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Committee of the Whole

Regular Meeting

Oconomowoc, WI · October 5, 2023

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Minutes

City of Oconomowoc Committee-Of-The-Whole Meeting Minutes October 05, 2023 - 6:00 PM Aldermen Present: Matt Mulder, Charles Schellpeper, Andrew Moroni, Chris Douglas, Matt Rosek, Jennifer Aultman Kloth, Kevin Ellis, Karen Spiegelberg Also Present: Robert Magnus, Eric Boettcher, Hannah Brasch, Paige Brunclik, Diane Coenen, Robert Duffy, Kevin Freber, Jenny Froemming, Mark Frye, Jason Gallo, Jason Herzog, James Pfister, Tony Posnik, Jen Puccini, Bryan Spencer, Laurie Sullivan-Murray, Brad Timm Mayor Magnus called the Committee-Of-The-Whole Meeting to order at 6:00 PM. Committee Business a. Discussion/consideration of the 2024 City of Oconomowoc Budget Sullivan-Murray gave a PowerPoint presentation. The C-O-T-W reviewed and discussed each department’s proposed budgets. Comments included: Police – It was noted the FLOCK cameras are part of the Capital Budget, however the annual cost of operation, approx. $8K, should be included in the department budget. Staff was directed to bring that cost forward to C-O-T-W on 10/10/23. Public Works – Discussed the necessity of purchasing an additional plow truck (order in 2024) when we have two backup trucks and directed staff to further review. Discussion on adding one DPW position in 2024. Motion to remove the addition of a DPW crew position from the proposed 2024 Budget made by Schellpeper and seconded by Rosek. Motion failed 1-0-7. Voted no: Mulder, Moroni, Douglas, Rosek, Aultman Kloth, Ellis, Spiegelberg. C-O-T-W questioned the fire extinguisher inspection line item and asked if Western Lakes Fire District could do it without a charge. Library – It was noted that the Director reduced the original budget amount by $7K. Asked staff to look at Accounts 330 and 321 for possible reductions and information on Sunday foot traffic. Staff will provide information on 10/10/23 and noted Sundays are only open during the school year. Asked staff to check with the school district on how many students do not have access to WiFi and to continue to look at free WiFi and room rental revenue. Suggested adding a donation section on the rental form, to look at cutting programs and asked for metrics on program attendance. Motion to cut $2,250 from Account 212 Library Programs made by Rosek and seconded by Aultman Kloth. Motion carried 5-0-3. Voted no: Schellpeper, Douglas, Ellis. C-O-T-W took a 5-minute break: 7:35 PM – 7:40 PM. Spiegelberg left C-O-T-W at 7:35 PM. Parks, Recreation & Forestry – It was noted that the Waterfront Revenue 2023 Estimate in the workbook is $146K and as of 10/5/23 it is reported to be $164K. C-O-T-W asked Finance staff to do a report for the budget workshops when big differences occur. Recommended that staff look at consistent users for the lower level of the Community Center as it is under-utilized. Staff noted they cancel a class if registration does not cover 120% of the cost, in 2023 tanks needed to be rented for watering due to the drought, the City did not lose a lot of trees but there is die back, and part-time wages in 2024 will range from $13.75 - $15.50/hour. Requested information on 10/10/23 on what the $6K expense for the Senior Center and Silver Streak is being used for. 1 Committee-Of-The-Whole - October 05, 2023 Economic Development – Asked staff to report back on 10/10/23 if more of Duffy's salary (15-20%) and weed cutting, etc. can be paid from Tourism dollars. Requested staff to put together a policy (define the position) for the Marketing Intern. Staff stated it has been drafted but not shared yet. Concern with Waukesha County Center for Growth Membership expense and questioned what they did this past year. Duffy stated they are looking at putting their headquarters in the City; working on placement of a potential Medical Hub and they work with the school. Elected Officials – C-O-T-W would like to discuss the PTE Mayor position getting FTE benefits (health insurance), cost of living increases for Elected Officials which hasn’t increased in years, directed staff to do a 10-year average to determine increase and bring back on 10/10/23, and reduce the General Fund Contingency by $50K ($75K to $25K.) Staff stated FTE status is dependent on number of hours worked as the law requires benefits if it’s at least 1,200. Motion to cut General Fund Contingency by $50K made by Rosek and seconded by Ellis. Motion carried 7-0-0. It was noted that this will be further discussed on 10/10/23 due to Union negotiations. Finance - TIF 4 is ready to be closed and the Oz Plaza can use the remaining $180K from that TIF. A budget amendment will be brought forward in November, we will use Park Impact Fees for the Pickleball Court expansion and take out of the Unreserved Fund as much as possible. C-O-T-W consensus was to not use debt to fund Concord Road improvements. C-O-T-W asked if there is a way to get the department’s Publicity Expense tied together Citywide. Adjourn Motion to adjourn made by Aultman Kloth and seconded by Ellis. Motion carried 7-0-0. The meeting adjourned at 9:38 PM. __________________________________ Minutes taken by Diane Coenen, City Clerk 2 Committee-Of-The-Whole - October 05, 2023

