City may use its savings to pay this year's bills, finance director cautions

The city is tapping its savings accounts to pay its bills.

That's the analogy Finance Director Dave Brown used Monday night to describe the city's financial situation. He told the City Council's Finance Committee that it looks like the city will spend the $2.2 million it took out of its reserve fund to balance its 2010 budget.

While the city uses its reserves - essentially a savings account - every year to balance its budget, it typically pays itself back with money that was budgeted, but not spent during the year.

That may not happen in 2010, Brown said. He told the Finance Committee it looks like the city will spend all of the $2.2 million it took out of reserves this year.

Brown's message was a caution to committee members about spending money left unspent in the 2010 budget. Not only could the city use that money to replenish its fund balance, he said, it's likely the city will need its savings to make it through the coming years, as well.

Brown said tapping the fund balance hurts the city in a number of ways. It reduce the amount of money available for cash flow, cuts down on how much money the city can earn interest on through investments, and could increase the cost of borrowing money through a lower bond rating.

Like a personal budget, Brown said there are two solutions to dwindling savings: make more money or spend less.

Finance committee delays votes on Downtown parades, no-bid contracts

The Finance and Personnel Committee put off decisions on waiving fees for Downtown parades and changing the city's bidding process for professional services.

Alderman Jeff Coe an Jean Garbo of the Downtown Racine Corp. asked the committee to waive over $1,500 in fees to close streets, hire cops and clean streets during and after the St. Patrick's Day and Christmas parades.

While the committee put off a decision, they seemed skeptical. They noted if they waive the fees for these events they're getting close to having to waive fees for all events.

Police Chief Kurt Wahlen, who happened to be at the meeting for other items, also pointed out the city was not in position to waive the fees for the off-duty officers used during the parades. The officers are hired out by a private company.

Coe asked the committee to receive-and-file the motion so he could bring back a new proposal to secure the city as an official sponsor of the events. By ordinance, the city only sponsors two events per year: the Fourth of July parade and the Memorial Day parade.

Aldermen Terry McCarthy and Greg Helding asked the committee to require city departments to bid out contracts for professional services. McCarthy raised the issue after controversy arose over Mayor John Dickert's effort to give a no-bid $40,000 contract to a videographer to rework the city's cable-access TV station, CAR25.

Dickert was able to offer the contract because city ordinances do not require bids for professional services. McCarthy and Helding would like to change that, but they'll have some convincing to do.

Finance Director Dave Brown said the proposal would create more work for his department, and Deputy City Attorney Scott Letteney said it would be awkward for the city to bid out for legal services.

Their arguments appeared to convince Alderman QA Shakoor II to lean against the proposal, and Finance Chairman Jim Spangenberg said he needed more information.

The committee voted to defer action, and McCarthy and Helding said they would bring back a spreadsheet showing only 12 city contracts would be affected by the ordinance.

For a complete wrap of Monday's committee meeting, checkout the live-blog below.

Council headed for showdown over Lathrop Ave. lights

The City Council is headed for a showdown over six street lights on Lathrop Ave.

Alderman Aron Wisneski appeared before the council's Finance and Personnel Committee Monday night hoping to secure $16,250 for six decorative light poles in the 700, 800 and 900 blocks of Lathrop Ave. The poles would match the lights installed on Orchard and Russet streets one and two blocks to the west.

The city's Public Works Department intends to install standard new lights on the street, which are the basic black poles used throughout the city. Here's a breakdown of the lights in question (there are taken from city records; we didn't add the labels):

These are the lights that need to be replaced. According to residents,
the lights haven't worked for over a year.

The type of light proposed for Lathrop Ave.

The type of light residents want installed, but will cost the city $16,250.
You can see more detailed photos of the lights here.

Wisneski and about 10 residents attended the meeting to make a case for the decorative poles, which in addition to cost an additional $16,250, are also less efficient than the standard poles (though the decorative lights are far more efficient than the current poles and only slightly less efficient than the standard poles). That would cost the city an estimated $200 per year in lost energy savings.

Their main argument was this section of Lathrop Ave. should be included in the Manree Park historic neighborhood and receive the historic looking lights. But the street isn't included in the district, and that left them with the standard lights.

They took their case to the Public Works Committee and got approval to install the historic lights. But the Public Works Committee sent them to the finance committee to find money for the lights. Members of the finance committee were skeptical.

