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2009 Adopted Annual Operating BudgetCITY OF SHOREWOOD, MINNESOTA 2009 ADOPTED ANNUAL OPERATING BUDGET 5755 Country Club Road, Shorewood, MN 55331 www.ci.shorewood.mn.us CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD, MINNESOTA 55331 -8927 • (952) 474 -3236 FAX (952) 474 -0128 • www.ci.shorewood.mn.us • cityhall @ci.shorewood.mn.us CITY OF SHOREWOOD, MINNESOTA 2009 ANNUAL OPERATING BUDGET Adopted December 8, 2008 is �- «� PRINTED ON RECYCLED PAPER -- CITY OF SHOREWOOD 2009 ANNUAL OPERATING BUDGET TABLE OF CONTENTS PAGE NO. INTRODUCTION BudgetMessage ................................................................................... ............................ -6 SUMMARY INFORMATION Resolution Adopting 2009 Budgets ...................................................... ..............................7 OrganizationChart ............................................................................... ............................... 8 BudgetSchedule .................................................................................... ............................. Newsletter Insert: December 2008 Shore Report .............................. ............................... Truth -In- Taxation Published Notice .................................:.................. .............................11 Truth -In- Taxation Budget Presentation Handouts ............................. ..........................13 -28 GENERAL FUND General Fund Description .................................................................... ............................. General Fund Budget Summary ......................................................... ..........................30 -31 General Fund Revenue Summary ...................................................... ..........................32 -33 General Fund Expenditure Summary ................................................... .............................35 Mayorand Council ............................................................................. .......................... -39 Administration................................................................................... .......................... -41 General Government /City Clerk ........................................................ .......................... - Elections............................................................................................. .......................... -45 Finance............................................................................................... .......................... -47 ProfessionalServices ......................................................................... .......................... -49 Planningand Zoning .......................................................................... .......................... -51 Municipal Building - City Hall .......................................................... .......................... -53 Police................................................................................................. ...........................54 -5 5 FireProtection .................................................................................... .......................... -57 ProtectiveInspection .......................................................................... .......................... -59 AnimalControl ................................................................................... .......................... -61 CityEngineer ..................................................................................... .......................... -63 PublicWorks Service ......................................................................... .......................... -65 Streetsand Roadways ........................................................................ .......................... -67 Snowand Ice Removal ....................................................................... .......................... -69 Traffic Control /Street Lighting .......................................................... ..........................70 -71 TABLE OF CONTENTS (Continued) Sanitation/Waste Removal/ Weeds ..................................................... ..........................72 -73 TreeMaintenance ............................................................................... ..........................74 -75 Parks and Recreation .......................................................................... ..........................76 -77 DEBT SERVICE Debt Service Fund Description ............................................................ .............................79 Schedule of Bonds Payable .................................................................. .............................80 Bond Rating Information ................................................................... ..........................81 -84 CAPITAL PROJECTS Capital Project Fund Description .............. Capital Improvements Fiscal Policy ......... Capital Projects by Department ................ ...................................... ............................... 85 ...................................... ............................... 86 ...................................... ..........................87 -90 ENTERPRISE Enterprise Fund Descriptions .................... Water Debt Service .... ............................... Water Operations ....... ............................... Sanitary Sewer ........... ............................... Recycling.................... ............................... Stormwater Management .......................... ................................. ..............................I ...... 91 ......... . ........................................................ 92 -93 ........................................ ..........................94 -95 ........................................ ..........................96 -97 ........................................ ..........................98 -99 ....... ............................... ........................100 -101 GLOSSARY .................................................................. ............................... ........................103 -105 1 CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD • SHOREWOOD. MINNESOTA 55331 -8927 • (952) 474 -3236 FAX (952) 474 -0128 • www.ci.shorewood.mmus • cityhall @ci.shorewood.rnn -us January 1, 2009 Honorable Mayor and City Councilmembers Residents of the City of Shorewood INTRODUCTION We pleased to present the City of Shorewood 2009 Annual Operating Budget. This document, adopted by the City Council, becomes the guide for delivery of services to the residents of the City in the coming year. The proposed budget and levy Pay2009 was certified to Hennepin County by September 15, 2008. - This budget is the result of Council and staff work- sessions on June 25 ", August 4th, 11 and 25"', October 13", November 10 and 24"', 2008. Council and Staff beganAheir budget work with a first draft that contain a zero (0 %) percent tax levy increase. During subsequent work sessions, Council and staff - closely reviewed all aspects.of the preliminary 2009 General Fund Budget and Enterprise Fund budgets and carefully increased'or decreased various components of the budgets when additional information became available about each item. - 2009 GENERAL FUND BUDGET HIGHLIGHTS Levy Limits: Levy limit restrictions are in place for the next three years for cities -With populations greater than 2,500. The Pay2009 levy limit allowed for up to a 3.9 % inflationary increase in the base levy, - when compared to the City's previous. year's levy. _ The levy limit law allows for "special levies ", which are levies for items such as - debt service on bonds, natural disaster recovery, and other very specifically allowed items. The special - levies are added to the base levy. - ♦\ 2009 Tax Levy: The City of Shorewood's 2009 base allowable,levy is $4,225,960, which is an increase of $169,043 over -the 2008 base tax levy. The 2009 Adopted Budget, including the most recent revisions programs a total tax levy'of $4,776,292. This is an overall increase of 3.56% from the 2008 tax levy of $4,611 Special Levies for debt service comprise $617,620 of the total tax levy. �'� PR!NTED ON RECYCLED PAPER 2009 Adopted Budget & Levy Page 2 ♦ License & Permit Revenue: Other revenues (fees, licenses, permits) are generally expected to remain stable. Fine revenue was revised downward from 2008 and building permit revenue is also expected to decrease due to the City being substantially developed and a continuing quiet housing market. ♦ Use of Reserves: The budget also plans for the use of $160,000 in General Fund reserves, in accordance with the General Fund Reserve Policy adopted by the City Council. ♦ Transfers to Capital Funds: Transfers to Capital improvements funds are programmed at $1,030,000 for 2009, an increase of $85,000 from 2008. The increases are to the Park Capital Improvement fund for park projects and enhancements and the Street Reconstruction fund for anticipated road projects. Transfers to capital funds are important to provide funding for projects and purchases that will benefit the City of Shorewood. 