Agenda

City of Oconomowoc Committee-Of-The-Whole Budget Workshop Thursday, October 05, 2023 - 6:00 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 Notice: If a person with a disability requires that the meeting be accessible or that materials at the meeting be in accessible format, call the City Clerk at least 48 hours prior to the meeting to request adequate accommodations. Tel: (262) 569-2186. 1. Call to order and confirmation of appropriate meeting notification 2. Committee Business a. Discussion/consideration of the 2024 City of Oconomowoc Budget - "PLEASE BRING YOUR WORKBOOKS" 3. Adjourn ________________________________ Diane Coenen, City Clerk City of Oconomowoc Notice is hereby given that a majority of the Common Council will be present at the above scheduled meeting to gather information about a subject over which they have decision-making responsibility. This constitutes a meeting of the Common Council pursuant to State ex rel. Badke v. Greendale Village Board, 173Wis. 2d 553, 494 N.W. 2d 408 (1993) and must be noticed as such, although the Common Council will not take any formal action at this meeting. 1 MEMORANDUM To: City Council From: Laurie Sullivan-Murray, Director of Finance/Administrative Services CC: R Magnus, Mayor, Mark Frye, City Administrator Date: September 13, 2023 Re: 2024 Draft City Budget We are pleased to present the draft of the 2024 City Annual Budget for your review. This memo provides a high-level overview of the budget changes included in the proposed 2024 General Fund budget. We will meet on Tuesday, September 19th for a more thorough overview, we will also distribute budget workbooks at that time. Budget Overview:  The budget is within the state’s levy limit requirements and funds current service levels.  The assessed value tax rate will decrease $0.34 from $5.11 to $4.77.  The budget presented to the Council includes $268,000 of revenue and expenditure adjustments from the original proposal to meet the State Levy Limits.  The total budget increase is 5.07%  Levy capacity still available is $29,155.  The proposed levy increase is shown in two parts, operations, and debt service. o The Levy increase for operations is $504,114 or 3.81%. o An additional increase of $423,443 is for 2024 debt service payments.  The average $400K home will see a tax increase of $120. 2023 BUDGET 2024 BUDGET MEDIAN RESIDENTIAL ASSESSED VALUE $350,000 $400,000 ASSESSED TAX RATE (PER 1,000) $5.11 $4.77 CITY PROPERTY TAX LEVY $1,789 $1,909 Levy Limits The City of Oconomowoc’s largest funding source is property taxes accounting for 57% of our general fund budget. Property tax levy increases are governed and limited by the State of Wisconsin. Municipalities are allowed to increase their levy by the percentage of net new construction growth in the community. In addition, the levy can increase for debt payments, annexations, and TIF closures. For 2023, the City may increase our levy over the prior year levy by $927,557 as shown below: Net New Construction (3.815%) $504,114 Debt Adjustment (Net) 423,443 Total $ 927,557 Page 1 2 Major Initiatives in Budget  Shared Revenue: Preserving $325,000 of the shared revenue increase for Council Policy direction.  Personnel -The addition of one DPW crew and one Locator/Fleet position using $117,00 of the Shared Revenue Increase. The addition of a full-time Communications employee decreases the General Fund levy by $11,060. The new position is funded without the use of Levy dollars.  Public Safety - 2024 incorporates funding to provide all city police officers with tasers and department issued handguns.  Infrastructure – 2024 includes additional funding for the Concord Road improvements.  Park Development – City is investing in phase 2 of the NE Regional Park, and Hickorywoods Park improvements.  Use of Fund Balance for Capital purchases - $600,000 for 2024 and a plan for the next 5 years.  Elections – The City will begin using Badger Books, an Electronic Poll book system in 2024.  