081902 CC WS Min
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CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, AUGUST 19,2002
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:30 p.m.
MINUTES
1. CONVENE WORK SESSION MEETING
Mayor Love called the meeting to order at 6:46 P.M.
A.
Roll Call
Present:
Mayor Love; Councilmembers Garfunkel, Lizee, Turgeon, and Zerby; Administrator
Dawson; Engineer Brown, Finance Director Burton
Absent:
Attorney Keane and Planning Director Nielsen
B.
Review Agenda
Mayor Love reviewed the Agenda, noting the Chiefs of the Excelsior Fire District (EFD) and South
Lake Minnetonka Police Department (SLMPD) would be present as soon as prior commitments were
completed. Councilmember Turgeon requested an update on the Glen Road drainage project as part of
Item 3 on the Agenda for this evening.
Lizee moved, Garrunkel seconded, Approving the Agenda as presented. Motion passed 5/0.
2.
PROPOSED 2003 GENERAL FUND OPERATING BUDGET
A. Overview
Administrator Dawson thanked Staff for a fine job in gathering data for preparation of the budget for
the upcoming year. He noted the proposed 2003 General Fund Operating Budget reflected a great deal
of discussion by Staff and direction from Council and was believed to be an accurate representation of
what was needed for the Year 2003.
Finance Director Burton presented an overview of the budget, noting the City should feel good about
the value it was receiving in paying for Staff services. She noted the City provided essential services
at a very reasonable cost, with a very lean budget and small staff. In addition, these staff members
perform at a high level with economy and efficiency as well as consistently spending countless extra
hours to meet and exceed the high expectations of performance.
She then provided an overview of the budget including issues regarding the truth-in-taxation process,
and such revenue highlights as levy limits, fund transfers, and additional funding sources. With regard
to levy limits, Finance Director Burton stated the City was subject to levy limits, however these limits
allowed for inflationary measures, thereby allowing an increase of 2.9% from Pay 2003 levy, resulting
in approximately $80,000 additional dollars for this year. The City was permitted to add a "special
levy" to accommodate the debt service payments to be made annually to fund the new public safety
buildings. For 2003, Shorewood's share ofthis special levy amount was estimated to be $304,500.
Finance Director Burton explained most of the changes to the 2003 budget would be incremental for
the continuing cost of doing business. Significant changes for the proposed 2003 budget included
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CITY COUNCIL WORK SESSION MEETING MINUTES
August 19, 2002
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increases in the areas of police and fire services, including the debt service payments for the
anticipated Joint Public Safety Facilities. She also noted increased budget expenditures in additional
Park and Recreation allocations; hiring of new staff; pay plans, including health insurance premium
increases; building improvements (City Hall and Public Works); and information tec1mology. Other
areas for Council consideration included discussions regarding easements and land donations, and
further consideration regarding use of the General Fund balance for transfers to other fund deficits.
Councilmember Zerby questioned the impact to the average homeowner for the proposed 2003 budget.
Finance Director Burton stated the operating budget portion would be rather insignificant, however,
the cost associated with the Public Safety Facility was anticipated to be approximately $59 for every
$100,000 value of property owned by residents.
EFD Chief DuCharme arrived at 6:50 P.M. and SLMPD Chief Litsey at 6:57 P.M.
B. South Lake Minnetonka Police Department
Chief Litsey briefly explained preparation of the proposed budget for the SLMPD had tried to consider
the efforts of all member cities regarding the construction of the new Public Safety Facility. He noted
the budget did not show any increase in operating expenses, but there was an increase proposed for
personnel costs. He stated this increase in personnel reflected the direction of the SLMPD governing
board and Councils of the member cities served by the SLMPD. In addition, he stated he was very
pleased to have seasoned, experienced Staff and noted that personnel were moving through step
increases as part of the budget. He also cited the implementation of the new radio system to be an
increase to the budget for the upcoming year. He further explained this implementation was eased into
the budget over the next seven years. He stated he was hoping to be able to set up a building fund as a
way to offset the impact to the operating budget, and would be working with Staff to develop a
process for this effort. Ideally, he stated, he would have requested an operating budget increase of 8
percent. Given the constraints of the member cities, however, the proposed operating budget for the
Year 2003 was at 6.5 percent increase.
