10-13-20 WS Agenda Packet
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
TUESDAY, OCTOBER 13, 2020 6:00 P.M.
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Zerby _____
Johnson _____
Labadie _____
Siakel _____
Sundberg _____
B. Review and Adopt Agenda
2. CIP DISCUSSION Finance Director Memo
3. EXCELSIOR SEWER CHARGE City Administrator Memo
4. ADJOURN
#2
MEETING TYPE
City of Shorewood Council Meeting Item
Work Session
Title / Subject:
Capital Improvement Plan 2021-2030
Meeting Date: October 13, 2020
Prepared by: Joe Rigdon, Finance Director
Reviewed by: Greg Lerud, City Administrator; Marie Darling, Planning Director; Larry Brown,
Public Works Director; Andrew Budde, City Engineer
Attachments: Capital Improvement Program 2021-2030: Projects by Funding Source
Capital Project funds Revenue & Expenditure Projections
Policy Consideration:
On an annual basis, the City Council adopts a Capital Improvement
Plan (CIP). The CIP lists major capital improvements, and the sources to pay for them. Items
in the CIP are not mandated, and the Council reviews capital spending throughout the year. The
CIP provides an estimation of the timing and cost of future projects. Future fund balance
surplus (deficit) projections for the City’s various capital project funds are included to assist in
financial planning. The 2021 amounts in the capital project fund projections are considered to be
the preliminary 2021 budgets.
Background:
Shorewood Community & Event Center (SCEC): Capital items for the SCEC include
building improvements and equipment for the Center. Transfers from the General Fund
are the planned source to pay for these items.
Park Improvements: In recent years, the parks CIP has included significant
expenditures for projects and proposes various improvements going forward. The Park
Improvements fund is projected to fluctuate between negative and positive positions
over the life of the CIP. For 2020, the annual transfer/levy to the parks fund was
$95,000, and is projected to increase by $5,000 per year. Projects being proposed for
2021 include:
Silverwood Park playground equipment: $240,000
o
Freeman Park ballfield #4 repair: $70,000
o
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
Equipment Replacement: The majority of the CIP for equipment replacement pertains to
Public Works items, but also includes some administrative technology items. The City’s
Equipment Replacement capital fund projection maintains a positive level through 2028.
For 2020, similar to the parks fund, the annual transfer/levy to the equipment fund was
$95,000, and is projected to increase by $5,000 per year. Projects being proposed for
2021 include various vehicles and equipment as shown on the attached listing.
Street and Utility Improvements: City staff has discussed overall infrastructure system
recommendations and is proposing the following projects for 2021:
2021: Maintenance-Bituminous Roadway (streets)
o
2021: Glen/Amlee/Manitou (streets, water, sewer, storm)
o
2021: Minnetonka Blvd & St. Albans Rd (streets, water)
o
2021: Smithtown Pond (storm)
o
2021: Smithtown Pond Trail Connection (streets)
o
2021: Sweetwater Curve Watermain (water)
o
2021: Shorewood Oaks Drainage (storm)
o
2021: Grant Street Drainage (storm)
o
2021: Mill & Overlay – Drainage Improvements (storm)
o
For each of the applicable proposed street and utility improvement projects, it is
assumed that the Water, Sewer, and Stormwater funds will fund associated utility costs.
Without financing assistance and beginning in 2020, the Street Improvement fund
activities were originally projected to result in a significant fund deficit. In addition, the
City’s utility funds were projected to be significantly depleted. In order to complete the
proposed street and utility projects from 2020-2030, Street Reconstruction bonds and
utility revenue bonds are proposed to be issued annually to allow for the spreading of
repayments over a period of years. To repay the bonded debt, a combination of annual
property tax levies and utility fund rate increases and contributions will be necessary.
Trails: A placeholder amount for the Galpin Lake Road sidewalk is included. Staff is
exploring a safe routes to school grant application for the Galpin Lake Road sidewalk,
and will continue to submit for a bonding bill appropriation. Projects are to be
determined.
Utility Funds: The Capital Improvement plans for Water, Sewer, and Stormwater funds
include equipment, portions of street infrastructure projects, as well as maintenance and
preventative maintenance items. As noted, the utility funds cash reserves are not likely
to be sufficient to finance the utility portions of the proposed street improvements. In
order to finance the improvements, bonded debt with debt service repayments supported
by utility revenues and franchise fees will be necessary.
Next Steps and Timelines:
Additional discussion may be scheduled. The 2021-2030 Capital
Improvement Plan will be on the December 2000 City Council agenda for approval.
City of Shorewood, Minnesota
Capital Improvement Program
20212030
thru
PROJECTS BY FUNDING SOURCE
Source #Priority2021202220232024202520262027202820292030Total
201 - Community & Event Center
SCEC-19-01 n/a
SCEC - Mechanical Systems10,00010,00010,000 30,000
n/a
SCEC - Doors, Exterior SCEC-21-01 14,500
14,500
SCEC-22-01 n/a
SCEC - Windows10,000 10,000
n/a
SCEC - Fire Suppression Attic SCEC-22-02 23,000
23,000
System
SCEC-23-01 n/a
SCEC - Kitchen Exhaust System30,000 30,000
107,500
24,50043,00040,000
201 - Community & Event Center Total
402 - Park Improvements
n/a
Freeman Park Overlay Trails P0105 200,000
200,000
P0109 n/a
Freeman Park Fence Repair50,000 50,000
n/a
Freeman Park North Playground - P0110 25,000
25,000
Hand Rails
n/a
Freeman Park Ballfield #4 Repair P0111 70,000
70,000
n/a
Cathcart Park Resurface Tennis P0200 15,00018,000
33,000
Court
P0201 n/a
Cathcart Park Hockey Boards150,000 150,000
P0202 n/a
Cathcart Park Playground Equipment150,000