Alderman Mike Shields, who sits on the Finance Committee, outright opposed the request, saying he wouldn't support spending city money on the lights. He called the proposal "fiscally irresponsible" and made a motion to reject the request. The motion failed for lack of a second.

Alderman Bob Anderson backed Wisneski's request, but Alderman Q.A. Shakoor II said he wasn't comfortable voting until he had more information. He motioned to send the proposal to a Committee of the Whole meeting (that's the entire City Council meeting as a committee) to discuss the request, which he said could set precedent for other areas of the city.

Alderman Jim Spangenberg, chairman of the committee, was non-committal. But he did point out sections of his district are near an historic area, but still had standard lights installed. He also wondered where the money would come from for the lights. Kathleen Fischer, assistant finance director, said the money would come out of the city's reserve fund.

One option not discussed by the committee was the city staff's recommendation to consider charging residents a special assessment to cover the additional cost of the lights.

The committee voted 2-1 to pass Shakoor's resolution and recommend sending the proposal to Committee of the Whole. Shakoor and Shields voted yes; Anderson no. Spangenberg, as chairman, didn't vote.

The committee's decision sets up a debate at next Tuesday's City Council meeting over the proposal. The Public Works Committee supported the decorative lights and it seems likely that Wisneski and Anderson would support dipping into the city's reserves to cover the upgrade. The council could vote next week to approve the lights, send the issue to committee or simply vote it down.

It'll be interesting to see how the council proceeds.

A couple more notes ...

Anticipating comments about wasting time on small issues like lights, this is important to residents. Forty-four residents on Lathrop or nearby streets signed a petition asking for the historic lights, and about 10 turned out for Monday night's meeting. One resident stood up Monday night and said she'd rather the city wait a year and install nothing rather than put in the standard poles, which they feel will detract from the street. This matters to people. Now, whether it fits with the city's budget is for the council to decide. But it certainly seems worth their time.

The city spends about $1.2 million a year lighting its streets. Stimulus money to install LED high-efficiency lights should help control that number, which had been jumping close to 10 percent a year in recent years. Spangenberg said he recalls not long ago the number being close to $400,000.

Anyone know why it's called Manree Park? If so, post in the comments. If you want to see more names for Racine's neighborhoods, check out this map that includes areas in the city such as: Westown Heights, Maple Grove, Slausondale and Garden City.

City of Racine looks to get into the software business

The city of Racine may be getting into the software business.

Paul Ancona, director of information systems, hopes to sell the city's time management computer program to the city of Wauwatosa for $48,000 with an annual $8,000 tech support contract. The program was written by employees contracted by the city.

Ancona presented his plan to the Finance and Personnel Committee on Monday. He said the sale has a good chance because Wauwatosa budgeted $50,000 for the new software, but the closest bid from private contractors was $90,000. "It looks like it could work out," Ancona said.

Alderman Mike Shields asked about the support agreement and whether it would take away from the city. Ancona said it wouldn't. A separate phone line would be established for Wauwatosa and any extra work would be absorbed by the contractors who provide technical support for the city.

The agreement includes $8,000 up front for support, plus a billing rate of $80 per hour. The city pays $70 per hour for support, Ancona said.

Following the meeting, Ancona said Wauwatosa's interest suggests potential for additional sales. The city is sending an employee to a trade conference to gauge interest in Racine's program, he said.

Committee Note

Alderman Terry McCarthy is joining the Finance and Personnel Committee. He replaces former committee Chairman Tom Friedel, who left to first become mayor and then city administrator. Alderman Jim Spangenberg is chairman of the committee and City Council President Q.A. Shakoor II will be vice chairman. Aldermen Bob Anderson and Michael Shields also serve on the powerful committee, which reviews all spending proposals in the city.

Stimulus money may pay for gang prevention coordinator

Racine is seeking a three-year, $450,000 stimulus grant to coordinate gang prevention activities in the area.

The money would be used to hire a director and to create a database that tracks young adults who have had contacts with gangs. The director would work with local organizations already in place and the database likely would be made available to nonprofits, schools and other agencies.

If successful, the city would likely subcontract the program to an agency like Racine Vocational Ministries, which runs the Community Re-entry program for people coming out of prison.

The City Council's Personnel and Finance Committee unanimously approved the grant application. Grant Coordinator Debbi Embry said her discussions with state officials led her to believe Racine had a good chance at receiving the money.