45 000 1 030 0 0 ♦ Key 2009 General Fund Expenditures: Total 2009 expenditures, not including capital transfers, are programmed at $4,458,562, or approximately 1.9% more than 2008 expenditures of $4,374,145. Key expenditures are: • Police expenditures increased approximately $64,500, or about 6 % from 2008. • A debt service component included in the municipal building department for repayment of the bonds issued in 2008 to remodel the City offices. • Fuel prices are expected to continue to be high. This impact is most noticeable in the Public Works budgets. • Salary and insurance adjustments reviewed by the Council, including $24,000 for potential employee merit increases. ♦ Staffing Levels:- No additional staffing changes are contemplated. Budgeted salaries for .�- - 2009 include a 3% economic adjustment for non -union employees. The AFSCME contract (which expires 12/31/2009) calls for 2% increases in January and July. Total insurance premiums have been estimated to increase substantially; the City's payment of up to $756 per month of a regular full -time employee's insurance costs is budgeted at $800 per month for 2009. ♦ Professional Services: The costs for assessing services, audit services, and city attorney and prosecutor legal fees are shown in this department. Assessing services from Hennepin County will increase from $90,000 to $93,000; City Attorney services are, expected to decrease by about $14,000. 2008 2009 Equipment Replacement 175,000 175,000 Street Reconstruction 645,000 700,000 Park Capital Improvement 15,000 45,000 Public Facilities 50,000 50,000 Sewer Fund 60.000 60,000 45 000 1 030 0 0 ♦ Key 2009 General Fund Expenditures: Total 2009 expenditures, not including capital transfers, are programmed at $4,458,562, or approximately 1.9% more than 2008 expenditures of $4,374,145. Key expenditures are: • Police expenditures increased approximately $64,500, or about 6 % from 2008. • A debt service component included in the municipal building department for repayment of the bonds issued in 2008 to remodel the City offices. • Fuel prices are expected to continue to be high. This impact is most noticeable in the Public Works budgets. • Salary and insurance adjustments reviewed by the Council, including $24,000 for potential employee merit increases. ♦ Staffing Levels:- No additional staffing changes are contemplated. Budgeted salaries for .�- - 2009 include a 3% economic adjustment for non -union employees. The AFSCME contract (which expires 12/31/2009) calls for 2% increases in January and July. Total insurance premiums have been estimated to increase substantially; the City's payment of up to $756 per month of a regular full -time employee's insurance costs is budgeted at $800 per month for 2009. ♦ Professional Services: The costs for assessing services, audit services, and city attorney and prosecutor legal fees are shown in this department. Assessing services from Hennepin County will increase from $90,000 to $93,000; City Attorney services are, expected to decrease by about $14,000. 2009 Adopted Budget & Levy Page 3 ♦ Technology and Computer Replacements: The 2009 budget includes funding for computers for employees as recommended on the computer replacement plan. ♦ Elections: There are reductions in 2009 as next year is not an election year. ♦ Shorewood Tax Base: We received some preliminary information from Hennepin County on the estimated market values and tax capacity. It indicates that the City's tax base would increase approximately 4 percent for Pay2009 taxes. ♦ Public Safety: Police and fire services are major components of the budget and total approximately $1.77 million in 2009. Police - The City Council approved a 6% increase in the level of funding for 2009 for operations at $938,950. Shorewood's share of the Police Building component is $233,000 for 2009. The South Lake Minnetonka Police Department (SLMPD) will continue to provide animal control services in 2009. Fire - Shorewood's share of fire services from the Excelsior Fire District (EFD) is $575,445 for 2009. The services to Shorewood's Islands from the Mound Fire Department are a small portion of the fire program budget; the 2009 budget is $25,193. 2009 ENTERPRISE FUND HIGHLIGHTS Water Budget The Water Fund budget is comprised of two parts: the Water Debt Service budget and the Water Operating budget. The 2009 Water Debt Service budget includes principal and interest debt service payments for the existing bond issues. The debt service payments are programmed at approximately $382,000 and are paid by a transfer from the Water Operating budget. The 2009 Water Operating budget revenues are projected at $822,000 while expenses including depreciation are forecast at about $882,000. This amount includes capital expenditures of $149,000 for the next (and final) phase of the Water Meter Radio Read project and the Boulder Bridge Well #2 inspection project. In order for the Water funds to be self - supporting, to assure the system can provide for improvements, and to preserve fund balance at stable levels, water rates are periodically reviewed and increased when necessary. The current water rates are: $35 for up to 10,000 gallons; $2.95/1000 gallons for 10,000 - 50,000 gallons usage; and $3.75/1000 gallons for 50,000+ gallons usage. There are currently about 1,428 water connections that use an average of 30,000 gallons per quarter. Sanitary Sewer Budget The City currently has about 2,800 connections to its Sanitary Sewer System and the Sanitary Sewer rate is $70 per quarter. The 2009 Sewer revenues are projected at $1.06 million; operating expenditures, are programmed at approximately $1.2 million, including depreciation; this amount 3 2009 Adopted Budget & Levy Page 4 includes capital improvements of $258,000 to refurbish Lift Stations 15 and 17. The City Council also budgeted for an internal loan to the Stormwater Fund of up to $300,000, with a corresponding debt service component. There was discussion about the Sanitary Sewer cash reserves which typically are used for infrastructure replacement, capital improvements, emergency damages, I & I mitigation, and working capital. Staff suggests designating $2.5 million of the available $4 million fund balance for these purposes. The remaining fund balance (approximately $1.5 million) would then be available for other uses, such as internal loans to other funds for specific purposes like the Lake Mary Stormwater project. Information about the sanitary sewer flow in millions of gallons is provided to the City annually by Metropolitan Council Environmental Services (MCES) for the period July 1 prior year to June 30 current year. MCES determines the 2009 cost by calculating each city's share using a formula based on the last actual known flows from the period July 1, 2007 - June 30, 2008. The MCES wastewater charge, which is the amount the City must pay for wastewater processing will be $576,200 for Budget 2009, compared to $548,000 for Budget 2008. The monthly processing charge does not include I & I surcharges, which MCES could impose. The City expects to again be exempted in 2009 from the Inflow & Infiltration surcharge program that the MCES implemented in 2007. However, to continue to be exempted, the City will have to be proactive regarding I & I mitigation and funds have been designated for this purpose. Stormwater Management Budget The Stormwater Management budget contemplates revenues of about $528,000 which includes a $300,000 loan from the Sanitary Sewer fund. Expenditures are programmed at approximately $782,000 for 2009; this amount includes planned capital expenditures of $614,000. Planned projects are the Lake Mary outlet ($457,000), Harding Lane drainage ($97,000), and Smithtown Lane drainage ($60,000). There was discussion during the work sessions of various funding mechanisms available to finance these projects, including special taxing districts and internal loans from other City funds. Council concluded that based on the timing and legal requirements of establishing a special taxing district, funding the Lake Mary project with an internal loan from the Sewer fund, with repayment from Stormwater rate revenues, will make the project financially feasible for the 2009 budget year. The current residential Stormwater Management rate is approximately $15 per quarter. Rates will continue to be monitored closely to assure there are adequate resources for repayment of the internal loan debt service to fund the projects. Recycling Budget The 2009 Recycling budget is approximately $95,000. The City receives grant funds (about $21,000) from Hennepin County to help fund this program and promote recycling. In addition, the City charges a nominal fee of $1.75 per household per month. Expenditures include the City's recycling obligation based on the Veolia contract and $10,000 for City clean -up. Every effort is made to recover costs through collection site fees however the City will likely subsidize a portion of this program. 