk Roller.