"After meeting with the state, we felt we had a good chance because we have all of the pieces in place," Embry said.

Alderman Q.A. Shakoor II was enthusiastic about the grant.

"This is exactly what we need, and this will make a difference," he said.

Alderman wants reviewof city's employee complaint system

An alderman is concerned over how major problems festered in the city's Health Department with seemingly few people aware of the difficulties.

Alderman Bob Mozol wants to survey city employees about the process for reporting problems and complaints to supervisors or the Human Resources Department.

Mozol said he's concerned the existing process is flawed after sitting through a brutal hearing that resulted in Public Health Administrator Janelle Grammer being fired. Several Health Department employees testified that Grammer was incompetent and the department was being run poorly in recent years.

Mozol said it was unfortunate city employees had to put their careers on the line by testifying at an open hearing against their boss. The problems should have been dealt with sooner, he said. Instead, at least one employee who raised concerns about Grammer was retaliated against. "Nothing was getting done," Mozol said.

He requested the survey from the Personnel and Finance Committee. The committee deferred action to do more preliminary work on the survey and to invite other city staff to the meeting.

Mozol said it could take some digging to restore faith in the city's complaint system. The survey could be an important first step in uncovering problems.

"We'll see how deep it goes?" he said.

North side church hopes for discount to use Horlick Field

Children from Iglesia Canaan attended Monday's Personnel and Finance Committee meeting.

A local church may get a discount to use Horlick Field for an event the hope will reduce crime and other negative activities in the area.

Iglesia Canaan, 1119 Kewaunee St., is hoping to use the field Aug. 21-22 for music, speakers and other events. Church officials estimated 150-200 people would attend.

The church, which brought about 25 children to the committee hearing, appeared before the Personnel and Finance Committee Monday hoping to get the fee for use of Horlick Field waived. The field costs $1,271 per day to rent for events.

The committee was reluctant to waive the entire fee and tried to steer the church towawrd a second site, Douglas Park, which costs less to rent. Church officials initially said Douglas Park was acceptable, but when pressed, said they would prefer Horlick Field because of the nearby parking and safer setting.

The committee then voted to charge Iglesia Canaan a one-day fee for the two-day event. If approved by the City Council, the church would have the field all-day Friday, but only in the morning on Sunday because of a football game that night.

Alderman Q.A. Shakoor II said Iglesia Canaan's efforts were "commendable." He said it was important for faith-based organizations to get involved in their neighborhoods to reduce crime and improve the quality of life.

The reduced fee now moves to the full council for consideration. The proposal could run into opposition, committee members warned the church. Some alderman oppose reducing city fees and could object to cutting the Horlick Field rental cost in half.

Iglesia Canaan was represented at the meeting by Mildred Cordova and the Rev. Olla Rios.

New fire station proposed for Durand Ave and Memorial Drive

Racine Fire Chief Steve Hansen hopes to use federal stimulus money to build a new fire station near Durand Avenue and Memorial Drive.

The chief proposed the idea Monday night while seeking permission from the City Council's Personnel and Finance Committee to apply for $2.5 million in stimulus money to build the new station. It would cost the city about $500,000, Hansen said.

If the money comes together, the Fire Department would move Station 6, 2101 16th St., to the south side location, Hansen said. There is plenty of land - including city-owned land - available near Durand and Memorial for use, he said.


The current Station 6 was built in 1973 as a temporary building in anticipation of the city growing to the south, Hansen said. The station was actually built as a residence with a garage for fire trucks. If a new station is built, the old station could be converted into a home or possibly a community-oriented policing (COP) house, he said.

Hansen said the major reason for moving the station is concern about coal trains rolling through the city. We Energies' two new coal-fired generators are set to go online this year and next. Both will require longer trains that will have the potential to block intersections and delay emergency response times from Station 6, Hansen said.

Moving the station south will add 30 seconds to response times in the neighborhoods along 16th, 17th and 18th streets, Hansen said. But it will give fire and rescue workers direct a route under the railroad tracks on Durand Avenue to Racine Street. As it stands, if a train is running, fire trucks and ambulances would have to drive from 16th Street south to Durand to get around the train.

Hansen added that the train companies use the tracks through Racine to stage their cars heading toward the power plant. That means the long trains slow down and take even longer to clear intersections.

"They do that at 2-3 a.m.," Hansen said, "but we have fire and rescue calls at 2-3 a.m."

