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CCM.2024.10.22 APPCITY OF MUSKEGO f+ COMMON COUNCIL MINUTES L• October 22, 2024 MUSKEGO6:00 PM Muskego City Hall, W182 S8200 Racine Avenue APPROVED AS AMENDED CALL TO ORDER Mayor Petfalski called the meeting to order at 6:06 pm. ROLL CALL Present: Mayor Petfalski, Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Also present: City Attorney Warchol, Finance Director Mueller, Associate Finance Director Mustapich, Public Works Planning Manager Trzebiatowski, Library Director Larson, Recreation Director Dunn, Human Resources Director Croteau, DPW Superintendent Beilfuss, Utilities Superintendent Bourdo, Conservationist Zagar, Information Technologies Director Loudon, Chief Westphal, Captain Fons, and City Clerk Roller STATEMENT OF PUBLIC NOTICE City Clerk Roller stated the meeting was noticed in accordance with the open meeting law on Friday, October 18, 2024. PUBLIC COMMENT There were no speakers present. COMMUNICATIONS FROM THE MAYOR'S OFFICE Mayor Petfalski noted that today was the first day of In -Person Absentee Voting (IPAV) with almost 1,000 voters who voted today, which is unheard of. Mayor thanked City Clerk Roller and her staff. Mayor Petfalski announced meetings will be following Robert's Rules of Order effective immediately to maintain structure, order, and respect. PUBLIC HEARING To hear any citizen on the Proposed 2025 City Budget. Public Hearing opened at 6:10 pm. 2025 Public Notice - Publication.pdf Associate Finance Director Mustapich provided a Budget Overview presentation: 1) 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 noted within the Mayor's proposed budget, levy limits and inflationary issues have made producing a balanced budget an extremely difficult process and required a coordinated effort with staff to propose adjustments within their departments. As noted in the prior year, other options and difficult decisions will be necessary for long-term solutions to fund rising costs and offset revenue reductions. 2) Financial Summary: • This next chart provides a Financial Summary of the City funds as outlined in the budget overview and include 2023 Actual, 2024 Projected and 2025 Budgeted Revenues, Expenditures, Fund Balance, and Tax data. As noted, the 2023-24 Net Fund Balance reductions are contributed to the Hillendale Road project, various recreation field maintenance, and several other public safety and public works equipment purchases. • Wage and benefit increases are proposed to be funded with additional interest earnings, transfer of funds from the Tax Residual fund and use of surplus funds within the General Operating Budget. Common Council Meeting Minutes October 22, 2024 Page 12 3) City Tax Levy/Rate: • Due to State mandates, the City tax levy continues to be restricted. The allowable increase included in the proposed budget amounted to $213, 738 and was based off of 1.82% of net new growth, of which the entire increase will be utilized to offset rising personnel costs. • As a result of the levy increase, the estimated City tax rate is anticipated to include a very slight increase from $3.82 to $3.83/$1,000 of assessed value. • Of the total $14.6 million tax levy, approximately $11.9 million will fund expenditures for basic operations in the General Fund, $2.2 million will be dedicated for Principal & Interest payments and remainder will be applied towards the active Tax District Increments. • For over 25 years, Muskego's tax rates have reflected a downward trend and includes a very marginal adjustment proposed for the upcoming budget year. 4) Revenue & Expenditure Categories: • The following slides summarize the General Fund Revenue and Expenditure categories reflecting a balanced increase of $890, 831 or 4.97%. The monthly cost of proposed operating expenditures amounts to approximately $61.20 per capita using the latest population estimate of 25,624 and is $2.60 higher than the prior year. • Of total revenues, approximately 80% are generated from Taxes and State Aids. The increases shown in the Miscellaneous and Other Sources categories are the result of investment earnings generated from CDARS program and use of surplus funds to give back to the tax payers. • The largest City expenditures category continues to remain within the Public Safety divisions equating to 48% of total General Fund operating costs, which reflects a significant increase over the prior year due to escalating health insurance premiums and pension rate adjustments. 5) 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 $28 million, leaving a debt capacity limit of $223 million or 86.72%. The $2 million debt reduction over the prior year is contributed to net scheduled payments and the City's strong financial position requiring no new debt issuance to finance capital projects. • Future borrowing plans and debt levy projections indicate potential increases, due to road conditions and water utility relay main replacements. 6) Special Revenue Funds: • Summarized in this following chart are the Special Revenue Funds, otherwise known as Specific Purpose Programs. • The expenditure activities for 2025 resulted in a projected grand total for all funds combined of approximately $4.6 million, which is slightly higher than the prior year, and includes Tax Increment related debt payments, various Park improvements, reallocation of the Conservation Coordinator's wages & benefits, and increased refuse and recycling hauling fees due to inclusion of the State tipping fees and residential growth within the community. 7) Capital Projects: • The Final Budget for review at this public hearing is the 2025 Capital Projects, and amounts to a net total of approximately $1.7 million, which is approximately $800, 000 less than the prior year. • Financing for all items will be funded by Landfill Host Fees and consist of various infrastructure related items and equipment requests from the Human Resource, Public Safety, Public Works and Library departments. 