102504 CC WS Min
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CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, OCTOBER 25, 2004
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
IMMEDIATELY FOLLOWING
REGULAR MEETING
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
Mayor Love called the meeting to order at 8: 18 P.M.
A.
Roll Call
Present:
Mayor Love; Councilmembers Garfunkel, Lizee, Turgeon, and Zerby; Administrator
Dawson; Engineer Brown; and Finance Director Burton
Absent:
None
B.
Review Agenda
Without objection from Council, Mayor Love proceeded with the Agenda for the meeting.
2. ENTERPRISE BUDGETS
Administrator Dawson stated budgets for the Enterprise Funds for the Year 2005 Budget would be
presented this evening for discussion. The documents presented to Council this evening consisted of the
budgets for Water Operations and Debt Service, Sanitary Sewer Fund, Stormwater Management,
Recycling Funds, and Liquor Operations.
A. Water Budget
Finance Director Burton explained the Water Fund budget was comprised of two parts: the Water Debt
Service budget and the Water Operating Budget. The 2005 Water Debt Service budget included
payments for the existing bond issues and the anticipated 2005 issue which would finance major water
and well improvements in 2005. These debt service payments were programmed at approximately
$356,000 and would be paid for by a transfer from the Water Operating budget. She went on to explain
the 2005 Water Operating Budget revenues were projected to be approximately $1,738,000 while
expenses were forecast to be approximately $1,800,000. Proposed capital expenditures to be funded from
2005 bond proceeds included the Amesbury Well enhancements, Badger Well House reconstruction,
Woodhaven Interconnection, Radio Read project, and the Southeast Water Tower Painting.
Finance Director Burton also stated in order for the Water Funds to be self-supporting, to assure the
system could provide for improvements, and to preserve fund balance at current levels, the third year of
implementation of a water increase had been scheduled. Based on that plan, the final scheduled increase
would change the base rate in 2005 from $30 to $35 for up to 10,000 gallons: rates would remain at
$2.95/1000 gallons for 10,000-50,000 gallons usage, and $3.75/1000 gallons for 50,000+ gallons usage.
She noted the proposed 2005 increase would generate an additional $25,000 in annual revenue and the
average quarterly bill would increase to approximately $94 per quarter.
CITY COUNCIL WORK SESSION MEETING MINUTES
October 25, 2004
Page 2 of3
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B.
Sanitary Sewer Budget
With regard to the Sanitary Sewer Budget, Finance Director Burton stated the City currently had about
2,800 connections to its Sanitary Sewer system. This fund had a substantial fund balance that had enabled
it to be utilized to fund other City projects, such as the Gideon Glen land acquisition. There were no
additional rate increases recommended at this time.
Proposed operating revenues and expenditures for year 2005 were contemplated at approximately
$873,500, with capital improvements of approximately $247,000 planned for the year as well. Capital
improvements included refurbishment of Lift Stations 15 and 17, and the purchase of a sewer camera,
Trailer Jetter, and purchase of a portable generator. Funds had also been designated for Inflow &
Infiltration Control and reduction projects.
C. Stormwater Management Budget
The 2005 Stormwater Management Budget contemplated revenues and expenditures of about $379,000,
including operations and internal repayment for the Gideon Glen land acquisition. Capital improvement
projects anticipated included the Gideon Glen drainage project to be funded by grant proceeds by the
Minnehaha Creek Watershed District (MCWD), as well as Boulder Bridge Storm Sewer Lift station
improvements and the Glen Road Drainage Improvement project. No additional rate increases were
scheduled at this time.
D. Recycling Budget
. The Recycling Budget contemplated revenues and expenditures of approximately $117,220. The City
anticipated receiving grant monies from Hennepin County Grant Funds. Finance Director Burton noted
the number of households participating in the recycling program remained stable. No rate increases were
proposed at this time.
E. Liquor Operations Budget
Finance Director Burton explained the City anticipated reasonable profit levels at its two current
municipal stores; however, the budget had been prepared quite conservatively based on the changing
market for liquor stores within nearby retail areas. She stated Staff would be working diligently to
monitor this budget and funding, and would propose modifications if necessary.
Mayor Love expressed gratitude to City Staff, Liquor Committeemembers and Store Manager Don
Swandby for continued profits for the City municipal liquor stores despite tough economic situations.
Finance Director Burton thanked Council for its time spent considering these matters and noted the
budgets would be slated for adoption at the December 13,2004, Regular City Council Meeting.
3. OTHER
No other business was presented this evening.
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