Note: These "cost-saving ideas" were presented to the Council by Ernest Kepper of the SCTA...friends of the Mayor. Please note item 17!

COST SAVING IDEAS – CITY OF SHEBOYGAN, August 3, 2005

1. Eliminate the office /position of City Atty. & replace it with a corporate council system similar to that of Sheboygan County’s: estimated potential savings = $200,000 plus per annum. Most important this would yield a much more efficient system. I have detail available upon request.
2. City Transit System – Options:
   • Discontinue / terminate: estimated potential savings = $650,000
   • Increase fares to make the system pay for itself. Currently the transit system is a form of welfare.
   • Return the transit system to privatization
   • Eliminate high cost ‘huge – box car like buses’ and replace with mini-buses that hold 12-16 passengers: Similar in size to the yellow mini school buses or Handicare white small buses.
   • Note: The Sheboygan city area does have the Handicare system to service the elderly & handicap. The people of low income and the needy could be added to the Handicare clientele.
3. Reduce Wages & Salaries (This is reportedly 95% of the city’s budget):
   • Since it is a matter of public record all wages /salary ranges & their medium plus city employee benefits should be published on a regular basis. According to Dr. Sohn of Wells Fargo Bank, as he reported in 9/03, hourly wage averages were: U.S. = $11.81/hr. / Wisconsin = $13.01. It was reported at the same time period that the City of Sheboygan = $15.00. All 3 were without benefits. Why is the City of Sheboygan 27% higher than the national average? Reduce city hourly wages so that the average to be at least in the $10.00 to $13.00 range.
   • Managerial wages: See 8/17/03 Sheboygan Press (Ald. Graff). Suggest: create a volunteer committee comprised of HR representatives from local business entities (a variety of manufactures, retailers, service industry, etc.) to review salary structure of city vs. similar ‘skills’ to the private sector. Advocate setting Sheboygan salary ranges at the low end range.
   • The issue of benefits – It is understood that currently city employees contribute nothing, or a minimal amount. Have employees pick up at least 20-30% of health insurance cost/premiums plus a $1,000.00 annual deductible.
   • Vacation and holiday pay and so-called ‘sick day pay’ should not exceed the norm for private businesses within the City of Sheboygan.
   • All employees to be off of insurance and/all programs upon retirement, termination, leave city employment for any reason.
   • No part time employees to receive any benefits whatsoever (insurance, vacation, holiday pay, etc.). In addition part time hourly wages and/or salaries to be at minimum wage or at least not higher than the lowest established hourly wage – an example of an excessive high hourly city rate (approx. $22.60/hour) paid to the new (as of Nov. 2004) part time Sr. Center Administrator.
   • Reduce /eliminate as much overtime as possible, i.e. current staffing to be more productive.
   • Eliminate any existing comp-time programs for managerial/salaried employees. On a professional level these positions are hired to ‘do the job’ regardless of how many hours it takes.
   • Severely review the police & fire departments regarding organizational structure (too many managerial positions) and salaries paid (perceived to be excessive)
4. Reduce/Eliminate Jobs:
   • Use same volunteer committee suggested for wages above to review all city positions with the target to eliminate as many positions at all levels as possible.
   • Remaining employees to ‘pick-up’ the duties and responsibilities of those eliminated at NO additional compensation. If remaining employees do not accept this, they are free to leave. Note: This practice of downsizing has been in place in the private sector of the Sheboygan economy for the last 3-5 years.
   • Regardless of the economic times it should always be a goal to reduce the number of city employees (total labor & managerial costs). This should be an on-going program.
5. All city employees must be residents of the city of Sheboygan. As of now (8/05) it is understood that approximately 1/3 of city employees live outside of the City of Sheboygan. Those that live outside of the city can push for higher wages & benefits, but have no concern as to where the money comes from to operate the city, including their own wages & benefits package. Suggest that this become policy/law immediately for all new hires and that existing employees be given 2 years to move into the city or then be terminated.
6. Look at Possible ‘OTHER’ Income Sources:
   • Tighten-up the city’s re-cycling program (blue bag & paper) – sell what is collected vs. paying for disposing. This may require very stiff identifying and sorting of recyclables and perhaps actual drop off vs. curb side collection by the city residents.
   • Consider a city sales tax ONLY IF IT ELIMINATES the property tax.
   • Charge other communities (Kohler, Sheboygan Falls, Town of Sheboygan, etc.) that are connected to the Sheboygan sewer & water system at a high profit rate. These services should be money makers. If state law or ruling interferes with this proposal, work around it or have the ruling/law changed.
7. Create a Cost Saving Incentive Program --- Example:
