Committee of the Whole

Committee-Of-The-Whole Meeting Minutes October 9, 2018 Mayor Nold called the Committee-of-the-Whole meeting to order at 5:35 PM. Members Present: Aldermen Zwart, Strey, Kowieski, Miller, Rosek, Shaw, Ellis and Spiegelberg Staff Present: Mayor Nold, Kitsembel, Sullivan, Buerger, Gallo, Duffy, Frye, Kelliher, Pickart, Freber, Bleck, Osborn, Tinus and Coenen 2. Report from Lake Country Municipal Court Operations Committee: Don Wiemer and Bob Douglas representing the LCMC Operations Committee gave a brief history of the court stating the City of Oconomowoc is the biggest user of court services and that the court has paid back all community contributions because by law the court cannot make money. The Operations Committee met, and all member municipalities (18) agreed unanimously to move court operations to the new Public Safety facility at a cost of $635,500 which would be paid through our annual rent payment for the buildout of 3,400 sq ft of space the court will occupy. Buerger stated there may be two more communities joining the LCMC and we need to consider growth as well as the safety of all City staff and court personnel when the PD moves. The court rent for the new location will be approx. $54K annually for 20 years. Kitsembel added that safety and security is at the forefront in determining what is best for the operations of the LCMC. 3. Consider/recommend Financing Structure for the Purchase and Initial Project Costs for the Property Located at 630 E. Wisconsin Ave.: Sullivan reported the City has borrowed from our reserves to pay for 630 E. Wisconsin Ave and Nold stated Council needs to decide if we should keep or sell the property. Kitsembel stated if the City chooses long term borrowing to pay for the purchase, we will be locked in for eight years and will not be able to pay it off early due to bonds/tax-exempt status. The Committee discussed the different site options Council looked at for a new PD, this building being the size needed if it passed inspections, keeping options open for a potential trading of property with a developer, lake frontage being valuable to the tax base, the site will accommodate future growth, factoring in $500K for parking lot reconstruction, building size being too large, long-term financing versus short-term financing and bidding the project to know cost. Kitsembel stated to look at other sites we will need resolutions of necessity to engage in conversations, therefore staff will need the site(s) specifically identified from Council. Motion by Rosek to recommend short-term financing as presented for 630 E. Wisconsin Avenue; second by Strey. The Committee requested the bid for construction be placed on the 11/6/18 Council agenda. Motion carried 7-1. Shaw voted no. The Committee took a break from 6:48 – 6:58 PM. 4. Consider/recommend Proposed 2019 City Budget: Sullivan gave a PowerPoint Presentation stating a Public Hearing will be held at Council on 11/6/18. Sullivan explained what is included in the budget; budget factors including changes to revenue and S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2018\C-O-T-W Min 10-9-18.doc changes to operating costs; the bottom line; General Fund by Dept (Administration, Finance, Clerk, Police, Fire, Public Works, Library, Parks & Rec, Planning and Economic Development); Special Revenue Funds; Debt Service Fund; Capital Project Fund; and Internal Service Funds. In summary the 2018 levy capacity is $571,064 and the proposed levy increase is $563,015 with includes a tax levy of 3.85% in net new construction, tax rate increase of 2.80%, and mill rate increase of $0.15 for a total tax change on an average home of approx. $37 ($12.25 for operating/Capital Levy and $24.50 for Debt Levy.) For future budgets, the Committee requested a comparison of what was budgeted for versus what was spent. Next the Committee went over each department’s budget asking questions about line items which the department head responded to. The Committee discussed inspection services, how much time an inspector spends in the City, cost for services versus hiring a full-time employee to do inspections and exploring hiring if we spend consistently over $200K/yr. Kitsembel stated staff will research and bring back to the Committee. The Committee also asked for a better breakdown of the Library Account #340, discussed cable service at the Community Center, had questions on boat mooring, mowing, carpet tile and car allowances, and requested more detail on engineering costs for proposed parks. Kelliher passed out a memo outlining budget scenarios for mowing operations and the NE Regional Park. Motion by Rosek to remove $5K from the budget for drug kits from Police Account 503-3300-360; second by Zwart. Motion failed 1-7. Rosek voted yes. Motion by Rosek to remove $600 from the budget for WIFI Hotspots from the Library Account 506-6100- 226; second by Shaw. Motion carried 6-2. Miller and Shaw voted no. Motion by Rosek to remove $1,325 from the budget for cable service from the Parks & Rec Account 507- 7210-226; second by Ellis. Motion failed 3-5. Strey, Kowieski, Miller, Shaw and Spiegelberg voted no. Motion by Ellis to remove car allowances for all Department Heads and implement a system to track and reimburse for actual mileage; second by Rosek. Rosek withdrew his second. Motion died. Motion by Shaw to eliminate the 2.5% wage increase for all elected officials (Mayor and 8 Aldermen); second by Zwart. Motion carried 6-2. Rosek and Ellis voted no. Motion by Shaw to recommend the 2019 City Budget as amended; second by Miller. Motion carried 6-2. Rosek and Ellis voted no. Sullivan stated Debt Service will be adjusted to reflect Short-Term Borrowing for the new PD facility and with the amendments made this evening there is a 1% reduction in the overall 2019 Budget. Motion by Shaw to adjourn the Committee-of-the-Whole meeting; second by Miller. Motion carried 8-0. The meeting adjourned at 9:57 PM. Minutes taken by Diane Coenen, City Clerk S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2018\C-O-T-W Min 10-9-18.doc