MONROE - A proposed five-year capital improvement plan will come back to the Finance and Taxation Committee, without the Monroe Common Council's final approval.
The council voted 6-3 Tuesday, July 17 to send the plan back. Aldermen Louis Armstrong, Charles Schuringa and Reid Stangel voted against the motion.
The committee sent the plan to the Common Council for approval on Tuesday, July 3, along with the recommended 2013 capital amount to be levied. The proposed levy amount for capital projects and purchases is $754,380 - the same as levied for 2012.
Aldermen supporting returning it did not object directly to the plan or to the "divide and conquer" approach to the budget process this year, separating the capital and operating portions. But some expressed concern about the swift and separate approval of the parts.
If the council had approved the plan, another full council vote would have been needed to make changes to the plan. Alderman Tom Miller made two separate inquiries to verify that specific requirement during discussion Tuesday.
Council President Tyler Schultz, a member of the Finance and Taxation Committee, said he was "disappointed" that the plan had moved through committee so quickly.
Schultz was the only committee member who voted against moving the plan to council on July 3. He had said "plan is OK to approve," but added that it was "still early in the budget process."
The committee saw the proposed plan for the first time on June 7 and a second look June 19. The capital to be levied for 2013 is the aggregate of the top priority projects, as determined by the city administrator and department heads.
The five-year plan was presented Tuesday for a council vote by Stangel, Finance and Taxation committee chairman, and seconded by Schuringa.
But during discussion alderman Michael Boyce urged the council to delay voting on any capital plan until several issues were addressed, and made a motion to send the plan back to committee for further consideration. Schultz seconded.
Boyce said a 62-percent increase in the dollar amount requested for a five-year capital in 2013, compared to the one in 2012 "creates some concerns." According to Boyce, last year's five-year capital plan had about 119 items totaling $30 million, while this five-year plan has 237 items totaling almost $48 million.
"This plan is a huge improvement over previous budget years," Boyce said, reading from a prepared statement. "The city is at the beginning of adapting to what is a positive change in the budgeting process. It is great to see the capital planning precede the annual budgeting process, and there is still plenty of time left to give consideration to a number of areas deserving of attention. I firmly believe that a few more weeks of deliberation would bring us all to a greater understanding of what the taxpayer is being asked to fund."
Boyce noted, among the issues that he said needed to be addressed, basic goals, ground rules and a definition of what constitutes a capital project should be adopted for the capital planning process.
"As it stands right now, the process seemingly gives carte blanche on capital spending," he said.
Boyce also said "a basic five-year projection of revenues, operating expenses, reserve transfers and debt service commitments should be compiled and reviewed prior to adoption of the capital plan," which would help determine whether the city could afford the projected plans.
A "baseline fiscal impact projection for future years would make capital funding and budget adoption" easier, and a review of the city's current capital asset inventory relative to future capital building and development requests "would enhance decision making and approval now and in future years," he added.
He also recommended council members have a basic understanding of how project costs were calculated, the sources of funding and potential effect to operating expenditures and revenues.
Besides the levy of $754,000, another $640,000 of requested projects will be postponed or financed by means other than a tax levy for 2013. Of that extra amount, City Administrator Phil Rath is recommending $420,000 for street reconstruction be financed by bonds, because streets have a long life span. About $180,000 previously accumulated in departmental capital funds is applied to their appropriate projects in the new plan. The 2013 total capital plan is $1.57 million.
The city used $426,950 from the city fund balance, added to the $754,000 levied, to reach the required $1.18 million for the 2012 capital budget.
The council voted 6-3 Tuesday, July 17 to send the plan back. Aldermen Louis Armstrong, Charles Schuringa and Reid Stangel voted against the motion.
The committee sent the plan to the Common Council for approval on Tuesday, July 3, along with the recommended 2013 capital amount to be levied. The proposed levy amount for capital projects and purchases is $754,380 - the same as levied for 2012.
Aldermen supporting returning it did not object directly to the plan or to the "divide and conquer" approach to the budget process this year, separating the capital and operating portions. But some expressed concern about the swift and separate approval of the parts.
If the council had approved the plan, another full council vote would have been needed to make changes to the plan. Alderman Tom Miller made two separate inquiries to verify that specific requirement during discussion Tuesday.
Council President Tyler Schultz, a member of the Finance and Taxation Committee, said he was "disappointed" that the plan had moved through committee so quickly.
Schultz was the only committee member who voted against moving the plan to council on July 3. He had said "plan is OK to approve," but added that it was "still early in the budget process."
The committee saw the proposed plan for the first time on June 7 and a second look June 19. The capital to be levied for 2013 is the aggregate of the top priority projects, as determined by the city administrator and department heads.
The five-year plan was presented Tuesday for a council vote by Stangel, Finance and Taxation committee chairman, and seconded by Schuringa.
But during discussion alderman Michael Boyce urged the council to delay voting on any capital plan until several issues were addressed, and made a motion to send the plan back to committee for further consideration. Schultz seconded.
Boyce said a 62-percent increase in the dollar amount requested for a five-year capital in 2013, compared to the one in 2012 "creates some concerns." According to Boyce, last year's five-year capital plan had about 119 items totaling $30 million, while this five-year plan has 237 items totaling almost $48 million.
"This plan is a huge improvement over previous budget years," Boyce said, reading from a prepared statement. "The city is at the beginning of adapting to what is a positive change in the budgeting process. It is great to see the capital planning precede the annual budgeting process, and there is still plenty of time left to give consideration to a number of areas deserving of attention. I firmly believe that a few more weeks of deliberation would bring us all to a greater understanding of what the taxpayer is being asked to fund."
Boyce noted, among the issues that he said needed to be addressed, basic goals, ground rules and a definition of what constitutes a capital project should be adopted for the capital planning process.
"As it stands right now, the process seemingly gives carte blanche on capital spending," he said.
Boyce also said "a basic five-year projection of revenues, operating expenses, reserve transfers and debt service commitments should be compiled and reviewed prior to adoption of the capital plan," which would help determine whether the city could afford the projected plans.
A "baseline fiscal impact projection for future years would make capital funding and budget adoption" easier, and a review of the city's current capital asset inventory relative to future capital building and development requests "would enhance decision making and approval now and in future years," he added.
He also recommended council members have a basic understanding of how project costs were calculated, the sources of funding and potential effect to operating expenditures and revenues.
Besides the levy of $754,000, another $640,000 of requested projects will be postponed or financed by means other than a tax levy for 2013. Of that extra amount, City Administrator Phil Rath is recommending $420,000 for street reconstruction be financed by bonds, because streets have a long life span. About $180,000 previously accumulated in departmental capital funds is applied to their appropriate projects in the new plan. The 2013 total capital plan is $1.57 million.
The city used $426,950 from the city fund balance, added to the $754,000 levied, to reach the required $1.18 million for the 2012 capital budget.