City of Oak Creek

Common Council Report

Meeting Date: 02/07/06

Item No.:        

Recommendation:    Discussion item:          

Direct legislation petition to require referendum approval for capital expenditures exceeding $2,000,000.

Background:

On Monday, January 30, 2006, the City Clerk’s office was presented with signed petitions from a local citizens group on a direct legislation issue.  According to State Statutes, the Clerk’s office has fifteen (15) days, until 5:00 PM on February 14^th, to review the petition to determine if it is “sufficient” and  “in proper form”.  The City Attorney will address a memo to the Mayor and Council to offer the legal explanation of those terms.  In brief, this petition requires 1,366 signatures of qualified electors, which represents fifteen percent of the total number of votes cast in the last gubernatorial election in November, 2002.

The text of the petition requests that an ordinance submitted on the petition either be adopted or be referred to a referendum by the Common Council. The ordinance would require a binding referendum for approval of any capital project expenditure of $2 million or more.

If the petition is found to be sufficient and in proper form, it will be certified by the City Clerk and delivered to the Council.  The Council must take action within 30 days of certification, in this case by March 14, 2006.  The Council may either adopt the ordinance as presented, or may submit the ordinance to a binding referendum at the next election.  If action by the Council is not taken by February 21^st, however, the referendum could not appear on a ballot until the Fall election period or would require a special election.  Should this petition be found sufficient, the Clerk’s office will ask the Council to consider taking action at the Feb. 20, 2006 Council meeting, even though that gives the Council members only 6 days to consider their options, to enable this ordinance to be placed on the April 4, 2006 ballot.

In staff’s opinion, it would be of great concern for the Council to adopt this ordinance without study.  At the very least, putting it on the ballot in April will provide a short period of time for the public to become knowledgeable about the issue, in order to make an educated choice.  Staff is currently preparing a brief report to the Council to explain some of the ramifications and effects that this type of limiting ordinance has had on other communities in which it was enacted.  Needless to say, in staff’s opinion, it could severely hamper the City’s ability to respond to capital needs, whether those needs are for roads, projects, buildings or equipment, and could result in other costs, such as for special elections.  Without having all the facts presented, it is unfair to the public to ask them to approve or disapprove of such far-reaching legislation.

Fiscal Impact: 

None at this time.

Prepared by and Fiscal Review by:

Beverly A. Buretta, CMC

Acting City Administrator