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020851
| 0 | | Budget | Communication from the Mayor transmitting the 2003 City Budget.
Minutes note: ALSO PRESENT: Laura Engan, Marianne Walsh, Cassandra Patterson, Wally Morics
TREASURER
Wayne Whittow, James Klajbor, Katie O'Sullivan, Terri Gabriel & Greg Hagopian appeared
Ms. Sullivan read from her budget overview which shows a decrease of 2% from last year's budget. Ms. Gabriel gave fiscal presentation stating total operating expenditures in the 2003 Proposed Budget are $3,023,860 a decrease of $103,040 compared to $3,126,900 in the 2002 Budget. The proposed budget provides $355,025 for General Office Expense, an increase of $21,120. In 2003, the Treasurer's Office proposes to use the Kohn Law Firm to collect delinquent taxes prior to pursuing legal action. The Treasurer's Office expects its rate of return on investments to be 1.86% in 2003, a decrease of 1.89% points compared to 3.75% projected in the 2002 budget. It also includes $9 million for the County Delinquent Tax Fund.
Mr. Whittow said that the enforcement section was reviewed and a lot of the duties and functions of that section were transferred to other areas of the department, resulting in a reduction of 4 jobs. They are in effect, eliminating 7 jobs and creating 3, resulting in 4 fewer positions in this office. Alderman Henningsen's comments during the budget hearing were an impetus to these changes as a result of his questions related to in personam actions. As a result, the department has increased in personam actions for delinquent property taxes, resulting in less work for the department and better results. Their services will not be cut, but personnel will be working harder as personnel pick up responsibility for more collections. The department is still doing in rem actions for those collections which were not successful through the normal process. The city does not need to take control of more properties, since there are resulting in maintenance costs, so he supports going after the person, rather than the property.
Ald. D'Amato asked Mr. Whittow his opinion about the tax-intercept program (see City Attorney memo of 10/3/02 – Exhibit 1 and City Attorney memo of 1/14/00 – Exhibit 2). Mr. Whittow noted that a social security number must be attached to the delinquent-tax property. Mr. Greg Hagopian from the City Attorney's Office came to the table and mentioned that the city might be able to assemble the social security numbers with a minimum amount of additional work. The state law, however, does not currently allow a city to intercept money for tax-delinquent property, and perhaps modify the law at that time to obtain social security numbers. The Municipal Court already uses this program. The Treasurer's Office gets 99.5% of the levy paid; collects 85-90% of delinquent taxes. In a pilot project, as of June 2002, 1,600 parcels that can be enforced (2000 taxes) at a cost of $1.8 million – Kohn has collected almost 40% of the principal and approximately 35% of the accounts have been cleared up, without taking legal action.
Ald. Henningsen would like to require that the owner also be required to pay the demolition costs for in personam actions if the property is in poor condition. Mr. Hagopian said that a receiver can also be appointed, who would order repairs or demolition on the property. If the property is demolished, that cost then goes onto the tax bill, which can result in an in rem action. An in personam action, according to Mr. Whittow, affects the individual's credit rating, which is why it is very effective.
Ald. Murphy expressed concern that the Kohn Law Firm may be handling only the easiest cases, but Mr. Hagopian and Mr. Whittow noted that the city had been pursuing these owners, but unsuccessfully. Kohn will issue a report once the test pilot is over. Mr. Whittow noted that going with fees for a banking service contract is the most cost-effective way to go
DELINQUENT TAX FUND
W. Martin Morics, Dennis Yaccarino & Terri Gabriel appeared.
Mr. Yaccarino gave his budget highlights noting that the purpose of this account is to absorb losses in the sale of delinquent tax properties, and Ms. Gabriel followed with her fiscal report. As of December 31, 2001 the City had 2,691 tax deed parcels, with delinquent taxes valued at $14,496,490. In 2003, $1 million will be dedicated to the Delinquent Tax Appropriation Account. In addition to In Rem Foreclosures, state law now allows In personam actions against delinquent taxpayers. This new law places the delinquent tax liability with the individual rather than the property.
