Speaker numbers apply only to this recording.
The Finance & Personnel Committee, chaired by Ald. Marina Dimitrijevic (with Vice-Chair Ald. Peter Burgelis presiding initially), held hearings on the Mayor's proposed 2027 budget on Friday, October 2, 2026. The committee heard presentations and testimony from six departments: City Attorney, Treasurer, Comptroller (morning session), and City Clerk, Assessor, Municipal Court (afternoon session). The meeting recessed from 12:05 PM to 1:03 PM and adjourned at 4:19 PM. The sole agenda item, Communication 260001, was held to the call of the chair.
Presentation: Angelique Pettigrew (Budget Office) presented the budget overview: total proposed operating budget $9.7 million (4% increase), staffing unchanged at 33 FTEs. Damages and Claims SPA increased by $1 million to $3.5 million (40% increase), though the five-year average is $5.1 million. Outside counsel and expert witness fund increased 234% to $279,700. The office projects $1.5 million in revenue (16% increase) from charges for services.
Discussion: City Attorney Evan Goyke requested three changes: (1) restore a vacant Assistant City Attorney (ACA) position proposed for elimination; (2) convert a vacant legal office assistant lead to a paralegal (budget neutral); (3) maintain outside counsel/expert witness funding. He argued the average ACA cost ($85/hour, including fringe) is far cheaper than outside counsel ($300+/hour). Ald. Burgelis noted a prior budget amendment funded the ACA position by reducing outside counsel, but anticipated savings didn't materialize. Ald. Dimitrijevic questioned the mayor's rationale for denying the position. Ald. Spiker expressed skepticism about the savings argument. Ald. Moore inquired about staff vacancies (three ACA, one deputy, paralegal, and administrative vacancies) and efforts to improve systems. Ald. Taylor and Ald. Coggs focused on unbilled services to Milwaukee Public Schools (MPS), noting 2,084 hours tracked from March 1 to September 30, 2026, representing roughly $173,400 at the $85/hour rate. Ald. Burgelis requested a breakdown of time, costs, and services provided to MPS and information on any other self-taxing body providing free legal services to another. The City Attorney confirmed state statute (Chapter 119) assigns the office as MPS's general counsel but does not mandate payment. Damages and Claims SPA increase was discussed; insufficient funding historically leads to contingency fund draws and borrowing.
Key Outcomes: The committee took no action on the City Attorney's budget. Ald. Burgelis requested the MPS cost analysis.
Presentation: Tyler Calligaro (Budget Office) presented: total expenditures up ~5% ($246,000) to an unspecified total. No new positions. Property tax collection rate 98–99%. 2026 foreclosures filed against 678 properties, city acquired 189, 489 redeemed. Investment income $7.8 billion in 2025.
Discussion: Treasurer Spencer Coggs and Deputy LaQuisha Schroeder answered questions. Ald. Spiker asked about payment trends: online payments steady at 10–15%, drop box usage increasing. MUNIS system is unstable, limiting paperless billing. Ald. Taylor requested data on city-foreclosure trends. Ald. Coggs requested percentage of taxes owed due to city fees. Ald. Moore discussed the foreclosure process, noting the city's partnership with MKE United's anti-displacement fund. The committee discussed mailed receipt delivery: beginning in 2027, receipt delivery method matches payment method (electronic receipts for online payers, paper by mail for others).
Key Outcomes: Communication held to call of the chair. Information requests made.
Presentation: Angelique Pettigrew presented: proposed budget $6.6 million (13% increase, $749,000). FTEs drop from 58 to 56 (two vacant positions eliminated). Operating up $201,000 for professional services (independent audits). Capital: none. Workday go-live scheduled for payroll period 1 of 2027 (December 20, 2026).
