093085 Budget Review MinCITY OF SHOREWOOD
BUDGET REVIEW MEETING
MONDAY, SEPTEMBER 30, "1985
M I N U T E S
COUNCIL CHAMBERS
5755 COUNTRY CLUB ROAD
7:30 PM
CALL TO ORDER
The Budget Review meeting was called to order at 7:30 P.M. by Mayor
Rascop, on Monday, September 30, 1985 in the Council Chambers.
ROLL CALL
Present: Mayor Rascop, Councilmembers Stover, Gagne, Shaw and Haugen.
Staff: Administrator Vogt, Finance Director Beck, Public Works
Director Zdrazil, Planner Nielsen and Clerk Kennelly.
BUDGET REVIEW
A list of recommendations from the Water Study Committee was submitted
by members Amlau, Fonte, Beal and McNulty (The list of recommendations
is herein attached). The Council proceeded to discuss various areas
of the recommendations. Gagne and Haugen questioned the services cur-
rently being done by Munitech and would like to further evaluate the
current services offered.
• Beal indicated that not all members were in agreement with all the
recommendations within the report, but they did all approve the report.
Beal felt that the City could save a lot of money if it is possible to
"mothball" some of the existing wells until economically feasible to
reopen them. Gagne recommended that this report be turned over to the
staff for further study of each of the recommendations, to then be
returned to the Council for review. Rascop would like expenses and
revenues report for a two year history submitted to the Water Committee
for review.
Bridge submitted an. update of changes made in the budget thus far, Beck
also submitted update, these updates do differ in areas.
Stover brought up the issue of salaries among the non union employees.
After various calculations were discussed, she recommended a 5% in-
crease over current salaries for the 1986 budget: Beal recommended a
flat across the board percentage until the budget is worked
out. Shaw supported a 22/ increase. Stover will like to see the bud-
get submitted with salaries separate and not divided, into the individual
departments.
Stover's motion was denied - 1 aye (Stover) 4 nays,::,
Shaw moved, seconded by Gagne, to set salaries (non- union) at 22% over
12/31/85 salaries. Motion carried - 4 ayes to 1 nay (Stover).
BUDGET REVIEW MEETING
MONDAY, SEPTEMBER 30, 1985
page two
• Council would like to see all 1987 salaries pooled to
9 7 ether for review p g
purposes.
Stover moved, seconded by Gagne, to remove the $15,000 in the budget,
for siren purchase. Motion denied - 2 ayes (Stover /Gagne) 3 nays.
Council proceeded with a review of Departments #52 through #66. Beal
suggested that all conference and schooling costs be removed.
Beck returned with calculations on savings of salaries at the 22%
increase level.
Rascop moved, seconded by Gagne, to reduce the contingency by $12,833•
Motion carried - 3 ayes to 2 nays (Shaw and Haugen).
Gagne moved, seconded by Haugen, to direct the staff to draft a final
budget for approval at the Council meeting of October 7, 1985. Motion
carried - 4 ayes - 1 abstain (Shaw).
MURFIN PROPERTY PURCHASE
Shaw stated that Murfin may accept $85,000 for his property adjacent
to the Public Works garage. Rascop stated that a letter has been sent
stating the City's position on this matter. They feel the appraisal
• figure was proper, Gagne and Stover supported Rascop's position. Shaw
will respond the Council's position to Mr. Murfin.
ADJOURNMENT
Shaw moved, seconded by Haugen, to adjourn the Budget Review meeting
of Monday, September 30, 1985 at 10:35 P.M. Motion carried unanimously.
RESPECTFULLY SUBMITTED,
SANDRA KENNELLY
CITY CLERK
) t
September 30, 1985
0 TO: Mayor Rascop & Councilmembers
From: Shorewood Water Study Committee
Re: SHOREWOOD WATER STUDY COMMITTEE REPORT
The City of Shorewood presently owns and operates four muni-
cipal wells serving approximately 142 residents as part of the
Shorewood Municipal Water System. These wells serve the de-
velopment of Amesbury (98 residents as of March 31, 1985),
Boulder Bridge (13 residents), Woodhaven (5 residents), and
Badger (26 residents).
Additionally, the Citv of Shorewood processes billings of 72
Shorewood residents who purchase water from the municipal sys-
tem in Minnetonka (35), Tonka Bay (6), and Excelsior (31).
For numerous reasons, including the small number of users of
the over -sized wells, the operating expenses have grossly ex-
ceeded the revenue generated from water sales to city well users
and other city purchase users by $40,000.00 to $80,000.00 per
year since 1981.
After many hours of careful study *, we recommend the following:
1. A city -wide municipal water system is not warranted at this
time.
2. Expand, on a totally voluntary basis present well systems
which are within a reasonable range of becoming self - suporting.
3. The city should temporarily abandon those city wells which
significantly contribute to the operating deficit and in their
place provide individual wells.
4. Increase water rates to city water users and city water
purchasers a reasonable amount to help reduce the operating
deficit.
5. Establish a dedicated repair and replacement fund for the
wells.
• 6. Establish a policy that all future wells in which the city
is involved be structured with developers to assure no operat-
ing deficit for the city at any time during the life of the
well.
*All data utilized was provided by the City of Shorewood.
2.
7 7. Develop a water utility commission to oversee water system
• management, water system development and the dissemination of
information to the public on water.
8. Reexamine the need for Munitech to service wells and in-
vestigate other options for maintenance of the wells.
9. The cost accounting for city wells should be on a per well
basis and costs for water purchase users from other cities
should be kept separately.
10. Any developer would have the option of repurchasing the
well serving his development if he wished to have that develop-
ment remain on a central water system. He would then be respon-
sible for total costs of maintaining this system, and would
guarantee the city would never incurr costs from it in the
future.
Respectfully submitted:
r Jim Beal (Approved 9- 29 -85)
Michael Fonte (Approved 9- 29 -85)
C. L. Amlaw (Approved 9- 29 -85)
Jim McNulty (Approved 9- 29 -85)
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