This account is a cash appropriation on the tax of $1,000,000. The goal of the city is to sell property at costs, but sometimes the property may not be worth its back taxes or other costs associated with the property and its sale. The account amount is based on historical data.
Marty Goldstein, a consultant to the city, does have a program to catch potential "property flipping" schemes. Ald. Murphy would ask that alderman be notified of properties being potentially flipped within their districts. Mr. Hagopian will ask Mary Reavey, City Assessor, to do that.
HEALTH DEPARTMENT
Dr. Seth Foldy, Bevan Baker, Yvette Rowe, Jennifer Gonda & Mark Ramion appeared.
Ms. Gonda gave her narrative of this budget noting a 4% decrease in the departments' budget from last year. There is an increased level of funding for lead abatement, as well as increased funding from Community Development Block Grant Funds for this program, in addition to CDBG funding for communicable disease programs. Mr. Ramion then read from the fiscal highlights. The Milwaukee Health Department 2003 proposed budget is $13.8 million, a 3% decrease from 2002. They anticipate receiving approximately $15.4 million in new and continuing grants in 2002. Grant funding represents approximately 52% of MHD operations. Occupational Health services are proposed for transfer to DER. The Teen Pregnancy Prevention Program Consortium grant program funding has come to an end. Public Health Nurses remain the single largest classification vacancy in MHD representing 20-25 unfilled positions. New strategies have been implemented in 2002 in order to attract more nurses to public health nursing. The public health clinics will be reorganized in 2003. 2003 anticipated revenues for MHD are $2.176 million, a 4% decrease from 2002. The budget includes $1,129,700 for Capital Improvements for exterior maintenance, mechanical systems upgrades, building maintenance and a Client Tracking System.
Commissioner Foldy noted that the O&M budget is actually less than the 1992 budget from 10 years ago. The Health Dept. has made considerable progress – a 60% reduction in short-weight sales, reductions in syphilis rates, increased health-insurance rates, decreased incidents of lead-poisoning in children, focusing on critical food-safety violations, and reductions in sexually transmitted diseases. The department is working on goals for 2010 in reducing disease and risk-factor rates in the community. The department has focusing on one west-side neighborhood ("Making Connections") as a pilot program to see how its programs affect the community. Preventive health care and lead-poisoning prevention and treatment result in savings to the community on a personal level.
The downtown health center was closed and moved to the near west side, where the epicenter of sexually transmitted diseases (STDs) within the city is located, moving occupational health to have more of a city-wide program, creating a position of clinic operations manager to check on billing and reimbursement, creation of one-stop shopping, and moving, in an industrial way, into day care. The department cannot continue to reduce its professional staff; the department also has a contract with the Professional Nurses' Council to recruit new nurses to the department. The department is relying less upon property taxes and more upon grants, fees, billing institutions for care (Medicare, Medicaid) and contractors, resulting in a less-predictable revenue stream.
Ms. Gonda will provide a spreadsheet to all committee members that lists the 2010 goals and the level that the city is currently at. Ms. Gonda has also prepared a list comparing the health department grants from 2002 and 2003; committee members will receive this today.
Ald. D'Amato praised the department for finding revenue sources that are not property taxes. Commissioner Foldy said that the chief challenge of the city is to overcome health disparities between minorities and whites and the second challenge is to prepare youth to lead healthy lives through prevention and education. The specific local health concerns are the rates related to sexual activity (teen pregnancy and sexually transmitted disease), injuries that occur in the home and asthma, and citizens' access to primary health care (early care and vaccination). The Teen Pregnancy Program is wholly funded through a 6-year grant program, whose funding is now ending. The Program was created to function as network assistance and to disseminate information related to teen pregnancy. Comm. Foldy noted that for STDs, every dollar spent, results in a savings of $12. For chlamydia, for every dollar spent, $45 is saved. In 1996, 2/3 of pregnancies in the city of Milwaukee were intended (compared to 1/3 on the state level).
As part of the Health Care Task Force, Ald. Murphy feels that Aurora, Convenant and Sinai need to be challenged to do more related to teen pregnancy prevention and other health issues facing the community. Commissioner Foldy needs to talk to the major healthcare facilities to contribute money to these efforts. Ald. D'Amato concurs and notes that big goals need to be set.