150,000
P0301 n/a
Badger Park Tennis Courts30,000 30,000
P0403 n/a
Manor Park Outdoor Ampitheatre & 150,000
150,000
Perimeter Trail
P0501 n/a
Silverwood Park Playground 240,000 240,000
Equipment
n/a
Silverwood Park Retaining Walls P0502 27,900
27,900
Replacement
P0700 n/a
South Shore Park Master Plan10,000 10,000
n/a
South Shore Park Reconstruction P0701 90,000
90,000
Project
310,000275,000165,00030,000177,900268,000 1,225,900
402 - Park Improvements Total
Tuesday, October 6, 2020
Source #Priority2021202220232024202520262027202820292030Total
403 - Equipment Replacement Fund
n/a
Dump Truck - Freightliner 004
233,500
233,500
007 n/a
Truck - Ford 550 w/crane, tool box152,700 152,700
n/a
Pickup - 4 x 4 Ford F250 010
46,700
46,700
011 n/a
Pickup - 4 x 4 Ford F15041,400 41,400
Mower - Toro Groundsmaster 7210 012b n/a 30,000
30,000
022 n/a
Trailer 24' - Felling Galvanized18,800 18,800
Sand Pro 3000 064 n/a 15,200
15,200
078 n/a
Pickup - 4 x 4 Ford F25035,400 35,400
Pickup - 4 x 4 Ford F150 080 n/a 32,300
32,300
081 n/a
Pickup - 4 x 4 Ford F350 49,400
49,400
084 n/a
Mower - Toro Groundsmaster 721029,000 65,000
36,000
090 n/a
Pickup - 4 x 4 Ford F350 49,400
49,400
091 n/a
Truck - Ford 550 One Ton Dump 94,300 94,300
Truck
091b n/a
Mower - Toro Groundsmaster 721029,00031,900
60,900
Dump Truck - Freightliner 092 n/a 200,200
200,200
097 n/a
Skid Steer - Case SV18542,00053,700
95,700
Dump Truck - Freightliner 098 n/a 212,900
212,900
n/a
Sweeper 099 235,900
235,900
Attach Skid Steer - Blower A03 n/a 10,000
10,000
n/a
Attach Skid Steer - V Plow A04 6,700
6,700
A08 n/a
Attach Skid Steer - snow bucket6,800 6,800
n/a
Attach MultiOne - Dirt Bucket A10 11,000
11,000
A13 n/a
Engine Analysis station & software4,900 4,900
n/a
Asphalt hot box insert for truck A14 9,000
9,000
A15 n/a
Attach skid steer broom7,300 7,300
n/a
Attach skid steer leveling bar A16 3,100
3,100
T-13-03 n/a
Color Copier Replacement10,000 10,000
n/a
800 Mhz Radio Replacement T-19-01 36,000
36,000
T-99-99 n/a
Computer Upgrades10,00010,00010,00010,00010,00010,00010,00010,00010,000 100,000
10,000
151,90046,10074,700134,300210,20051,900276,700245,900257,800425,000 1,874,500
403 - Equipment Replacement Fund Total
404 - Street Reconstruction Fund
LR-99-100 n/a
Maintenance-Bituminous Roadway2,060,000472,1010512,1070555,2340601,7160 4,851,011
649,853
n/a
Strawberry Ln ROW acquisition ST-19-02 150,000
150,000
Tuesday, October 6, 2020
Source #Priority2021202220232024202520262027202820292030Total
n/a
Glen Rd, Amlee Rd, Manitou Ln ST-20-01 1,978,947
1,978,947
reconstruction
ST-21-01 n/a
Edgewood Rd reconstruction2,774,610 2,774,610
n/a
Excelsior Blvd reclamation ST-21-02 919,420
919,420
ST-21-05 n/a
Minnetonka Blvd & St. Albans Rd w/ 210,000 210,000
Greenwood
ST-23-01 n/a
Strawberry Ln reconstruction1,896,238 1,896,238
ST-23-02 n/a
Grant Lorenz Rd reconstruction2,136,427 2,136,427
ST-23-03 n/a
Eureka Rd N reconstruction2,129,076 2,129,076
ST-23-99 n/a
Birch Bluff Rd reconstruction2,071,008 2,071,008
ST-24-01 n/a
Noble Rd recon1,168,500 1,168,500
ST-24-02 n/a
Noble Rd Reclaim478,744 478,744
ST-25-01 n/a
Sweetwater Curve reclamation1,347,682 1,347,682
ST-30-01 n/a
2030 Street Reconstruction 2,000,000
2,000,000
T004 n/a
Mill Street Trail Construction110,000 110,000
T017 n/a
Mill Street Trail ROW105,000 105,000
T018 n/a
Smithtown Pond Trail Connection154,500 154,500
4,553,4472,368,3392,176,0085,043,96102,691,6611,347,6821,521,1362,129,0762,649,853 24,481,163
404 - Street Reconstruction Fund Total
406 - Trails
T003 n/a
Galpin Lake Rd Sidewalk500,000 500,000
500,000 500,000
406 - Trails Total
601 - Water Fund
038 n/a
Air Compressor - Ingersall Rand 18520,700 20,700
n/a
Freightliner Water Truck 50%085 57,350
57,350
ST-20-01 n/a
Glen Rd, Amlee Rd, Manitou Ln 693,311 693,311
reconstruction
n/a
Edgewood Rd reconstruction ST-21-01 540,244
540,244
ST-21-02 n/a
Excelsior Blvd reclamation1,008,349 1,008,349
n/a
Sweetwater Curve Watermain ST-21-04 270,000
270,000
ST-21-05 n/a
Minnetonka Blvd & St. Albans Rd w/ 800,000 800,000
Greenwood
n/a
Strawberry Ln reconstruction ST-23-01 489,075
489,075
ST-23-02 n/a
Grant Lorenz Rd reconstruction797,627 797,627
n/a
Eureka Rd N reconstruction ST-23-03 6,524
6,524
ST-23-04 n/a
Peach Circle/Strawberry CT 400,000 400,000
Watermain
ST-23-99 n/a
Birch Bluff Rd reconstruction866,533 866,533
Tuesday, October 6, 2020
Source #Priority2021202220232024202520262027202820292030Total
n/a
Noble Rd recon ST-24-01 372,543
372,543
ST-30-01 n/a
2030 Street Reconstruction 600,000
600,000
n/a
Boulder Bridge VT Well Motor W-18-01 35,000
35,000
Replace
W-19-02 n/a
Amesbury Well Pipe Coatings and 25,000 25,000
Corrosion Prev
W-19-05 n/a
Rebuild Well Pump SE VT Well25,000 25,000
W-20-03 n/a
SE Area Well Motor Replace45,000 45,000
W-20-05 n/a
Rebuild Well Pump Amesbury VT 25,000 25,000
Well
W-21-02 n/a
Rebuild Well Pump Badger VT Well30,00035,000 65,000
SE Area Well & Iron Plant LED Light W-21-03 n/a 12,000
12,000
Conversion
W-21-04 n/a
Badger Field Well LED Light 6,000
6,000
Conversion
W-21-05 n/a
Rebuild Well Control Valve SE Well15,000 15,000
W-22-01 n/a
SE Area Well Pipe Coatings and 25,000 25,000
Corrosion Prev
W-22-02 n/a
Rebuild Well Pump Boulder Bridge 30,00035,000 65,000
VT Well
n/a
FilterMediaChangeout/RehabIronRe W-22-03 40,000
40,000
movalFilterSEPlant
W-23-01 n/a
Rebuild Well Pump Amesbury 30,00036,000 66,000
Submersible Well
W-24-01 n/a
Rebuild Well Pump Boulder Bridge 30,000 30,000
Submersible Well
W-24-02 n/a
East Water Tower Paint & 380,000 380,000
Reconditioning
n/a
Replace VFD SE Area Well W-24-03 10,000
10,000
W-26-01 n/a
Replace VFD Badger Well12,000 12,000
n/a
Watermain Reconstruction Activity W-99-01 150,000150,000150,000150,000150,000150,000
1,050,000
150,000
1,872,011721,4251,296,5331,482,787175,000984,627185,0001,193,349192,524750,000 8,853,256
601 - Water Fund Total
611 - Sanitary Sewer Fund
085 n/a
Freightliner Water Truck 50%57,350
57,350
SS-13-01 n/a
Lift Station 11 Rehab - 20465 240,000 240,000
Radisson Rd.
