Manitowoc Finance Committee Meeting - August 3, 2026

The Finance Committee met in Council Chambers and via Zoom on Monday, August 3, 2026, at 5:30 PM, with all five members present: Sitkiewitz, Reckelberg, Schlei, Dunbar, and Brey. The committee approved the consent agenda, accepted quarterly financial reports, approved bond-related agreements and resolutions, discussed the 2027 budget, recommended approval of three operator's licenses after closed session, and tentatively set the September meeting date. All votes were 5-0 unless noted.

Consent Calendar

• No committee member requested removal of any consent agenda item. The committee approved the Consent Agenda by one motion (Reckelberg/Schlei, 5-0), including the July 6, 2026 Finance Committee minutes; the Q2 2026 Capital Allocation Working Group (CAWG) Request Log Report; the Q2 2026 Internal Controls to Prevent and Detect Fraud Report; the Q2 2026 Investment Report; and the report of City and MPU Telephone System RFP results.

Public Comments & Testimony

• Esther Watley (the agenda and minutes list the applicant as E. Whatley; the transcript renders the spoken name as Watley) of 1512 North 23rd Street asked the committee to approve her one-year operator's license. She acknowledged a charge on her record, said she had letters of recommendation, and explained she took a plea deal after waiting about three and a half years for a court case.
• Isma Reyes of 4341 Country Lane asked the committee to approve her one-year operator's license. She described prior bartending experience in Sheboygan, current employment at Covered Wagon serving beer and wine, and a previous denial in November 2025 while a case was pending; she said she was told to reapply after the case was settled.
• The minutes note that, in accordance with policy, the public comment portion of the meeting was not made part of the official record.

Discussion Items

• Q2 2026 Claims Report (26-0689): The committee placed the City Attorney's Office quarterly claims report on file (Reckelberg/Schlei, 5-0). Alderperson Dunbar asked whether an entry for alleged snowplow damage to a vehicle rear view mirror should have said side mirror; no other questions were raised.
• Q2 2026 Budget Exception Report (26-0690): The committee accepted the report and placed it on file (Reckelberg/Dunbar, 5-0). In discussion, Alderperson Reckelberg asked about the $65,000 reported for unanticipated retirements in the police department. Staff explained that $40,000 had been budgeted for two anticipated retirements, but two additional long-term employees retired unexpectedly with larger payouts; a salary contingency account had been removed from the budget two years earlier, and how the overage will be covered is to be determined.
• Class B Retail Intoxicating Liquor and Fermented Malt Beverage License, TAV-2641A (26-0691): Approved for Green Street F&S LLC at 1801 S. 10th St., described as a transfer of agent (Reckelberg/Schlei, 5-0).
• Hecker/Viebahn Agricultural Land Lease Renewal (26-0692): Approved as presented for Charmwood Farms for April 1, 2026 through March 31, 2031 (Reckelberg/Schlei, 5-0). Staff noted the lease revenue goes to Manitowoc Public Utilities (MPU) and the leased city-owned land is in the TID 23 area with provisions allowing the city to take the land for development.
• Scope of Engagement for LSL Replacement Revenue Bonds (26-0698): Approved for the proposed issuance of $5,637,072 City of Manitowoc Taxable Private LSL Replacement Revenue Bonds, Series 2026, under Safe Drinking Water Loan Project 5191-21 (Reckelberg/Schlei, 5-0). Staff explained the state DNR loan includes 50 percent principal forgiveness, with about $11.2 million total financing, and the remaining 50 percent is the responsibility of the city and MPU before being transferred to parcel owners.
• Resolution Authorizing LSL Replacement Revenue Bonds (26-0699): Approved as presented, authorizing the issuance and sale of up to $5,637,072 in taxable private LSL Replacement Loan Program Revenue Bonds, Series 2026, and approving the related financial assistance agreement (Reckelberg/Brey, 5-0). Staff said the bonds are issued through the state rather than sold to investors; the principal-forgiven portion is treated as a grant, and parcel owners who have lead service laterals replaced will receive invoices or enter into repayment agreements, so the bonding is not expected to have a direct fiscal impact on the city. Staff also noted the city is providing assurance of repayment, and the outcome would be to be determined if parcel owners do not pay.

2027 Budget Discussion

• The mayor reviewed the 2027 budget outlook: department budgets are due by the end of August; a hiring freeze is in place for vacant positions unless deemed absolutely necessary; no new positions are planned; the goal is to retain existing staff; a non-representative wage adjustment recommendation is not yet determined; and reducing the amount of fund balance applied to offset the budget is a priority. Staff noted roughly 80 percent of the city's budget is personnel costs, and departments were asked to evaluate whether non-personnel expenses could be cut by 5 percent.
• Alderperson Reckelberg said his constituents do not want a tax increase and asked that non-representative employees be paid fairly; he said a 1 to 2 percent increase or a flat budget was the most he could support.
• Alderperson Schlei said expecting no tax increase is unrealistic because city costs such as diesel, groceries, and supplies are rising, and the alternative would be cutting services, which he did not think the public wants.
• Alderperson Dunbar requested a one-page summary of multi-year project funding already set aside in previous budgets and a forward-looking list of anticipated purchases over $150,000 in the next three years.
• Alderperson Sitkiewitz cautioned about unintended consequences of past budget decisions and said spending priorities need to be weighed against revenue realities.
• No formal action was taken on the budget discussion.

Operator's Licenses and Closed Session

• The committee voted 5-0 to enter closed session under Wisconsin Statutes Section 19.85(1)(a) to deliberate on a one-year operator's license application for E. Whatley (26-0695), a two-year operator's license application for M. Malczewski (26-0696), and a one-year operator's license application for I. Reyes (26-0697).
• After reconvening in open session, the committee voted 5-0 on each application to recommend approval pursuant to Wisconsin Statutes Section 111.335. All three recommendations were made by Reckelberg, seconded by Schlei, and carried 5-0.

September Meeting Date

• The committee discussed that the regular September Finance Committee date would fall on Labor Day. It tentatively scheduled the September meeting for Tuesday, September 8, 2026, with plans to check the calendar before public notice is issued.

Key Outcomes

• All consent agenda items and all action items requiring a vote were approved unanimously.
• Q2 claims report and Q2 budget exception report were placed on file; the Class B liquor license, Charmwood Farms lease renewal, bond scope of engagement, and bond resolution were approved.
• Three operator's license applications were recommended for approval to the Common Council.
• The 2027 budget discussion produced directives on non-personnel expense reductions, levy targets, and improved multi-year project tracking, but no vote.
• The next Finance Committee meeting was tentatively set for Tuesday, September 8, 2026, and the meeting adjourned.