There are 8 auxiliary nursing positions that are vacant, in addition to 13 district-nursing positions that are vacant. If these positions were to be filled, the money would need to be found to fund these positions. Comm. Foldy believes that the salary for beginning nurses is not competitive and the residency requirement also hinders recruitment and there is also a changing culture, moving from one-on-one service to target audiences in tougher neighborhoods.
Ald. Henningsen would like to see the number of citizens served at each facility. The department has 3 health centers (housing food inspectors, immunization clinics, housing nurses who work in the community, and the WIC program). Ald. Henningsen would like to know how many people (unduplicated) are served, how much do the centers cost and what is the cost-per-person? There is a Shared Services Agreement that provides $870,000 to the Health Department and funds 15 full-time positions which offers a program at middle schools and high schools offering students access to nurses, health screenings, checking of food preparation services, diabetes and asthma care, violence-prevention programs and other health services. The $800,000 is also matched by a federal grant. There is no long-term coronation of health services to students, as it changes as each Milwaukee Public School's superintendent changes. There are 16 nursing positions authorized for Milwaukee Public School services. The health services are for those who cannot pay for services or cannot navigate the system, perhaps due to a language barrier. The department does encourage individuals to get private health insurance, rather than using city services. The health department does subcontract with HMOs to get reimbursement for vaccinations and lead testing.
The Client Tracking System allows the department to bill third parties for treatment, as well as the location of patients' records, linguistic challenges and which nurses are already working with which patients. The hope is that the System will result in greater efficiency as nurses will be traveling less. The old Tracking System is no longer being supported by the city because the software is obsolete.
The Health Department is now beginning to emphasize the use of contraceptives and barrier protection as a means to reduce teen pregnancy. The department does not need more dollars thrown at a problem, but more action thrown at a problem.
In the event of a public health emergency, there are planning processes going across federal, state, hospital and private organizations/provider lines to coordinate efforts and information.
Food inspection, according to Comm. Foldy, may be more time-intensive than in the past as the inspection standards change. The city focuses its efforts on prevention, but does provide services to individuals who may not be able to pay for the health insurance offered through work, resulting in public health services providing services because of deficiencies in the private health insurance industry.
Mr. Baker said that the Isaac Coggs clinic has had considerable debt and internal issues, but they have made considerable progress in those areas. The city acts as a partner with the clinics through its contractual services. The challenge will be to provide services as funding is decreased and to address disparities among community clinics and clientele.
The department maintains 5 fairly old buildings and, for 2003, has requested fire alarms for the buildings as well as interior and exterior accommodations for the disabled, tuckpointing, replacing boiler systems and improving the elevators.
Recess: 11:42; Reconvene 1:40 p.m.
DEPARTMENT OF NEIGHBORHOOD SERVICES
Martin Collins, Bernie Mielcarek, John English, Eric Pearson &Angelyn Ward appeared.
Mr. Eric Pearson presented his budget overview, and Ms. Ward then read her fiscal summary. The net authorized positions change from 288 in the 2002 budget, to 216 in the 2003 Proposed Budget. The Proposed Budget for Operating Expenditures is $979,173, a decrease of $35,522. Grants in the 2003 Proposed Budget anticipate $2,096,131 in funding from CDBG. Estimated revenue in the 2003 Proposed Budget is $9,083,800, a decrease of $399,300.
Commissioner Collins said that the city may be sued by a landlords' association over the reinspection fees. This ordinance was reviewed by the City Attorney's office and should be able to withstand any suit. The department, however, does have a back-up position: creation of a rental registration fee. The Neighborhood Improvement Development Corporation (NIDC) office will be moved to the Dept. of City Development, although all 60 employees will still physically stay with the Department of Neighborhood Services. NIDC is also totally funded through Community Development Block Grant funds. Comm. Collins also noted that the department has been working closely with other city departments, including the Dept. of Public Works and the Police Department.
