Finance Committee

City of Oconomowoc Finance Committee Aldermen: Rosek, Chairman / Ellis, Secy / Spiegelberg Tuesday, March 02, 2021 - 7:00 PM City Hall - Council Chambers 174 E. Wisconsin Ave. Oconomowoc, WI 53066 (or immediately following Committee-Of-The-Whole) 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. Consider/recommend Resolution 21-R2930 Approving Amendments to the 2021 Budget for Continuing Appropriations b. Consider/recommend Resolution 21-R2931 Authorizing the Refund and Recovery of Unlawful Taxes - Opportunities Inc 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 DEPARTMENT Date: March 2, 2021 To: Finance Committee, Common Council and Mayor Magnus From: Laurie Sullivan, Finance Director Re: 2020 Continuing Appropriations Budget Amendment RELATES TO THE STRATEGIC PLAN Strategic Goal- N/A BACKGROUND Each year as part of our annual closing process, the Finance Committee reviews and makes a recommendation for continuing appropriations. A continuing appropriation transfers the budget and spending authority from one year to another. ADDITIONAL ANALYSIS The requests before you this evening are to carryover funds from 2020 to 2021. These items range from unfinished/uncompleted projects, to unpaid amounts on purchase orders, and specific requests for funding. Attached is a resolution summarizing the account number, original 2021 budget, carryover dollar request, and amended 2021 budget amount after the continuing appropriation. Following the resolution is a narrative document providing a brief description of each item. FINANCIAL IMPACT This resolution will transfer the budget authority from 2020 to 2021 for the specified budget line items. In addition this resolution designates fund balance in the amount of $15,000 for the future maintenance of the Community Center, $170 to Police Donations, $44,103 for street trees as part of development agreements for the street tree ordinance, and transfers from the General Fund the $81,000 of designated funds to complete the Roosevelt Shelter Construction to the Capital Fund. RECOMMENDATION Staff recommends approval of the attached resolution. SUGGESTED MOTION Recommend the approval of the Resolution Approving Amendments to the 2020 Budget and the 2021 Budget for Continuing Appropriations. 1 2  RESOLUTION NO. 21-R2930 APPROVING AMENDMENTS TO THE 2021 BUDGET FOR CONTINUING APPROPRIATIONS WHEREAS, the Common Council of the City of Oconomowoc approved the appropriation of funds for municipal and utility operations and capital expenditures; and WHEREAS, on March 2nd, 2021, the Finance Committee reviewed the various requests for continuing appropriations. NOW THEREFORE BE IT RESOLVED, by the Common Council of the City of Oconomowoc that the 2021 budget be amended for continuing appropriations and transfers, and fund balance classified as appropriate as follows: 2021 BUDGET AMENDMENT 2021 2020 Carryover Amended Budget Amount Budget POLICE ADMIN CLOTH/TOOL ALLOW 100-503-3100-346 1,800 91 1,891 POLICE OPS CLOTH/TOOL ALLOW 100-503-3300-346 13,200 3,957 17,157 POLICE OPS OPER SUP/EXP 100-503-3300-340 18,300 1,000 19,300 POLICE OPS SAFETY SUP 100-503-3300-341 8,150 14,679 22,829 MUNI GARAGE RPR/MAINT BLDG 100-505-5210-400 1,940 35,499 37,439 BRIDGES OUTSD SVCS NON-IT 100-505-5310-210 - 9,800 9,800 LIBRARY PROGRAMS 100-506-6100-212 15,000 200 15,200 LIBRARY MEMBERSHIPS 100-506-6100-320 3,265 352 3,617 LIBRARY BOOKS & REF 100-506-6100-321 91,000 45 91,045 LIBRARY PUBLICITY 100-506-6100-326 2,000 238 2,238 LIBRARY OPER SUP/EXP 100-506-6100-340 25,000 311 25,311 PLANNING OUTSD SVCS NON-IT 100-508-8100-210 5,000 12,500 17,500 ECON DEV P/T WAGES 100-509-9100-125 9,362 7,531 16,893 ECON DEV PROF SVCS IT 100-509-9100-211 5,000 5,000 10,000 ECON DEV GRANTS 100-509-9100-730 30,000 10,000 40,000 Total Fund 100 101,204 STREET CONST CAPITAL IMPRV 220-505-5300-820 - 325,436 325,436 Total Fund 220 325,436 PARK FAC CAPITAL IMPRV 223-507-7410-820 - 351,800 351,800 Total Fund 223 351,800 POLICE ADMIN CAPITAL EQUIP 231-503-3100-810 - 26,713 26,713 Total Fund 231 26,713 PARKS/PLAYGR LAND 232-507-7410-825 - 1,299,270 1,299,270 Total Fund 232 1,299,270 PARKING LT RECON CAPITAL IMPRV 404-505-5355-820 - 270,723 270,723 Total Fund 404 270,723 POLICE ADMIN CAPITAL BLDGS 408-503-3100-822 - 191,726 191,726 DISPATCH CAPITAL EQUIP 408-503-3200-810 - 10,112 10,112 SNOW&ICE REMVL CAPITAL VEH 408-505-5325-811 