08-22-11 CC WS Mtg MinCITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, AUGUST 22, 2011
MINUTES
CONVENE CITY COUNCIL WORK SESSION
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:30 P.M.
Mayor Liz& called the meeting to order at 6:33 P.M.
A. Roll Call
Present. Mayor LizEe; Councihnembers Hotvet, Siakel, Woodruff and Zerby; Administrator
Heck; Finance Director DeJong; Planning Director Nielsen; Director of Public Works
Brown; and Engineer Landini
Absent: None
B. Review Agenda
Zerby moved, Woodruff seconded, approving the agenda as presented. Motion passed 5/0.
2. 2012 GENERAL FUND BUDGET WRAP -UP DISCUSSION
Director DeJong stated at the end of the August 8, 2011, Council work session about the 2012 Operating
Budget, it was his impression that there was agreement on the tentative budget. There was a question
about what the City received in cellular antenna revenues. He explained the annual revenues are
approximately $148,000. The proposed budget included in the meeting packet reflects transferring
$40,000 of those revenues (which go into the Water Fund) into the General Fund. The $40,000 amount
was selected because that is the amount that had been being transferred in from the funds from the liquor
operations. The 2010 audit results for the Water Fund indicate the Water Fund has an approximate
$57,000 surplus. Transferring $40,000 out of the Water Fund to the General Fund on an annual basis
would not put the Water Fund into a deficit operating position.
DeJong explained that in addition to the $40,000 transfer the 2012 Operating Budget will need to reflect
the use of approximately $165,000 in General Fund balance to balance the budget. There will potentially
be $100,000 — $125,000 that is planned for budgeted expenditures that won't be needed on an annual
basis. That amount is spread across the General Fund operating departments' budgets. Which department
the surplus comes from varies from year to year. Rather than going through each department budget in
excruciating detail to try and guess which department budgets should be cut, it's easier to make an
assumption that there will be a $100,000 — $125,000 in budgeted operating funds that won't be used
during the year. Based on that, it's anticipated that $40,000 — $65,000 of previous year's year -end
General Fund balance will be used to balance the 2012 budget at year -end.
DeJong stated it's up to Council to debate the merits of adopting the preliminary budget as submitted.
In response to a question from Couneilmember Zerby, Director DeJong explained for 2012 the General
Government and Elections budgets have been merged into the Administration budget. Also, the budgets
for Sanitation /Weeds /Waste Removal, Streets and Roads, Traffic Control, and Tree Maintenance have
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
August 22, 2011
Page 2 of 2
been merged into the Public Works Services budget. In response to another question from Zerby, DeJong
explained the 2012 General Fund budget does not include funds for the possible acquisition of a new
financial system noting that would probably be a capital expenditure.
Councilmember Woodruff stated lie is sold on the preliminary 2012 Operating Budget. Assuming the
budget is adopted, he requested that starting with the January 2012 Monthly Budget Report he asked that
the year -to -year comparisons in the Report reflect the merged departments.
Administrator Heck stated staff is still working on some staffing concepts that may have an impact on the
budget's bottom line, noting any changes won't impact the tax levy. Those changes may have an impact
on the amount of General Fund balance that will be used. Any proposed changes to staffing will be
presented to Council no later than the September 26 °i Council meeting.
Mayor Lizee stated it's anticipated there will be some movement of personnel.
Council thanked Director DeJong for the quality work he did on preparing the budget.
3. ADJOURN
Woodruff moved, Zerby seconded, Adjourning the City Council Work Session of August 22, 2011,
at 6:42 P.M. Motion passed 510.
RESPECTFULLY SUBMITTED
Christine Freeman, Recorder
Christine Liz6e, Mayor