Ald. Murphy commended the department for its good work. He would like to have in rem properties transferred to the department from the Dept. of City Development because he has experienced having to call multiple times for maintenance of the same properties.
Ald. D'Amato asked if the department perform exterior-only inspections as part of the Certificate of Code Compliance, rather than doing both interior and exterior inspections. Comm. Collins noted that the department would no longer be performing interior inspections of one- and 2-family homes, which are often unpopular with the homeowners. Ald. D'Amato has concerns that these homes will still need to be inspected, based upon complaints, and perhaps even re-inspected, resulting in a short-term savings to the city, but a greater long-term cost. Comm. Collins noted that interior inspections are much more labor-intensive than exterior inspections, as they require an appointment and take longer.
Ald. D'Amato questioned a decrease in revenue by $2.2 million in the proposed 2003 budget. Comm. Collins said that this reduction is due to a forecast reduction in licenses and permits, which are a result of a downturn in the economy, resulting in less construction. The Budget Office will chart, from 1999 to present, the change in revenues for the department, noting that perhaps this change is a result of revenue being applied to another department for some reason or another change that may quickly be evident upon examination.
Ald. D'Amato is concerned about the department's decline in revenue, with his fear that staff has been so severely cut that positions, which generate revenue have been eliminated.
The Police Dept. has issued 111 chronic nuisance complaints so far. The concept of this program is that everyone is entitled to some police service, but not to the point of overburdening the department. Comm. Collins said that the police are getting better at using this, and using it successfully. The department and police have a very good working relationship.
The state of Wisconsin licenses electrician, so most individuals get licensed there. The Electrical License Examining Board has only heard 2 complaints against licensed individuals this year. Those complaints would be referred to the Administrative Review Appeals Board.
Because the demolition budget only has $120,000 remaining in it, the department is triaging, resulting in less razing of accessory buildings and buildings which do not present an immediate danger. The emphasis is on razing fire-damaged buildings and those that do present an immediate danger to the public.
Ald. Henningsen suggested that the department pursue talks with Waste Management for some type of bulk-dumping agreement for a reduced rate. Comm. Collins has begun pursuing this possibility with the Purchasing Division. Comm. Collins noted that the department is taking any owners with assets to court, in an attempt to make them pay razing costs for their properties. Comm. Collins will find out how much private companies charge to raze comparable buildings as a comparison to the city's costs.
(Ald. Hines joined the committee at 2:45 p.m.)
Ald. Henningsen felt that the number of nuisance vehicles has soared and that there should be a new system of accounting for expenses/revenue of towing these vehicles. He suggested creation of an enterprise fund or issuing tickets, rather than towing vehicles. The department also now calls the property owners to notify them of nuisance vehicles on their property, so that they can remove them at a cheaper cost (resulting in a savings to the city). The department will look into changing the system to reduce the cost on the property tax levy. The department has also sent out letters to property owners to notify them that the department will be performing inspections in their area in the future. Ald. Henningsen also expressed concern about all the illegal signs at small convenience stores and he would like the Health Dept. to enforce this ordinance as part of its inspections. Comm. Collins noted that the department is working on a brochure to easily explain the signage code, in addition to having it in multiple languages. He prefers to start with an education campaign prior to enforcement. Comm. Collins said that if the Health Dept. has the capacity to pick up these duties, the department will be happy to explain to the health employees how the inspection has to be performed.
The department is also prohibited, by the City Attorney's Office, from bringing up code violations which do not directly relate to an individual's license to the Utilities and Licenses Committee when an application is before them. The other alternative is to delay renewal until the building code violations are corrected.
Ald. Henningsen said that revocation of an occupancy permit is an extremely strong tool that the city can use. Comm. Collins noted that the department has been aggressive in using this, but would prefer to see if other means exist, as revocation often results in people being forced out onto the street.
Ald. Henningsen would like to add money for software that could rank property owners by the number of building-code violations. Comm. Collins will work with Ald. Henningsen and the City Attorney's Office on this.
Mr. English would like the committee to reconsider elimination of the interior inspection as he sees it as a safety net to protect first-time home owners.