SS-14-01 n/a
Lift Station 9 Rehab - 20995 240,000 240,000
Minnetonka Blvd
n/a
Lift Station 7 Rehab - 5600 SS-16-02 240,000
240,000
Woodside Road
n/a
CIP Sewer Repairs Assoc with SS-99-01 50,00050,00050,00050,00050,00050,00050,00050,00050,000
500,000
50,000
Roadway Reconstr
Tuesday, October 6, 2020
Source #Priority2021202220232024202520262027202820292030Total
n/a
Televising & Cleaning SS-99-02 00000000
0
SS-99-04 n/a
Sewer Additional25,00025,00025,00025,00025,00025,000 175,000
25,000
n/a
Infiltration and Inflow Reduction SS-99-05 70,00070,00070,00080,00080,00080,00080,00080,00080,000
770,000
80,000
ST-20-01 n/a
Glen Rd, Amlee Rd, Manitou Ln 110,326 110,326
reconstruction
n/a
Edgewood Rd reconstruction ST-21-01 185,709
185,709
ST-21-02 n/a
Excelsior Blvd reclamation139,345 139,345
n/a
Strawberry Ln reconstruction ST-23-01 175,049
175,049
ST-23-02 n/a
Grant Lorenz Rd reconstruction131,346 131,346
n/a
Eureka Rd N reconstruction ST-23-03 143,525
143,525
ST-23-99 n/a
Birch Bluff Rd reconstruction120,200
120,200
n/a
Noble Rd recon ST-24-01 185,709
185,709
ST-30-01 n/a
2030 Street Reconstruction
200,000
200,000
470,326592,399480,200526,418155,000286,346155,000294,345298,525355,000 3,613,559
611 - Sanitary Sewer Fund Total
631 - Stormwater Management Fund
050 n/a
Pump - 4' Discharge Trailer Mtd62,400 62,400
CR-21-01 n/a
Culvert Replace - Galpin Lake Rd 9,000 9,000
and Mayflower Rds
CR-21-02 n/a
Culvert Replace - 22630/22695 8,000 8,000
Murray St
CR-22-01 n/a
Culvert Replace - 22535 Murray 11,000 11,000
St/6180 Cardinal Dr
n/a
Glen Rd, Amlee Rd, Manitou Ln ST-20-01 819,867
819,867
reconstruction
ST-21-01 n/a
Edgewood Rd reconstruction678,682 678,682
ST-21-02 n/a
Excelsior Blvd reclamation157,828 157,828
ST-23-01 n/a
Strawberry Ln reconstruction469,066 469,066
ST-23-02 n/a
Grant Lorenz Rd reconstruction435,150
435,150
ST-23-03 n/a
Eureka Rd N reconstruction457,557 457,557
ST-23-99 n/a
Birch Bluff Rd reconstruction410,866
410,866
ST-24-01 n/a
Noble Rd recon467,086 467,086
ST-25-01 n/a
Sweetwater Curve reclamation61,494
61,494
ST-30-01 n/a
2030 Street Reconstruction 500,000
500,000
STM-20-04 n/a
Shorewood Oaks Drainage190,000
190,000
STM-20-05 n/a
Grant Street Drainage250,000 250,000
n/a
2021 Mill & Overlay - Drainage STM-21-01 100,000
100,000
Improvements
STM-24-01 n/a
Noble Road Channel Widening247,612 247,612
Tuesday, October 6, 2020
Source #Priority2021202220232024202520262027202820292030Total
n/a
Smithtown Pond STM-24-02 3,065,280
3,065,280
STM-24-03 n/a
Freeman Park Outlet96,794 96,794
n/a
Strawberry Lane Drainage (North)STM-25-01 1,071,509
1,071,509
STM-25-02 n/a
Strawberry Lane Drainage (South)381,924 381,924
n/a
Grant Lorenz Channel STM-26-01 262,692
262,692
STM-26-02 n/a
Shorewood Lane Ravine280,000 280,000
Catch Basin Reconstruction STM-99-01 n/a 30,00030,00035,00035,00035,00035,00035,00035,00040,000
350,000
40,000
STM-99-02 n/a
Disposal of Street Sweepings36,40037,10037,80038,60039,40040,20041,00041,80042,600 397,650
42,750
Storm Water Additional STM-99-03 n/a 100,000100,000100,000100,000100,000100,000
700,000
100,000
STM-99-04 n/a
Storm Pond Sediment Cleaning & 150,000150,000150,000150,000150,000150,000150,000150,000150,000 1,500,000
150,000
Disposal
4,658,5472,430,599696,0661,813,774324,4001,023,042387,494484,628790,157832,750 13,441,457
631 - Stormwater Management Fund Total
12,040,7316,701,8625,038,5079,166,240864,6005,067,5762,529,7764,007,3583,668,0825,012,603
GRAND TOTAL 54,097,335
Tuesday, October 6, 2020
PARK CAPITAL IMPROVEMENT FUND
Fund: 402- Park Capital Outlay
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820198/25/20202021202220232024202520262027202820292030
REVENUES
Park Dedication Fees - Mattamy 291,127 87,888 - - - - -
- - - - - - -
Park Dedication Fees - Oppidan - - - - - - -
- - - - - - -
Park Dedication Fees - Other 6,500 13,000 19,500 19,500 110,500 - - -
- - - - - -
Interest Earnings 12,878 9,053 14,873 3,236 412 (579) 465 (1,180)
(1,692) (509) 436 (39) (1,369) 17
Contributions/donations - Minnetonka Youth lacrosse - 2,000 - - - -
- - - - - - - -
Contributions/donations - Tonka football - - - - - - -
- - - - - - -
Grants - Hennepin County Lacrosse 200,000 - - - - - -
- - - - - - -
Grants - Badger Park - - 150,000 25,000 - - - -
- - - - - -
Miscellaneous revenue - - - - - - - -
- - - - - -
Transfers in - Budget (Property tax levy for 2021 and on) 42,000 42,000 42,000 95,000 100,000 105,000 110,000
115,000 120,000 125,000 130,000 135,000 140,000 145,000
Transfers in - Excess Reserves 200,000 - 180,000 - - - -
- - - - - -
Transfers in - Badger Park Phase 2 (Water, Storm, Street) 41,330 - - - - -
- - - - - - - -
Transfers in - correct Excelsior annexation detachment - 18,850 - - - -
- - - - - - - -
TOTAL REVENUES 793,835 172,791 406,373 142,736 210,912 104,421 110,465 113,820 118,308 124,491
130,436 134,961 138,631 145,017
EXPENDITURES
Other Improvements 716,456 466,624 479,155 425,136 310,000 - 275,000 165,000 -
30,000 177,900 268,000 - -
TOTAL EXPENDITURES 716,456 466,624 479,155 425,136 310,000 - 275,000 165,000 -
30,000 177,900 268,000 - -
Revenues Over/(Under) Expenditures 77,379 (293,833) (72,782) (282,400) (99,088) 104,421 (164,535) (51,180)
118,308 94,491 (47,464) (133,039) 138,631 145,017
Beginning Fund Balance 612,818 690,197 396,364 323,582 41,182 (57,906) 46,515 (118,020) (169,200)
