Committee of the Whole

Committee-Of-The-Whole Meeting Minutes September 26, 2017 Mayor Nold called the Committee-of-the-Whole meeting to order at 6:18 PM. Members Present: Aldermen Kowieski, Miller, Rosek, Shaw, Ellis and Schmidt Excused: Aldermen Zwart and Strey Staff Present: Mayor Nold, Kitsembel, Sullivan, Buerger, Gallo, Duffy, Frye, Kelliher, Pickart, Steinbach, Bleck, Osborn, Pfister, Lesniewski, Golz, Schuh, Tinus and Coenen 2. Discussion on Proposed 2018 Western Lakes Fire District (WLFD) Operating Budget: Sullivan handed out a spreadsheet titled Western Lakes Fire Budget Proposal – Notes and went over the highlighted areas explaining the changes staff proposes to the District’s 2018 budget. Starting on Page 1, Fire Insurance Dues – increase by $4K; Ambulance/Fire Contract Revenue – increase by $19K based on trends while still including a 2% expected revenue increase; Ambulance Billing Service – increase by $6K due to additional collections which will be a net gain of $13K in revenue; Station 1 Utilities (Pabst) – decrease by $9K because based on past usage at the station we estimate the expense at $30K (WLFD estimates use at $47K) and while decreasing it still includes a 5% inflation increase; EMS Disposables – decrease by $3K based on trends while still including a 5% increase for inflation; Health Insurance – decrease $5K because health rates have decreased 1.09% from 2017; removing the Oconomowoc charges from Dispatch/Trunked Radio System because there is no budget affect for WLFD because it is a City expense and is part of our budget; and removing the $100K City contingency contribution to the WLFD as it is not part of the Operating Activities. Kitsembel defined the State Health Insurance Plan, how it operates and the maximum percentage the WLFD can contribute. The City is suggesting to change the proposed Health Insurance line item to $198K which is more than they budgeted in 2017 but is a decrease of $5K in 2018. For the contingency fund that the City needs to contribute to, as the other communities in the District have, Nold suggested proposing an arrangement to the District that the $100K contingency the City will pay could be paid back to us, as well as the other communities proportionately once the District reaches 15% of the overall budget in the contingency fund. The Committee also suggested paying 1/3 of the $100K each year for three years or 50% each year for two years. Staff noted that the District will need to have approx. $530K in contingency to reach the 15%. The Committee suggested reducing the Physicals, Recruitment and Membership line item by $2.5K - $3K. Sullivan stated the overall levy increase with our proposed changes would be 3% versus 5%. Next Buerger reported on the Waukesha County Dispatch services the WLFD requests the City join for Fire/EMS calls. The County is requesting $49,120 from the City to contract for dispatch services. At that rate the County is factoring that our Fire/EMS calls would make up 30% of the dispatch calls. The industry average is 15% and Buerger sent three years of numbers to the County to show our average is 10 – 11%. Also, the feasibility study we just had done indicates those calls to be 10%. Buerger also noted that when we were in discussions for the merger there were no concern with using two dispatch centers, Waukesha County and the City. The Committee stated they would be comfortable with a 10 – 15% ratio to transfer our Fire/EMS calls to Waukesha County. Buerger will work with the County to negotiate a reduction in their proposed contract cost. S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2017\C-O-T-W Min 9-26-17.doc 3. Consider/recommend Proposed 2018 City Budget: Sullivan gave a Power Point presentation starting with the bottom line. The 2017 tax levy has 1.88% ($173,266) net new construction; the levy increase for 2018 includes a tax rate increase of 2.98%; the Mill Rate increase is $0.06 and the total tax change on an average home is approx. $14.00. Next Sullivan outlined the budget factors that affects all depts., stating health insurance increased 3.0%; COLA is at 2%; there is an increase in the Fleet and Technology allocation due to the Fire Dept. merging with the WLFD and a favorable Mod Rate decreased workers compensation costs. Sullivan then went over the General Fund, Dept. by Dept. as laid out in the budget binder, outlining notable budget variances for each. The Committee had questions and discussion for each dept. and some suggested changes for various line items. All questions were answered by staff and then the Committee offered amendments: 1) Motion by Rosek to reduce the training and travel expense in Elected Officials/Administration from $4K to $3K; second by Ellis. Motion carried 6-0. 2) Motion by Rosek to eliminate the membership dues for the League of Wisconsin Municipalities in City Clerk in the amount of $5,735: second by Ellis. Motion failed 1-5. Kowieski, Miller, Shaw, Ellis and Schmidt voted no. 3) Motion by Shaw to eliminate $10K from the Library budget for Outside/Prof Services (Non-IT) for a TNR Community Assessment; second by Schmidt. Motion carried 5-1. Miller voted no. The Committee continued discussions on reallocating the $10K for other Library expenses and asked Bleck to bring back to the Committee on October 3rd other areas where those funds could be used. After the amendments, the Committee revisited the Park & Rec Dept. revenues, specifically the fee residents pay for a daily and annual swim band. The Committee would like to see a reduced fee or no fee at all for City residents and potentially an increased fee for non-residents. Kelliher will put together some daily fee calculations, a maximum rate schedule for families and provide that information to Council in their Friday packet. In closing, Nold stated the Committee will meet again on October 3rd to finish the review of the Budget. Also, Council will have a WLFD meeting on Wednesday, October 4th at 6 PM at the Aurora Medical Center. The City will be prepared to offer our services, for a fee, to prepare their future budgets in the same format as ours. Motion by Kowieski to adjourn the Committee-of-the-Whole meeting; second by Ellis. Motion carried 6-0. The meeting adjourned at 9:50 PM. Minutes taken by Diane Coenen, City Clerk S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2017\C-O-T-W Min 9-26-17.doc