08-10-20 CC WS MinutesCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS
MONDAY, AUGUST 10, 2020 6:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION MEETING
Mayor Zerby called the meeting to order at 6:00 P.M.
Due to the Centers for Disease Control's recommendation limiting the number of people present
at a meeting, and pursuant to MN Statute 13D.02, the Shorewood City Council Work Session
Meeting was held via electronic means.
A. Roll Call
Present. Mayor Zerby; Councilmembers Johnson, Labadie, and Siakel; City Attorney
Keane; City Administrator Lerud; and Finance Director Rigdon
Absent: Councilmember Sundberg
B. Review Agenda
Johnson moved, Siakel seconded, approving the agenda as presented
Roll Call Vote: Johnson, Labadie, Siakel and Zerby. Motion passed.
2. 2021 Proposed Budget
Finance Director Rigdon gave an overview of the proposed 2021 budget and levy and the deadline
for approval. He reviewed the General Fund and noted that it currently is at a three point four
percent increase from 2020, without any transfers and noted that in 2020, the City had a five point
2 percent increase. He explained that the total transfers out are being treated differently in this
budget than in prior years. He explained the bond process and noted that the levies need to go
directly into the debt service funds. He stated that the proposed budget levies taxes directly to
capital projects and debt service funds, which eliminates the need for transfers out of the General
Fund but noted that the Shorewood Community and Event Center will continue to receive annual
transfers from the General Fund. He reviewed the personnel - related assumptions for the
proposed 2021 budget and reviewed the pie chart that outlined the expenditures and where they
fall within the cities budget. He explained that Public Safety accounts for about forty -three
percent, general government for twenty eight percent, streets about twenty -two percent, and
parks and recreation about seven percent. He noted that the revenues, excluding transfers in,
are budgeted for a sixteen point five percent decrease from the 2020 budget. He explained that
this decrease is due to the proposed taxes being directly levied to various capital projects and
debt service funds as previously discussed. He noted that the overall preliminary property tax
levy is two percent higher than the 2020 total levy. He stated that currently, in order to balance
the budget, there is a plan to use one - hundred ninety -eight thousand, two - hundred forty -five
dollars from the reserves. He reviewed the Enterprise funds and how they are funded. He noted
that the City is considering some rate adjustments in order to fund the CIP. He noted that staff
will bring those details to the Council soon. He noted that the overall 2021 property tax levy is
CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES
AUGUST 10, 2020
Page 2 of 3
proposed at a two percent increase from 2020. He gave examples of how this levy increase will
affect a six hundred thousand dollar home in the City. He stated that staff welcomes feedback
from the Council on the proposed 2021 budget and asked City Administrator Lerud to review the
CARES Funding.
City Administrator Lerud gave an overview of the use of the CARES funding that the City received.
He explained that the City received five - hundred seventy -nine thousand dollars. He stated that
staff believes that the unbudgeted, unanticipated COVID-19 expenses will be somewhere under
one - hundred and fifty- thousand dollars. He noted that for the remaining amount of the funds,
staff is planning to reimburse ourselves for police and fire personnel expenditures, which is an
eligible use under the CARES Act funding. He stated that this allows the City to use one - hundred
ninety -eight thousand, two hundred forty -five of that in reducing the tax levy for next year and the
remaining amount will be available for the City to meet other unanticipated expenditures related
to COVID -19. He stated that he believes this is consistent with the conservative budgeting that
the City likes to do. He stated that the main value is that it allows the levy to be less which adds
value to everybody by lowering their taxes.
Mayor Zerby asked about the administrative assistant position and the planned improvements at
the Shorewood Community and Event Center.
City Administrator Lerud explained that the administrative assistant position increase in hours was
in reference to Amelia. He asked for a moment in order to bring up the CIP for the Shorewood
Community and Event Center.
Mayor Zerby stated that he feels the budget seems to have been well thought through
Councilmember Siakel stated that she agrees that the ideas surrounding the CARES Act funding
make a lot of sense and likes that it is going directly back to residents.
City Administrator Lerud stated that he cannot access the CIP for the Shorewood Community and
Event Center and asked if he could supply this information to the Council at a future meeting.
Finance Director Rigdon noted that he had the information City Administrator Lerud was looking
for. He reviewed the proposed CIP for the Shorewood Community and Event Center.
City Administrator Lerud noted that some of the information in the CIP has already been
completed, so he believes the number may actually be lower. He reiterated that the Shorewood
Community and Event Center has been kept in the General Fund and did not have a separate
levy. He stated that he will bring the specific information back to the Council at a future meeting.
3. ADJOURN
Siakel moved, Johnson seconded, Adjourning the City Council Work Session Meeting of
August 10, 2020, at 6:25 P.M.
Roll Call Vote: Johnson, Labadie, Siakel, Zerby. Motion passed.
ATTEST: .'�
t-,Z r ayor