DEPARTMENT OF CITY DEVELOPMENT
Julie Penman, Tom Croasdaile, Greg Shelko, Martha Brown, Yolanda Mack, David Schroeder & Emma Stamps appeared.
Mr. Schroeder provided his budget highlights, and Ms. Stamps then read from her fiscal report. Excluding License and Permits income, revenues are expected to increase by $432,195 or 10.03% from $4,309,805 in 1999 to $4,742,000 in 2002. In this period, License and Permits revenue is expected to increase $535,100 from $47,000 in 1999 to $582,100 in 2002. The Department of City Development seeks $577,475 for Operating Expenditures, a $113,852 or 16.47% decrease compared to $691,327 provided in 2002. The 2003 Proposed budget provides $302,864, a $100,000 decrease, largely due to the increased amount of grant brownfield dollars received by DCD and proposed in 2003. The 2003 Proposed Budget for the Milwaukee Fourth of July Commission is $130,000, as well as $217,000 for the Milwaukee Arts Board Projects. Neighborhood Improvement Development Corporation will become part of this department. The budget also includes the elimination of 3 positions and creates a Senior Planner position.
Ms. Penman stated that the department is trying to cluster development to create catalytic areas and is actively promoting business areas through the facade grant program, streetscaping projects and other means. The department has been working on extending the Riverwalk, marketing to technology businesses, focusing efforts on the Menomonee Valley, investing strategically in business development through Tax Incremental Districts (TIDs), stimulating job growth through available tax credits, brownfields clean-up (for every $1 invested, $56 is leveraged), securing a Job Corps site in the city and working with UWM to do an analysis of Milwaukee's labor force assets. The downtown plan includes removal of the Park East freeway, resulting in a potential improvement of $250 million. The department is also working on providing public housing and preserving the city's housing stock through homeownership and responsible rental ownership. The department's goal is to add at least 5,000 additional housing units annually downtown. NIDC is returning to DCD in much better shape than it was in when it left and she will maintain and improve it. She sees the transfer as an opportunity for better housing rehabilitation. The Housing Authority has also been taking a much more active role in having its residents purchase their own homes. The department will also be working on putting its high-volume permits online.
Ald. Hines noted that under the special purposes account, the Fourth of July Commission is budgeted $140,000. For that amount, the city has activities at 16 neighborhood parks, with the county providing for set-up and clean-up, except the Department of Public Works sets up any electrical needs. He also had questions about changes to the Development Fund and the Business Improvement District Fund.
Ald. Gordon asked if there will be efficiencies gained through the joining of NIDC, Housing Authority, and the Redevelopment Authority in the same department, as all those agencies get CDBG money and HOME funds.
Ald. D'Amato noted that the Historic Preservation Officer position has been eliminated. He is concern how this will affect the backlog faced by the Historic Preservation Commission, since this will result in staff having to staff these meetings. The department is looking at flattening its organization and putting this section into the Development Center. Ms. Penman feels that the backlog has been completed and that service will not be adversely impacted, in addition to the opportunity for cross-training. The Commission meetings will be staffed by Martha Brown, as manager of the Development Center.
Ald. Murphy asked if any efficiencies could be gained by allowing DNS to maintain tax-delinquent properties, in addition to vacant lots. The department will look into this and compare the costs of bids received by private contractors as compared to the department's costs. The department will get back to him prior to October 31.
Ald. Murphy asked about the possibility of transferring some of the Department of Public Work's permits, so that people are not required to go both to DPW and the Permit Center. Ms. Brown said that the DPW function that was not transferred to the Development Center was plan review. Their are a number of individuals in this area who have specialized areas of review, using both electronic and paper resources. Ald. Murphy would encourage looking at other options this year for increased efficiency. Ms. Engan noted that this might be accomplished without shifting employees into different departments.
Ald. Murphy noted that the Water Works is not attempting to attract new industry to the city, as it is felt that is outside the scope of its services. The department is actively recruiting businesses, not specifically businesses which are heavy water users. The department is happy to work with the alderman related to this issue.