220,000 201,813 421,813 STREET CONST CAPITAL IMPRV 408-505-5300-820 5,010,000 733,298 5,743,298 BRIDGES CAPITAL IMPRV 408-505-5310-820 - 27,587 27,587 TRANSFER TO SRF - WATERSHED 408-590-9236-917 75,000 15,393 90,393 CITY BLDGS CAPITAL IMPRV 408-505-5510-820 - 266,724 266,724 PARKS/PLAYGR OUTSD SVCS NON-IT 408-507-7410-210 - 2,622 2,622 PARKS/PLAYGR CAPITAL BLDGS 408-507-7410-822 - 126,784 126,784 Total Fund 408 1,576,057 GEN PLANT OP RPR/MAINT BLDG 601-576-3621-400 12,000 3,059 15,059 GEN PLANT MAINT RPR/MAINT BLDG 601-576-3703-400 15,000 23,031 38,031 CAPITAL PROJECT OUTSD SVCS NON-IT 601-573-7000-210 20,000 45,039 65,039 CAPITAL PROJECT CAPITAL EQUIP 601-573-7000-810 3,039,000 67,151 3,106,151 PUMP STA O&M RPR/MNT EQUIP 601-575-3002-435 8,500 18,092 26,592 SAFETY & TRAINING CLTHG ALLLOW 601-575-3022-346 6,850 1,887 8,737 Total Fund 601 158,258 CAPITAL PROJECT CAPITAL EQUIP 602-573-7000-810 4,220,382 434,330 4,654,713 Total Fund 602 434,330 CAPITAL PROJECT MAINT CONT IT 603-573-7000-241 - 56,000 56,000 CAPITAL PROJECT CAPITAL EQUIP 603-573-7000-810 3,595,978 986,289 4,582,267 3  Total Fund 603 1,042,289 TECHNOLOGY LIC/PERMITS 700-579-1450-324 80,060 45,000 125,060 TECHNOLOGY TRAIN/TRAVEL 700-579-1450-330 7,000 6,000 13,000 TECHNOLOGY OPER SUP/EXP 700-579-1450-340 56,950 70,000 126,950 Total Fund 700 121,000 Total All Funds 5,707,080 2021 BUDGET AMENDMENT 2021 Transfer Amended Budget Amount Budget TRANSFER TO CAPITAL IMPR FUND 100-500-0900-914 336,000 81,000 417,000 TRANSFER FROM GENERAL FUND 408-409-9243-507 (305,000) (81,000) (386,000) Fund Balance Assignment ASSIGNED FUND BALANCE 100-36401 59,273 BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to publish a copy of this Resolution as a Class I Notice within ten days of the adoption of this resolution in accordance with Section 65.90(5)(a) Wisconsin Statutes. DATED: _______________________________ CITY OF OCONOMOWOC ATTEST: By: Diane Coenen, City Clerk Robert Magnus, Mayor 4  City of Oconomowoc Background Information on Continuing Appropriations (Carryovers) December 31, 2020 Police – Admin Cloth/Tool Allow ($91): Each officer is allowed to carry over a maximum of one year’s allowance. Police – Operations Cloth/Tool Allow ($3,957): Each officer is allowed to carry over a maximum of one year’s allowance. Police – Operations Operating Supplies/Expenses ($1,000): Donation received in 2020 for the drone program, which was unable to be spent in 2020. Police – Operations Safety Supplies ($14,679): Replacement of ballistic vests for officers required by department policy. Vests will be ordered in first quarter of 2021 to extend the usability of the vests. Public Works – Municipal Garage Repair & Maintenance of Buildings ($35,499): Open purchase order for the municipal garage trench drain, as the project is not able to be completed until after snowplowing in spring of 2021. Public Works – Bridges Outside Professional Services ($9,800): Carryover funds for crack sealing of bridge decks to be completed in 2021 as part of a larger project. Library – Programs ($200): Carryover unspent grant funds for supplies for Teen S.O.S. kits. Library – Memberships ($352): Carryover unspent grant funds for streaming subscriptions. Library – Books & References ($45): Carryover unspent grant funds for books for career kits. Library – Publicity ($238): Carryover unspent grant funds for marketing and promotion for grant projects. Library – Operating Supplies/Expenses ($311): Carryover unspent grant funds for miscellaneous supplies, including backpacks, mice, cases and office supplies. Planning – Outside Professional Services ($12,500): Carryover funds for the historical property inventory and review of isthmus standards, as the Planning Department was directed to wait until the 517/525 property matters were resolved. Economic Development – Part Time Wages ($7,531): Carryover remaining donation funding received for the Marketing & Communications Internship position developed in 2020. Economic Development – Outside Professional Services – IT ($5,000): In conjunction with the Utility department efforts related to a city-wide integrated GIS system, allocate funds to investigate and implement enhancements related to demographic data and business analyst elements. Economic Development – Grants ($10,000): Designate available façade funds for the property owner adjacent to the Wizard of Oz plaza