4 2009 Adopted Budget & Levy Page 5 There are about 1,100 households monthly recycling an average of 67 tons per month. The City Council has expressed interest in encouraging recycling and several different promotional programs will be considered for implementation in 2009. There was Council consensus to schedule its spring clean -up day to be different than Minnetonka's. The Council is urged to review rates periodically to assure there are adequate resources to fund operations. CONCLUSION The 2009 Annual Operating budgets and levy were prepared according to the priorities and direction from the City Council. They continue a similar level and array of services as provided in 2008. The City Council and staff share a mutual goal to provide budgets that represent a responsible plan to balance the City's service delivery needs, continuing infrastructure needs, and financial position, while continuing to provide quality services to the residents of Shorewood. 44 4_c__�, Bonnie Burton Finance Director /Treasurer 5 CITY OF SHOREWOOD RESOLUTION NO. 08 -090 A RESOLUTION ADOPTING THE 2009 BUDGETS AND APPROVING THE 2008 PROPERTY TAX LEVY COLLECTIBLE IN 2009 WHEREAS, the 2009 Budget and 2008 property tax levies collectible in 2009 for the City of Shorewood have been prepared and reviewed by the City Council; and, WHEREAS, the City Council held a Truth -In- Taxation meeting on December 1, 2008, to receive public comment regarding the adoption of such budgets and property tax levies; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: That the following budgets are adopted for the year 2009: General Fund $5,488,562 Water Fund - Operating and Debt Service 1,263,979 Sewer Fund 1,529,454 Recycling Fund 94,675 Stormwater Management Fund 781 2. That the following sums be levied for 2008, collectible in 2009, upon taxable property in the City of Shorewood for the following purposes: General Fund Operations Levy $4 Special Levy 617,620 Total General Fund Levy 4 776 292 3. That the City Administrator /Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 8th day of December, 2008. ATTEST: Brims W. inistrator /Clerk �n 1 � I VL L Christine Lizee, Mayor 7 I U U (D y C C z Q >. W W U c c s R Lij I y UC7 z _ W U Lu Z W C .O ry N N 0 L V) U) ) Y LL a d U N U U U u Z p 0 a' O Y O 2 0 c T z o u) 0 3 a " a c c v c Q O y 2 U U U m c c CO j O m z m H N z cr I g 2 E 3 a d a E s C O U = a U a a¢ d m` Q° ` Y z rO m d 2Q ImHafn W wCL pa a x�aW Q a O �I h�l Z Z Z < (X O p U LL T ¢ o 0 r"� z O LL m0 0 H a Z O25 F } z a A y = 0 0 /I �4 r O z U •. U 2 z z w E° w ¢ ¢ a a Y c z Z o co c r N Q Z Z m 0 p 0. _ 2 Z a Z< ICNa W ¢T U W a U) N Fil cn 0 LLI O W Z 2 Q U ; A OU F ¢I H p 2 Z O W U Q O cr p zm 3 x zooms o =_� W >~ W> < w _ Q Z Z U W O W O w Q a¢ LL Z ¢ a W V N F- Y Q� N ¢ Z U Z aci o rT, ¢ w L O: U H ¢ U U_ E o t c c F�1 w z z> O _m z N a > f W i U W W O F-� N¢ 2r Im y p-oa U y O Q W Z W O U N ='o o O U y N O J W X J a U H a N W U U Y W < Ir ¢ z Z a O F- c Q o N U_ '- c Z F U O Q F C 0 U x o f d v O W E m O O K LL U U W m c m o T W c I z_ a 0 CL a T n U a�� E ° coa.a. < Z U m p m m O W W J U J 0 U y m U O J W U U LU W K w F o v a E O 5 f f a LL J J U U O� z Y = d" Q a U U) Z W¢ o w m _Z LL K W LL ¢ m O F C E @ c 0 = w T y @ a¢ ��¢v CITY OF SHOREWOOD Year 2009 Budget Schedule Date Description 06/17/08 Budget worksheets distributed to staff department heads 06/23/08 Budget discussion — Council philosophy and direction; levy limit update (Council and Staff) 07/07/08 Completed budget worksheets due back to Finance from staff. 08/04/08 Work- session: General Fund Operating Budget draft (Council and Staff) 08/11/08 Work- session: Additional General Fund session.(Council and Staff) 08/25/08 Work- session: Additional General Fund session (Council and Staff) 09/08/08 Regular Council meeting. Council adopts 2009 proposed budget and levy. 09/15/08 Proposed budget and levy must be adopted and certified to County Auditor by this date. State form Payable 2009 PT Form 280 also to be submitted. 10/13/08 Work- session: Enterprise Budget session (Council and staff) 11/10/08 Work - session: Enterprise Budget session (Council and staff) 11/24/08 Work- session: General Fund Budget Final Review (Council and staff) 11/20 -11/24 Counties to mail Notice of Proposed Property Tax by this date. 11/26/08 Budget hearing advertisement published in the official newspaper. 12/01/08 Truth -In- Taxation Budget Public Hearing. 12/08/08 Regular Council meeting. Final 2009 budgets and levy to be adopted. 12/29/08 Final levy and budgets must be certified to the County Auditor by this date. State forms Payable 2009 Property Tax Levy Report and PT Form TNT2009 also due. 0 THE .SHORE REPORT / DECEMBER 2008 z Lity Bu'dget Lity Of Shorewoloa CITY PROPERTY TAXES PAY FOR SERVICE POLICE AND FIRE PROTECTION REMAINS OUR TOP PRIORITY. DEMANDS FOR THESE SERVICES CONTINUE TO INCREASE. OVER 35 PERCENT OF THE TAX LEVY IS ALLOCATED TO THE PUBLIC SAFETY SERVICES PROVIDED BY THE SOUTH LAKE MINNETONKA POLICE DEPARTMENT, EX CELSIOR FIRE DISTRICT, AND MOUND FIRE DEPARTMENT. Parks 4% PUBLIC WORKS IS ANOTHER HIGH PRIORITY. NEARLY 17 PERCENT OF THE TAX LEVY PAYS FOR ROAD MAINTENANCE, SNOW AND ICE REMOVAL, AND REHABILITATING CITY STREETS. THE CITY PLANS TO PLACE MORE FINANCIAL RESOURCES IN ITS STREET SEALING AND OVER- LAY PROJECTS IN 2009 (WHICH IS INCLUDED IN THE "TRANSFER TO CAPITAL FUNDS" CAT- Public Work: EGORY). 17 °i PARKS AND RECREATION ACCOUNT FOR ABOUT 4 PERCENT OF CITY PROPERTY TAXES. MOST PARK PROGRAMS ARE FEE - SUPPORTED. GENERAL GOVERNMENT /OTHER CONSIST OF ADMINISTRATIVE EXPENSES, SEVERAL CON TRACTUAL SERVICES, CITY PLANNING AND ZONING ADMINISTRATION, ELECTIONS, BUILDING MAINTENANCE, AND OTHER DAY - TODAY BUSINESS ITEMS. PROPERTY TAXES MAKE UP ABOUT 90 PERCENT OF THE REVENUES TO THE GENERAL FUND. THE CITY ALSO PROVIDES SEVERAL SERVICES AS UTILITIES: WATER, SANITARY SEWER, STORM - WATER MANAGEMENT, AND RECYCLING. THESE SERVICES ARE PAID BY USER FEES; NO TAX DOLLARS ARE PLACED IN THESE ENTERPRISES. PROPERTY TAX DOLLARS AT WORK lolice /Fire 15% Less than one - fourth of your property tax dollar goes to the City of ' Count y 35% Shorewood. YOUR 2009 PROPERTY TAX NOTICE T HE CITY AccoUNTS for less receive does not distinguish between the the amounts on your proposed tax than one - fourth of your total tax components of an increase or decrease. notice. These are the maximum taxes bill. The proposed tax notice you Your actual taxes may be lower than that can be levied. Your actual tax statement will arrive in the spring. Budget Hearings CITY OF S HOREWOOD Monday, December 1, 7 rNi Southshore Center 5735 Country Club Road Shorewood. MN 55331 (952) 474 -3236 MINNETONICA SCHOOL DISTRICT #276 Tuesday, December 9, 7 n Community Room, District Service Center 5621 Co. Rd. 101 S Minnetonka, MN 55345 (952) 401 -5024 HE.NNEPIN COUNTI' Thursday, December 4. 5:30 Pm Commissioners' Board Room A -2400 Government Center Minneapolis, MN 55=435 (612) 348 -5433 WESTONI \A P[JBIAC SCIIOOLS No budget hearing required this year. For more information contact Westonka Public Schools at (952) 491 -3021. Transfer to Capital Funds ooOOcooc a000c�oowco. '>0000��c000000 IF YOU HAVE ANY QUESTIONS ABOUT THE PROPOSED BUDGET OR ABOUT YOUR PROPERTY TAXES, PLEASE CONTACT THE FINANCE DEPARTMENT AT (952) 474 -3236. 10 www.ci.shorewood.mn.us Gen Govt/ Other 27% Notice of Proposed Total Budget and Property Taxes The Shorewood City Council will hold a public hearing on its budget and on the amount of property taxes it is proposing to collect to pay for the costs of services the City will provide in 2009. SPENDING: The total budget amounts below compare the City's 2008 total actual budget with the amount the city proposes to spend in 2009. 2008 Total Proposed 2009 Change from Actual Budget Budget 2008 —2009 $5,319,145 $5,570,850 4.73% TAXES: The property tax amounts below compare that portion of the current budget levied in property taxes in the City of Shorewood for 2008 with the property taxes the City proposes to collect in 2009. 2008 Property Proposed 2009 Change from Taxes Property Taxes 2008 —2009 $4,611,995 $4,843,580 5.02% LOCAL TAX RATE COMPARISON: The following compares the City's current local tax rate, the City's tax rate for 2009 if no tax levy increase is adopted, and the City's proposed tax rate for 2009. 