Category Archives: City Council

Other Council Actions From May 1

Tuesday’s City Council was about more than the civil service employee manual. Among other items approved Tuesday:

  • An ordinance to amend the city’s official map and comprehensive plan to reflect the vacation of 11th Avenue for the Walmart development;
  • The hiring of two new police officers, to replace two officers who left the force earlier this year;
  • An ordinance — an offshoot to the Todd Kester case — that would allow the city to fine sex offenders from between $100 to $1,000 per day for living in a prohibited area of the city;
  • Changes to our rabies control and exotic pet ordinances that would, among other things, require rabies shots for ferrets and a limit of two ferrets in a household. It also more clearly states that the city does not allow fowl or chickens to be kept in the city.
  • And changes to our composting ordinance, more clearly stating what is allowed and not allowed in a compost pile.

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Changes To Council Committee Chairmanships

Four key South Milwaukee City Council committees got new leadership last week, the start of a new “political” year.

The new committee chairpersons are:

  • Finance: Ald. Joe Bukowski (replacing Pat Stoner)
  • Legislation & Permits: Ald. Craig Maass (replacing Lisa Pieper)
  • Public Works & Public Property: Ald. Frank Van Dusen III (replacing me)
  • Human Resources: Ald. Ray Navarro (replacing David Bartoshevich)

It is customary (but not always the case) that the vice chairmperson alternate with the chairperson of each committee following each spring election. So I am now the vice chairman of the Public Works and Public Property Committee.

Good luck to all of our new committee chairs!

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City Council Considers Borrowing For Wastewater Upgrades

South Milwaukee continues to invest in its wastewater treatment facility.

The latest example: An estimated $4.6 million in work that includes installation of a new and state-of-the-art ultraviolet disinfection system that will greatly increase plant capacity – and help during major flooding rainstorms.

The City Council will consider borrowing for the projects — through a 20-year state Clean Water Fund loan — at its meeting Tuesday night.

The upgrades, detailed in this document, are among those mandated by the state, and they were defined in a May 2006 study done of the wastewater treatment facility.

The biggest-ticket item is $2.2 for the new UV system. It would allow for the treatment of a peak flow of 17 million gallons per day, up from the current nine. Also planned are:

  • $500,00 for a new pumping system, to replace the 30-year-old system that has exceeded its original design life;
  • $400,000 for a new diesel generator to serve as a backup power source for the plant;
  • $346,000 for various upgrades to the plant’s secondary digester;
  • $244,000 for new “tube mixers”; and
  • $200,000 for a new plant power distribution system.

The borrowing will be paid back in large part through a sewer rate increase the council approved in February. Learn more in this post.

I’d like to know what you think of the project, and the borrowing. Post your comments below!

As for me, I support the spending. I like the fact that we have independent water and sewer utilities, and, beyond the state mandates, we must spend what is necessary to keep them operating at a high level and for the long term.

Our utilities are positive points of difference for South Milwaukee. Let’s keep them that way.

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Moody’s Reaffirms City’s Strong Bond Rating

Moody’s has completed its review of South Milwaukee’s financials and has reaffirmed our strong Aa2 bond rating — just two steps below the “best-of-the-best” AAA rating.

This is significant because it will help to insure that the city gets the most favorable interest rates possible for future borrowings, including those we’ll be voting on at our City Council meeting on Tuesday night. See the agenda here.

Of course, there’s a pride factor here, too. It is always nice to have an independent third party review our financials and proposed borrowings, and have them confirm that we are being fiscally responsible.

And it sure beats the alternative. We could have been downgraded, like Milwaukee.

(See my previous post on the Moody’s upgrade in 2010 here.)

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Putting Spending To A Vote: Where I Stand On The Direct Legislation Effort

As you’ve probably read, heard or even seen on your doorstep, the group opposed to the Walmart project is gathering signatures as part of a direct legislation effort that would require all city capital projects costing $1 million or more go to referendum.

I first heard about this last week, and I have no idea where they stand on gathering the upwards of 1,200 signatures they need.

I won’t be signing.

Why? Because these types of decisions are why City Council members are elected … and the referendum on the job we’re doing is held is every two years. It’s Election Day.