8) Conclusion: This concludes the 2025 Budget Public Hearing Presentation. All proposed balanced budgets; including the tax levy, will be considered for approval by the Common Council this evening. Ms. Kathy Chiaveratti, W129S8837 Boxhorn Reserve Dr. spoke to the budget and general suggestions. Public Hearing closed at 6:17 pm. Common Council Meeting Minutes October 22, 2024 Page 13 CONSENT AGENDA Alderperson Kubacki moved to Approve items under Consent. Seconded by Alderperson Madden. Motion Passed: 7 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None • Voucher Approval Vouchers - Total Sheet.pdf Voucher Report - Alpha.pdf • Resolution #060-2024 - Award of Bid (Idle Isle Boat Launch Replacement) CCR2024.060-Award of Bid (Idle Isle Boat Launch Replacement).docx Finance Memo - Idle Isle Park Improvements.docx BidWorksheet_9340130_Eval.pdf NEW BUSINESS Finalize & Recommend 2025 City Operating Budgets • Resolution #061-2024 - Approval of 2025 General Fund Operating Budget and Tax Levy CCR2024.061-2025 City Budget.docx CCR2024.061-Special Rev Budget Attachment. pdf -Alderperson Kubacki made a motion to Approve the budget as it stands with a provision for the Mayor take a look at the health insurance situation to determine if there are any potential savings. Seconded by Alderperson Madden. -Alderperson Schroeder made a motion to Amend the Operating Budget by removing the following items: $10,000 removed for IT Consulting $ 5, 000 removed for Audit & Special Accounting $15,000 removed from City Landscape $20,000 removed from TRF -uncompensated absences $20,000 removed from Leaf Collection $15,000 removed from Recreation Department rental fees $26,550 remove from HR Benefits Consultant $10,000 remove from Senior Taxi The motion was seconded by Alderperson Wolfe -Alderperson Decker made a Motion to Amend the Amendment by restoring the following items: Senior Taxi funds of $10,000 Health Care Benefit consulting of $26, 650. The motion was seconded by Alderperson Wolfe Roll Call Vote to Amend Motion Passed: 6 - 1 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Kubacki, Alderperson Madden Voting Against: Alderperson Schroeder Common Council Meeting Minutes October 22, 2024 Page 14 NEW BUSINESS (continued) Roll Call Vote on the Amendment to remove the above noted items, but keeping Senior Taxi and Health Consultant Motion Failed: 3 - 4 Voting For: Alderperson Wolfe, Alderperson Decker, Alderperson Schroeder Voting Against: Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki, Alderperson Madden -Alderperson Schroeder made a motion to amend the Operating Budget by removing the following items: $ 5, 000 removed for Audit & Special Accounting $15,000 removed from City Landscape $20,000 removed from TRF -uncompensated absences $20,000 removed from Leaf Collection $26,550 remove from HR - benefits consultant Seconded by Alderperson Decker Roll Call Vote to Amend The Amendment Failed: 5 - 2 Voting For: Alderperson Decker, Alderperson Schroeder Voting Against: Alderperson Wolfe, Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki, Alderperson Madden Vote on the Alderperson Kubacki's original Motion to Approve the 2025 Operating Budget as submitted. Motion Passes: 4 - 3 Voting For: Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki, Alderperson Madden Voting Against: Alderperson Wolfe, Alderperson Decker, Alderperson Schroeder • Resolution #062-2024 - Approval of 2025 Capital Budget CCR2024.062-Capital Budget.docx -Alderperson Kubacki made a motion to approve. Seconded by Alderperson Madden. -Alderperson Hammel made a Motion to Defer until Tuesday, October 29, 2024 Motion seconded by Alderperson Kubacki. Motion Failed to Defer. 4 - 3 Voting For: Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki Voting Against: Alderperson Wolfe, Alderperson Decker, Alderperson Schroeder, Alderperson Madden -Alderperson Schroeder made a Motion to Amend the Capital Budget by moving the Fire Pumper Truck to 2026, and use the funds to tear down the old Police Department and add parking. Alderperson Wolfe seconded the motion. Motion to Amend Failed: 4 - 3 Voting For: Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki Voting Against: Alderperson Wolfe, Alderperson Decker, Alderperson Schroeder, Alderperson Madden Vote on the Alderperson Kubacki's original Motion of Approve the 2025 Capital Budget. Motion to Passed: 5 - 2 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Schwer, Alderperson Kubacki, Alderperson Madden Voting Against: Alderperson Decker, Alderperson Schroeder Common Council Meeting Minutes October 22, 2024 Page 15 NEW BUSINESS (continued) • Resolution #063-2024 - Approval of 2025 Sewer Utility Budget CCR2024.063-Sewer Budget.docx Alderperson Schroeder moved to Approve. Seconded by Alderperson Schwer. Motion Passed: 7 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None • Resolution #064-2024 - Approval of 2025 Water Utility Budget CCR2024.064-Water Budget.docx Alderperson Schroeder made a Motion to Approve. Seconded by Alderperson Schwer Motion Passed: 7 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None REVIEW OF COMMITTEE REPORTS None. LICENSE APPROVAL Approval of Change of Agent (Theodore Schwulst) for the "Class B" liquor license held by TJ's Roundabout, LLC (dba TJ's Roundabout) located at S102W19570 Kelsey Drive Alderperson Kubacki made a Motion to Approve. Seconded by Alderperson Schroeder Motion Passed: 7 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None CITY OFFICIALS' REPORTS None. COMMUNICATIONS AND MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW None. FUTURE AGENDA ITEMS None. ADJOURNMENT Alderperson Schwer made a motion to Adjourn at 9:30 pm. Seconded by Alderperson Kubacki. Motion Passed: 7 - 0 Voting For: Alderperson Wolfe, Alderperson Hammel, Alderperson Decker, Alderperson Schwer, Alderperson Schroeder, Alderperson Kubacki, Alderperson Madden Voting Against: None Minutes taken and transcribed by City Clerk Roller.