080904 CC WS Min
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CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, AUGUST 9, 2004
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
Mayor Love called the meeting to order at 8:50 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
Also present: South Lake Minnetonka Police Department (SLMPD) Chief Litsey
Absent: Attorney Keane
B. Review Agenda
Mayor Love reviewed the Agenda for the meeting this evening. Councilmember Zerby requested, in the
interest of Chief Litsey's time, Item 3B be moved to Item 2 on the Agenda for this evening.
Zerby moved, Turgeon seconded, Approving the Agenda as Amended. Motion passed 5/0.
2. SOUTH LAKE MINNETONKA POLICE DEPARTMENT 2005 OPERATING BUDGET
Administrator Dawson explained the SLMPD Coordinating Committee met August 4, 2004, and by
consensus forwarded a proposed budget that would increase the cities' contributions by 4.1 %, compared
to the budget it recommended for 2004. He also noted the proposed budget would not address the lower-
than-recommended level of undesignated funds in the department's operating balance, or the
establishment of a capital long-term maintenance fund. He went on to explain the implications of the
proposed budget for the City, noting there were two scenarios illustrated showing results should
Excelsior choose not to increase its contribution for 2005 and other member cities would then continue
the current "enhanced" service levels. To maintain the current service level, he explained, Shorewood's
contribution would become $697,762, or 5% more than 2004. If the three cities chose to contribute to the
Coordinating Committee's consensus budget, Shorewood's contribution would be $717,861, or 8.3%
more than 2004. He went on to explain Council had the option of acting on the requested contribution
for the budget and contingencies could also be made within the City's budget for 2005 to allow for either
option.
SLMPD Chief Litsey explained on July 21, 2004, the SLMPD Coordinating Committee had held a Work
Session where three different scenarios and implications of each option had been presented. He stated
the three scenarios included consideration of restoration of the budget in moving forward for the next
year, keeping the budget as was currently being handled with three member cities receiving enhanced
service levels, and a worst-case scenario of no increase whatsoever for all member cities. He stated he
remained hopeful after discussion held at that meeting that the base level budget could potentially be
made whole and the budget could move forward for all member cities. In addition, he stated the current
proposed budget respected Excelsior's decision to decrease the strain on the budget. He also noted the
information sheet he had distributed this evening included contingency options.
Chief Litsey then reviewed the various scenarios associated with the 2005 SLMPD Operating Budget.
He explained restoration of th~ budget would include partial restoration of a now vacant clerical position
and restoration of the Drug Task Force, as well as restoration of vehicle rotation. He stated proposed the
CITY COUNCIL WORK SESSION MEETING MINUTES
July 12, 2004
Page 2 of3
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budget did not contemplate a long-term capital maintenance fund, and restoration of the lower than
recommended operational fund balance.
Chief Litsey went on to explain the department was significantly understaffed currently. The reality to
the numbers presented in this budget was that the only items left to cut were officers. He then shared
data from other area municipalities as they related to the number of officers per population. He stated
thus far the department had had the good fortune to have support of the Coordinating Committee and
most Councilmembers in budgetary matters.
Mayor Love stated he hoped efforts could be directed toward settling the budget, and that the issues
related to the funding formula be separated from consideration of the budget by member cities.
Mayor Love thanked Chief Litsey for his time, efforts, and hard work in preparing the budget for this
year.
3. CAPITAL IMPROVEMENT PROGRAM (CIP) 2005-2009 BUDGET
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Engineer Brown reviewed the proposed ClP budget noting areas of change in the Equipment
Replacement fund, Local Roadway fund, Municipal Water fund, Park Improvement fund, Public
Facilities fund, and Storm Water fund. Also, he noted with regard to the Municipal State Aid funds, bid
prices for the County Road 19 project had left no reserves in the MSA fund account through 2009 for the
City. He also stated Council should anticipate the project cost would continue to increase due to
unexpected contingencies such as soil contamination issues, etc., as the project moved forward. He
stated he would continue to work within the guidelines of the MSA fund account options and the Local
Roadway funds to supply short-term loan opportunities.
Also, with regard to the City Hall monies allocated under Public Facilities, Councilmember Turgeon
stated she thought further full discussion with action should predicate the monies being allocated toward
City Hall.
Councilmember Garfunkel stated he thought it prudent to include some monies in the ClP as a planning
measure. Engineer Brown stated roofing and siding needed to be completed in 2005 and was included an
immediate "stop gap" measure until a complete plan could be determined by Council for City Hall.
4. PROPOSED 2005 GENERAL FUND OPERATING BUDGET
A. Overview
Administrator Dawson explained the general approach to the proposed 2005 General Fund Operating
Budget had been to restore funding to traditional levels, to address matters that had been deferred, and to
make additions that would enhance productivity and effectiveness. The budget requests were the result
of careful consideration by Staff, guided by the direction of Council at its budget work session in June of
this year. He noted Shorewood provided essential services at a very reasonable cost, with a very lean
budget and small staff. Staff members continued to perform at a high level of economy and efficiency,
and professional staff consistently spent extra hours to meet and exceed the high expectations of
performance.
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He then reviewed the truth-in-taxation process and noted actions taken by the 2004 legislature,
specifically noting the City was not subject to levy limits for 2005. Therefore, he stated, a portion of the
2005 levy would include debt service payments that were made annually to fund the new public safety
buildings. For 2005, Shorewood's share of the special levy amount was estimated to be $486,000.
Administrator Dawson then reviewed the fund transfers, other funding sources, and highlights of 2005
Budget expenditures:
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CITY COUNCIL WORK SESSION MEETING MINUTES
July 12, 2004
Page 3 of3
Councilmember Zerby stated he would like to Staff to address options possible for reducing the tax levy
to residents to below the proposed 13%, as it seemed high.
B. Restructuring the Public Works Department
Administrator Dawson explained the recent history of the Public Works Department and the need for
restructuring it. He noted the restructuring discussed included a major change of separating
infrastructure within the City. Currently the City Engineer and Director of Public Works were one
position held by City Engineer Larry Brown. He stated the work level and resulting span of control were
increasingly difficult for one position to perform both functions effectively. To that end, the
restructuring of the Public Works Department included a split in these two positions. He then outlined
how the two positions would be structured for the future. He also noted changes to the positions
throughout recent history and implications for a change in the structure such as the one being proposed.
Administrator Dawson stated Engineer Brown continued to be a great employee and the timing appeared
appropriate for a change in infrastructure as proposed.
In response to Mayor Love's question, Engineer Brown stated he was ready for a change such as the one
being proposed. Engineer Brown also stated he took great pride in his work and it continually proved
frustrating for him not to be able to complete the task asked of him by Staff, Council and residents in a
timely manner. He stated his average work week was well in excess of 60 hours as found in the past four
years of documentation. He stated it was becoming increasingly difficult to maintain this kind of
dedication to the sacrifice of his own health and that of his family. He further stated, with Council's
permission staff would like to have interviews completed for the City Engineering position for a January
1,2005 start date.
Councilmember Turgeon and Zerby complimented staff for providing the information requested in such a
thorough manner.
C. City Budget Review
Administrator Dawson explained this item had been covered under Item 4A.
5. ADJOURN
Turgeon moved, Zerby seconded, Adjourning the City Council Work Session Meeting of August 9,
2004, at 10:46 P.M. Motion passed 5/0.
RESPECTFULLYSUBNUTTED,
Sally Keefe,
Recording Secretary
Woody Love, Mayor