Min10 5 2020budgetwksp

Submitted for approval 12/14/2020 Village of Fox Crossing Special Meeting of the Board of Trustees – Budget Workshop Municipal Complex – Arden Tews Assembly Room Monday, October 5, 2020 - 5:15 pm Minutes 1. Call to Order President Dale Youngquist called the workshop to order at 5:15 p.m. Clerk Darla Fink noted those present in person including President Youngquist, Trustee Kris Koeppe, Trustee Mark Englebert, Village Manager Jeffrey Sturgell, Director of Finance Myra Piergrossi, Director of Community Development George Dearborn, Assistant Fire Chief Todd Sweeney, Director of Parks & Recreation Amanda Geiser, Judge Timothy Hogan, and Municipal Court Manager Mandy Bartelt. The following attendees were present via teleconference: Trustee Michael Van Dyke, Trustee Dale McNamee, and Trustee Barbara Hanson. Excused: Trustee Gregory Ziegler. There were three attendees. 2. Overview of the 2021 Budget Finance Director Myra Piergrossi advised she would actually begin with the Judicial Budget as to not keep Judge Hogan any longer than needed, and then will go into the overview of the 2021 Budget. Judicial Director Piergrossi noted all outstanding warrants are up to date and delinquent fines are now being submitted to the State Debt Collection Program, which resulted in a cost savings for the Professional Services Account. Judge Hogan noted this account may increase due to more people with warrants potentially failing to pay due to loss of income from COVID-19. The Legal Fees Account is currently an unknown due to the uncertainty of when Court will be able to go back to in-person trials, rather than handling via telephone. Judge Hogan stated he has begun having preliminary discussions with the City of Neenah Police Department and Municipal Judge to get a sense of the number of juvenile citations we will see in the Village once the new Neenah School is built. They also discussed how juvenile court is currently handled. All staffing and other costs have remained constant in this department. Director Piergrossi then gave an overview of the 2021 budget including discussion on the increase to the allowable levy limit, with the second highest Net New Construction (3.037%) we’ve seen for the Village. This levy increase equates to a $4.96 assessed tax rate, which is a decrease of an estimated 5.05%, due to the significant assessed value increase of $203 Million or 11.61%. The TID Assessed Value Increment is estimated at approximately $58 Million or 29% of the Village’s growth. Several departments requested an increase in staffing levels to continue to meet the requests/needs of the residents. The 2021 proposed budget includes one additional street/storm laborer and one weekday part-time firefighter (resulting in a slight decrease in paid-on-call hours). Director Piergrossi advised we are starting to budget for the amount that will need to be paid in the future once the SAFER Grant funds expire. We have one year remaining at the 75% Special Village Board Budget Workshop – October 5, 2020 2 funding level, before decreasing to 35% in the third year, and 0% funding by the fourth year. She chose to begin funding this year due to the high Net New Construction percentage. The Village will not qualify for the expenditure restraint program with the proposed 2021 budget due to our Equalized Tax Rate being less than $5.00, which is required to qualify, which will affect revenues in 2022. Medical Insurance is set to increase 4% in 2021 in the lowest cost state health insurance plan; Wisconsin Retirement System rates stayed the same for the general employee category (6.75%) and a slight increase for protected employees (+.02% to 11.84%); Dental Insurance is increasing 2%. The Police Union Contract ends 12/31/2023 so the contract rates are in the budget. This budget is offset with $522,625 of Fund Balance, estimated at 33% of next year’s budgeted expenditures. The budget includes over $60,000 of fund balance used in a negative TID. 3. Presentation of Departmental Budgets Parks & Recreation Director Piegrossi advised 2020 revenues have been low and are projected to be low for part of 2021 due to COVID-19. There is a requested increase in Pager Pay for 15 days or $150.00 for coverage on weekends/evenings. There was a small increase in hours for the long-term seasonal position and a small increase in summer hours for the Recreation Supervisor. The Park Account includes Woodland Prairie Park Services ($10,000 from fund balance), 5 year Comprehensive Outdoor Recreation Plan ($17,000 from fund balance), and Fritse Park Indian Mound Landscaping ($3,500 which includes a small offset from donations received). The Office Supplies Account shows an increase for the purchase of two storage cabinets. Trail Maintenance Account shows an increase for concrete repair work on CB Trail ($8,600 fund balance). Capital Vehicles Account includes a dump trunk that is currently not being funded in the Equipment Replacement Fund (ERF). Instead of repairing the current dump truck for $4,500, it was decided it would be better off to purchase a new vehicle and get it into the ERF program. The cost of the new dump truck is $75,500 which is offset with fund balance. In the Capital Other Account, a trailer to pull mowers is to be replaced ($7,500). Finally, the Miscellaneous Account includes ADA