(50,892) 43,599 (3,865) (136,904) 1,727
Ending Fund Balance 690,197 396,364 323,582 41,182 (57,906) 46,515 (118,020) (169,200) (50,892)
43,599 (3,865) (136,904) 1,727 146,744
Expenditures
Badger Park Tennis Courts250,000
Badger Park Phase 2622,793302,5641,876
Addl Engineering - WSB000
622,793302,5641,8760
Badger Park Playground0164,060248,78557,437including Blackstone and Loucks2020 includes 53,725.50 for 2nd half pmt for rubber surface at B
Addl Contract000Blackstone Contractors LLC
0164,060248,78557,437
Badger Park picnic shelter0061,2242,809Structural Wood 64,033; other
Addl Contract009,680Stonework/carpentry
Pilings and Foundation increase0014,000
0075,22412,489
Badger Park restroom009,1102019 costs
Addl Contract0040,000105,210Tom Koehnen
0049,110105,210
Freeman Park Parking Lot, Rink, Lights93,66300
Freeman Park Playground0086,060
Cathcart and Silverwood Parks - resurfacing courts0018,100
93,6630104,1600
716,456466,624479,155425,136
1
EQUIPMENT REPLACEMENT FUND
Fund: 403 - Equipment Replacement
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/24/20202021202220232024202520262027202820292030
REVENUES
Interest Earnings 8,514 6,985 17,289 4,126 2,487 1,993 2,602 2,981
2,817 1,944 2,694 1,254 157 (1,019)
Grants - - - - - - - - -
- - - - -
Miscellaneous revenue - - - - - - - -
- - - - - -
Sale of Capital Assets - 14,500 - - - - - -
- - - - - -
Transfers in - Budget 120,000 135,000 140,000 95,000 100,000 105,000 110,000 115,000 120,000
125,000 130,000 135,000 140,000 145,000
Transfers in - Excess Reserves - - 32,500 - - - - -
- - - - - -
TOTAL REVENUES 128,514 156,485 189,789 99,126 102,487 106,993 112,602 117,981 122,817 126,944
132,694 136,254 140,157 143,981
EXPENDITURES
Public Works 216,878 94,372 221,476 238,000 141,900 26,100 64,700 124,300 200,200 41,900
266,700 235,900 247,800 405,000
Administration 7,630 38,986 31,390 25,000 10,000 20,000 10,000 10,000 10,000
10,000 10,000 10,000 10,000 10,000
TOTAL EXPENDITURES 224,508 133,358 252,866 263,000 151,900 46,100 74,700 134,300 210,200
51,900 276,700 245,900 257,800 415,000
Revenues Over/(Under) Expenditures (95,994) 23,127 (63,077) (163,874) (49,413) 60,893 37,902 (16,319)
(87,383) 75,044 (144,006) (109,646) (117,643) (271,019)
Beginning Fund Balance 548,495 452,501 475,628 412,551 248,677 199,263 260,156 298,057 281,738
194,355 269,399 125,393 15,747 (101,896)
Ending Fund Balance 452,501 475,628 412,551 248,677 199,263 260,156 298,057 281,738 194,355 269,399
125,393 15,747 (101,896) (372,915)
2
STREET RECONSTRUCTION FUND
Bond Interest Rate2.00%
Fund: 404 - Street Capital Outlay
Bond Duration (Years)12
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/24/20202021202220232024202520262027202820292030
REVENUES
Franchise Fees - Electric (3 months in 2018) - 34,903 164,556 167,000 167,000 167,000 167,000 167,000
167,000 167,000 167,000 167,000 167,000 167,000
Franchise Fees - Gas (10 months in 2018) - 119,375 145,266 148,000 148,000 148,000 148,000 148,000
148,000 148,000 148,000 148,000 148,000 148,000
Interest Earnings 37,042 32,778 67,443 17,604 26,650 32,249 33,851 35,107 33,377
36,860 37,956 41,486 45,051 46,281
Grants - - - - - - - - -
- - - - -
MSA Funds - - - -
Miscellaneous revenue - - - - - - - -
- - - - - -
Capital Levy (formerly transfers in - Budget through 2020) 770,000 785,000 810,000 835,000 693,614
Debt Levy - - - - 208,186 621,126 967,264 1,153,846 1,594,560 1,597,815
1,831,493 1,967,948 2,124,610 2,305,754
Transfers in - Excess Reserves 475,000 - - - - - - -
- - - - - -
Bond Proceeds (Based on Eligible Costs) - - - 2,970,233 4,110,048 3,681,624 1,994,266 4,681,795
- 2,492,888 1,409,176 1,678,964 1,937,872 2,649,853
TOTAL REVENUES 1,282,042 972,056 1,187,265 4,137,837 5,353,498 4,649,999 3,310,381 6,185,748 1,942,937 4,442,563 3,593,626
4,003,397 4,422,532 5,316,889
-31%56%19%38%0%15%7%8%9%
EXPENDITURES
2017 - Street Reclamation Improvement - Contract 106,798 752,761 - - - - -
- - - - - - -
2017 - Street Reclamation Improvement - Soft Costs 76,885 90,676 3,871 - - - -
- - - - - - -
Total 2017 Street Reclamation Improvement 183,683 843,437 3,871 - - - -
- - - - - - -
2018 - Riviera Lane, Mann Lane, Shorewood Lane, other 51,016 2,048,399 129,767 - - - -
- - - - - - -
Less: Water portion of CIP Street Program - (864,547) (50,368) - - - -
- - - - - - -
Less: Sanitary Sewer portion of CIP Street Program - (77,106) (4,556) - - -
- - - - - - - -
Less: Storm Water portion of CIP Street Program - (168,325) (9,806) - - - -
- - - - - - -
Total Riviera/Shorewood/Mann 51,016 938,421 65,037 - - - - -
- - - - - -
2019 - Mill and Overlay (including 20% soft costs) - - 452,549 54,039 - - -
- - - - - - -
Total Mill and Overlay - - 452,549 54,039 - - - -
- - - - - -
2021 - Glen/Amlee/Manitou (FUND 407)
- - 78,582 27,746 - - - - -
- - - - -
2020 - Woodside (FUND 408)
- - 31,966 52,134 - - - - -
- - - - -
2025 - Strawberry (FUND 409)
- - 7,349 - - - - - -
- - - - -
2020 - Islands (FUND 410)
- 58,707 65,959 - - - - - -
- - - - -
2020 - Lafayette Avenue (FUND 411)
- - - - - - - - -
- - - - -
2020 - Smithtown Ponds (FUND 412) - bond eligible portion
- - - 18,353 - - - - -
- - - - -
Total Initial Costs (may also be included in bonding) - 58,707 183,856 98,233 - - -
- - - - - - -
CIP Street Program: (bonded and non-bonded) - - - 2,970,233 4,485,434 3,868,679 2,217,531 5,204,910