Of course, my job as an alderman only begins on that day, and job No. 1 is to be responsive to my constituents, gathering all the facts and listening to the people who put me in office before deciding what I believe to be the right course of action for the city.

This is true on any and every issue, and I take that responsibility seriously.

You then pay me to act on that responsibility. To vote. Not to wait until the results of the latest referendum roll in.

We live with a representative government, and it’s that way by design, because the other option is simply unwieldy and untenable.

In this case, it’s also imprudent.

For starters, these referenda cost real money. Elections are expensive – you need not look further than at the added costs to local governments coming from the recalls — and, if one is required for every major capital spending project, taxpayers will feel that.

Taxpayers also lose if the city can’t continually invest in its aging infrastructure. And requiring referenda on all city capital spending over $1 million could hamstring the city as we continue to make necessary, and costly, upgrades in this area. Roads, sewers, utilities … all of these projects and others will require major investments in the years ahead, perhaps exceeding that threshold. And none are cheap.

Needing a majority of voters in a referendum to approve the spending could stall these efforts, or kill them altogether. Who does that benefit?

I also object to potentially applying the direct legislation to the Walmart project (and I’m not sure if it even can be). The council has already voted a number of times to back this development, and we have a responsibility as a city to live up to our word with the retailer.

Yes, according to the Journal Sentinel, the Friends of South Milwaukee group claims the “campaign is the result of concerns about the city’s capital spending” and “the Walmart spending plan is just part of those concerns.”

I don’t buy it.

This is absolutely all about Walmart, and this is an attempt by the opposition group to stop construction – even though I continue to believe that the majority of South Milwaukee residents (certainly those in my district) support building the store.

Moreover, the impacts of the referendum requirement would extend well beyond that development and well beyond 2012. Yes, the unintended consequences are real.

That’s why I’ll do my speaking at the ballot box. It’s the ultimate referendum.

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Special Council Meeting Planned Wednesday

Just a reminder that a special City Council meeting is planned for 6:30 p.m. on Wednesday at City Hall.

The agenda is pretty light, with the awarding of two contracts for Davis Avenue — on and around the Walmart property — water main and concrete replacement the two biggest items.

See the agenda here.

Our next regularly scheduled meeting is Tuesday, April 17.

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Direct Legislation Push Seeks Referendum On Capital Projects Costing $1M+

I first heard about this yesterday — and saw the flier — and the Milwaukee Journal Sentinel now has a story on it: The group organized to fight the Walmart in South Milwaukee is seeking sigatures on direct legislation campaign.

The upshot, if enough signatures are collected and verified and this ultimately comes to pass: All capital spending projects costing $1 million or more would have to be approved by voters in a referendum.

(You’ll recall the city is poised to borrow $1.5 million to help fund cleanup costs at the proposed Walmart site on North Chicago Avenue — a vote that was postponed earlier this month with a “hold over” motion from two aldermen.)

Check out the Journal Sentinel story here.

I’d like to know what you think about this. Post your comments below.

I’ll share my thoughts in a future post.

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Council Update: Walmart Borrowing Put Off With Procedural Maneuver

Approval of the city’s planned borrowing of $1.5 million to fund cleanup and other costs related to the Walmart development will have to wait.

On Tuesday, Aldermen Craig Maass and Frank Van Dusen III endorsed a motion to “hold over” the agenda item calling for the introduction of a resolution authorizing the issuance and sale of $1.5 million of bonds.

This is a little-used procedural play that requires, with a simple motion and second, an end to all debate about an issue and forces the item in question to be considered at the top of the next council meeting. Our next meeting — a special meeting called to approve some public works contracts – is April 4, although it’s unclear if this measure will be heard then, or if it will wait until our meeting on April 17.

I’ll keep you posted.

I am disappointed in this procedural move — which is truly the “nuclear option” when it comes to local legislating, an option I’ve seen used just once before in my tenure as an alderman — because I support the borrowing, just as I support the Walmart plan. And I’m concerned that putting off the issuance of the promissory notes could cost the city additional money in interest and time spent by our financing firm working on the new timeline.

Of course, I’d like to know what you think. Post your comments below.

One additional note: The other items relating to city borrowing on Tuesday’s agenda all passed. I’ve posted about these in the past. Learn more here and here.