Transition pads for W. American Drive Trail ($9,600), picnic table replacement ($4,400), covered picnic table in Palisades Park ($5,000), and tennis and basketball court resurfacing ($12,500) and culvert/asphalt repair ($4,500) in Fritsch Park. President Youngquist asked how old the tennis and basketball courts are. Parks and Recreation Director Amanda Geiser advised they were last resurfaced in 2013 and the goal is to replace them on a seven year cycle. There are no new capital projects for 2021, but will need to rollover the funds ($25,000) for the Rydell Bridge Project for trail connection from the new bridge to Friendship Trail. The Board commended Director Geiser on her efforts during a very difficult year. Fire Department As previously mentioned, in regard to Revenues, we are budgeting for the Village’s increased funding related to the SAFER Grant as being able to fund these personnel when the Grant expires is the main new funding priority. Fire dues have increased based on costs in the Fire Department. The Fire Department is no longer performing tank permit inspections and will no longer be receiving revenue for this program. Vehicle incident response is down due to the Special Village Board Budget Workshop – October 5, 2020 3 highway being complete which decreases revenue as previously we would be billing out for more accident responses. Payroll includes the second year of the SAFER Grant which is 75% funded by the Grant, next year will go to 35% funding and 0% funding the fourth year. Overtime has been eliminated with the FLSA (7k) exemption but with the increase in straight total hours there is a slight increase in payroll expenses. There is a request for Shift Commander pay increase from $250/weekend to $350/weekend. The Building Maintenance Account includes the replacement of the bay door at Station 40, block a door at Station 41 ($9,000 from fund balance), exterior painting/caulking at Station 40 ($12,500 from fund balance), and replacement of two overhead doors at Station 40 ($7,500). In the Uniform Expenses Account, they are requesting to increase full-time uniform allowance by $50 per employee to get closer to the Police Department uniform allowance of $425 each for their full- time employees. They are also looking to fund uniform allowance for the paid-on-call firefighters of $200/year. The current part-time firefighters would be “grandfathered in” at $300/year, but all new part-time firefighters will only receive $200/year in uniform allowance. The Capital Equipment Account includes a riding lawn mower for Station 40 ($5,400 from fund balance) as they are now staffed daily and can now mow for themselves, rather than using the Parks Department to complete this task. They will not need a mower for Station 41 as the Parks Department is already mowing Palisades Park. The Fire Department is not requesting to use any ERF Funds. In the proposed budget, Ladder 40 is not being placed into the ERF due to financial restrictions with levy limits. Ladder 40 has a 24 year life expectancy which comes out to approximately $90,000 per year to fund, which would be our levy limit in some years so this will need to be a borrowed item in the future. There was considerable Board discussion regarding the amount of funding of a ladder truck replacement in the future. They borrowed for the current truck due to low interest rates, however what if a new ladder truck is not needed in 24 years. The Fire Department will likely look a lot different by that time, but we could consider throwing some funds into the ERF to start planning for the future. They stated they will come back to this in future budget workshops to finish this discussion. The Board questioned the amount for the riding lawn mower. Assistant Fire Chief Todd Sweeney advised this is the model that was recommended for their size lot. The Parks Department lawn mowers are much bigger than are needed for that site, so it would not make sense to transfer a used model to the Fire Department as they are much more costly. Chief Sweeney explained the Fire Department has to pay a fee for the accreditation process including the hotel, travel, rental car, time, etc. for the accreditors to visit the site. Now there are discussions about a hybrid visit which would decrease the costs, but he is very unsure if they will be able to participate that way. Chief Sweeney explained there are no EMS refreshers next year, as they are on a two year schedule, which was recently spread out to three years. A ten minute break was taken. Administration In the Subscriptions and Dues Account, the proposed budget includes the purchase of a handbook builder for the personnel policy manual which is being worked on right now with an annual maintenance fee of $360. In Personnel Recruitment, there is a $10,000 request for a recruitment video to display at recruitment events and on the village website. Village Manager Jeffrey Sturgell noted that cadets and firefighters pay more attention to the municipalities that have Special Village Board Budget Workshop – October 5, 2020 4 recruitment videos. Also, with COVID-19 issues, we could add something like this to the website. The initial focus with this video is for the Fire Department, but could be expanded to other departments as well. Assessor Director Piergrossi explained we are budgeting