08-22-16 CC WS Agenda
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, AUGUST 22, 2016 6:30 P.M.
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Zerby _____
Labadie _____
Siakel _____
Sundberg _____
Woodruff _____
B. Review Agenda
ATTACHMENTS
2. 2017 GENERAL FUND BUDGET Finance Director’s memo
3. ADJOURN
#2
MEETING TYPE
City of Shorewood Council Meeting Item
Work Session
Title / Subject: 2017 Capital Improvement Program & General Fund Budget Review
Meeting Date: August 22, 2016
Prepared by: Bruce DeJong, Finance Director
Reviewed by: Bill Joynes, City Administrator
Attachments: General Fund Budget
Policy Consideration:
How should the City of Shorewood prepare the General Fund Budget, Capital Improvement Program
(CIP) and preliminary tax levy for 2017?
Background:
CIP
Staff will review the street reconstruction decision matrix over the next month as suggested by Council.
We will review the basis on which we make decisions and how that translates into the road CIP.
Based on the discussion at the last work session , we have left all of the island street projects to 2017 to
coordinate with the possible Minnetrista project on Enchanted Lane. Staff believes that we should
coordinate the plans and construction with Minnetrista regardless of ultimate timing because of the
flood storage issues involved with any increase in roadway elevation. There are sufficient funds
available in the General Fund that are over the fund balance policy to be transferred into the Street
Reconstruction Fund at the point that we need additional funding.
General Fund Budget
Changes from July 25, 2016:
Revenues
Increased Permit Revenue $30,000
Increased Plan Check fees $10,000
Total Revenue Change $40,000
Expenditures
Finance – Audit Services $1,400
Prof Services – Prosecution $4,000
Planning – Gen Supplies $150
Planning – Contractual Svcs ($85,000)
Mun Buildings – Communications $4,000
Mun Buildings – Contractual Svcs $1,200
Police – Contractual Svcs $73,885
Police – Buildings ($16,000)
Fire – Contractual Svcs $3,262
Fire – Buildings ($13,972)
Inspections – Contractual Svcs $2,500
Public Works – Office Supplies $200
Public Works – Motor Fuels ($3,000)
Total Expenditure Change ($27,375)
Change in Use of Reserves ($67,375)
Financial or Budget Considerations:
This budget increases the tax levy by 2% for 2016. The amount of fund balance projected to be used is
about $73,000. This is well within the parameters of the fund balance policy. If we need to fund part of
the cost of preparing an updated Comprehensive Plan, there are sufficient resources available to make
that happen. The City Council consensus was that this is acceptable on a preliminary basis.
Staff has prepared a resolution adopting the preliminary tax levy for the regular meeting this evening.
Once the preliminary tax levy is set, the amount can only be decreased. The tax levy could then be
reduced at the point of final budget and levy adoption in December if the Council chooses to reduce
expenditures, increase revenues, or increase the use of reserves.
Options:
The City Council is encouraged to discuss the budget as presented and recommend changes prior to
adoption of the preliminary levy later this evening.
Recommendation / Action Requested:
Staff recommends that the City Council determine what amount of tax levy increase is necessary in
order to provide a reasonable level of service for the next budget year.
Next Steps and Timelines:
The City Administrator and Finance Director intend to continue discussions regarding capital and budget
items through the Truth-in-Taxation hearing in December.
Connection to Vision / Mission:
Adopting a prudent budget and tax levy contributes to sound financial management.