to enhance the plaza backdrop to add to the attraction of the area and Downtown Oconomowoc. Highway Impact Fee – Capital Improvements ($325,436): Open purchase orders for the Thackeray Trail Extension for Phase One ($256,106) and Phase Two ($69,330). Park Facility Impact Fee – Capital Improvements ($351,800): Carryover funds budgeted for the Village Green restroom ($300,000), Rosenow Creek Trail Site Amenities ($32,000), and Northeast Regional Park Tree Planting ($19,800). Police Equipment – Capital Equipment ($26,713): Carryover remaining donated funds received for fitness room equipment. Save 517 – Parks/Playgrounds Land ($1,299,270): Carryover donated funds received to fund the 517 N Lake Road purchase. Capital Projects – TID 4 Parking Lot Reconstruction ($270,723): Open purchase order for the Collins Street south parking lot and retaining wall. Capital Projects – Police Admin Capital Buildings ($191,726): Open purchase orders for construction of new police facility ($116,051) and parking lot ($75,675). Capital Projects – Dispatch Capital Equipment ($10,112): Carryover funds needed to complete the remaining transition of dispatch equipment to the new police facility. Capital Projects – Snow & Ice Removal Capital Vehicle ($201,813): Open purchase order for DPW plow truck purchase. Capital Projects – Street Construction Capital Improvements ($733,298): Carryover funds for other street projects. Y:\Financial Statements\2020\Year End\Reconciliation & Support\Carryovers\Carryover 2020 Background For Council.docx 5 Capital Projects – Bridges Capital Improvements ($27,587): Open purchase orders for bridge repairs ($13,322) and maintenance ($14,265). Capital Projects – Transfer to Watershed Fund ($15,393): Carryover of budgeted funds for adaptive management program. Capital Projects – City Buildings Capital Improvements ($266,724): Carryover of budgeted funds for various city building projects delayed due to movement of police department. Capital Projects – Parks/Playgrounds Outside Services ($2,622): Carryover of budgeted funds for completion of parks and open space plan. Capital Projects – Parks/Playgrounds Capital Buildings ($126,784): Open purchase order for the Roosevelt Park Shelter ($41,410). Carryover remaining budgeted funds for the shelter ($4,374) and authorize use of assigned General Fund balance in 2019 to fund shelter in 2021 ($81,000). Wastewater – General Plant Operations Repair & Maintenance of Buildings ($3,059): Carryover funds for a door replacement that was not able to be scheduled in 2020 due to Covid. Wastewater – General Plant Maintenance Repair & Maintenance of Buildings ($23,031): Carryover funds for HVAC upgrades to the administration building that were not completed in 2020 due to Covid. Wastewater – Pump Station Repair & Maintenance of Equipment ($18,092): Open purchase orders for the drive replacement ($9,311) and flow meter replacement ($8,781) for the Second St. Lift Station. Wastewater – Safety & Training Clothing Allowance ($1,887): Carryover funds for reflective coveralls to replace rental uniforms, which are on back order. Wastewater – Work Order Clearing Outside Services ($45,039): Open purchase order for the engineering design services for Digester Cover and HVAC upgrades. Wastewater – Work Order Clearing Capital Equipment ($67,151): Carryover funds for open work order for replacement of HVAC equipment delayed due to Covid ($10,000) and open purchase order for the 2020 Streets Projects ($57,151). Water – Work Order Clearing Capital Equipment ($434,330): Carryover funds for open work orders including the Well #8 Drill and Cap ($152,136) and Well #8 Pump Station Design ($224,900). Open purchase order for the 2020 Streets Projects ($57,294). Electric – Work Order Clearing Capital Repair & Maintenance Contracts ($56,000): Open purchase orders for Electrical Staking software, system engineering services and training ($5,000) and Elements XS software and implementation ($51,000). Electric – Work Order Clearing Capital Equipment ($986,289): Carryover funds for open work orders including Second Street industrial service rehabilitation ($273,557), Jefferson Substation Circuit 203-204 Conversion ($148,884), Southwood Drive annexation ($350,000), and Skid Steer #56 Replacement, with the balance going towards the 2021 Multi-One Machine ($83,000). Also carryover open purchase orders for the 2020 Streets