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Reminder: City-School District Meeting Tuesday

Don’t forget about the joint meeting of the South Milwaukee City Council and School District on Tuesday at City Hall.

The meeting starts at 6 p.m.

See my previous post here. See you there!

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Deal Struck: South Milwaukee Council Approves, Union Ratifies New Police Contract

The city and its police officers have a new contract.

Officers ratified the three-year deal on Tuesday night, the same night the South Milwaukee City Council voted unanimously to approve the new contract.

Some highlights:

  • The deal includes a 1% pay raise retroactive to Jan. 1, followed by a 1.25% raise to go into effect on July 1. In 2013, the deal calls for a 2% pay raise on Jan. 1 and a 1% raise on July 1. A 3% raise goes into effect on January 1, 2014.
  • The contract also calls for union members to pay more for their health insurance and, over time, have their contributions to the lowest cost health plan equal that of the city’s non-union workers (and AFSCME employees starting this summer). So by January 1, 2014, the city will pay 88% of the lowest cost health plan for all city workers, excluding firefighters, who have yet to agree to a new deal with the city. New police hires will contribute 12% immediately, under the new deal. The contribution for current officers is phased in over the next two years to get to that 12%.
  • The same phasing approach holds true for retirement contributions, and by July 1, 2014, all police officers will pay 100% of the employee-required contribution to their Wisconsin Retirement Fund pension – the same percentage all non-public safety employees will be paying by then.

This deal is good example of shared sacrifice, and it certainly brings a level of pain to both sides.

For the police officers, as with other public workers who have been forced to pay more for their benefits in the past year, the pay raises won’t be enough to cover the increased health insurance and pension contributions. So, in essence, the deal represents a take-home pay cut.

For the city, the fact we’re providing a pay raise this year negatively impacts our budget to the tune of more than $130,000. We always knew this was a possibility when we approved our 2012 budget last fall, but the reality is sobering, and the pay raises will require significant cuts to a police department budget already cut to the bone. The immediate impact: We likely won’t fill an open officer position for the foreseeable future to help cover the added costs.

 In other words, times are as tough as ever with local budgets. And the resulting cuts are real. This contract fairly reflects that.

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South Milwaukee’s Not Alone: More On TID Shortfalls Throughout The South Shore

As I wrote about recently, South Milwaukee is not unique in feeling the impacts of declining property values on its tax incremental financing districts.

In fact, two of our closest neighbors are in a similar situation.

The Milwaukee Journal Sentinel details the South Shore TID situation well here. From it:

South Milwaukee, Cudahy and St. Francis have common challenges. All three cities are older industrial communities with limited population growth.

In South Milwaukee, two tax districts have debts coming due at the end of 2013, and there’s a possibility that property taxes from new development within the districts would fall short in making those debt payments, said City Administrator Tamara Mayzik.

So the Common Council, at its March 20 meeting, will consider a proposal to sell $1.5 million in bonds and use that newly borrowed cash to refinance the debt tied to those tax districts, Mayzik said. That would allow the city to save money by borrowing at lower interest rates and avoid the possible shortfall, she said.

The tax districts have been hurt by lagging property values at two condominium developments, Marquette Square and Heritage Reserve, said City Engineer Kyle Vandercar.

Marquette Square, 920 Marquette Ave., was completed, but some of its units are being rented as apartments because of a lack of condo buyers, Vandercar said. At Heritage Reserve, in the 2600 block of Ninth Ave., only about one-third of the planned ranch-style units have been built, he said.

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Spirit Of Cooperation: South Milwaukee Council, School Board Plan Joint Meeting

The South Milwaukee City Council and South Milwaukee School Board have planned a joint meeting for Tuesday, March 13.

There is just one item on the agenda: a discussion “regarding strengthening school and community partnerships.”

I’m excited for the meeting and look forward to the dialog. I was proud to be a part of district’s long-range visioning and planning process in 2010, and stepping up this type of community collaboration is one of the goals that came out of this work.

Learn more about the district’s “four CEs” — including “community engagement” — in this informative two-pager, which summarizes the district, its students, its vision for the future and its plan to get there.

It tells a great story — a story that only gets better as the city finds new and innovative ways to partner with its first-class schools.