Councilmember Lizee questioned the ideal number of officers and when this increase might occur.
Chief Litsey explained he would like to see the number of officers increased by two officers with
placement on Staff beginning in approximately two years and increasing staffing levels over a three to
four year period.
Mayor Love thanked Chief Litsey for his efforts in preparation of the budget for the upcoming year.
Chief Litsey thanked Administrator Dawson for his efforts in the budget and continued help regarding
the Public Safety Facility. He stated Administrator Dawson was invaluable with regard to helping the
process move forward and appreciated his confidence and knowledge. He also thanked EFD Chief
DuCharme for his professionalism and hard work in additional to his fine friendship in working
through the processes regarding construction of the Public Safety Facility.
C. Excelsior Fire District
EFD Chief DuCharme stated he was quite pleased to be able to present the proposed budget to Council
this evening. He stated the EFD was experiencing a tremendous transition period in its operations, and
he anticipated this might last for the next two to three years. He stated the opportunity to move to a
new facility was very exciting for all parties involved in the process, noting the EFD was comprised of
a volunteer staff who display high levels of professionalism and operate under extremely stressful
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CITY COUNCIL WORK SESSION MEETING MINUTES
August 19,2002
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Chief DuCharme expected an increase of $868 or less than 1% in operating expenses over the 2002
budget, and noted he would be recruiting additional volunteers this year.
Mayor Love commended the Chief for the change in culture associated with the structure of the EFD
organization.
A brief discussion ensued regarding the amount and qualifications of trained responders to various
emergency situations associated with public safety.
Chief DuCharme stated the EFD had been very successful over the past two years and hoped for it to
continue into the future. He noted this success was based on the continued support from the City Staff
and working relationships with all parties involved in the process for construction of the new Public
Safety Facility. He stated Shorewood was very fortunate to have a fine staff acting as Lead Staff on
these projects. Chief Litsey agreed, noting Shorewood Staff had emerged as leaders in the
construction process and he appreciated the continued support as well.
Mayor Love questioned the provisions for holding detainees at the new facility. Chief Litsey stated
security measures would be in accordance with Department of Corrections standards with regard to
monitoring and security.
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Councilmember Zerby questioned the practicality in having the EFD contract with Mound to provide
fire services to the Island residents of Shorewood. Administrator Dawson explained the Joint Powers
Agreement did not currently provide for service to Island residents, thus it was necessary for the City
to contract those services from the next logical municipality. Chief DuCharme stated mutual aid
between cities was continually provided in reciprocal fashion.
D. Mound Fire District
Administrator Dawson stated Shorewood contributed approximately 1.5% of the Mound Fire District
budget. He noted these services were practical in providing fire protection for Island residents of
Shorewood. He further noted the level of commitment by the Mound Fire District would remain the
same, and the EFD had been looked toward as a model for fire district organizations.
Mayor Love thanked Chiefs DuCharme and Litsey for providing budget analysis this evening.
E. City Budget Review
Councilmember Garfunkel expressed concern for clearing the outstanding loans from the General
Fund Operating budget, only to have future Councils repeat the same measures. Finance Director
Burton suggested the utilization of policy direction from this Council to guide future Council action
with regard to this issue. She also explained formal adoption of this budget would be slated for the
September 9,2002, Regular City Council Meeting Agenda.
3. OTHER
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Councilmember Turgeon requested an update on the Glen Road drainage project slated for early in the
day. Engineer Brown stated individuals in the area were concerned adequate notice had not been
given regarding this project as well as concern for additional water in the drainage system due to
scheduled construction. Engineer Brown explained the process that had been followed as well as
additional concessions offered to accommodate these residential concerns.
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CITY COUNCIL WORK SESSION MEETING MINUTES
August 19,2002
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Council indicated support for proceeding with the project as planned. Engineer Brown stated this
project was a maintenance project rather than road improvement, and additional concessions were
being made to work with residents in the area to provide enhanced drainage in the area.
4. ADJOURN
Lizee moved, Zerby seconded, Adjourning the Work Session Meeting of August 19, 2002, at 8:40
P.M. Motion passed 5/0.
RESPECTFULL Y SUBMITTED,
Sally Keefe,
Recording Secretary
Woody Love, Mayor