Projects ($45,048) and Transformers ($85,800). Technology – Machinery and Equipment ($192,552): Funds budgeted for the server replacement ($60,000), SAN addition ($50,000), IT Room addition ($82,552). Technology – Licenses/Permits ($45,000): Carry over budgeted funds for MS Office 365, Sequel, OnBase and OpenGov workflow licenses not purchased in 2020. Technology – Training/Travel ($6,000): Carryover budgeted funds for certification training for IT not completed in 2020. Technology – Operating Supplies/Expenses ($70,000): Carryover lifecycle desktops, laptops and tough books not deployed in 2020. Transfer from General Fund to Capital Improvement Fund ($81,000): The 2019 General Fund fund balance assignments included $81,000 for the Roosevelt Shelter. The shelter will be constructed in 2021. Budget amendment to transfer fund balance from the General Fund to the Capital Improvements Fund. Assigned Fund Balance ($59,273) – Designation of funds budgeted to accumulate the reserve for future capital improvements or repairs for the Community Center ($15,000), designation of funds received for street trees as part of development agreements for the street tree ordinance ($44,103), and designation of excess donations received by the Police Department ($170). Y:\Financial Statements\2020\Year End\Reconciliation & Support\Carryovers\Carryover 2020 Background For Council.docx 6  MEMORANDUM DEPARTMENT Date: February 24, 2021 To: City Council, Mayor Magnus, and City Administrator From: Laurie Sullivan, Finance Director Re: Refund and Recovery of Unlawful Tax – Opportunities Inc. RELATES TO THE STRATEGIC PLAN Strategic Goal-N/A BACKGROUND Opportunities, Inc. is a 501(c)(3) corporation and owns property at 1845 Executive Drive in the City of Oconomowoc. Grota Appraisals granted tax-exemption on June 5, 2019 but failed to change the property from taxable to tax exempt on the 2020 tax roll. Opportunities Inc. incorrectly received a 2020 tax bill in the amount of $29,761.03. Diane Cantwell, Vice President of Opportunities Inc. has filed a claim for the refund of the January installment ($9,761.03) paid and reduction of the remaining amount of the tax bill ($19,840). ADDITIONAL ANALYSIS Wisconsin State Statute 74.35 dictates the procedure for recovery of unlawful taxes. The claim by Opportunities Inc. was timely filed and the first installment was timely paid as required by State Statute. FINANCIAL IMPACT The City will be required to refund the full amount paid, rescind the 2020 tax bill and file a chargeback to the other taxing jurisdictions. The tax breakdown is as follows: City portion: $9,760.06 School District: $15,104.95 Waukesha County: $3,563.04 Waukesha Tech College: $705.19 Fowler Lake District: $31.27 State of WI $0.00 RECOMMENDATION 1 7 Staff affirms that the proper process was followed and recommends approval of the refund and recovery of unlawful taxes billed to Opportunities Inc. SUGGESTED MOTION Motion to Approve Resolution 21-R2931 authorizing the Refund and Recovery of unlawful taxes billed to Opportunities Inc. 2 8  RESOLUTION NO. 21-R2931 CONSIDER/ACT ON RESOLUTION 21-R2931 AUTHORIZING THE REFUND AND RECOVERY OF UNLAWFUL TAXES - OPPORTUNITIES INC. WHEREAS, Opportunities Inc., a 501(c)(3) organization has filed a claim to recover unlawful taxes ; and WHEREAS, Opportunities Inc. has been granted tax exempt status in 2020 by the City Assessor for property owned in the City of Oconomowoc ; and WHEREAS, the property at 1845 Executive Drive, Oconomowoc, WI was entered into the tax roll in error and therefore billed for 2020 property taxes ; and WHEREAS, Opportunities Inc. has followed the guidelines set out in the Wisconsin State Statute 74.35 by timely filing a claim and remitting payment for the first installment of the 2020 tax bill; and NOW THEREFORE, BE IT HEREBY RESOLVED, that the Oconomowoc City Council approves the refund of the 1st Installment payment in the amount of $9,921.03 and rescinds the 2020 tax bill in the amount of $29,761.03; and BE IT FURTHER RESOLVED, that the Oconomowoc City Council authorizes the appropriate City staff to proceed with the Charge back or rescinded taxes for the 2020 tax bill for parcel OCOC 0634 999 015 as allowed through Wisconsin State Statutes 74.33 and 74.41. DATED: CITY OF OCONOMOWOC By: _____________________________ Robert P. Magnus, Mayor ATTEST: Diane Coenen, Clerk 9 10 11 12 13 14