102703 CC WS Min
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CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, OCTOBER 27, 2003
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
Immediately Following EDA Meeting
MINUTES
1. CONVENE WORK SESSION MEETING
Mayor Love called the meeting to order at 8:43 P.M.
A.
Roll Call
Present:
Mayor Love; Councilmembers Garfunkel, Lizee, Turgeon, and Zerby; Administrator
Dawson; Engineer Brown; Finance Director Burton, and Planning Commission
Liaison Woodruff
Absent:
Attorney Keane and Planning Director Nielsen
B.
Review Agenda
Without objection from the Council, Mayor Love proceeded with the Agenda.
2. ENTERPRISE BUDGETS
Finance Director Burton explained the Year 2004 Draft Budgets were being reviewed this evening for
further consideration and discussion. She went on to explain these budgets comprised the City's
Enterprise Funds that allowed the City to experience revenue for providing these services to residents.
A. Water and Debt Service Budgets
Director Burton explained the Water Fund Budget was comprised of two parts: the Water Operating
Budget and the Water Debt Service Budget. The 2004 Water Debt Service payments for the two
existing bond issues were scheduled to be approximately $265,000 and would be paid by a transfer
from the Water Operating Budget. The Water Operating Budget revenues were projected at
$1,222,000 and the expenses were forecast at $1,438,804, resulting in a deficit of approximately
$216,800. Items contributing to the shortfall included the debt service transfer and depreciation.
Director Burton also noted proposed capital expenditures include the Woodhaven Well
Interconnection, the Badger Well House Reconstruction, the Water Meter Radio Read project (Year 1
of 3), Southeast Area Water Tower Painting, Installation of the Southeast Area Well VFD, and the
Amesbury Polyphosphate System.
Director Burton explained that in order for the Water Funds to be self-supporting financially, to
assure the system could provide for improvements and enhancements, and to preserve fund balance at
current levels, proposal of a water rate increase was necessary.
After working with Staff and Council input from previous Work Session meetings on this topic,
consensus had been reached regarding the potential three-year step approach to water rate increases.
Based on that approach, water rates would increase incrementally over the next three years and were
to be based on a three-tiered usage formula that would increase the average quarterly water bill (for
approximately 30,000 gallons) from about $65 to $89. She also noted that in comparison with other
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CITY COUNCIL WORK SESSION MEETING MINUTES
October 27, 2003
Page 2 of 3
neighboring municipalities, the City's water rates were similar to that of other South Lake
Minnetonka communities.
Discussion ensued regarding the options available for increasing the number of users on the water
system in effort to reduce the financial impact to residents through the use of water rate increases for
the upcoming years. Council agreed the water rate increase was necessary in 2004 and also agreed to
discuss options for increasing connections to the City's Water System at a future Work Session
meeting.
B. Sanitary Sewer Budget
Proposed operating revenues and expenditures for the Year 2004 were contemplated at approximately
$870,000. Capital improvements for the year, including refurbishment of Lift Stations 8 and 15, and
an Inflow & Infiltration Control and Reduction Projects were expected expenditures totaling
$121,500. A rate increase was not proposed at this time.
C. Recycling Budget
Director Burton reported the recycling budget contemplated revenues and expenditures of about
$117,480. She noted the number of households participating in the recycling program remained stable
with approximately 1,100 households per month. A rate increase was not proposed at this time.
D. Stormwater Management Budget
The 2004 Stormwater Management Budget contemplated revenues and expenditures of $361,000,
including operations and debt service payments for the Gideon Glen land acquisition. Capital
improvement projects included the Gideon Glen Drainage project, Boulder Bridge Lift Station
improvements, and the Glen Road Drainage Improvement project.
E. Liquor Operations Budget
Director Burton noted the City anticipated reasonable profit levels in the City's liquor operations in
the upcoming year. She noted Store #2, in the Shorewood Village Shopping Center, was open for
business, in its new location, and expected profitability in the upcoming year.
3. CAPITALIZATION POLICY
Director Burton explained the City Staff was preparing for the GASB 34 transition as part of a new
financial reporting regulations. One of the requirements was to provide for infrastructure reporting
through definition of assets, and how to report them. Further information would be shared at a
Regular City Council Meeting in November for formal adoption.
4. OTHER
Engineer Brown briefly explained the possibilities being explored regarding an interim traffic signal
to be utilized on the County Road 19 intersection project. After a brief discussion by Council and
Staff, it was recommended the City hold off on purchase of such an interim fixture at this time, until
further requested information could be made available from Hennepin County.
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CITY COUNCIL WORK SESSION MEETING MINUTES
October 27, 2003
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5. ADJOURN
Turgeon moved, Zerby seconded, Adjourning the City Council Work Session Meeting of
October 27, 2003, at 9:52 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Sally Keefe,
Recording Secretary