Finance Committee

900 Quay Street City of Manitowoc Manitowoc, WI 54220 www.manitowoc.org Meeting Minutes Finance Committee Thursday, November 9, 2023 5:30 PM Council Chambers & Remotely (Via Zoom) 1. Call to Order 2. Roll Call Present: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 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. Consent Agenda These items will be approved by one motion unless any Committee Member wishes to remove an item for discussion. REMOVAL OF CONSENT AGENDA ITEMS: Any Committee Member may request removal of any item from the Consent Agenda, and such item shall be removed without debate or vote. Any item or part thereof removed from the Consent Agenda shall be separately considered. Approval of the Consent Agenda Moved by Reckelberg, seconded by Sitkiewitz, to accept the Consent Agenda Items and recommendations of the various committees. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0943 Minutes of the October 3, 2023 Finance Committee meeting, recommending approval and place on file. Attachments: 10-3-2023 Finance Committee Minutes 23-0944 Minutes of the November 2, 2023 Finance Committee meeting, recommending approval and place on file Attachments: 11-2-2023 Finance Committee Minutes 23-0945 Minutes of various Manitowoc Public Utilities Commission Meetings, recommending accepting and place on file City of Manitowoc Page 1 Finance Committee Meeting Minutes November 9, 2023 Attachments: 2023-07-10 Minutes 2023-08-14 Minutes 2023-09-11 Minutes 2023-09-25 Minutes 2023-09-27 Minutes Special Meeting 2023-10-09 Minutes 5. Discussion and Action Items 23-0953 Alcohol Beverage Licenses Enforcement Policy Attachments: MEMO TO FINANCE RE ALCOHOL LICENSING POLICY Alcohol Licensing Policy Chairperson Brey pulled this item due to time constraints; to be discussed at the December Finance Committee regular meeting. 23-0946 3rd Quarter 2023 Investment Report Attachments: 3rd Qtr 2023 Investment Reconciliation Moved by Reckelberg, seconded by Schlei, that this Report be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0950 Amendment to Municipal Service Agreement between City of Manitowoc and Progress Lakeshore Attachments: Progress Lakeshore Amendment Email from AT Services Agreement FIFTH Amendment - Progress Lakeshore-Municipalities Moved by Schlei, seconded by Czekala, that this Amendment be approved. The motion carried by the following vote: Aye: 4- Brey, Schlei, Reckelberg and Czekala Abstain: 1- Sitkiewitz 23-0947 3rd Quarter 2023 Budget Exceptions Report Attachments: 1-Q3 2023 Budget Exception Report for Fin Comm Moved by Sitkiewitz, seconded by Czekala, that this Report be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0948 3rd Quarter 2023 CAWG Requests Report - Revised Attachments: 3rd Qtr 2023 Log of CAWG Requests - REVISED City of Manitowoc Page 2 Finance Committee Meeting Minutes November 9, 2023 Moved by Schlei, seconded by Reckelberg, that this revised Report be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0949 3rd Quarter 2023 Internal Controls to Prevent and Detect Fraud Report Attachments: 2023_03 Check List for Finance Committee Moved by Reckelberg, seconded by Czekala, that this Report be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0958 3rd Quarter 2023 Claims Report from City Attorney's Office Attachments: Jan-Sept 2023 Claims Report to Finance Committee Moved by Schlei, seconded by Reckelberg, that this Report be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0959 Tax Levy Certification from Manitowoc Public School District for Fiscal Year 2023-2024 Attachments: MPSD Tax Levy Certification Moved by Reckelberg, seconded by Schlei, that this Item be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0960 Tax Levy Certification from Lakeshore Technical College for Fiscal Year 2023-2024 Attachments: LTC City of Manitowoc Tax Levy Portion Apportionment 23-24 LTC Tax Levy Apportionment 23-24 Moved by Reckelberg, seconded by Czekala, that this Item be accepted and placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0951 Lease between City of Manitowoc and Century 21 Aspire Group LLC for Department of Tourism office space at 824 S. 8th St., Manitowoc, WI Attachments: 824 S 8th Street Lease 2022-2023 Extension to Lease Agreement for 2024 Moved by Sitkiewitz, seconded by Czekala, that this Lease Agreement be approved. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala City of Manitowoc Page 3 Finance Committee Meeting Minutes November 9, 2023 23-0952 2024 Special Events Application Fee Schedule and Resolution Attachments: Memo to Finance 2024 Special Event Application Fees Res for 2024 Special Event Application Fees Proposed Special Event Application 2024 Fee Schedule Moved by Czekala, seconded by Schlei, that this Resolution be adopted. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0962 Fiscal Impact Process Discussion Finance Director Alfred requested guidance and discussion on how the Finance Committee would like to proceed with the Fiscal Impact Process for Committee meetings and Common Council meetings going forward. Moved by Reckelberg, seconded by Schlei, that this Item be placed on file. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0795 Recommendation to Alleviate Pay Compression in Protective Services Attachments: Memo Pay Compression Prot Svcs COUNCIL 10. 2023.pdf Memo Pay Compression Prot Svcs 2023.pdf EPM Article 14 Compression Pay Language Draft 2023.pdf PD Compression Options Analysis This Item was discussed. Chairperson Brey made the decision to hold this item until the Budget Discussion later on the agenda. 6. Closed Session Notice is hereby given that the above governmental body may adjourn into a closed session during the meeting as authorized by Section 19.85(1)(g) of the Wisconsin Statutes, which authorizes the governmental body to convene in closed session for the purpose of conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved. The specific subject matter that may be considered in closed session is: 23-0841 L23-00143 - PHAJIT Claim for vehicle damage >$5,000 due to fallen tree during storm on 8/3/2023. 23-0954 Walgreen Co. Summons & Complaint for 2023 Tax Assessment 23-0955 L23-00129 B. Perkins Claim for damages >$5,000 23-0956 L23-00115 Shaw Claim for damages >$5,000 due to storm on August 3, 2023 City of Manitowoc Page 4 Finance Committee Meeting Minutes November 9, 2023 23-0957 L23-00168 Lakeshore Mall LLC/Lakeside Improvement LLC Claim >$5,000 Moved by Czekala, seconded by Reckelberg, that this meeting be convened in closed session. The motion carried by the following roll call vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 7. Reconvene in Open Session Moved by Schlei, seconded by Reckelberg, that this meeting be reconvened in open session. The motion carried by the following roll call vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0841 L23-00143 - PHAJIT Claim for vehicle damage >$5,000 due to fallen tree during storm on 8/3/2023. Moved by Schlei, seconded by Czekala, that this Claim be denied. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0954 Walgreen Co. Summons & Complaint for 2023 Tax Assessment No action taken on this item 23-0955 L23-00129 B. Perkins Claim for damages >$5,000 No action taken on this item 23-0956 L23-00115 Shaw Claim for damages >$5,000 due to storm on August 3, 2023 Moved by Sitkiewitz, seconded by Reckelberg, that this Claim be referred to the City Attorney's office for review. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0957 L23-00168 Lakeshore Mall LLC/Lakeside Improvement LLC Claim >$5,000 Moved by Reckelberg, seconded by Schlei, that this Claim be referred to the City Attorney's office and to authorize the City Attorney to investigate and deny the Claim at his descretion. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala 23-0928 Discussion and possible action on City of Manitowoc's 2024 Budget City of Manitowoc Page 5 Finance Committee Meeting Minutes November 9, 2023 Attachments: 2024 Mayor Proposed Budget 2024 Mayor Executive Proposed Budget Presentation 2024 Capital Borrowing - Finance Committee Proposed 11.02.2023 2024 Capital Borrowing - Mayor Proposed 2023 Tax LEVY for 2024 Budget - Finance Committee Proposed 2023 Tax LEVY for 2024 Budget - Mayor Proposed 2023 Tax RATE for 2024 Budget - Finance Committee Recommended Finance Committee Budget Recommendation - Fund 1100 - Interest Income Increase.Levy Decrease 2024 Budget_ 2023 Property Tax Bill - Assessed vs. Tax - All Municipalities 1.5 million for Road Projects SUGGESTIONS 5Yr.10Yr General and Library Employees Todd1 - The Good-Bad-and the Ugly Todd2 - City Tax Rate-Levy 2023-2024 Info Todd3 - 2024 Budget Notes Todd4 - General Fund History City of Manitowoc Finance Director Shawn Alfred stated that he did some further analysis on the Interest Income in the proposed 2024 Budget, and recommends increasing that budget line to a total of $450,000. Moved by Reckelberg, seconded by Sitkiewitz, that the budget for Interest Income be increased in the 2024 Finance Committee recommended budget to a total of $450,000 in the General Fund. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala Moved by Brey, seconded by Sitkiewitz, that Item #11 on the Road Projects Suggestions list (S. 19th Street - Summit Street to Flambeau Street and Summit Street from S. 18th Street to 150' west of S. 19th Street) be approved for inclusion in the 2024 Finance Committee recommended budget, at a cost of $250,000. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala Alderperson Brey stated that after further research and discussion with the owner of the new restaurant opening at the corner of S. 22nd and Washington Streets, he will not be recommending to revert the 900 block of S. 22nd Street back to two-way traffic. Brey also discussed looking into the possibility of adding an LED 'Do Not Enter' sign at the end of S. 22nd Street at Franklin Street to help deter wrong-way traffic. No motion was made; discussion only. Moved by Reckelberg, seconded by Brey, to approve including approximately $18,000 for the alternative option on the Protective Services Pay Compression Alleviation plan and removing $140,000 for the 10-year employee bonuses from the 2024 Finance Committee recommended budget. After some discussion, Reckelberg rescinded this motion. Moved by Reckelberg, seconded by Sitkiewitz, to remove $140,000 for the 10-year employee bonuses from the 2024 Finance Committee recommended budget. Moved by Sitkiewitz, seconded by Czekala, that the above motion be amended City of Manitowoc Page 6 Finance Committee Meeting Minutes November 9, 2023 to remove $100,000 of the $140,000 from the recommended budget, and leave $40,000 in the budget as a contingency salary line to be used by the Mayor's Office for adjustments throughout the year as covered by the current Equity Adjustment Policy. The motion to amend carried by the following vote: Aye: 3- Sitkiewitz, Reckelberg and Czekala Nay: 2- Brey and Schlei Amended motion to remove $100,000 of the $140,000 10-year bonus amount from the recommended budget, and leave $40,000 in the budget as a contingency salary line to be used by the Mayor's Office for adjustments throughout the year as covered by the current Equity Adjustment Policy. The motion carried by the following vote: Aye: 4- Brey, Sitkiewitz, Reckelberg and Czekala Nay: 1- Schlei Moved by Reckelberg, seconded by Sitkiewitz, to use $150,000 of the CAWG (Capital Allocation Working Group) fund balance to reduce the 2024 tax levy for Capital Projects. The motion failed by the following vote: Aye: 1- Reckelberg Nay: 4- Brey, Sitkiewitz, Schlei and Czekala Moved by Schlei, seconded by Reckelberg, to include the approximately $18,000 alternative option for the Protective Services Pay Compression Alleviation in the 2024 Finance Committee recommended budget. The motion failed by the following vote: Aye: 2- Schlei and Reckelberg Nay: 3- Brey, Sitkiewitz and Czekala Moved by Reckelberg, seconded by Czekala, that the budget as amended be moved forward to Council as the 2024 Finance Committee recommended budget. The motion failed by the following vote: Nay: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala The Committee discussed having another meeting to continue with the 2024 Budget recommendation discussion. Chairperson Brey announced that the next Finance Committee meeting, for budget discussion only, will be held on Thursday, November 16, 2023 at 4:30 pm in the Council Chambers. 8. Adjournment Moved by Sitkiewitz, seconded by Schlei, that this meeting be adjourned. The motion carried by the following vote: Aye: 5- Brey, Sitkiewitz, Schlei, Reckelberg and Czekala City of Manitowoc Page 7