Committee members approved Hansen's request to apply for the grant, but were noncommittal about using the money if it comes through.

Alderman Mike Shields asked Hansen if he'd considered what would happen to the old fire station if the city built a new one.

"If we're going to spend $500,000 we don't want to see that neighborhood deteriorate," Shields said. "If we spend $500,000 we want to see everything come up together."

The grant for the new fire station isn't a guarantee, Hansen said. Racine would compete with communities around the country for the American Recovery and Reinvestment Act's Assistance to Fire Fighters Fire Station Construction Grant. The money would be available through the Department of Homeland Security.

The grant requires a 20 percent match from the city. Hansen suggested the money could be borrowed as part of the city's capital improvement program. He said city officials should know if they will receive the federal grant in time to include the matching dollars in next year's budget.

"We can always turn down the grant," Hansen said. "I'm not asking to accept, just to apply."

Alderman Tom Friedel made a motion to allow Hansen to apply. The committee voted unanimously in favor of the proposal, which still needs approval from the full City Council.

City Notes: Committee approves crypt sale; City receives grant for farmer's markets

Odds and ends from Tuesday night's Personnel and Finance Committee, which included the return of Alderman Tom Friedel to the committee he once chaired:

Senior Center

As mayor, Friedel asked the city to track attendance at the Belle City Senior Center, which is located at the former Lakeview Community Center. From January to March attendance was split 50-50 between Racine residents and people from outside of the city, according to Finance Director Dave Brown.

The numbers roughly broke down as 50 percent from Racine, 20 percent from Caledonia, 20 percent from Mount Pleasant and 10 percent from other communities.

Farmer's Markets

The city received $2,298 from the State Department of Health to give out vouchers to low-income residents so they can shop at local farmer's markets. The city also received an additional $25,581 for the city's Women, Infants and Children program.

Crypt Sales

The city is hoping a sale will jump start the sale of crypts in Mound Cemetery later this year. Parks and Recreation Director Donnie Snow sought permission from the committee to waive fees for people buying new crypts in the cemetery. The final resting places are now under construction. The committee agreed to waive fees on the crypts, which include $760 for residents and $990 for nonresidents, until the end of the year. Snow said the crypts will go on sale later this summer.

Water fees

The city is likely to pull $365,214 out of its savings account to pay for a surprise fee increase from the state Public Service Commission on March 25. The 30 percent increase will help pay to maintain water pressure to fire hydrants throughout the city.

"It's non-negotiable and we have to pay it," Brown said.

Friedel, who sits on the board that manages the water utility, called the increase "unprecedented."

The city has plenty of money to cover the budget hit. Brown said the city's reserve balance is around $22 million, which is roughly 29 percent of the city's budget. The city must keep at least a reserve fund equal to 20 percent of the budget, Brown said.

"This is why we have that fund," he said.

The budget amendment passed the committee unanimously.

You can read the JT's story on this here.

Committee rejects alderman's plan to require physicals for city employees

Alderman Bob Mozol’s proposal to require physicals for all city employees who drive vehicles failed to pass committee Tuesday.

Mozol wanted to require the physicals to minimize the risk of an accident in a city vehicle and to cut down on the city’s health insurance costs. He said the idea came to him after realizing the city’s fire department spends less than other departments for health care. All firefighters are required to take an annual physical.

Mozol said extending that requirement to all city employees could catch health problems early. It could also reduce the risk of health problems leading to an accident.

"I don’t think it’s unreasonable given the amount of money the city spends on health care," Mozol told the Personnel and Finance Committee.

The proposal would cost about $30,000 per year.

Committee members were skeptical of the proposal. Alderman Mike Shields said Mozol’s idea sounded like a “waste of money.”

"There are plenty of rules out there to protect the city," Shields said, dismissing Mozol’s contention that the physicals would prevent accidents.

Numbers provided by city staff didn’t support Mozol’s concern about accidents. Interim City Administrator Scott Letteney said he didn’t find a single accident involving a city employee caused by a health concern.

Alderman Tom Friedel questioned if Mozol had thought through the proposal. The plan would require the city to renegotiate its contract with its unions to require the physicals. It could also, if taken to extreme, cost a city employee their job, he said.

Letteney added there may be privacy issues with requiring the results of a physical being reported to the city.

The committee voted unanimously to receive-and-file the proposal, which means they rejected it.