081301 CC WS Min
.
.
.
CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDA Y, AUGUST 13, 2001
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
8:00 p.m. or immediately following
Regular Meeting
MINUTES
1. CONVENE WORK SESSION MEETING
Mayor Love called the meeting to order at 9:33 P.M.
A.
Roll Call
Present:
Mayor Love; Councilmembers Garfunkel, Lizee, Turgeon, and Zerby; Administrator
Dawson; Engineer Brown; Finance Director Burton; and Planning Director Nielsen
Absent:
None
B.
Review Agenda
Without objection from Council, Mayor Love reviewed the Agenda for the Work Session. No
changes were noted.
2. PROPOSED 2002 BUDGET
A. Overview
Administrator Dawson explained the Legislature had made significant changes in the property tax
system and local government revenue authority this past year. He noted the City's levy increase was
approximately $117,000. He further noted Shorewood provided essential services at a very reasonable
cost to residents. Staff members performed at a high level with economy and efficiency and
professional staff consistently spent countless extra hours to meet and exceed high expectations of
performance. Reductions in the general operating budget would compromise the City's ability to
deliver essential services in many ways.
Mayor Love stated he realized the tough position cities were in with regard to the shift in tax burden.
He noted it would certainly be in the best interest of the five South Lake Minnetonka cities to sponsor
a forum where legislators could speak to this matter and the needs of the entire South Lake
Minnetonka community could be explained to them.
Administrator Dawson then reviewed the major features of the Proposed 2002 General Fund
Operating Budget. He noted the first two items were the Police and Fire Budgets and respective chiefs
were present this evening to present that information to Council.
B. South Lake Minnetonka Police Department
South Lake Minnetonka Police Department (SLMPD) Chief Bryan Litsey presented information to
Council regarding the proposed 2002 SLMPD budget. He thanked Council for participating in facility
tours last week. He then reviewed the proposed SLMPD budget, noting there was a number of factors
affecting the budget increases. One of these changes included a revision of the funding formula used
for each member city from a fluctuating percentage-based contribution to a set percentage-based
.
.
.
CITY COUNCIL WORK SESSION MEETING MINUTES
August 13, 2001
Page 2 of 3
contribution. He also noted rising energy costs and health insurance as well as a new radio system
implemented by Hennepin County. The cost of the new radio system would be absorbed over the
course of the next seven to eight years, and a fund had been previously designated as saving for this
purchase. In addition, Chief Litsey noted an increase in wages and benefits for the coming year. He
stated it was an important goal to provide competitive wages for retention and recruitment of
personnel. He also reported the department was fOltunate to be able to include a full-time community
service officer as part of the SLMPD for the coming year. Council arrived at consensus regarding
budget approval.
C. Excelsior Fire District
Excelsior Fire District Chief Mark DuCharme was also in attendance this evening and provided a brief
overview of the Excelsior Fire District Proposed 2002 Budget. He briefly explained the process
utilized in preparing this budget for Council, noting there would be an approximate 19% increase in
the budget overall for next year. He stated this was in part due to a new program aimed at recruiting
and retaining qualified firefighters and emergency service personnel. He explained the Fire District
was committed to high expectations and professionalism from its staff. Typically, he planned on
recruiting approximately two people a year; however, this year there had been a tremendous amount of
community support with approximately twenty people applying for training. Other factors
contributing to the increase in the budget this year included payment toward Workmen's
Compensation insurance, fire prevention programs, the new radio system being implemented by
Hennepin County, and additional capital transfers.
Mayor Love commented the recruitment efforts by the Fire District were resoundingly successful, and
he praised Chief DuCharme for a job well done. In addition, he noted, in this case, there was a large
expense which cities were grateful to pay for outstanding service. He also explained there would
possibly need to be discussions over the next few years concerning a special taxing district for the
South Lake area regarding budgeting for the Fire District. Council gave consensus for approval of the
proposed Excelsior Fire District Proposed 2002 Budget.
Administrator Dawson and Council thanked the chiefs for presenting this information noting special
gratitude given the lateness of the evening.
D. City Budget Review
Finance Director Burton stated a brief review of the proposed city budget would take place, rather than
a line item discussion. Administrator Dawson noted reductions in certain transfers to capital funds,
such as equipment replacement and street reconstruction projects for the upcoming year. He also
briefly reviewed changes in the use of equipment certificates, impacts on the budget due to the
community visioning project, a change in funding election activities, recodification of the City's Code
of Ordinances, changes in engineering staff, funding plans for parks and recreation programming, fees
for professional services, information technology purchases, and staff services related to the formation
of the Shorewood Economic Development Authority (EDA). Further, he noted there were anticipated
increases in the City's pay plan for employees, health insurance, and energy costs.
Finance Director Burton explained the City proposed working with a $3,000,000 General Fund budget
for the Year 2002. She noted there would be an approximate 3.6% increase in revenues for next year.
In addition, she stated expenditures increased by approximately 11 % this year. As a result, an
additional levy would be required this year, as $427,000 would need to be replaced due to lost state
aid. In spite of the fact a Truth-In-Taxation Hearing was not mandated by the State this year, staff
.
.
.
.CITY COUNCIL WORK SESSION MEETING MINUTES
August 13, 2001
Page 3 of 3
recommended scheduling that Hearing anyway as it would be a beneficial communication tool for the
City. Council agreed with staff's recommendation to schedule consideration of setting the proposed
(Le., not-to-exceed) 2002 property tax levy and acceptance of the proposed 2002 budget at the August
27,2001 City Council meeting.
3. OTHER
There was nothing further to report at this time.
4. ADJOURN
Turgeon moved, Zerby seconded, adjourning the August 13, 2001, City Council Work Session
Meeting at 10:29 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Sally Keefe,
Recording Secretary
Woody Love, Mayor