Committee of the Whole

Committee-Of-The-Whole Meeting Minutes August 4, 2020 Mayor Magnus called the Committee-of-the-Whole meeting to order at 6:47 PM. Members Present: Aldermen Rogers, Rosek, Zapfel, Ellis, Spiegelberg, Mulder, Schellpeper (6:53 pm) and Kowieski Staff Present: Mayor Magnus, Pickart, Sullivan, Frye, Hoeppner, Freber, Coenen, Lam and Dehnert 2a. Overview of Long Term Financial Plan and Capital Projects for 2021-2025 Sullivan gave a PPT presentation on City provided services to our growing community; revenue challenges; opportunities; five-year budget levy projection 2021-2025; identified capital needs vs funding level; revenue sources; 2021 capital requests; and funding opportunities. Sullivan noted the City provides a variety of services for the community and plans for the future demands of people coming into the City; the City has revenue challenges with only a few options for funding sources; most revenue is received through property taxes; capital needs have grown over time through the demands of its citizens; net new construction is 3.23% which reflects in an increase in the tax levy; and the City is in a strong financial position but we will be over the levy limit for the next 5 years, so we will have to look at other funding sources including service fees, impact fees, grants and debt. Sullivan reviewed levy limits, impact fees and fund balances, debt financing, and the unassigned fund balance. 2021 capital requests include street maintenance; Thackeray Trail; upgrades to the Peacock Dam; potential skate park; new squad car and other misc. items. The utility capital plan includes projects involving water, wastewater and electric departments. Sullivan noted there is a $1M funding gap as there are $1.9M of annual reoccurring capital expenditures. There are 4 funding opportunities which include moving fire protection costs to water bills; assigning street maintenance to the debt program; spend down the fund balance 1x; and use a portion of unused levy funds 1x. Members questioned how much of the debt will go away in the next 5 years; what is the point to the City reserving 25% of its budget; and what did the City do with the previous street funding program. Sullivan reviewed work sheets and distributed workbooks to the members. The next COTW meeting will be a working session on Tuesday, August 11th at 6:00 PM to review options on funding capital projects and discuss potential policy decisions as another funding mechanism. Motion by Mulder to adjourn the Committee-of-the-Whole meeting; second by Rosek. Motion carried 8-0. The meeting adjourned at 7:17 PM. Minutes taken by Chris Dehnert, Deputy City Clerk S:\Committees - Commissions\Committee-of-the-Whole\Minutes\2020\C-O-T-W Min 8-4-20.doc