Monday, October 21, 2019

DRAFT 2020 BUDGET - Board actions on discretionary policy items to reduce levy


The Village Board of Trustees held its budget worksession on October 15, 2019.  Below are budget policy items that the board took action on.  The budget hearing is scheduled for  November 13 @ 6:30 pm at 3100 Eaton Road.  After the budget hearing, the board may take further action on the draft budget prior to adoption, also during the November 13 meeting.  

1.    Apply revenues from VOM sale of vehicles to general fund revenue: $34,000
Based upon current VOM fund balance and the proposed vehicle replacement expenditures for 2020-2025, the fund is capable of sustaining emergency replacement of our most costly piece of equipment.  Currently, revenue from sale of equipment is retained in the VOM fund.  This action would direct the revenue into the general fund.  The amount is estimated and assumes replacement of a pickup truck and the jet vacuum truck. 
Policy consideration: VOM would be hard pressed to sustain multiple substantial breakdowns or emergency replacements.  Applying sale of vehicles for a single fiscal year is safe, however it is not recommended for multiple fiscal years. 
APPROVED UNANIMOUSLY
2020 Tax impact to owner of median value ($184K) home:  $5.03

2.    Reduce levy contribution to VOM: up to $45,520
Based upon current VOM fund balance and the proposed vehicle replacement expenditures for 2020-2025, the fund is capable of sustaining emergency replacement of our most costly piece of equipment. 
Policy consideration: The draft 2020 budget as presented includes a general levy contribution of $214,593 for vehicle operations, maintenance, repair, and replacement.  After additional budget analysis, staff feel the levy contribution to VOM could be reduced up to $45,520 based on the current budget revenues over expenditures of the VOM fund.
APPROVED UNANIMOUSLY
2020 Tax impact to owner of median value ($184K) home: $6.74

3.    Eliminate capital levy: $25,000
The capital levy is intended to reduce future additional debt that will be incurred due to the newly created special assessment subsidies. 
Policy considerations: elimination of capital levy increases required future debt service, which is more costly than capital levy due to interest.
APPROVED UNANIMOUSLY
2020 Tax impact to owner of median value ($184K) home: $3.70

4.    Reduce roundabout contracted maintenance: $8,000
Contracted roundabout maintenance could be reduced to once every 3 years, with minor maintenance done by village summer staff. 
Policy considerations:  shifts contracted services to internal, may negligibly reduce aesthetics between contracted maintenance, requires future commitment to fund contracted repair/maintenance in future years. 
APPROVED UNANIMOUSLY
2020 Tax impact to owner of median value ($184K) home: $1.18

5.    Storage area network server system replacement:  $27,500
This project is to replace servers that are beyond their life expectancy with a storage area network system.  The total cost of the project is estimated to be $90,000. Staff could prolong the replacement for 1 year by purchasing extended warranties for existing servers, perform upgrades, budgeting ½ the general fund levy in year 2020, ½ the general fund levy in 2021, and purchase the server in year 2021.  Costs associated with prolonging the purchase are estimated at $2,000 (warranties and upgrades) and inflation. 
Policy considerations:  This may only occur if the board commits to completing the project in year 2021, including committing funds in the 2021 budget.  Prolonging the project may result in increased costs due to inflation and labor availability.   
APPROVED UNANIMOUSLY
2020 Tax impact to owner of median value ($184K) home: $4.07

6.    Parking lot maintenance:  $25,000
Budget area:  contracted services in parks ($8,000) and buildings and grounds ($17,000).
This budget item is for maintenance (crackfill, sealcoat, and stripe) of parking lots at 2828 Allouez Ave, Josten South, Tiger Court, and Bethel Park.  Staff could complete striping of parking lots using existing paint that the village has on-hand.  This would address the striping of the parking lots, but would not complete the
Policy considerations:  The village is behind schedule in recommended parking lot maintenance.  Continued postponement of regular maintenance can shorten longevity and increase overall costs. 
Complete parking lot maintenance at 2828 Allouez Ave, remove parking lot maintenance at Josten Park south, Tiger Court, and Bethel Park from 2020 budget. 
REDUCES 2020 DRAFT BUDGET BY $8,000
2020 Tax impact to owner of median value ($184K) home: $1.18

7.    Spring Creek Trail Study: $22,000
While this is a discretionary expenditure, staff strongly recommends against removing this from the 2020 village budget.
Policy considerations: the combination of removing the original planned trail from the Willow Glen development and not completing a study for an alternate route is inconsistent with the Comprehensive Outdoor Recreation Plan, the Strategic Plan, and the Bellevue Comprehensive Plan and past commissions and board decisions.  The trail has been included in Village plans for decades, the Park Commission recommended proceeding with the study due to elimination of possibility of the trail being developed as originally planned, the village continues to grow in population looking for recreational opportunities and increased quality of life, and not proceeding will likely result in another missed opportunity. 
Background:  The Willow Glen plat includes the area that was identified as a linear park along Spring Creek. This linear park/trail has been in the Village’s Comprehensive Outdoor Recreation Plan for over 20 years.  In October 2018, the Park Commission recommended that easements be negotiated for a future trail as condition of the approval of the Willow Glen subdivision.  The Village Board approved the preliminary Willow Glen subdivision with the understanding of inclusion of the trail corridor.  In January 2019, the developer of Willow Glen requested the trail requirement be removed and the Village board granted the request and approved the plat without the trail (3-2 vote).  At that time, President Soukup asked that the Park Commission study alternative options for the trail.  The Park Commission reviewed a Scope of Services for a trail study and recommended approval and funding of the study.  Staff presented the Scope of Services and Park Commission recommendation to proceed with a trail study along Spring Creek at the June 26 Village Board meeting.  At that time, the board directed staff to include a trail study in the 2020 CIP. 
MOTION TO REMOVE SPRING CREEK TRAIL STUDY FROM THE 2020 BUDGET.  4-1 vote
2020 Tax impact to owner of median value ($184K) home: $3.26

 8.    Canoe/kayak Launch repair/re-installation: $8,000
While this is a discretionary expenditure, staff strongly recommends against removing this from the 2020 village budget.  The project is to repair and re-install the kayak launch located at Manderly Way and was damaged by spring flooding. 
Policy considerations: a decision to not meet village responsibility of maintenance and repair of grant-funded/partnership projects and purchases could negatively affect relationships with partners and grant funding opportunities for future projects.  Elimination of an American with Disabilities Act recreational opportunity may reflect negatively on the Village of Bellevue because the 2012 ADA audit revealed that the Village has limited opportunities for persons with limited or restricted mobility. 
Background:   The Kayak launch was a grant funded project completed through a partnership of the Village of Bellevue, the Wisconsin Department of Natural Resources, and the Fox-Wisconsin Heritage Parkway.  Grant proceeds totaled nearly $45,000 for the purchase and installation of the kayak launch and signage.  The only expenditure required by the Village of Bellevue was annual commitment of $150 membership fees to the Fox-Wisconsin Heritage Parkway for 7 years, which was paid for by Cedar Corp.  The launch was completed in the summer of 2015.   The useful life of the launch is estimated to be 20 years.  The Village agreed to the conditions of the Fox-Wisconsin Heritage Parkway when we accepted the gift of the launch.  These conditions include commitment to maintenance and upkeep for at least 7 years. 
APPROVED UNANIMOUSLY TO MAINTAIN $8,000 IN 2020 BUDGET FOR KAYAK LAUNCH REPAIR/RE-INSTALLATION
2020 Tax impact to owner of median value ($184K) home: $1.18