- 2,735,176 1,409,176 1,678,964 2,174,832 2,649,853
Total CIP Street Program (bonded and non-bonded) - - - 2,970,233 4,485,434 3,868,679 2,217,531 5,204,910
- 2,735,176 1,409,176 1,678,964 2,174,832 2,649,853
Debt Service - 2020 Bonds - - - - 208,186 232,482 230,487 228,492 226,497
229,752 227,704 230,907 228,807 226,707
Debt Service - 2021 Bonds - - - - - 388,644 388,644 388,644 388,644
388,644 388,644 388,644 388,644 388,644
Debt Service - 2022 Bonds - - - - - - 348,133 348,133
348,133 348,133 348,133 348,133 348,133 348,133
Debt Service - 2023 Bonds - - - - - - - 188,577
188,577 188,577 188,577 188,577 188,577 188,577
Debt Service - 2024 Bonds - - - - - - - -
442,709 442,709 442,709 442,709 442,709 442,709
Debt Service - 2025 Bonds - - - - - - - -
- - - - - -
Debt Service - 2026 Bonds - - - - - - - -
- - 235,726 235,726 235,726 235,726
Debt Service - 2027 Bonds - - - - - - - -
- - - 133,251 133,251 133,251
Debt Service - 2028 Bonds - - - - - - - -
- - - - 158,762 158,762
Debt Service - 2029 Bonds - - - - - - - -
- - - - - 183,244
Debt Service - 2030 Bonds - - - - - - - -
- - - - - -
Total Debt Service - - - - 208,186 621,126 967,264 1,153,846 1,594,560
1,597,815 1,831,493 1,967,948 2,124,610 2,305,754
Street Sign Replacement 10,355 - - - - - - -
- - - - - -
Sealcoating/Overlay, pavement marking & Other ** 194,997 221,235 50,566 110,735 100,000
Transfers out - Badger Park Phase 2 18,486 - - - - - -
- - - - - - -
TOTAL EXPENDITURES 458,537 2,061,800 755,879 3,233,240 4,793,620 4,489,805 3,184,795 6,358,756 1,594,560 4,332,991 3,240,669
3,646,912 4,299,442 4,955,607
Revenues Over/(Under) Expenditures 823,505 (1,089,744) 431,386 904,597 559,878 160,194 125,586 (173,008) 348,377
109,572 352,956 356,486 123,091 361,281
Beginning Fund Balance 1,595,273 2,418,778 1,329,034 1,760,420 2,665,017 3,224,895 3,385,089 3,510,675 3,337,667 3,686,044 3,795,616
4,148,572 4,505,058 4,628,149
Ending Fund Balance 2,418,778 1,329,034 1,760,420 2,665,017 3,224,895 3,385,089 3,510,675 3,337,667 3,686,044 3,795,616 4,148,572
4,505,058 4,628,149 4,989,430
3
STREET RECONSTRUCTION FUND
Bond Interest Rate2.00%
Fund: 404 - Street Capital Outlay
Bond Duration (Years)12
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/24/20202021202220232024202520262027202820292030
CIP Street Program Detail:
2019GlenStrawberryGrant20282030
Mill &Lake MaryAmleeLane DrainageLorenzSweetwaterMill & EurekaMill &
OverlayOutletManitouNorthBirch BluffEdgewoodChannelCurveOverlayRdOverlay
CIP Street Program: Project #1 - - 452,549 558,000 3,602,451 1,071,509 3,468,605 4,179,245
- 262,692 1,409,176 601,716 2,736,682 649,853
Less: Water portion of CIP Street Program - - - - (693,311) - (866,533) (540,244)
- - - - (6,524) -
Less: Sanitary Sewer portion of CIP Street Program - - - - (110,326) - (120,200)
(185,709) - - - - (143,525) -
Less: Storm Water portion of CIP Street Program - - - (558,000) (819,867) (1,071,509) (410,865) (678,682)
- (262,692) (61,494) - (457,557) -
Streets portion of CIP Street Program - - 452,549 - 1,978,947 - 2,071,007 2,774,610
- - 1,347,682 601,716 2,129,076 649,853
Less: Street Reconstruction Bonds - Ineligible Costs (160,886) (223,265) (285,079) - (236,960)
Street Reconstruction Bonds - Eligible Costs - - 452,549 - 1,818,061 - 1,847,742 2,489,531
- - 1,347,682 601,716 1,892,116 649,853
Storm Water - Eligible Costs 81,987 1,071,509 41,524 67,531 61,494 45,756
Total - Eligible Costs - - 452,549 - 1,900,048 1,071,509 1,889,266 2,557,062 -
- 1,409,176 601,716 1,937,872 649,853
BeverlySweetwater StrawberryMill Street2024Grant2030
DriveCurveLane DrainageTrailMill & LorenzExcelsiorStreet
WetlandWatermainSouth (ROW)OverlayReconBlvdReconstruction
CIP Street Program: Project #2 - - - 720,000 270,000 381,924 105,000 512,107
- 3,500,550 - 2,224,942 - 3,300,000
Less: Water portion of CIP Street Program - - - - (270,000) - -
- (797,627) - (1,008,349) - (600,000)
Less: Sanitary Sewer portion of CIP Street Program - - - - - -
- (131,346) - (139,345) - (200,000)
Less: Storm Water portion of CIP Street Program - - - (720,000) (381,924) - -
(435,150) - (157,828) - (500,000)
Streets portion of CIP Street Program - - - - - - 105,000 512,107
- 2,136,427 - 919,420 - 2,000,000
Less: Street Reconstruction Bonds - Ineligible Costs (242,288)
Street Reconstruction Bonds - Eligible Costs - - - - - - 105,000
512,107 - 1,894,139 - 919,420 - 2,000,000
Storm Water - Eligible Costs 381,924 43,515 157,828
Total - Eligible Costs - - - - - 381,924 105,000 512,107
- 1,937,654 - 1,077,248 - 2,000,000
Enchanted &2021StrawberryPeach Circle/Noble 2026
ShadyMill & LaneStrawberry CtRoadMill &
IslandsOverlayReconWatermainReclaimOverlay
CIP Street Program: Project #3 - - - 1,161,140 2,060,000 3,029,428 400,000 478,744 555,234
- - - -
Less: Water portion of CIP Street Program - - - - - (489,075) (400,000)
- - - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - (210,000) (175,049) - -
- - - - -
Less: Storm Water portion of CIP Street Program - - - (120,000) (469,066) - -
- - - - -
Streets portion of CIP Street Program - - - 831,140 2,060,000 1,896,238 - 478,744
- 555,234 - - - -
Less: Street Reconstruction Bonds - Ineligible Costs (60,000) (187,055)
Street Reconstruction Bonds - Eligible Costs - - - 831,140 2,000,000 1,709,183 - 478,744