the same amount as last year, as we are in the third of the contract which runs through 2024. Next year’s assessment process already starts this time of the year, so we do budget to spend some money this year and next. She advised Addie Ebert received a promotion and our new assessor will be Josh Sherman at Accurate Appraisal. Finance The Revenue fund shows an increase in Weights and Measures with the new Speedway gas station. There has been a decrease in the dog/cat licensing category. Director Piergrossi explained they are unsure why, but planned for a decrease in future. There have been many real estate inquiries coming through due to interest rates being so low, which she kept constant in 2021. There is also a decrease of $8,310 in interest earnings. Payroll expenses remained consistent. The Impact Fee Study is to be completed to review Village impact fees due to recent law changes ($10,000 from fund balance rolled over from 2020). In the Office Supplies Account, two employees are requesting motorized stand up adjustable desks, and additional units could be purchased in the coming years for the rest of the employees. Director Piergrossi explained she is requesting to attend a conference in Chicago next year (if it remains scheduled) which includes cost for mileage, meals, lodging, conference fees, etc. In the Training Account, she included $2,000 for training in their software programs to become more efficient. Legislative This is the Village Board’s budget. In the proposed budget, they are requesting a video system in the Assembly Room to include very large TV screens rather than the one big screen in the middle for better viewing for a cost of $14,000 (with $9,800 from fund balance and $4,200 from utilities). The other item that was budgeted is for the Sound System Updates which include system wiring, microphones, and mixer for a cost of $7,000 ($4,900 from fund balance and $2,100 from utilities). They are looking to spend some of the money this year and roll the rest over to 2021. Finally, the League of Municipalities fee changed significantly, but nothing changed in the services we’re receiving for the cost. General Government (Miscellaneous) Director Piergrossi explained that revenues stayed mainly consistent; cable franchise fees have been reduced by .5% as the state is now paying that amount. Next year, the amount will change to 4% from the cable companies and 1% from the state. Everything nearly remains consistent in this category, but she explained this is where the contingency funds are kept which starts at a base of $30,000. This account now shows an increase of $100,000 to fund Fire Department wages in the future, and an increase of $85,000 which is roughly a 2% increase on wages for non-represented employees for salary raises. This proposed budget also includes a continued request for $500 for the Santa float. Special Village Board Budget Workshop – October 5, 2020 5 Special Revenue Funds The Per Capita Grant revenue is calculated at $1.12 per resident. The funds received for this can be used for economic development purposes, and can’t be used for the personnel hiring video. These funds can be used for promotion of the community or even the intern program. Director of Community Development George Dearborn would like to use these funds to promote local businesses and businesses moving into the Village. Room Tax revenues have increased since Cobblestone Hotel came to the Village and includes funds received from Air BNBs and from National Night Out. These funds can only be used for specific purposes to promote and support general tourism and development. We are receiving the highest amount we’ve ever received so the intentions for these funds should be discussed. There are projections of much lower numbers next year due to COVID-19. Tax Incremental Districts TID 1 (CFCU and Cobblestone): There has never been a debt issue with this TID, however in this year’s budget there is a request to borrow funds for road reconstruction/median repairs on W. American Drive between CB and Irish Road in the amount of $256,000. TID 2 (WOW, Probation and Parole, and OSMS): One of the parcels is no longer exempt and the Village will now receive a tax increment from that parcel as well. There has also been expansion in this area that goes directly to the Village. The debt payments are for Jacobsen Road Urbanization (County Highway CB – Cold Spring Road). TID 3 (Secura): There are two projects going on that have been borrowed for; Debt payments are for the methane monitoring station and electricity of the lights at the County Road CB roundabout. TID 4 (Vacant Land – Corner of Olde Buggy Drive and W. American Drive): This TID has never received a tax increment, but due to the increase in land value, we will receive a small tax levy increment this year. 4. Motion to Reconvene to the October 12, 2020 Budget Workshop which will begin immediately following the 6:00 p.m. Village Board Meeting At 8:30 p.m., MOTION: Trustee Koeppe, seconded by Trustee Hanson to reconvene to the October 12, 2020 Budget Workshop immediately following the Regular Village Board Meeting. Motion carried. Respectfully submitted, Darla M. Fink, Village Clerk Note: These minutes are not to be considered official until acted upon at an upcoming regular meeting, therefore, are subject to revision.