2008 2009 Tax Rate if 2009 Proposed Tax Rate NO Levy Increase Tax Rate 25.887% 24.879% 26.165% Attend the Public Hearing All Shorewood City residents are invited to attend the public hearing of the City Council to express their opinions on the budget and on the proposed amount of 2009 property taxes. The hearing will be held on: Monday, December 1, at 7:00 p.m. Southshore Center, 5735 Country Club Road, Shorewood, MN 55331 If the discussion of the budget cannot be completed, a time and place for continuing the discussion will be announced at the hearing. You are also invited to send your written comments to: City of Shorewood, ATTN: Finance Director, 5755 Country Club Road, Shorewood, MN 55331 11 12 2009 Truth -In- Taxation Budget Presentation Handouts L� 13 14 CITY OFSHOREWOOD 2009 Budget Presentation December 1, 2008 CITY OF SHOREWQQP. BUDGET PRESENTATION PURPOSE Present the 2009 City budgets Discuss the budget and levy changes Invite public comment 15 CITY OF SHOREWOOD BUDGET HIGHLIGHTS Levy limits in place for 2009 Shorewood exempt from TNT hearings Tax levy increase of 3.56% is lower than 6.1943% inflation adjustment factor set by MN Dept Rev Budget will use some reserves for funding Transfers to Capital Funds are planned Expenditures will increase 1.93% from 2008 Shorewood tax base increased about 4% CITY OF SHOREWOOD 2009 PROPERTY TAX DISTRIBUTION Other School City 8 % District 23% p - -�_ 33% r Hennepin County 36% 0 CITY OF SHOREWOOD BUDGET CALENDAR February City council sets goals and priorities May &June Departmental budgets prepared Budget workshops with council & staff July & August Budget workshops September Preliminary budgets approved by the City Council and certified to the county auditor CITY OF SHOREWOOD B�CET CALENDAR, CONTII November + Proposed property tax notices mailed by County R Additional budget work sessions held December Budget presentation for public comment Council adopts the final budget Budget and levy is certified to the county 17 CITY OF SHOREWOOD PROPOSED REVENUES 20QO -2QQ9 Sources 200$ 2009 % Taxes $4,611,995 $4,776,292 3.56 Licenses /Permits 216,150 196,270 (9.20) Intergovernmental 65,000 65,000 0.00 Fines /Forfeits 80,000 55,000 (31.25) Charges for Service 56,000 46,000 (17.86) Miscellaneous 150,000 150,000 0.00 Transfers in 140,000 200,000 42.86 TOTAL: $5,319,145 $5 ,488,562 3.19% im CITY OF SHOREWOOD PROPOSED 2009 REVENUES PRgPQSED 29Q EXPEMD1TURE Charges for Transfers & Sources 2 008 Fines & Service - Misc % Intergovern- Forfeits 1°/ 3 % Use of mental 1 /° Reserves 1% 3% Licenses/ 942,722 4.85 Permits 202,210 4% Capital Tsfrs 945.000 1 030,00 0 Property Taxes TOTAL: $5,319,145 87% CITY QF SHOREDOD PRgPQSED 29Q EXPEMD1TURE Sources 2 008 2009 % General Govt $ 1,368,824 $1,403,058 2.50 Public Safety 1,887,632 1,910,572 1.22 Public Works 899,081 942,722 4.85 Park & Rec 218,608 202,210 (7.50) Capital Tsfrs 945.000 1 030,00 0 8.99 TOTAL: $5,319,145 $5,488,56 3.19% 19 CITY OF SHOREWPOD PROPOSED 2009 EXPENDITURES Capital General Tsfrs 19% Govt 26% Park & Rec—, 4% Public Works Public 17% Safety 34% CITY OF SHOREVVQOD - KEY 20 QQ GENERAL FUND EXPENDITURES 0 �f I - , A" Police expenditures Increased. SLMPD now providing animal control services. Debt Service for bonds Issued In 2008 to remodel City Hall building. Salary & Insurance adjustments, including a merit increase component. Transfers to Capital Funds for streets and parks projects. 20 CITY OF SHOREWOOD y IMP�PT-2009 PIT TM Home Actual Proposed Change Value 2008 200-9 $$ $ 250,000 $ 647 $ 654 7 430,000* 1,113 1,125 12 500,000 1,294 1,308 14 750,000 2,103 2,126 23 1,000,000 2,944 2,912 31 Shorewood median value home 2009 21 CITY OF SHOREWOOD ENTERPRISE FUNDS 2008 -2009 $1,600,000 - Water $1,400,000 I �Pe rations $1,200,000 $1,000,000 seoo,000 Sewer $600,000 Water Debt Svc Stormwater Mgmt $400,000 Recycling $200,000 `t >n $0 22 CITY OF SHOREWOOD WATER BUDGETS 2009 Currently 1,428 connections 2009 capital projects ($149,000) Water Meter Radio Read Project - final phase Boulder Bridge Well #2 Inspection Project No water rate increase planned for 2009 CITY QF WRIEWN SEWER 13UPC ` $1,600,000 °^s: $,,400,000 $,,200,000 $1,000,000 618 $1,529,454 $1,247, $800,000 $600,000 $400,000 $200,000 EO 2008 2009 23 CITY OF SHOREWOOD SEWER BUDGET 2009 Currently 2,840 connections Capital improvements include Lift Station refurbs ( #15 & #17) MCES wastewater charges are $576,000 City is not subject to I & I surcharges Internal Loan to Stormwater Fund $300,000 for projects is likely 24 CITY OF SHOREWOOD RECYCLING BUDGET 2009 Recycling Grants ($21,000) from Hennepin County Participation is about 1,100 households per month, averaging 67 tons per month No rate increase planned for 2009 City would like to increase participation CITY OF SHOREWOOD STQRMWATER PU N T PQ9 Stormwater Management 2009 budget about $782,000 * Fund may borrow internally for projects * 2009 Capital Improvement Projects include: Lake Mary outlet ($457,000) • Harding Lane Drainage ($97,000) • Smithtown Lane Drainage ($60,000) 25 CITY OFSHQREVVOOD Total 2009 property tax on a $430,000 home in Shorewood is estimated $4,897 The City portion of this tax bill is about $1,125 (approximately 23 %). Other 8 % School City District 23% = 34% Hennepin County 35% CITY OF SHOREWOOD VII �N CITYSERVICES Police Protection Fire Protection Snow Plowing Street Maintenance Parks & Trails Building Inspections Other City Services fm CITY OF SHOREWOOD THE END CITY OF SHOREWOOD 2009 Budget Presentation December 1, 2008 27 r: THE GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or for financial management reasons to be accounted for in other funds. It normally receives a greater variety and number of taxes and other general revenues than any other fund. The majority of the current day -to -day operations are financed from this fund. 29 CITY OF SHOREWOOD GENERAL, FUND REVENUE AND EXPENDITURE SUMMARY 2009 ADOPTED BUDGET Expenditures General Government Mayor and Council Actual 2006 Actual 2007 Budget 2008 YTD Oct 2008 Proposed 2009 Revised 2009 Adopted 2009 $$ Change % Change Revenues and Other Sources 125,505 149,180 178,621 202,225 173,521 173,521 173,521 (5,100) -2.86% Property Taxes 4,141,539 4,332,741 4,611,995 2,264,979 4,843,580 4,776,292 4,776,292 164,297 3.56% Licenses and Pen 382,408 256,471 216,150 180,402 196,270 196,270 196,270 (19,880) -9.20% Intergovernmental 4,925 95,901 65,000 75,422 65,000 65,000 65,000 0 0.00% Fines and Forfeitures 79,040 77,777 80,000 43,996 70,000 55,000 55,000 (25,000) - 31.25% Charges for Service 45,450 50,819 56,000 49,775 46,000 46,000 46,000 (10,000) - 17.86% Miscellaneous Revenue 195,090 286,684 150,000 161,350 150,000 150,000 150,000 0 0.00% Total Revenues 4,848,452 5,100,393 5,179,145 2,775,924 5,370,850 5,288,562 5,288,562 109,417 2.11% Expenditures General Government Mayor and Council 60,960 63,319 70,093 54,529 208,482 70,194 70,194 101 0.14% Administration 125,505 149,180 178,621 202,225 173,521 173,521 173,521 (5,100) -2.86% General Government 195,099 243,848 242,183 188,791 267,569 267,569 267,569 25,386 10.48% Elections 30,018 2,894 37,642 34,654 7,211 7,211 7,211 (30,431) - 80.84% Finance 159,336 174,495 190,581 135,111 198,837 198,837 198,837 8,256 4.33% Professional Services 164,864 196,880 217,000 190,582 219,500 205,500 205,500 (11,500) -5.30% Planning and Zoning 194,305 184,854 206,390 168,454 213,306 213,306 213,306 6,916 3.35% Municipal Building 207,400 206,645 226,314 45,500 266,9 266,920 266,920 40,606 17.94% Total General Government 1,137,485 1,222,115 1,368,824 1,019,846 1,555,346 1,403,058 1,403,058 34,234 2.50% Public Safety Police 1,036,609 1,072,528 1,111,503 1,062,500 1,176,000 1,176,000 1,176,000 64,497 5.80% Fire Protection 563,850 595,947 622,935 622,934 600,638 600,638 600,638 (22,297) -3.58% Protective Inspection 139,580 128,142 128,134 112,531 133,934 133,934 133,934 5,800 4.53% Animal Control 21,845 21,390 25,060 0 0 0 0 (25,060) - 100.00% Total Public Safety 1,761,884 1,818,007 1,887,632 1,797,965 1,910,572 1,910,572 1,910,572 22,940 1.22% Public Works City Engineer 195,435 132,998 157,436 127,597 161,057 161,057 161,057 3,621 2.30% Public Works Services 363,218 405,010 393,088 323,021 420,495 420,495 420,495 27,407 6.97% Streets and Roadways 164,708 171,221 183,272 181,034 190,945 190,945 190,945 7,673 4.19% Snow and Ice Removal 27,330 69,189 85,566 36,767 86,512 86,512 86,512 946 1.11% Traffic Control /Street Lights 41,701 39,274 43,800 34,686 47,600 47,600 47,600 3,800 8.68% Sanitation /Waste Removal 6,003 4,458 5,641 9,440 5,545 5,545 5,545 (96) -1.70% Tree Maintenance 30,556 29,598 30,278 21,718 30,568 30,568 3 0, 5 68 290 0.96% Total Public Works 828,952 851,748 899,081 734,263 942,722 942,722 942,722 43,641 4.85% Culture and Recreation Parks and Recreation 169,411 200,920 218,608 194,374 202,210 202,210 202,210 (16,398) -7.50% Total Culture and Recreation 169,411 200,920 218,608 194,374 202,210 202,210 202,210 (16,398) - 7.50 %. Total Expenditures 3,897,732 4,092,790 4,374,145 3,746,448 4,610,850 4,458,562 4,458,562 84,417 1.93% Total Revenues Over (Under) Expenditures 950,720 1,007,603 805,000 (970,524) 760,000 830,000 830,000 30 CITY OF SHOREWOOD