- 555,234 - - - -
Storm Water - Eligible Costs 120,000 46,907
Total - Eligible Costs - - - 951,140 2,000,000 1,756,090 - 478,744 -
555,234 - - - -
Smithtown2022Noble
Pond TrailMill & Road
WoodsideConnectionOverlayRecon
CIP Street Program: Project #4 - - - 1,020,000 154,500 472,101 - 2,193,839
- - - - -
Less: Water portion of CIP Street Program - - - (649,740) - - - (372,543)
- - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - (34,000) - -
- (185,709) - - - - - -
Less: Storm Water portion of CIP Street Program - - - - - - -
(467,086) - - - - - -
Streets portion of CIP Street Program - - - 336,260 154,500 472,101 - 1,168,501
- - - - - -
Less: Street Reconstruction Bonds - Ineligible Costs (154,500) (131,946)
Street Reconstruction Bonds - Eligible Costs - - - 336,260 - 472,101 - 1,036,555
- - - - - -
Storm Water - Eligible Costs 93,417
Total - Eligible Costs - - - 336,260 - 472,101 - 1,129,972
- - - - - -
4
STREET RECONSTRUCTION FUND
Bond Interest Rate2.00%
Fund: 404 - Street Capital Outlay
Bond Duration (Years)12
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/24/20202021202220232024202520262027202820292030
Minnetonka ShorewoodNoble
LafayetteBlvd &LaneRoad
AvenueSt Albans RdRavineChannel
CIP Street Program: Project #5 - - - 255,700 1,010,000 280,000 - 247,612
- - - - - -
Less: Water portion of CIP Street Program - - - (102,194) (800,000) - -
- - - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - (109,023) - - -
- - - - - - -
Less: Storm Water portion of CIP Street Program - - - - - (280,000) -
(247,612) - - - - - -
Streets portion of CIP Street Program - - - 44,483 210,000 - -
- - - - - - -
Less: Street Reconstruction Bonds - Ineligible Costs
Street Reconstruction Bonds - Eligible Costs - - - 44,483 210,000 - -
- - - - - - -
Storm Water - Eligible Costs
Total - Eligible Costs - - - 44,483 210,000 - - -
- - - - - -
GrantMill Street
StrawberryStreetTrail
(ROW)DrainageConstruction
CIP Street Program: Project #6 - - - 150,000 250,000 - - 110,000
- - - - - -
Less: Water portion of CIP Street Program - - - - - - -
- - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - - - -
- - - - - - -
Less: Storm Water portion of CIP Street Program - - - - (250,000) - -
- - - - - -
Streets portion of CIP Street Program - - - 150,000 - - - 110,000
- - - - - -
Less: Street Reconstruction Bonds - Ineligible Costs (106,090)
Street Reconstruction Bonds - Eligible Costs - - - 150,000 - - -
3,910 - - - - - -
Storm Water - Eligible Costs
Total - Eligible Costs - - - 150,000 - - - 3,910
- - - - - -
SmithtownShorewood
Pond/FreemanOaks
Park OutletDrainage
CIP Street Program: Project #7 - - - 3,065,280 190,000 - - -
- - - - - -
Less: Water portion of CIP Street Program - - - - - - -
- - - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - - - -
- - - - - - - -
Less: Storm Water portion of CIP Street Program - - - (3,065,280) (190,000) - -
- - - - - - -
Streets portion of CIP Street Program - - - - - - -
- - - - - - -
Less: Street Reconstruction Bonds - Ineligible Costs
Street Reconstruction Bonds - Eligible Costs - - - - - - -
- - - - - - -
Storm Water - Eligible Costs 1,488,350
Total - Eligible Costs - - - 1,488,350 - - - -
- - - - - -
Mill & Overlay
Drainage
Improv.
CIP Street Program: Project #8 - - - - 100,000 - - -
- - - - - -
Less: Water portion of CIP Street Program - - - - - - -
- - - - - - -
Less: Sanitary Sewer portion of CIP Street Program - - - - - -
- - - - - - - -
Less: Storm Water portion of CIP Street Program - - - - (100,000) - -
- - - - - - -
Streets portion of CIP Street Program - - - - - - -
- - - - - - -
Less: Street Reconstruction Bonds - Ineligible Costs -
Street Reconstruction Bonds - Eligible Costs - - - - - - -
- - - - - - -
Storm Water - Eligible Costs -
Total - Eligible Costs - - - - - - - -
- - - - - -
CIP Street Program: TOTAL - - 452,549 6,930,120 7,636,951 5,234,962 3,973,605 7,721,547 -
4,318,476 1,409,176 2,826,658 2,736,682 3,949,853
Less: Water portion of CIP Street Program - - - (751,934) (1,763,311) (489,075) (1,266,533) (912,787)
- (797,627) - (1,008,349) (6,524) (600,000)
Less: Sanitary Sewer portion of CIP Street Program - - - (353,023) (110,326) (175,049) (120,200)
(371,418) - (131,346) - (139,345) (143,525) (200,000)
Less: Storm Water portion of CIP Street Program - - - (4,463,280) (1,359,867) (2,202,499) (410,865) (1,393,380)
- (697,842) (61,494) (157,828) (457,557) (500,000)
Total Streets portion of CIP Street Program - - 452,549 1,361,883 4,403,447 2,368,339 2,176,007 5,043,962
- 2,691,661 1,347,682 1,521,136 2,129,076 2,649,853
Less: Street Reconstruction Bonds - Ineligible Costs - - (375,386) (187,055) (223,265) (523,115) -
(242,288) - - (236,960)
Street Reconstruction Bonds - Eligible Costs - - 452,549 1,361,883 4,028,061 2,181,284 1,952,742 4,520,847
- 2,449,373 1,347,682 1,521,136 1,892,116 2,649,853
Storm Water - Eligible Costs - 1,608,350 81,987 1,500,340 41,524 160,948 - 43,515 61,494
157,828 45,756 -
Total - Eligible Costs - - 452,549 2,970,233 4,110,048 3,681,624 1,994,266 4,681,795 -
2,492,888 1,409,176 1,678,964 1,937,872 2,649,853
5
MSA STREET CONSTRUCTION FUND
Fund: 405 - MSA Capital Outlay
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/23/20202021202220232024202520262027202820292030
REVENUES
Interest Earnings 1,557 1,965 4,213 2,047 1,385 1,399 1,413 1,427