ARPA Funding – The 2024 budget uses up the remaining ARPA funding to fund $400K of DPW equipment. Other Noteworthy Items  Salary & Benefits: The City’s largest operating expense is our workforce comprising 57% of the general fund’s expenses. o A 4% COLA adjustment has been included for all eligible employees effective January 1, 2024 ($315,020). Average adjustments seen are 3.5% - 5% for 2024. Higher for Protective Services. o Health insurance for 2024 is a 14.9% increase over 2023 ($230,130). The last time that our insurance took a double-digit increase was in 2008. The State has negotiated a 3-year contract so that while 2024 is a large increase, the next 2 years increases are not expected to be more than 5.7% per year. o Health insurance premiums increase for employees by $100/month. o WRS rate increases for general employees is 0.20% or $8,441, WRS rate for Police Officers increases 1.2% or $28,994. The Employees also pay the general WRS increase. o A new DPW Crew position is included in the budget. o The new communications position saves the General fund $11,060 with the elimination of the intern position previously funded in the Economic Development budget.  WLFD overall change in the operating budget is $582,269 of this $482,145 comes from Referendum dollars (20% of the Referendum), the remaining $100,124 increase comes from the City Levy. This reflects a 7% increase in the Levy dollars for WLFD operating budget. o Of the $100,124 increase, $44,769 comes from the 2% increase in budget and $55,355 comes from the formula update for ownership percentages. o  Fleet Charges increase is $106K for 2024. Increasing maintenance costs for older vehicles.  Other large budget changes of note are as follows: o Revenue reductions: We are not seeing any significant revenue reductions in 2024. o Revenue increases: Pilot payments from non-profits are increasing by $57,500, Interest Revenue is up $80,000, building permits up $30,000, Utility tax equivalent increases $107,000 and the increase in Sanitary Sewer License fees is $32,500. o Expenditure increases: Debt service levy increased $423,443. This includes current debt service and the additional amount for the 2024 Streets projects. The Risk Management budget (Liability insurance) increase is $48,700, Electric charges are up $20,350. o Expenditure Savings: Citywide fuel budget decreased $13,350, reduced contingency by $25,200, reduced salt reserves $23,700. Page 2 3 Budget Process The proposed budget schedule is below.  September 19 – Distribute budget books to Council.  September 19 – Finance/Committee of the Whole Meeting o Overview presentation to be given. Not a detailed budget review meeting.  October 5 – Finance/Committee of the Whole Meeting-Workshop #1 o Detailed review of General Fund Budget. Recommendation to Council/Public Hearing  October 10 – Finance/Committee of the Whole Meeting-Workshop #2 o Detailed review of Special Revenue Funds, Capital, and Internal Service Funds. Recommendation to Council/Public Hearing  October 12 – Reserved for Workshop #3 if needed.  October 13 – Required publication for Budget Public Hearing  October 24 – Utility/Committee of the Whole Meeting – Utility Budget Review  November 7– Public Hearing & Budget Adoption  December 18 – Mailing of Property Tax Bills Budget Workshop #1 – October 5, 6:00 p.m.- City Council Chambers Goal: Complete the General Fund Budget Review 1. Overview 2. General Fund Department specific questions. 3. Discuss Policy decisions: a. Review and discuss allocation of $325,000 of additional shared revenues. b. Review and discuss allocation of the 2023 surplus revenues from Interest and permits. c. Review and discuss Fund Balance reduction plan. d. Review and discuss planned use of Fire Reserve funds. Budget Workshop #2 – October 10, 6:00 p.m. – City Council Chambers Goal: Complete review of Special Funds, Capital Projects, Internal Service Funds 1. Overview of ‘Other’ funds 2. Review and discuss Special Revenue Funds 3. Review and discuss Capital Projects Fund 4. Review and discuss Internal Service Funds 5. Any other outstanding budget issues. Page 3 4

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