GENERAL FUND REVENUE AND EXPENDITURE SUMMARY 2009 ADOPTED BUDGET Actual Actual Budget YTD Oct Proposed Revised Adopted S$ % 2006 2007 2008 2008 2009 2009 2009 Change Change Fund Transfers In Liquor Fund 50,000 40,000 40,000 0 40,000 40,000 40,000 0 Street Reconstr Fund 0 0 0 0 0 0 0 0 Trail Fund 0 0 0 0 0 0 0 0 Sewer Fund 0 0 0 0 0 0 0 0 Water Fund 0 0 0 0 0 0 0 0 Total Transfers In Fund Transfers Out Equip Replacemt Fund (PW) Street Reconstr Fund Park Capital Imp Fund Trail Cap Imprvment Fnd Public Facilities Fund Land & Open Space Fund Sewer Fund Stormwater Mgmt Fund Total Fund Transfers Out Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Uses Amounts to be Provided from General Fund Balance 50,000 40,000 40,000 0 40,000 40,000 40,000 0 0.00% 175,000 175,000 175,000 0 175,000 175,000 175,000 0 345,000 345,000 645,000 0 645,000 700,000 700,000 55,000 10,000 15,000 15,000 0 30,000 45,000 45,000 30,000 0 0 0 0 0 0 0 0 50,000 50,000 50,000 0 50,000 50,000 50,000 0 5,000 0 0 0 0 0 0 0 60,000 60,000 0 60,000 60,000 60,000 0 25,000 25,000 0 0 0 0 0 0 610,000 670,000 945,000 0 960,000 1,030,000 1,030,000 85,000 8.99% 390,720 377,603 (100,000) (970,524) (160,000) (160,000) (160,000) (390,720) (377,603) 100,000 970,524 160,000 160,000 160,000 General Fund Balance January 1 2,993,181 3,383,906 3,761,509 3,761,509 3,661,509 3,661,509 3,661,509 General Fund Balance December 31 3,383,906 3,761,509 3,661,509 2,790,985 3,501,509 3,501,509 3,501,509 31 CITY OF SHOREWOOD GENERAL, FUND SUMMARY OF ESTIMATED REVENUES 2009 ADOPTED BUDGET TAXES: Taxes - The City levies property taxes to finance the general operating fund which provides municipal governmental services Fiscal Disparities - Received with taxes above. In 1971, the legislature enacted this law to allow municipalities to share in metropolitan commercial /industrial growth. A percentage of commercial /industrial taxes are pooled and distributed and distributed to communities in the metropolitan area. Special Levy - In addition to levy limits, this levy is for Shorewood's share of debt service for the public safety building and City Hall addition /renovations. LICENSE/PERMIT FEES: Rental Housing License Fees - License fees for rental housing units. License is valid for a term of three (3) years. Liquor License Fees Other Business Licenses - Fees for refuse hauler and tree trimming licenses. Building Permits - Permit fee based upon valuation of structure according to Uniform Building Code Schedule. Dog Licenses Other Non - business - Horse permit and alarm permit fees. INTERGOVERNMENTAL REVENUE: Market Value Homestead Credit (MVHC) - A state credit that replaced HACA in 2004. Essentially, it is a state tax levied by a municipality that is rebated to the City. The state legislature decided not to make MVHC payments for calendar years 2004 - 2006, as part of its budget balancing techniques. PERA Aid - A state aid approved in the 1997 legislature to fund an mandated increase in the employer's contributions. MSA Road Aid - Aid provided by the state to cities over 5,000 in population to maintain designated MSA roads. CHARGES FOR SERVICES: General Government The City provides services to the public for which a charge is collected such as assessment searches, map sale, planning fees. Includes rental income from residential property. Engineering - Fees charged to other City funds and developers for engineering services. Recreation - Fees charged for park maintenance and Crescent Beach charges. FINES & FORFEITS - Fines imposed for traffic & ordinance violations. MISC. REVENUES - Revenue from a variety of sources such as interest income, dry hydrant charges, cellular antenna rental and other miscellaneous revenues. TRANSFERS FROM OTHER FUNDS - Transfers from other funds, usually the liquor fund. GENERAL FUND RESERVES - Fund Balance allocated for 2009 budget purposes. 32 CITY OF SHOREWOOD GENERAL FUND SUMMARY OF ESTIMATED REVENUES 2009 ADOPTED GENERAL FUND BUDGET 33 Actual Actual Budget YTD Oct Proposed Revised Adopted $ % REVENUES 2006 2007 2008 2008 2009 2 009 2009 Change C Taxes General Property 4,023,948 4,224,497 4,056,917 2,264,979 4,225,960 4,158,672 4,158,672 101,755 2.51% Fiscal Disparities 117,591 108,244 0 0 0 0 0 0 0.00% Special Levy 0 555,078 0 6 17, 6 20 617,620 617,620 62,542 11.27% Total Taxes 4,141,539 4,332,741 4,611,995 2,264,979 4,843,580 4,776,292 4,776 ,292 164,297 3.56% License/Permits Rental Housing 120 2,620 500 1,860 500 500 500 0 0.00% Tobacco 1,000 1,000 1,500 750 1,000 1,000 1,000 (500) - 33.33% Alcoholic Beverages 8,200 14,743 8,200 8,510 8,820 8,820 8,820 620 7.56% Others - Business 0 2,739 1,000 1,444 1,000 1,000 1,000 0 0.00% Building Permits 365,510 231,436 200,000 165,134 180,000 180,000 180,000 (20,000) - 10.00% Tree Trimming Licenses 510 570 450 120 450 450 450 0 0.00% Dog Licenses 4,104 3,288 3,500 2,559 3,500 3,500 3,500 0 0.00% Others -Misc. 2,964 75 1,000 25 1,000 1,000 1,000 0 0.00% Total License /Permits 382,408 256,471 216,150 180,402 196,270 196,270 196,270 (19,880) -9.20% Inter - governmental Revenues State Aids Mkt Value Credit Aid 174 32,995 0 14,928 0 0 0 0 0.00% PERA Aid 4,751 4,751 5,000 2,376 5,000 5,000 5,000 0 0.00% MSA Road Aid 0 58,155 60,000 58,119 60,000 60,000 6 0,0 0 0 0 0.00% Total State Aids 4,925 95,901 65,000 75,422 65,000 65,000 65,000 0 Total Inter-governmental 4,925 95,901 65,000 75,422 65,000 65,000 65, 000 0 0.00% Charges For Service General Government 14,320 15,899 21,000 20,735 15,000 15,000 15,000 (6,000) - 28.57% Engineering 0 0 5,000 0 0 0 0 (5,000) - 100.00% Recreation 31,130 34,920 30,000 29,040 31,000 31,000 3 1,000 1,000 3.33% Total Charges For Service 45,450 50,819 56,000 49,775 46,000 46,000 4 6,00 0 ( 10,000) - 17.86% Fines & Forfeits 79,040 77,777 80,000 43,996 70,000 5 55,00 (2 5,000) - 31.25% Misc. Revenues 195,090 286,684 150,000 161,350 150,000 150,000 150,000 0 0.00% Total Revenues Before Tsfrs 4,848,452 5,100,392 5,179,145 2,775,924 5,370,850 5,288,562 5,288,562 109,417 2.11% Transfers From General Fnd Rsys 0 0 100,000 0 160,000 160,000 160,000 60,000 60.00% From Other Funds 0 0 0 0 0 0 0 0 0.00% From Liquor Stores 50,000 40,000 40,000 0 40,000 40,000 40,000 0 0.00% Total Transfers 50,000 40,000 140,000 0 200,000 200,000 200,000 60,000 42.86% Total Revenues & Transfers 4,898,452 5,140,392 5,319,145 2,775,924 5,570,850 5,488,562 5,488,562 169,417 3.19% Other Funding Sources 0 0 0 0 0 0 0 0 0.00% Total Revenues $4,898,452 $5,140,392 $5,319,145 $2,775,924 $5,570,850 $5,488,562 $5, 169, 3.19% 33 34 CITY OF SHOREWOOD GENERAL, FUND SUMMARY OF EXPENDITURES & TRANSFERS OUT 2009 ADOPTED FUND BUDGET Total General Government 1,187,487 1,332,115 1,478,824 1,019,846 1,665,346 1,513,058 1,513,058 34,234 2.31% Public Safety Police Actual 2006 Actual 2007 Adopted 2008 YTD Oct 2008 Proposed 2009 Revised 2009 Adopted 2009 S$ Change % Change Expenditures 563,850 595,947 622,935 622,934 600,638 600,638 600,638 (22,297) -3.58% General Government 139,580 128,142 128,134 112,531 133,934 133,934 133,934 5,800 4.53% Mayor and Council 60,960 63,319 70,093 54,529 202,482 70,194 70,194 101 0.14% Administration 125,505 149,180 178,621 202,225 179,521. 173,521 173,521 (5,100) -2.86% General Government 195,099 243,848 242,183 188,791 267,569 267,569 267,569 25,386 10.48% Elections 30,018 2,894 37,642 34,654 7,211 7,211 7,211 (30,431) - 80.84% Finance 159,336 174,495 190,581 135,111 198,837 198,837 198,837 8,256 4.33% Professional Services 164,864 196,880 217,000 190,582 219,500 205,500 205,500 (11,500) -5.30% Planning and Zoning 194,305 184,854 206,390 168,454 213,306 213,306 213,306 6,916 3.35% Municipal Building 207,400 206,645 226,314 45,500 266,920 266,920 266,920 40,606 17.94% - Capital Tsfr: Pub Facilities 50,000 110,000 110,000 0 110,000 110,000 110,000 0 0.00% Total General Government 1,187,487 1,332,115 1,478,824 1,019,846 1,665,346 1,513,058 1,513,058 34,234 2.31% Public Safety Police 1,036,609 1,072,528 1,111,503 1,062,500 1,176,000 1,176,000 1,176,000 64,497 5.80% Fire Protection 563,850 595,947 622,935 622,934 600,638 600,638 600,638 (22,297) -3.58% Protective Inspection 139,580 128,142 128,134 112,531 133,934 133,934 133,934 5,800 4.53% Animal Control 21,845 21,390 25,060 0 0 0 0 (25,060) - 100.00% Total Public Safety 1,761,884 1,818,007 1,887,632 1,797,965 1,910,572 1,910,572 1,910,572 22,940 1.22% Public Works City Engineer 195,433 132,998 157,436 127,597 161,057 161,057 161,057 3,621 2.30% Public Works Services 363,218 405,010 393,088 323,021 420,495 420,495 420,495 27,407 6.97% - Capital Tsfr: Equip /Stnnwtr 200,000 200,000 175,000 0 175,000 175,000 175,000 0 0.00% Streets and Roadways 164,708 171,221 183,272 181,034 190,945 190,945 190,945 7,673 4.19% - Capital Tsfr: Street Imprvs. 