1,441 1,456 1,470 1,485 1,500 1,515
MSA 116,711 - - - - - - -
- - - - - -
Miscellaneous revenue - - - - - - -
- - - - - - -
Transfers in - Budget - - - - - - -
- - - - - - -
Transfers in - Excess Reserves - - - - - - -
- - - - - - -
TOTAL REVENUES 118,268 1,965 4,213 2,047 1,385 1,399 1,413 1,427
1,441 1,456 1,470 1,485 1,500 1,515
EXPENDITURES
Other Improvements 116,711 - - - - - - -
- - - - - -
TOTAL EXPENDITURES 116,711 - - - - - - -
- - - - - -
Revenues Over/(Under) Expenditures 1,557 1,965 4,213 2,047 1,385 1,399 1,413
1,427 1,441 1,456 1,470 1,485 1,500 1,515
Beginning Fund Balance 128,743 130,300 132,265 136,478 138,525 139,910 141,310 142,723 144,150
145,591 147,047 148,518 150,003 151,503
Ending Fund Balance 130,300 132,265 136,478 138,525 139,910 141,310 142,723 144,150 145,591
147,047 148,518 150,003 151,503 153,018
6
TRAIL CONSTRUCTION FUND
Fund: 406 - Trail Capital Outlay
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/23/20202021202220232024202520262027202820292030
REVENUES
Interest Earnings (8,758) - 15 6 4 4 (4,996) (5,046)
(5,096) (5,147) (5,199) (5,251) (5,303) (5,356)
Grants - - - - - - - - -
- - - - -
MSA - 760,000 - - - - - - -
- - - - -
Miscellaneous revenue - - - - - - - -
- - - - - -
Transfers in - Budget - - - - - - - -
- - - - - -
Transfers in - Excess Reserves - - - - - - - -
- - - - - -
TOTAL REVENUES (8,758) 760,000 15 6 4 4 (4,996) (5,046)
(5,096) (5,147) (5,199) (5,251) (5,303) (5,356)
EXPENDITURES
Other Improvements (TO BE DETERMINED) 53,406 - - - - 500,000 -
- - - - - -
TOTAL EXPENDITURES 53,406 - - - - 500,000 - -
- - - - - -
Revenues Over/(Under) Expenditures (62,164) 760,000 15 6 4 (499,996) (4,996)
(5,046) (5,096) (5,147) (5,199) (5,251) (5,303) (5,356)
Beginning Fund Balance (697,433) (759,597) 403 418 424 429 (499,567) (504,563) (509,609)
(514,705) (519,852) (525,050) (530,301) (535,604)
Ending Fund Balance (759,597) 403 418 424 429 (499,567) (504,563) (509,609) (514,705)
(519,852) (525,050) (530,301) (535,604) (540,960)
7
COMMUNITY INFRASTRUCTURE FUND
Fund: 450 - Community Infrastructure Capital Outlay
YTD & Est.
ActualActualActual2020BudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudgetBudget
2017201820199/23/20202021202220232024202520262027202820292030
REVENUES
Interest Earnings 1,305 1,977 7,860 4,142 1,600 1,616 1,632 1,649
1,665 1,682 1,699 1,715 1,733 1,750
Grants - - - - - - - -
- - - - - -
Miscellaneous revenue 187,663 49,559 21,044 7,587 - - - -
- - - - - -
Sale of 22000 Stratford Place - 5,000 138,802 - - - -
- - - - - - -
Encroachment Agreement - Fisk - - 5,000 - - - -
- - - - - - -
Transfers in - Budget - - - - - - -
- - - - - - -
Transfers in - Excess Reserves - - - - - - -
- - - - - - -
TOTAL REVENUES 188,968 56,536 172,706 11,729 1,600 1,616 1,632 1,649
1,665 1,682 1,699 1,715 1,733 1,750
EXPENDITURES
Public Works Roof - - 15,000 260,000 - - - -
- - - - - -
Other Improvements 219,252 54,980 21,043 5,971 - - - -
- - - - - -
TOTAL EXPENDITURES 219,252 54,980 36,043 265,971 - - - -
- - - - - -
Revenues Over/(Under) Expenditures (30,284) 1,556 136,663 (254,242) 1,600 1,616 1,632
1,649 1,665 1,682 1,699 1,715 1,733 1,750
Beginning Fund Balance 306,313 276,029 277,585 414,248 160,006 161,607 163,223 164,855 166,503
168,168 169,850 171,549 173,264 174,997
Ending Fund Balance 276,029 277,585 414,248 160,006 161,607 163,223 164,855 166,503 168,168
169,850 171,549 173,264 174,997 176,747
Land Held For Resale 150,068 150,068 150,068 150,068 150,068 150,068 150,068 150,068 150,068
150,068 150,068 150,068 150,068 150,068
Fund Balance, Excluding Land Held For Resale 125,961 127,517 264,180 9,938 11,539 13,155 14,787
16,435 18,100 19,782 21,481 23,196 24,929 26,679
$260,000 included in 2020 for public works building roof
8
City of Shorewood Council Meeting Item
3
Title/Subject: Excelsior Sewer Billing
Meeting Date: October 13, 2020
MEETING
Prepared By: Greg Lerud, City Administrator
TYPE
Reviewed By: Joe Rigdon, Finance Director; Larry Brown, Director
WORK
SESSION
of Public Works; Tim Keane, City Attorney
Attachments:
1971 Agreement, 1991 Joint Use Sanitary Sewer Service Rental
Agreement, Map 1 of 2, Map 2 of 2, Calculation of Charge
Background:
Late in 2019, the city of Excelsior sent Shorewood the annual invoice for
sewer service charges related to conveyance of sewer from some Shorewood
properties through Excelsior sewer mains to the Met Council interceptors or lift stations.
Shorewood and Excelsior entered into an agreement in 1991 that contained a formula
to determine the cost to Shorewood for the use of Excelsior sewer mains, and Excelsior
has invoiced the city annually based on that formula since.
As staff started to investigate these charges, we began to have serious questions about
the cost for this service and what exactly Shorewood was paying for. A little history:
In 1971, the two cities entered into an Agreement to share the cost to install a trunk
sewer main on Glencoe in Excelsior that would serve properties in both cities.
Shorewood paid one-half of the cost for that main installation and for that contribution,
Shorewood had the perpetual right to use and convey sewage through that main at no
future cost or expense. Excelsior would be responsible for all future costs to operate
and maintain that sewer main.
