Finance Committee

900 Quay Street City of Manitowoc Manitowoc, WI 54220 www.manitowoc.org Meeting Minutes Finance Committee Thursday, November 2, 2023 5:00 PM Council Chambers & Remotely (Via Zoom) 1. Call to Order 2. Roll Call Present: 4- Brey, Sitkiewitz, Schlei and Czekala Absent: 1- Reckelberg 3. Public Comment Finance Committee Chair Alderperson Brey declared the meeting open for public comment. In accordance with policy, the public comment portion of the meeting is not made part of the official record. 4. Discussion and Action Items 23-0928 Discussion and possible action on City of Manitowoc's 2024 Budget Attachments: 2024 Mayor Proposed Budget 2024 Mayor Executive Proposed Budget Presentation 2024 Capital Borrowing - Mayor Proposed 2023 Tax LEVY for 2024 Budget - Mayor Proposed 1.5 million for Road Projects SUGGESTIONS 5-year and 10-year recommendations for 2024 GENERAL EMPLOYEES 5-year and 10-year recommendations for 2024 LIBRARY EMPLOYEES Discussion of the proposed $1,500,000 allocated to various street projects for 2024. Alderperson Brey discussed the potential of reverting the 900 block of S 22nd Street back to two-way and would like to have a discussion with the owners of Grizzly's to get their views before pursuing. Alderperson Sitkiewitz announced that the Room Tax Commission had met earlier in the week and reviewed the budget as presented for the Tourism department (Visit Manitowoc) and they whole-heartedly endorsed the budget as presented. The Department will be fully funded by Room Tax dollars and the proceeds from the sale of the Visitor Information Center building. No Property Tax dollars will be used. Alderperson Sitkiewitz discussed the possible reconstruction of Michigan Avenue City of Manitowoc Page 1 Finance Committee Meeting Minutes November 2, 2023 from N Rapids Road to Indian Bluff. Requested that Engineering Division Manager Greg Minikel get him some numbers on what that would cost. Moved by Sitkiewitz, seconded by Czekala, that Item #3 on the Road Projects Suggestions list (Glenview Drive - Michigan Avenue to Seneca Lane) be approved for inclusion in the 2024 Finance Committee recommended budget, at a cost of $180,000. The motion carried by the following vote: Aye: 4- Brey, Sitkiewitz, Schlei and Czekala Moved by Czekala, seconded by Sitkiewitz, that Item #5 on the Road Projects Suggestions list (MacArthur Drive - Dale Street to 150' west of Meadow Court) be approved for inclusion in the 2024 Finance Committee recommended budget, at a cost of $640,000. Sitkiewitz made a friendly amendment to include the $25,000 for sewer work as well, for a total cost of $665,000. The amended motion carried by the following vote: Aye: 4- Brey, Sitkiewitz, Schlei and Czekala Alderperson Schlei asked why the recommended budget in the Data Processing department's Contractual Services section increased by over $300,000 from the 2023 budget. Finance Director Shawn Alfred explained that after evaluating past budgets vs. actuals, in the past the budget has been low compared to what we saw in actual costs. These lines include the City's share of the MPU IT department's salaries, which may or may not increase as much as currently anticipated, as well as any of the City's IT Projects and software updates that are required for our Cyber Security Insurance. Alderperson Schlei asked why the recommended budget in the Forestry department's Contractual Services section is lower than what has already been spent as of mid-year 2023. Alderperson Schlei acknowledged that the higher costs this year may be due to do the Ash Tree issue. Director of Public Infrastructure Dan Koski explained that since the City approved additional Laborer positions, the City is now able to do a lot more of the work with City staff instead of contracting the work out. Alderperson Schlei asked why there is an approximate 11% increase in the Salaries and Wages-Regular line in the DPW-Non Allocated Labor department. Director of Public Infrastructure Koski and Finance Director Alfred explained that partially due to 2024 being a Leap Year, non-exempt labor hours will increase from a typical 2,080 hours to 2,096 hours for 2024. Also, many of the employees that are in this department's salary budget are either being increased to the 5-year mark wage rate and/or receiving the 10-year bonus that was approved by Council. This also reflects the 2.5% increase that is being proposed for all employees. Alderperson Sitkiewitz asked why the Consulting Contracts line under the Attorney department has gone from zero spend in 2022 to a recommended $46,200 budget for 2024. Mayor Nickels and Finance Director Alfred explained that this is due to the elimination of the Assistant City Attorney position and the City's intention to contract out for a prosecuting attorney. The increase in this line was offset by the decrease in the Salaries and Wages-Regular line. Alderperson Schlei noted that, as the Council Representative on the Rahr-West Art Museum's Board of Directors, he whole-heartedly supports the $290,000 in the budget for the repair/replacement of the leaking roof at the museum, as this City of Manitowoc Page 2 Finance Committee Meeting Minutes November 2, 2023 building houses the City's investment of over $20,000,000 worth of valuable art. Alderperson Sitkiewitz stated that he has received limited feedback so far regarding the budget, but one constituent who reached out endorsed the repair/replacement of the Rahr-West Art Museum's roof, as well as the Marina Dock investment. Roll Call Present: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala Finance Committee Chair Alderperson Brey welcomed Alderperson Reckelberg to the meeting and filled him in on what had been discussed and voted on thus far. Alderperson Reckelberg made several suggestions on how he would like to see the budget reduced in order to lower the Property Tax increase. 5. Adjournment Moved by Sitkiewitz, seconded by Czekala, that this meeting be adjourned. Finance Committee Chair Alderperson Brey announced that the next Finance Committee meeting will take place on Thursday, November 9, 2023 at 5:30 pm in the Common Council Chambers. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala City of Manitowoc Page 3