Finance Committee

City of Verona Finance Committee City Hall – 111 Lincoln Street Verona, WI 53593-1520 MINUTES FINANCE COMMITTEE SEPTEMBER 13, 2021 The meeting was called to order by Chairperson Chad Kemp at 5:34 p.m. Roll Call: Chairperson Chad Kemp, Alder Kate Cronin were present and Alder Christine Posey was stated she would be late. Also present: Mayor Luke Diaz, City Administrator Adam Sayre, Finance Director Brian Lamers, Police Chief Bernie Coughlin, Police Lieutenant Dave Dresser and FitchRona EMS Chief Patrick Anderson. Discussion and Possible Action regarding approval of August 23, 2021 Finance Committee minutes: Motion was made by Kemp, seconded by Cronin to approve the August 23, 2021 Finance Committee minutes with no changes noted. Motion carried 2-0. Alder Posey present at 5:36 p.m. Discussion and Possible Action regarding any Updates or Information on the 2022 Budget, Department Budget Presentations: Chief Coughlin presented the 2022 Police Budget. He passed out a memorandum that addressed any amounts that changed more than $5,000 to the Committee. He explained the Personnel Services increase was 4.05% which consists of 3% COLA and applicable fringe benefits. He then went over operating cost with a total proposed increase of 4.81%. An increase of other contractual services was mainly due to legal services of $4,500 moved from City Council Budget. Other supplies and expenses increase of 8% was due to an increase of $2,500 for a new hire uniform because of a retirement and fuel from $2.30 a gallon to $3.10 a gallon. He also went through Data Processing increased by 9.5% which is the City’s portion of the Multijurisdictional Public Safety Information System (MPSIS). Chief Coughlin stated that in the budget there was still no reimbursement or agreement in place for the Police School Liaison Officer. Chief Coughlin went over the listing of Capital Items. Chief Coughlin stated in the Emergency Preparedness Budget there were not much in changes from last year. Chief Anderson went through the EMS Budget, he stated wages and benefits increase are based on the union contract. He stated medical supplies costs have increased significantly due to COVID. He discussed issues and cost of repairs and parts and how cost and how long repairs have taken with getting parts. He stated there was an increase in insurance with the third station which has more equipment to insure and the cost increase. Chief Anderson explained that the run revenue was down by 12.2% ($218,141) which was shifted to the Municipalities. One of the main reasons for the reduction was a spreadsheet formula that was used to calculate run income www.ci.verona.wi.us was changed when the 3rd Ambulance was added in 2019. The calculation overestimated the run income for 2020 budget and now 2021 budget. This has been corrected and now has an impact on 2022 budget. Chief Anderson explained that with the WDOR error in assessment values the City of Verona is lower than what it should be and with the 2023 budget and the 2022 correction goes back to normal the City of Verona’s portion may have approximately the same increase in 2023. Discussion took place regarding the fund balance and what it was going to look like going forward. Further discussion took place regarding the budget. One of the questions Sayre asked the Committee was if we should continue to try to keep the 3% COLA in the budget. The Committee felt like we should try to maintain the 3% COLA. Discussion and Possible Action regarding Resolution 21-037 Authorizing the Redemption of the City’s General Obligation Corporate Purpose Bonds, Series 2011 Dated July 27, 2011: Lamers stated that there are only 2 years of payments for this TIF 6 bonding and we have the funds in the TIF 6 fund to pay it off early. If we pay it off early it would save in TIF 6 over $26,000 in interest expense. Motion was made by Kemp, seconded by Cronin to recommend to Common Council to approve Resolution 21-037 authorizing the redemption of the City’s General Obligation Corporate Purpose Bonds, Series 2011 dated July 27, 2011. Discussion and Possible Action regarding the City Investment Report for August 2021: Lamers stated investments are up due to the August tax settlement from Dane County for about $6 million dollars. Discussion and Possible Action regarding the Revenue and Expenditure Summary Report for August 2021: Lamers stated nothing much to report except that investments are still down and we will be getting 3rd quarter room tax numbers at the end of October. Discussion and Possible Action regarding the payment of bills: Motion was made by Kemp, seconded by Posey to approve the payment of bills totaling $916,955.74. Motion carried 3-0. Adjournment: Motion was made by Cronin, seconded by Posey to adjourn the Finance Committee Meeting at 6:20 p.m. Motion carried 3-0. Respectfully submitted, Brian Lamers CPA Finance Director www.ci.verona.wi.us