Check out the meeting agenda here. The meeting starts at 6 p.m.

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Quick Council Update

Unfortunately, I was not able to attend Wednesday’s City Council meeting, as I was out of town on business.

But all of the items I have written about it in the past week passed, including the sewer rate increase and various borrowing measures.

All passed on 6-0 votes except for the TID 2 (Walmart site) borrowing, which passed 4-2.

Our next meeting is Tuesday, March 6.

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Borrowing On The Agenda

Declining property values have done more than affect single-family homeowners. They’ve also hurt property values in tax incremental financing districts.

In 2012, South Milwaukee is feeling the impact of those changes.

Those reductions in tax incremental district (TID) valuations – determined by the state – are why the city is looking at refinancing a portion of the existing debt ($1,535,000) for TIDs 1, 2 and 3.

The City Council will take up the refinancing issue at its meeting Wednesday night.

A TID is basically a financing tool a municipality can use to promote expansion of its tax base.

With a TID, the city borrows money to make infrastructure and other improvements to properties within that district – and pays back the money with property tax revenue generated from the higher value of the redeveloped property (the increment).

The stated goal of city leaders is to pay back that loan, “close” the TID as quickly as possible, and then get the property within the TID back on the property tax rolls, with the higher tax revenue flowing into the city, school district and other taxing bodies (vs. funding the loan).

The upshot of the refinancing action the council is considering: The length of the debt service will be extended, and it will take longer to pay off the TIDs. At the same time, the interest rate will be lower.

While this is unfortunate, the fact that we’re getting less “increment” from these properties is a reality of the economic situation we’re in. Simply, property is not worth as much now as it was five, 10, 15 years ago, something readers of this blog know all too well with the 2011 property revaluation.

This Milwaukee Journal Sentinel story from 2010 explains the broader issue well – and why then-Gov. Jim Doyle signed a law allowing for communities to extend the length of their TIDs.

(Learn more about our TIDs at the South Milwaukee Community Development Authority website.)

And one other note: The refinancing does not at all impact the development agreement with Walmart, nor will it lessen any amount of property taxes Walmart pays. Walmart has pledged to pay the city property taxes based on a $12 million “increment” — the value of the developed property vs. its value now — through at least 2027.

This borrowing is one of several the council will consider Wednesday.

  • We will also consider a resolution for an intent to borrow funds for TID 2 projects – the environmental cleanup and related costs associated with the Walmart project. The borrowing would be for up to $1.5 million to fund the city’s potential portion of the costs to clean up its property at 222 N. Chicago Ave.
  • Another resolution calls for refinancing $1,260,000 in “callable” bonds at a lower interest rate, resulting in savings of approximately $38,000.
  • Another resolution is an intent to borrow through the Clean Water Fund program for upgrades to the city’s wastewater facility – improvements that will be partially funded through the proposed rate increase I wrote about today.

I’ll keep you posted on all of these resolutions.

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Consolidation Update: City Council Backs Funding For Public Policy Forum Study

Should South Milwaukee consolidate its fire, emergency medical and/or dispatch services with Cudahy and St. Francis?

I think it’s much too early to say. We need facts.

And that’s what the three cities are seeking in a study to be done by the Public Policy Forum.

For its part, the South Milwaukee City Council vote unanimously to authorize spending $5,000 toward our portion of the study at its meeting Tuesday night.

Check out the resolution here. From it:

… The City of South Milwaukee hereby pledges its support and authorizes $5,000 in financial assistance to participate in the Public Policy Forum’s fact-based effort to review the potential for coordinating, sharing, or consolidating fire services, EMS services, police dispatch, and/or fire dispatch services as a means of improving the cost-effectiveness and maintaining the quality of such services to the extent possible. 

St. Francis and Cudahy were expected to approve the same resolution Tuesday night.

I look forward to the results of the study and the information it will give us toward helping make this decision — one that we have to consider as we confront a $160,000 loss of paramedic revenue from the county this year (and another significant cut likely in 2013).

I continue to believe strongly that consolidation should be explored with some of our city services, especially in these economics times. At the same time, I will be hesitant to support a consolidated service that is any worse than the existing service.

In other words, if we can do it the same or better for less money, great. If not, I would have a hard time backing the change.

I’ll keep you posted.

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