While the Met Council was building out its collection system in the late 1980s, it was
using sewer mains in various cities to make their collection system “whole” and they
paid rent to the municipal owner of use of those lines. Around 1990, the Met Council
completed installation of its own interceptors and lift stations. The Met Council therefore
no longer needed to use local mains, so they stopped paying rent for use of city lines.
As a result, in 1991 Shorewood and Excelsior signed a “Joint Use Sanitary Sewer
Service Rental Agreement.” The agreement contained a formula that calculated
Shorewood’s cost per million gallons, and then charged that amount against the Met
Council’s estimated “unmetered flow” from Shorewood through Excelsior. There is very
little in the minutes or other documents that shows the thought process on how the 1991
Joint Use Agreement was developed or rationale for the formula.
Mission Statement: The City of Shorewood is committed to providing residents quality public
services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and
sound financial management through effective, efficient, and visionary leadership. Page 1
The unmetered flow is determined by Met Council and it is an estimate of flow that
crosses municipal boundaries before it can be metered, and it is to make sure that the
treatment costs are appropriately charged to the municipality from where the sewage
was generated. For example, Shorewood has unmetered flow that goes into Excelsior,
and that amount gets added to Shorewood’s bill when Met Council determines the city’s
annual sewer treatment cost. Likewise, Victoria has unmetered flow that enters
Shorewood, and that is deducted, or a credit, against Shorewood’s total meter flow. It is
important to know that this calculation is only for determining credits and debits to each
city’s sewer treatment cost and is not the amount of sewage that is conveyed through
sewer mains.
The two general areas that convey Shorewood sewage through Excelsior mains are
shown on the attached maps and generally described as: the Grant/Academy/Park
area, and the other is Wood Duck Circle/CR 19/Shorewood Marian/Lafayette.
According to Met Council plans and maps, there are 136 Residential Equivalency
Connections (RECs) in these two areas. Since 2005, the farthest year back where we
have readily available information, Excelsior has billed Shorewood $532,200 for
conveying sewage from these two areas.
Staff had a meeting with Met Council staff to go over the data and information they had.
During this meeting, it was discovered that many of the properties on Wood Duck and
associated area, were directly connected to the Met Council mains. These parcels are
not connected, nor had they ever been connected, to the Excelsior sewer mains. But
these RECs had been included in the 1991 formula as if they are connected. The RECs
that have never used Excelsior sewer is 39.3% of the total that have been included in
the billing calculations sent to Shorewood, and which Shorewood has paid. As I said,
we have readily available numbers going back 2005, but a reasonable estimate going
back to 1991 indicates that Shorewood has paid approximately $270,000 for service
that which was never needed or provided, and for which Excelsior incurred zero
expense. With interest, the present value is estimated to be approximately $329,000.
We wish to be clear that we do not believe this error was knowingly being done.
Shorewood staff has had several conversations and exchanges with Excelsior staff
regarding this, and we believe that we have taken those discussions as far as we can. It
is now for the city council of each city to determine next steps. There are multiple
interpretations of the 1991 agreement because it is so poorly written, and both cities
agree that a new agreement is needed. However, setting aside all the other differences
of opinion regarding the 1991 Agreement, it is quite clear that Shorewood has been
billed, and paid, for something that we did not receive. This is not an example of being
charged $12 for something that costs $10, it is an example of being charged $10 for
something that costs $0. It is reasonable to expect to receive that money back, either
as a lump sum (with interest) or as a credit against future (accurate charges), along with
a credit for accruing interest.
Financial or Budget Considerations:
Significant. The annual invoice to the
Shorewood represents about eight percent of Shorewood’s sewer expenditures.
Options:
1. Take no action on past billings and work to create a new agreement. The fact is
some of Shorewood is using Excelsior mains to convey sewage and it is appropriate to
pay for that service. While we recommend negotiating a new agreement, staff cannot
recommend the city not pursue reimbursement for the amounts paid for which
Shorewood did not receive any service.
2. Negotiate a “settlement.” This would have to be done by the city councils, likely with
assistance from a mediator.
3. Seek a legal remedy. Staff does not recommend this process. It is costly and
complicated because both sides would raise various arguments about the 1991
Agreement and lost would be the unambiguous fact that Shorewood paid for a service
that it did not receive.
4. The 1991 Agreement has a cancellation provision that allows the city to cancel the
agreement with written notice. The city would then use the $329,000 as a credit against
future (accurate) charges, plus interest added to the credit balance until that number
reaches zero. Along with this option, staff recommends working on a new Agreement.
Recommended Action:
Staff recommends the fourth option.
Next Steps and Timeline:
Staff will take council direction from this work session and
bring the matter back to the council for formal action at a future council meeting.
City of Excelsior
Over-Payment of Sewer Service
Fees
Annual Over-
Billed Payment Interest
Year Amount 39.3% LIBOR Balance
1991 11,000.00 * 4,323.00 5,222.41 9,545.41
1992 11,000.00 * 4,323.00 4,947.99 9,270.99
1993 11,000.00 * 4,323.00 4,613.75 8,936.75
1994 11,000.00 * 4,323.00 4,336.65 8,659.65
1995 11,000.00 * 4,323.00 3,966.12 8,289.12
1996 11,000.00 * 4,323.00 3,499.14 7,822.14
1997 11,000.00 * 4,323.00 3,094.87 7,417.87
1998 11,000.00 * 4,323.00 2,696.84 7,019.84
1999 11,000.00 * 4,323.00 2,326.47 6,649.47
2000 11,000.00 * 4,323.00 1,994.78 6,317.78
2001 11,000.00 * 4,323.00 1,614.21 5,937.21
2002 11,000.00 * 4,323.00 1,393.00 5,716.00
2003 11,000.00 * 4,323.00 1,293.58 5,616.58
2004 11,000.00 * 4,323.00 1,226.44 5,549.44
2005 17,976.60 7,064.80 1,870.26 8,935.06
2006 24,617.72 9,674.76 2,160.00 11,834.76
2007 30,330.48 11,919.88 1,953.69 13,873.57
2008 30,040.44 11,805.89 1,249.59 13,055.48
2009 31,006.24 12,185.45 938.06 13,123.51
2010 29,941.16 11,766.88 864.15 12,631.03
2011 29,988.15 11,785.34 831.44 12,616.78
2012 26,797.10 10,531.26 717.10 11,248.36
2013 31,675.95 12,448.65 815.82 13,264.47
2014 43,171.82 16,966.53 1,077.62 18,044.15
2015 41,975.91 16,496.53 1,019.74 17,516.27
2016 49,366.08 19,400.87 1,158.16 20,559.03
2017 49,309.08 19,378.47 1,054.65 20,433.12
2018 45,500.32 17,881.63 766.20 18,647.83
2019 50,848.44 19,983.44 443.63 20,427.07
686,545.49 269,812.38 59,146.37 328,958.75
*ESTIMATED