Number
001202
Version
SUBSTITUTE 3
Reference
Sponsor
ALD. HERRON, PRATT, GORDON, BOHL, DONOVAN, HINES, PAWLINSKI, HENNINGSEN, JOHNSON-ODOM, MURPHY, SANCHEZ, CAMERON-ROLLINS, RICHARDS, D'AMATO AND BREIER
Title
Substitute resolution establishing a Strategic Budget Planning Task Force.
Analysis
This resolution creates a 10-member City of Milwaukee Strategic Budget Planning Task Force. The Task Force is directed to investigate the issues that have led to the recent City budget problems and to develop specific actions and policies that can be taken or adopted to put the City on long-term solid financial footing. The Strategic Budget Planning Task Force shall submit a written report of its findings and recommendations to the Common Council by December 31, 2001.
Body
Whereas, In recent years, the City of Milwaukee has faced increasingly severe challenges in developing an annual City budget that is fiscally prudent, maintains City service levels, provides funding for desired new initiatives and results in a tax rate acceptable to Milwaukee property taxpayers; and
Whereas, Formulation of the 2001 Budget was particularly challenging and not only resulted in the first increase in the property tax rate in 13 years, but also included the creation of a $44-per-household solid waste collection fee; and
Whereas, The higher tax rate and new solid waste fee, combined with the recent city-wide property reassessment, mean that the average Milwaukee property owner will pay substantially more in taxes and fees in 2001; and
Whereas, Several long-term trends are responsible for the City's ongoing fiscal problems, including:
1. Salary and benefit (especially health care) costs for City employees have been increasing faster than the rate of inflation.
2. As an older city, Milwaukee has significant infrastructure repair and replacement costs.
3. City revenues, while increasing, have not kept pace with increasing wage and benefit costs.
4. The City's state-shared revenue payment, the largest component of the City's intergovernmental revenue, decreased in inflation-adjusted terms from 1995 to 2000 and in nominal terms in both 1999 and 2000.
5. The State of Wisconsin's Expenditure Restraint Program limits the City's ability to increase the tax levy as needed to pay for City services.
; and
Whereas, To reduce the likelihood of future budget crises, the City of Milwaukee needs to develop a long-range plan to address the issues that led to the tax and fee increases and staff cuts for 2001; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a City of Milwaukee Strategic Budget Planning Task Force is created and shall consist of: the Common Council President or the Council president's designee; the chair of the Council's Finance and Personnel Committee or the chair's designee; the vice-chair of the Council's Finance and Personnel Committee, one other member of the Common Council appointed by the Council President; the Mayor or the Mayor's designee; the Budget and Management Division Director or the Director's designee; the City Comptroller or the Comptroller's designee; one labor representative appointed by the Common Council President; one representative from the University of Wisconsin - Milwaukee and one representative from the Public Policy Forum; and, be it
Further Resolved, That the Common Council President shall appoint the chairperson of the Strategic Budget Planning Task Force; and, be it
Further Resolved, That the Strategic Budget Planning Task Force is directed to investigate the issues that have led to the recent City budget problems and to develop specific actions and policies that can be taken or adopted to put the City on long-term solid financial footing; and, be it
Further Resolved, That, in conducting its investigation, the Strategic Budget Planning Task Force shall explore and consider such issues as cost control (particularly with respect to health care for employees), availability of state-shared revenue, potential sources of additional revenue, maintaining the level and quality of City services, and the City's bond rating; and, be it
Further Resolved, That the Strategic Budget Planning Task Force shall, as expeditiously as possible, develop a timetable for its activities for presentation to the Common Council's Finance and Personnel Committee and thereafter report from time to time to the Finance and Personnel Committee as to the progress of its investigation; and, be it
Further Resolved, That the Strategic Budget Planning Task Force is directed to submit a written report of its findings and recommendations to the Common Council; and, be it
Further Resolved, That the Strategic Budget Planning Task Force shall be staffed by personnel from the Common Council-City Clerk's Office, the Legislative Reference Bureau Fiscal Review Section and the Department of Administration; and, be it
Further Resolved, That all City departments are authorized and directed to cooperate with and assist the Strategic Budget Planning Task Force in carrying out its mission; and, be it
Further Resolved, That the Task Force shall submit its report to the Common Council by December 31, 2001.
Requestor
Drafter
00572-5
JDO
1/18/01