Discussion: Comptroller Bill Christianson and Deputy Charlie Roedel discussed Workday implementation, AI utilization (GovAI for audits and accounting), internal audit prioritization, TSF and reserve levels (TSF balance $125 million vs. GFOA recommendation of ~$160 million). Ald. Spiker asked about bond rating impacts: the comptroller noted TSF draw is not sustainable. Ald. Burgelis asked about revenue estimates and structural deficit. Ald. Moore inquired about audit independence (the office doesn't audit itself). Ald. Taylor raised concerns about AI replacing positions; Christianson said it's intended to improve processes, not eliminate jobs. Ald. Spiker asked about the impact of capital investment trends on bond ratings; Christianson said ratings focus on debt levels and property values, not investment levels directly.
Key Outcomes: Communication held to call of the chair.
Presentation: Brian Reinders (Budget Office) presented: 2027 proposed budget $13.4 million (0.6% increase, $73,000). FTEs 103.9. Capital: no funding for enterprise records management system (ERMS); a design study was funded in 2026 but not implementation.
Discussion: City Clerk Jim Owczarski highlighted four divisions: Licenses (migrating from Lyra to Acela platform), Public Information, City Channel (4 staff), Historic Preservation Commission. He requested funding for a City Hall basement community space and noted the ERMS design study risks becoming a waste of money if implementation is deferred. Ald. Dimitrijevic raised constituent contact increases (30–40%). Ald. Burgelis queried charges for services and cable franchise fee decline (statutory framework, declining cable viewership). Ald. Coggs questioned reductions in Youth Council and Big Clean special funds (explained as carryover methodology). Ald. Spiker raised data security risks of not implementing ERMS. Ald. Moore praised the Youth Council and sought growth. Ald. Perez (Common Council President) noted Innovation District funds were unspent but expected to be used in 2027. Ald. Coggs requested bathroom facilities in the clerk's office (previously discussed). Ald. Burgelis noted a 17% drop in license revenue despite fee increases; Jim Cooney explained state-level changes (Class D operator permit and additional site license changes) reduced volume. The cable franchise fee is the largest revenue decline driver.
Key Outcomes: Communication held. No action on capital requests.
Presentation: Nathaniel Haack (Budget Office) presented: true cost-to-continue budget, 4.5% increase overall. FTEs unchanged. Revenues down 10% due to completion of major projects (Couture, 333 Water Street).
Discussion: Commissioner Nicole Larsen, Deputy Ryan Ranker, and modeler Colin Williams discussed core services: property valuation, objections, exemptions, board of review support. Online appeals processing improved, eliminating email option for security. Assessment ratio: 99.94% in 2025, estimated 97.81% for 2026. Pending litigation: 43 cases with $15 million claimed liability, but expected to settle far lower. Fair Share program (PILOTs): zero new agreements; two former participants stopped paying. Ald. Coggs asked about affordable housing assessments; Larsen noted they've worked to be included in conversations about income-restricted properties to ensure accurate valuation. Ald. Spiker asked about technology use; Larsen said GovAI used on small scale, but large-scale AI valuation products are too expensive. Ald. Dimitrijevic raised concerns about tax-exempt property data and municipal fee collection; Larsen clarified assessor only tracks exempt status, not fee payment. Ald. Burgelis asked about condition of infrastructure affecting assessed values; Ranker said it would only be considered if reflected in market sales or rents.
Key Outcomes: Information requests made. Communication held.
Presentation: Angelique Pettigrew presented: proposed budget held steady (no specific change noted). FTEs unchanged at 33. Capital project: $400,000 to replace legacy case tracking database. Revenue estimated near $3 million (up $178,000). Special purpose account created for mailing contract ($150,000 moved from operating). Case filings up: 37,000 in 2025, 41,000 in 2026 (year-to-date), driven by habitual parking offender (HPO) cases (1,646 filed, $716,000 in fines). In-house alternative services program launched with 3 social workers, serving 133 clients by August, only 4 declined. Judge Valarie Hill and Chief Court Administrator Tea Norfolk highlighted success stories.