Ald. Murphy would also like to have a report submitted to the Zoning, Neighborhoods and Development Committee on how NIDC is being integrated into the department.
Ms. Mack noted that NIDC will not be involved as a court-appointed receiver at all, not even through subcontracts, as is currently done. Ald. Henningsen fears that the city will lose the ability to apply pressure to ensure that properties are maintained. Ms. Engan saw this change, made at the request of the City Attorney's Office, as a transfer of $400,000 from NIDC to the City Attorney's Office to act as a receiver, as a matter which would not affect the city adversely. Ald. Henningsen is worried that the Council will lose control if this duty is passed to the City Attorney's Office.
EMPLOYES RETIREMENT SYSTEM ADMINISTRATION
Ann Bahr, Katie O'Sullivan and James Carroll appeared.
Ms. O'Sulllivan provided her budget overview, Mr. Carroll likewise gave his fiscal narrative. The 2003 Proposed Budget includes $14,511,150 for Professional Services. This is a $2,885,182 increase from the $11,625,968 provided for this account in the 2002 Budget. The amounts estimated to be paid to Investment Managers for 2003 are nearly $2.7 million higher than the amount budgeted in 2002. The year to date market value of the fund was $3.43 billion with a return of –3.6% through June 30, 2002, ranked the fund in the top quartile of public funds with assets of $1 billion or more. The ERS is governed by an eight member Annuity & Pension Board consisting of three persons appointed by the Common Council President, three persons elected by active system members, one person elected by retired members and the City Comptroller.
Ms. Bahr said that the global pension settlement implementation is nearly complete – they have processed 10,000 claims and are working on having 2,300 members agree to the settlement. The department also created, through the 2002 budget, a Program Office Manager to coordinate activities within the department. The department has also created 9 brochures (Exhibit 3) to hand out and mail to members upon request. There is also a web-based program which calculates an employee's anticipated pension amount and lump-sum payment based upon years of service, salary and other relevant factors. All backlogs in the department have also been eliminated. Ms. Bahr also gave committee members a handout summarizing her presentation (Exhibit 3)
POLICEMEN'S ANNUITY & BENEFIT FUND
George Sprague, Ed Arnold , Robert Jamrozy, Sandra Rotar and James Carroll appeared.
Ms. Rotar read from the budget overview and Mr. Carroll gave his fiscal presentation. The City and the PABF reached a tentative settlement. Under the terms of the settlement, $150,000 was included in the 2002 Budget as a contribution to PA&BF supplemental fund. The 2003 Proposed Budget includes $473,708 as the City's PA&BF pension contribution. As of June 19, 2002, PA&BF, membership included one active member and 260 total retired annuitants (annuitants and spouses).
The members of the Fund are happy with the 2003 budget. Mr. Egan was charged with paying for the fund on a year-by-year basis or calculating payments for the next 3 years.
SPECIAL PURPOSE ACCOUNTS, OVERVIEW & MISC. SPA'S
Sandra Rotar and Marianne Walsh appeared.
Ms. Rotar read from her budget overview, and Ms. Walsh presented her fiscal narrative. The 2003 proposed budget will provide funding for contract awards to begin January, 2003. The proposed budget provides $314,200 to AIDS agencies. The Milwaukee Health Department is currently receiving RFPs for 2003 funding.
The number of employees who participate in alternative transportation program is currently 347. The city share for the program is $22 per month. The cost to the employee is $17 per month through payroll deduction.
The annual payment to the DNR will remain at $7,100 by agreement with the state.
$19,000 is proposed for the Boards and Commissions Reimbursement Expense.
BIDS – the tax levy impact varies, depending on whether the City has appropriated general funding to support the BID. The funding decision is discretionary. The 2003 Proposed Budget includes $169,000 in city contribution.
Cable TV Franchise Regulation and Negotiation is handled and administered by the City Clerk's Office/
There was no discussion of this item.
A memo titled, "Milwaukee Commission on Domestic Violence and Sexual Assault: Budgetary Considerations October-December 2002" (Exhibit 4) was handed out at the table previously.
| HELD TO CALL OF THE CHAIR | Pass | 4:0 |
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