   • Establish a responsible committee of 3 or 5 to over see the program.
   • Basically this program would be for city employees, but consider also allowing all citizens to participate.
   • Participants would submit cost savings ideas/proposals. After each cost saving proposal is submitted to, reviewed by, and accepted by the ‘responsible committee’ it would be implemented. After a minimum of a reasonable period of time (12 months) and the original idea/proposal proves to be a legitimate cost saver the person who submitted the proposal would receive a one time 25% cash payment of the total annualized savings, not to exceed $10,000.
8. Stop all frivolous so-called studies etc., such as the adapted foot bridge study across the Sheboygan River east of the 8th Street Bridge.
9. Eliminate all sub-contracting of services unless a detailed plan is submitted to and approved by the Common Council (not a committee).
10. Assure that the city purchasing department is indeed highly professional and extremely thorough. All city expenditures for goods & services must be approved and processed by the purchasing department. Absolutely NOTHING to be purchased without ‘going-through’ the city purchasing department. This would include any outside private contracting (engineering, legal, etc.). Establish that there be a minimum of at least 3-5 bids for any outside service and goods purchased. For efficiency perhaps set a maximum amount ($5,000?) to be allowed at the purchasing department’s discretion before the multiple bid requirement to be employed. Purchase goods & services from local city establishments whenever possible & feasible.
11. Budgets:
    • All department budgets are to be strictly adhered to. No borrowing/transferring funds from one budget fund to another without full Common Council approval.
    • Establish a “ZERO BUDGETING” process for all new, forthcoming annual budgets.
12. Any and all expenses to be approved by the full Common Council. This includes all salaries benefits, and hiring of both new and replacement employee positions.
13. Greatly reduce property taxes for business & industry. Make Sheboygan a Tax Haven so that their total costs are reduced to encourage current employers to remain and to encourage new employers to locate in Sheboygan.
14. Property taxes are measured by the so-called tax levy. Property taxes by the populace are measured by actual out of pocket dollar amounts. Reduce the property tax levy & actual dollars per residential property to be what it was in 1990. Just because a property value increases it should not automatically pay additional property tax dollars. Once the property is old then the sale value could become the value at which that property is taxed.
15. Eliminate all so-called perks:
    • Supply no vehicles for personal use, no chauffeured driven vehicles (no police officer to drive the police chief), the mayor or any city employee not to use a city owned vehicle for any personal use, no ‘club or social’ memberships be they freely given or supplied by the city.
    • Scrutinize and basically eliminate all unnecessary travel and attendance to seminars, meetings of any kind.
16. Realistic examine any and all combined services etc. with the County of Sheboygan. All city managerial personnel (this includes the police chief) to KEEP AN OPENED MIND!!!
17. Eliminate the city police department and the Sheboygan County sheriff’s department as we know it today. Instead create a county wide metro police department.
18. Have a binding referendum for any expenditure in excess of $5,000,000.
19. Assure that all loans made by the city to various businesses are to be repaid on the established repayment schedule. Establish a severe penalty for delinquent and/or late pay back of these loans. Any such loans must be proven to benefit the city and not the individual person or establishment that is the recipient of such a loan.
20. Consider to privatize any and all existing so called city provided services.
21. Discontinue the practice of 1st or 2nd responder (for lack of better terminology). While there is an obvious need for the ambulance and the accompanying m paramedics. There is absolutely no need for a huge fire truck complete with a crew of firemen, and 2 police cars with officers to show up at someone’s home for a medical emergency. This is nothing but featherbedding and a total waste of cost. The ‘sick’ person cannot be transported to the hospital in the fire truck. The argument that the fire truck arrives at the scene first is because it gets called first by the ‘911’ operator.

The above are ideas for cost saving and to generate additional funding. Negotiating with the various labor unions to obtain concessions and perhaps re-write existing contracts will be necessary. These and proposals presented by others should be thoroughly considered. The attitude should be that there is no such thing as any bad idea/proposals. The only thing that should not be considered is: “CAN’T DO IT”. This should be the theme regardless of any current legalities, contracts, traditions, etc. Time is of the most essence!!! WE (all Sheboygan citizens) need to cooperate so that costs and property taxes are reduced!!!! Merely holding the line on spending and taxes is not acceptable.

Submitted by:
Ernest M. Keppler
2533 Lakeshore Drive
Sheboygan, WI 53081