Discussion: Ald. Moore asked about accountability perception; Hill explained municipal court doesn't handle criminal cases. Ald. Moore inquired about video conferencing usage; roughly two-thirds virtual. Ald. Spiker raised the long-running question of reducing from three branches to two given declining caseloads (62% drop since 2014). Norfolk argued case filings are cyclical and council policies (e.g., HPO ordinance) drive filings. Budget Director Kovac noted a 2022 analysis estimated $400,000 savings but hasn't been updated. Ald. Burgelis asked about recidivism tracking for alternative services; Hill argued recidivism is a poor metric for municipal violations, preferring positive outcomes (jobs, housing, education). Ald. Coggs requested data on types of services used and participation. Ald. Moore requested data on virtual appearance numbers. Judge Hill noted HPO appearance rates are high (threat of towing). Ald. Taylor praised restorative justice approach.
Key Outcomes: Communication held. The committee did not pursue the branch reduction question.
Meeting of the Finance and Personnel Committee for our 2027 budget hearings. I am Vice Chair Alderman Peter Bergelis filling in for uh Chair Alder Woman Marina Dmitrievich, who's on her way. I am joined at the table by uh to my left, Alderman Scott Spiker, Alder Woman uh Charlon Moore, uh Alder Woman Cogs is also excused for now, she's on her way here. I'm here. Ohder Woman Cogs is joining us virtually. Thank you very much. Uh from uh the legislative reference bureau. Um I'm sorry, um first uh Chris Lee is joining us at our staff assistant and um uh Keith is here from the legislative reference bureau. Uh we'll get started on our only item agenda. Our only agenda item today, which is file 26001. Communication from the mayor relating to the proposed 2027 budget. Today we're hearing from the city attorney's office, the treasurer and comp troller this afternoon, city clerk assessor and municipal court. Uh welcome, budget director Kovac, and welcome to our comp troller Bill Christensen. Thank you, Mr. Chair. Nick Kovac budget management division. We have uh six departments today. We're going to start with city attorney Anjali Pettigrew will present those slides. Good morning, madam. Well, good morning, Mr. Chair, rather, um, and members of the committee. Angelique Pettigrew, budget fiscal policy analyst presenting the city attorney and his leadership team. Um the 2027 proposed executive budget and answer any specific questions you may have. The city attorney, a city attorney's office handles all legal business for the city. Its departments, boards, and commissions pursuant the city charter, as well as the housing authority and public Milwaukee public schools. The core mission is to protect the legal interest of the city of Milwaukee and provide quality, timely, and impartial legal services consistent with the highest professional and ethical standards. Please note as I am presenting slides one through 10. I will read the amounts in shorthand rather than the full amounts on your screens. After slide 10, I will turn over the presentation to the department. For 2022, 2027, sorry, the total proposed operating budget is 9.7 million, representing a baseline increase of 394 K of 4%, while salaries, wages, fringe benefit costs both saw an increase of 5%. This growth was partially offset by a six percent reduction in direct operating expenditures, which dropped by 27.7 K. Total authorized staffing remains unchanged at 33 FTEs, which are full-time equivalent. Side three shows the positions and salaries overview. This slide breaks down the department's core personal funding lines. Total salaries and wages are up by 200 and K, 290K, sorry, bringing the direct payroll budget to 6.4 million. This change is driven by salary progression alongside job title reclassifications, which I will explain on the next slide. Summary of change staffing changes before you.50 FTE each. This establishes a cost-effective law school pipeline to absorb heavy case research workloads. Additionally, two legacy administrative positions were reclassified into supervisor titles to better manage office flow. We'll move on to operating and equipment expenses. Daily operating expenditures are reduced to 418 K, achieving a 6% savings by cutting back on outside consulting contracts and adjusting general office supply allocation by 30K to match actual printing and mailing rate. The equipment budget remains at 22K. Split between legal reference books, furniture, and standard computer rotations. Next, we'll talk about the SPE special purpose accounts. This slide covers the department's special purpose accounts, which reflect a 22 percent overall push to 7.4 million. The single largest cost driver is damages and claims, which is up by 1 million or 40 percent to protect the city against major pending litigation. Additionally, the outside council and expert witness fund is increasing by 279.7 K or 234 percent to ensure the city has adequate operational buffer to secure special legal practice expertise.