345,000 345,000 645,000 0 645,000 700,000 700,000 55,000 8.53% Snow and Ice Removal 27,330 69,189 85,566 36,767 86,512 86,512 86,512 946 1.11% Traffic Cntrl/Street Lights 41,701 39,274 43,800 34,686 47,600 47,600 47,600 3,800 8.68% Sanitation/Waste Removal 6,003 4,458 5,641 9,440 5,545 5,545 5,545 (96) -1.70% Tree Maintenance 30,556 29,598 30,278 21,718 30,568 30,568 30,568 290 0.96% Total Public Works 1,373,949 1,396,748 1,719,081 734,263 1,762,722 1,817,722 1,817,722 98,641 5.74% Culture and Recreation Parks and Recreation 169,411 200,920 218,608 194,374 202,210 202,210 202,210 (16,398) -7.50% -Cap Tsfr: Park Capital Imps. 15,000 15,000 15,000 0 30,000 45,000 45,000 30,000 200.00% Total Culture and Recreation 184,411 215,920 233,608 194,374 232,210 247,210 247,210 13,602 5.82% Total Expenditures & Transfers 4,507,731 4,762,791 5,319,145 3,746,448 5,570,850 5,488,562 5,488,562 169,417 3.19% 35 36 CITY OF SHOREWOOD 2009 GENERAL, FUND REVENUES & EXPENDITURES CITY OF SHOREWOOD ADOPTED 2009 GENERAL FUND EXPENDITURES Capital Tsfrs 19% Parks General Gov't 4% 26% Public Works 17% Police Other Publi 21% Safety Fire o 2 11% 37 FUND: 101 General DEPARTMENT MISSION: The Mayor and City Council set policy for the City DEPARTMENT: Mayor and Council and provide general direction to the Administrator in policy implementation. The department budget DEPT NO: 41110 supports council development, information efforts and special City associ and programs. DESCRIPTION OF ACTIVITY: The City Council meets twice montly and in periodic special worksessions to consider and adopt legislative and administrative policies that pertain to the services provided to residents. The City Council also sits as the Shorewood Economic Development Authority (EDA). OBJECTIVES / ESTIMATED SERVICE INDICATORS - Establish annual work program of goals and priorities for the City - Meet at least annually with advisory commissions. - Strategic planning and direction - Seminars, Conferences & Schools Attended - No. of Council Mtgs./EDA - No. of Workshops /Special - Agenda Items - Ordinances & Resolutions Adopted 5 24 24 400 120 HIGHLIGHTS /COMMENTS: Staffing: City Council Salaries Supplies/Materials: Awards and misc. supplies Support Services: Conferences and Seminars Appreciation Function for City Volunteers /Staff Special Brochures Prof. Associations/ Memberships /Activities: Lake Minnetonka Conservation District (LMCD) Assn of Metro Municipalities League of MN Cities Excelsior Chamber of Commerce July 4th Celebration Charges, Fees & Other: M FUND: 101 DEPARTMENT: Mayor and Council DEPT 41110 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2007 2 009 200 2009 Staffing 16,794 16,794 16,793 13,456 16,794 16,794 16,794 Supplies /Materials 1,127 1,402 1,200 1,717 1,400 1,400 1,400 Support Services 43,039 45,123 52,100 39,086 52,000 52,000 52,000 Charges, Fees & Other (Contingency) 0 0 0 0 132,288 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 60,960 63,319 70,093 54,259 2 70,194 7 0,19 4 STAFFING: Part time: Mayor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Councilmembers 4.00 4.00 4.00 4.00 4.00 4.00 4.00 39 FUND: 101 General DEPARTMENT MISSION: To implement policy established by the City Council; offer DEPARTMENT: Administration staff support to the City Council in its policy making role; and manage day -to -day operations of the City in a manner DEPT NO: 41300 consistent with established City values to effectively and efficiently meet set goals & obje ctives. DESCRIPTION OF ACTIVITY: The City Administrator directs City departmental operations to ensure compliance with policies established by the City Council and with state and federal laws. The department supports the City Council by managing Council agendas, directing the flow of information and requests for action to the Council. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Take a leadership role in intergovernmental cooperative efforts in the Lake Minnetonka area - Participate actively in joint powers organizations - Participate actively in legislative and policy activities of municipal associations - Actively monitor legislation and communicate with legislators - Council Mtgs/Work Sessions 36 - Council Agenda Items 400 - Public Safety Board Meetings 22 - Public Safety Staff Meetings 24 - Staff Meetings 52 HIGHLIGHTS /COMMENTS: Staffing: Includes an allocation for staff merit increases (2009: $24,000) Supplies /Materials: Miscellaneous books & supplies Support Services: Conference, mileage, meetings & seminars Memberships to ICMA, MCMA, MAMA all FUND: 101 DEPARTMENT: Administration DEPT 41300 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2 2009 Staffing 120,341 144,631 169,971 200,684 173,371 167,371. 167,371 Supplies /Materials 148 0 400 81 200 200 200 Support Services 5,015 4,549 8,250 1,459 5,950 5,950 5,950 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 125,503 149,180 178,621 202,225 179,521 1 173,521 STAFFING: Full Time: Adinistrator /Clk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Exec Sec/Dep Clk .20 .33 .25 .25 .25 .25 .25 41 FUND: 101 General DEPARTMENT MISSION: Provide staff support for the City Council including DEPARTMENT: General Government/City Clerk preparation of agendas and meeting packets. Responsible for City Clerk functions including DEPT NO: 41400 records retention, no and licenses. DESCRIPTION OF ACTIVITY: This department provides for reception and clerical duties in the City offices, and the recording secretary for City Council meetings. This department is the official recordkeeper of minutes, contracts, and permanent records; and is also responsible for all licensing functions and City communication tools. OBIECTWES / ESTIMATED SERVICE INDICATORS - Continue to improve web site, to include information for residents and tools for communication with City Hall - Produce monthly City newsletter to include articles & photos, council & conmvssion articles, & project updates - Provide information for general requests from residents and contractors - Prepare orientation package for new council members, cormnission members and staff Maintain updates to Employee Handbook and City Code HIGHLIGHTS /COMMENTS: Staffing: Deputy Clerk; Admin Asst - Parks; Admin Asst -PW Part-time communications tech; and part-time Web Developer Part-time, temporary, general office support Supplies /Materials: General Office Supplies and postage Software upgrades /Misc. Publications Support Services: Travel, Conferences and Education Publication of legal notices for all General Fund Depts Council Recording Secretary and Council Packet Delivery Newsletter Printing and Mail Service City Code Book Updates/Web Hosting Document Destruction Service Membership Dues Council Work- session Video Taping Capital Outlay: Replacement Computers (3) 42 2006 2007 2008 2009 Actual Actual Estimated Estimated - No. of Ordinances 14 10 10 10 - No. of Resolutions 106 92 100 100 - Newsletters Published 12 12 12 12 - Dog licenses issued 357 362 360 360 - Other licenses issued 62 66 60 60 - Council/WS/EDA /Spec Agendas 54 55 55 55 HIGHLIGHTS /COMMENTS: Staffing: Deputy Clerk; Admin Asst - Parks; Admin Asst -PW Part-time communications tech; and part-time Web Developer Part-time, temporary, general office support Supplies /Materials: General Office Supplies and postage Software upgrades /Misc. Publications Support Services: Travel, Conferences and Education Publication of legal notices for all General Fund Depts Council Recording Secretary and Council Packet Delivery Newsletter Printing and Mail Service City Code Book Updates/Web Hosting Document Destruction Service Membership Dues Council Work- session Video Taping Capital Outlay: Replacement Computers (3) 42 FUND: 101 DEPARTMENT: General Govenunent/City Clerk DEPT 41400 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 136,706 192,411 180,938 147,586 202,149 202,149 202,149 Supplies/Materials 19,965 18,753 24,910 18,132 21,000 21,000 21,000 Support Services 29,454 32,116 35,835 22,353 36,920 36,920 36,920 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 8,974 568 500 720 7,500 7,500 7,500 Transfers 0 0 0 0 0 0 0 TOTAL 195,099 243,848 242,183 188,791 267,569 267 2 67, 5 69 STAFFING: Full time: Exec Sec /Dep Clk .61 .75 .55 .55 .70 .70 .70 Parks Secretary .60 .58 .65 .65 .65 .65 .65 Secretary/Receptionist .55 .78 .60 .60 .60 .60 .60 Part time: Communications Tech. 0.57 0.57 0.57 0.57 0.57 0.57 0.57 Website Maint. 0.20 0.20 0.20 0.20 0.20 0.20 0.20 Temporary Receptionist 43 FUND: 101 General DEPARTMENT: Elections DEPARTMENT MISSION: Responsible for Election functions. DEPT NO: 41410 DESCRIPTION OF ACTIVITY: This department provides for the preparation for and supervision of State /Federal Primary, City General, and Special elections by the Deputy City Clerk. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Increase youth awareness of local government issues through active involvement with school officials and instructors through programs such as student election judges and kids voting * Presidential Election HIGHLIGHTS /COMMENTS: Staffing: .05 Exec Sec /Deputy Clerk Election Judges (2009 - 0) Supplies/Materials: Postage Equipment Maintenance General Supplies Support Services: Travel - Mileage Reimb. Capital Outlay: 44 2004 * 2006 2008* Actual Actual Estimated No. of Elections held (in election years) 2 2 2 - No. of Precincts 5 5 5 - No. of Absentee Ballot Requests 706 442 725 - No. of Election Judges Trained 61 69 65 - Total Number of Voters /Ballots Processed 5,315 4,830 5,400 * Presidential Election HIGHLIGHTS /COMMENTS: Staffing: .05 Exec Sec /Deputy Clerk Election Judges (2009 - 0) Supplies/Materials: Postage Equipment Maintenance General Supplies Support Services: Travel - Mileage Reimb. Capital Outlay: 44 FUND: 101 DEPARTMENT: Elections DEPT 41410 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 24,348 322 31,117 29,757 4,881 4,881 4,881 Supplies /Materials 1,688 2,540 3,025 2,856 2,300 2,300 2,300 Support Services 2,051 31 2,200 1,321 30 30 30 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 1,931 0 1,300 720 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 30,018 2,893 37,642 34,6 7,211 7,211 7,211 STAFFING: Full time: Exec Sec/Dep Clk 0.18 0.10 0.20 0.20 0.05 0.05 0.05 Part time: Election Judges 69 0 65 65 0 0 0 .0W 45 .FUND: 101 General DEPARTMENT MISSION: To administer financial policies of the City; perform DEPARTMENT: Finance accounting functions for all fund types; invest available funds in accordance with State Statutes; DEPT NO: 41500 oversee City insurance policies; and provide for timely reporting of financial matters to City Council staff and the p ublic. DESCRIPTION OF ACTNITY: Finance is responsible for processing all financial transactions of the City in accordance with Federal, State and Local laws, and in compliance with Generally Accepted Accounting Principles. Transactions include accounts payable, accounts receivable, payroll, investments, utility billing, special assessments, risk management, personnel benefits and financial reporting. The Finance Director is responsible for the preparation and administration of the City budget. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Prepare annual budget document - Coordinate the annual City audit - Prepare CAFR documents for submittal to GFOA Certificate of Achievement Program - Review debt issues and make recommendations on debt structure - Review, update, and maintain financial policies and procedures - Coordinate and make recommendations on employee benefits - Manage the City's investment portfolio within the Investment Policy guidelines Supplies/Materials: Computer checks & budget supplies Finance software support and maintenance Miscellaneous supplies Support Services: Conferences, Mileage, Meetings, Education & Seminars Publication of Financial Statements & Budgets Memberships to GFOA & MGFOA Subscription to GFOA periodicals Submittal fee - GFOA Certificate of Excellence Program Bank & Broker service charges Tuition Reimbursements Capital Outlay: Replacement Computer; Laser printer 46 2007 2008 2009 Actual Estimated Estim - No. Accounts Payable Checks Issued 2,100 1,700 1,700 - Utility Bills Processed 15,000 15,200 15,200 - No. of Payroll Checks/NODS Issued 1,200 980 980 - Received Certificate of Achievement Award Yes Yes Yes Supplies/Materials: Computer checks & budget supplies Finance software support and maintenance Miscellaneous supplies Support Services: Conferences, Mileage, Meetings, Education & Seminars Publication of Financial Statements & Budgets Memberships to GFOA & MGFOA Subscription to GFOA periodicals Submittal fee - GFOA Certificate of Excellence Program Bank & Broker service charges Tuition Reimbursements Capital Outlay: Replacement Computer; Laser printer 46 FUND: 101 DEPARTMENT: Finance DEPT 41500 BUDGET ITEM Actual 2006 Actual 2007 Adopted 2008 YTD Oct 2008 Proposed 2009 Revised 2 009 Adopted 2 009 Staffing 144,311 139,037 168,881 127,524 177,637 177,637 177,637 Supplies/Materials 5,018 5,338 7,500 4,808 8,200 8,200 8,200 Support Services 9,368 3,083 12,700 2,779 8,500 8,500 8,500 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 639 27,040 1,500 0 4,500 4,500 4,500 Transfers 0 0 0 0 0 0 0 TOTAL 159,336 174,498 190,581 135,111 198,837 198,83 1 STAFFING: Finance Dir 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Sr Acctg Clerk .62 .85 .75 .75 .75 .75 .75 Acctg. Clerk .5 .5 .0 .0 .0 .0 .0 47 FUND: 101 General DEPARTMENT: Professional Services DEPARTMENT MISSION: Provide contracted professional services including general legal, prosecution, financial audit and property assessment. DEPT NO: 41600 DESCRIPTION OF ACTIVITY: This department provides for contracted legal, assessing and auditing services for the City. Legal services include general counsel to the City Council, litigation and prosecution of criminal misdemeanors. Assessing services provide property valuation information for tax purposes. Audit services provide for the annual financial audit required by Minnesota State Statutes. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Contain costs on contracted professional services - No. of taxable parcels - No. of litigations HIGHLIGHTS /COMMENTS: Supplies/Materials: Support Services: 2008- 3,036 2008- 2-5 Includes general legal fees and prosecutions, mediation services, assessing contract, annual audit services. Charges and Fees: 48 FUND: 101 BUDGET ITEM DEPARTMENT: Professional Services Actual Actual Adopted 2006 2007 2008 YTD Oct 2008 Proposed 2009 Revised 2 DEPT 41600 Adopted 2009 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 164,867 196,880 217,000 190,582 219,500 205,500 205,500 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 164,867 196,880 217,000 190,582 219,500 205,5 205,500 STAFFING: ' 0.r.` 1 - 1. 49 FUND: 101 General DEPARTMENT: Planning & Zoning DEPT NO: 41910 DEPARTMENT MISSION: Guide and control the physical development of the community. Coordinate and unplement long range city-wide and area plarming activities. DESCRIPTION OF ACTIVITY: This department is responsible for the review of development proposals, preparing and updating the City's Comprehensive Plan, and other long range planning activities. It provides for administration and enforcement of the City's zoning codes, and preparation and upkeep of zoning, subdivision, floodplain, and other planning and zoning related ordinances. OBJECTNES / ESTIMATED SERVICE INDICATORS - Comprehensive Plan Update - Establish an action plan to implement Comprehensive Plan - Complete GIS parcel data base - Update /enhance City maps - Update /enhance procedure handouts - No. of zoning apps. - No. of zoning complaints HIGHLIGHTS /COMMENTS: Staffing: Supplies /Materials: 2007 2008 Estimated Estimated 24 16 30 30 Maintenance contracts for computer & office equipment Miscellaneous supplies Digital Camera; PDA/Phone Support Services: Recording Secretary for Planning Commission Meetings Air time for cellular phone Conferences, mileage, meetings & seminars Memberships to APA, MN APA, Sensible Land Use Coalition Subscriptions to APA Journal & Zoning News Charges & Fees: Capital Outlay: 50 FUND: 101 DEPARTMENT: Planning & Zoning DEPT 41910 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2 009 Staffing 180,556 169,864 190,830 158,604 199,601 199,601 199,601 Supplies /Materials 789 1,659 210 580 1,755 1,755 1,755 Support Services 10,125 13,330 12,900 6,950 11,950 11,950 11,950 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 2,834 0 2,450 2,320 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 194,305 184,853 206,390 168,454 213,306 213,306 213,306 STAFFING: Full time: Planning Dir Planning Asst. Part Time: Clerical .97 .95 .97 .97 .97 .97 .97 1.00 1.00 1.00 1.00 1.00 1.00 1.00 51 FUND: 101 General DEPARTMENT: Municipal Bldg - City Hall DEPT NO: 41940 DEPARTMENT MISSION: Provide for the physical operation of City Hall: utilities; maintenance of office equipment and the building stricture; and provide for the City's general liability, property, auto and workers' comp insurance. DESCRIPTION OF ACTIVITY: The Municipal Building department provides for maintenance of all equipment located in the City Hall, and for janitorial services to furnish a clean environment in which to conduct City business. General Liability, Property and Casualty insurance coverages are also provided under this department. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Identify facility maintenance needs - Identify options for maximum utilization of office space - Maintain existing facilities at current level or better utilizing staff to reduce maintenance costs - Maintenance of all office equipment - Continue to promote community programs to enhance public facilities, such as "Adopt a Garden." HIGHLIGHTS /COMMENTS: Supplies /Materials: Maintenance /lease contracts for copiers, telephones and office equipment City Hall maintenance, cleaning, and paper supplies Support Services: City Hall janitorial, mg services, & pest control Utilities and phone service for City Hall Insurance coverage for all City'departments except enterprise funds Rental of postage meter Residential maintenance costs $5,000 Charges & Fees: Capital Outlay: Debt Service on City Hall Renovation Project (Special Levy) Transfers: PubliQ F„gcilities Fund (2009 - $50,000) Sewer Fund for debt service on internal loan for purchase of 5795 Country Club Rd. (2009 - $60,000) 4 52 FUND: 101 BUDGET ITEM DEPARTMENT: Municipal Building - City Hall Actual Actual Adopted 2006 2007 2008 YTD Oct 2008 Proposed 2009 Revised 2009 DEPT 41940 Adopted 2009 Staffing 0 0 0 0 0 0 0 Supplies/Materials 22,390 34,518 76,314 24,303 26,300 26,300 26,300 Support Services 130,974 100,227 149,000 21,197 139,500 139,500 139,500 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 54,036 71,899 1,000 0 101,120 101,120 101,120 Transfers 50,000 110,000 110,000 0 110,000 110,000 110,000 TOTAL 257,400 316,644 336,314 45,500 376,920 376,920 376,920 STAFFING: w 53 FUND: 101 General DEPARTMENT MISSION: To provide a modern, flexible, full- service criminal DEPARTMENT: Police justice agency which is responsive to community needs. DEPT NO: 12100 DESCRIPTION OF ACTIVITY: The South Lake Minnetonka Police Department is a cooperative joint venture between the cities of Excelsior, Greenwood, Shorewood and Touka Bay. Through this venue, the department provides for the protection of the safety and well -being of citizens in the community, the prevention and detection of crime, and the enforcement of all local, state, and federal laws in a cost - effective manner. Costs and staff are allocated to each of the participating cities on a setpercentage basis. Shorewood's share for the period 2007 -2011 is 50 %. A separate obligation is required to finance the new SLMPD station. The cost is apportioned on an ad valorum basis among four cities. Shorewood's pro -rata share of the 2009 payment is estimated at $233,000. OBJECTIVES / ESTIMATED SERVICE INDICATORS Estimate Initial complaint reports 6,600 Part I (serious) & Part lI (other) crimes 1,250 Citations issued 4,600 Police vehicles 9 - Shorewood ICR's 2,300 HIGHLIGHTS /COMMENTS: Supplies/Materials: Support Services: w Police services contract for 2009 Prisoner expense, court officer expense, & booking fees Q* 54 FUND: 101 DEPARTMENT: Police DEPT 42100 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 0 0 0 0 0 0 0 Supplies /Materials 184 59 0 0 0 0 0 Support Services 781,829 822,962 867,500 818,496 943,000 943,000 943,000 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 254,596 249,508 244,003 244,004 233,000 233,000 233,000 Transfers 0 0 0 0 0 0 0 TOTAL 1,036,609 1,072,529 1,111,503 1,062,500 1,176,000 1,176,000 1,176,000 STAFFING: Chief 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Chief 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Sergeant 3.00 3.00 3.00 2.00 2.00 2.00 2.00 Investigator 2.00 2.00 3.00 2.00 2.00 2.00 2.00 Patrol Officer 7.00 7.00 7.00 8.00 8.00 8.00 8.00 Office Administrator 1.20 1.20 1.20 1.20 1.20 1.20 1.20 Office Specialist (part time) 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Community Service Officer 1.00 1.00 1.00 2.00 2.00 2.00 2.00 55 FUND: 101 General DEPARTMENT: Fire Protection DEPARTMENT MISSION: Provide the highest possible quality of fire suppression, prevention and eduction services, and First Responder emergency medical services. DEPT NO: 42200 DESCRIPTION OF ACTIVITY: Fire services are contracted by the City through the Excelsior Fire District and the City of Mound. This department provides for the protection of life and property of the residents of Shorewood through fire prevention and suppression, fire inspection, building inspection, fire code enforement and emergency medical services. A separate obligation is made toward financing the new facilities for the Excelsior Fire District. The cost is apportioned on the same allocation for the operating budget. A separate obligation is made toward financing the new (2003) fire station for the Mound Fire Dept. This cost is apportioned on the same allocation for the operating budget. Shorewood's share for 2009 debt service is $7,230. OBJECTIVES / ESTIMATED SERVICE INDICATORS - EFD Fire & Rescue Calls - Mound Fire & Rescue Calls HIGHLIGHTS /COMMENTS: Support Services: Fire contracts with Mound and Excelsior Fire District W . FUND: 101 DEPARTMENT: Fire Protection 0 0 DEPT 42200 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 20 2009 Staffing 0 0 0 0 0 0 0 Supplies /Materials 0 0 0 0 0 0 0 Support Services 314,647 291,368 311,860 319,411 316,138 316,138 316,138 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 249,203 304,579 311,075 303,524 284,500 284,500 284,500 Transfers 0 0 0 0 0 0 0 TOTAL 563,850 595,947 622,935 622,934 600,638 600,638 600,6 41.00 41.00 34.00 34.00 34.00 34.00 EFD STAFFING: Chief (F/T) Asst. Chief Dist. Chief Captain Coordinators Fire Marshal (F/T) Fire Inspector (P/T) Training Officer Firefighters Admin Support (P/T) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 0.00 0.00 8.00 8.00 8.00 8.00 8.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.00 1.00 0.00 0.00 0.00 0.00 0.00 41.00 41.00 34.00 34.00 34.00 34.00 34.00 .25 .25 .5 .25 .25 .25 .25 57 FUND: 101 General DEPARTMENT: Protective Inspection DEPT NO: 42400 DEPARTMENT MISSION: Enforce construction safety and related building codes through plan review and inspections. DESCRIPTION OF ACTIVITY: This department provides for the issuance building and constriction permits, review of construction plans and specifications, enforcement of all building codes under the Uniform Building Code, inspection of rental housing units and zoning violations. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Increase and enhance public information through the development of handouts relative to building codes - Enhance environmental inspections Actual (At 6/30/08) Estimate 2007 2008 2009 - No. of permits issued New Homes 17 5 5 -8 Additions /Other 698 389 600 - Avg Inspections /permit New Homes 22 28 28 Additions /Other 1 -12 1 - 12 1 - 12 HIGHLIGHTS /COMMENTS: Supplies /Materials: Maintenance contracts on computer and office equipment Miscellaneous supplies Digital Camera Support Services: Contractual inspections during vacations, sick leave Conferences, mileage, meetings & seminars Printing of application forms Membership to ICBO Charges & Fees: Remittances to state of permit surcharges collected Capital Outlay: 58 faviaR u11 DEPARTMENT: Protective Inspection DEPT 42400 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 124,767 118,166 116,634 107,033 122,484 122,484 122,484 Supplies/Materials 38 291 400 5 750 750 750 Support Services 14,689 9,685 11,100 5,492 10,700 10,700 10,700 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 87 0 0 0 0 0 0 T ran s fer s 0 0 0 0 0 0 0 TOTAL 139,580 128,142 128,134 112,531 133,934 133,934 133,934 STAFFING: Full time: Building Official 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Planning Dir .03 .03 .03 .03 .03 .03 .03 Planning Asst .20 .20 .20 .20 .20 .20 .20 Secretary/Recept .10 .10 .10 .10 .10 .10 .10 Parks Secretary .05 .05 .05 .05 .05 .05 .05 59 FUND: 101 General DEPARTMENT MISSION: Enforce animal control ordinances. DEPARTMENT: Animal Control DEPT NO: 42700 DESCRIPTION OF ACTIVITY: The department provides for contractual animal control, which includes patrol, detention, and disposition of stray domestic animals. OBJECTIVES /ESTIMATED SERVICE INDICATORS: - To provide appropriate care for dogs found at -large within the City limits. HIGHLIGHTS /COMMENTS: Staffing: Supplies /Materials: Support Services: Animal control contracts with South Lake Minnetonka Police Department and City of Mound 2008 & 2009 budgets show zero (0) due to SLMPD including animal control charges in their base budget as of 01/01/2008 Charges & Fees: Capital Outlay: .1 FUND: 101 DEPARTMENT: Animal Control DEPT 42700 BUDGET ITEM Actual 2006 Actual 2007 Adopted 2008 YTD Oct 2008 Proposed 2009 Revised 2009 Adopted 2009 Staffing 0 0 0 0 0 0 0 Supplies/Materials 0 0 0 0 0 0 0 Support Services 21,845 21,390 0 0 0 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 21,845 21,390 0 0 0 0 0 STAFFING: Full time: 61 FUND: 101 General DEPARTMENT MISSION: DEPARTMENT: City Engineer DEPT NO: 43010 Provide engineering and constriction management services for the City. DESRIPTION OF ACTIVITY: This department is responsible for general engineering services in the City, as well as preparation of feasibility studies, plans and specifications, and on -site inspection of City projects. The City Engineer also reviews all development proposals and plans. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Assist the City in determining right -of -way needs - Keep construction project files up -to -date and accurate - Communicate in written form to affected residents at least two (2) times during a construction project - Provide in -house engineering where feasible - Provide good public relations with property owners adjacent to construction projects - Resolve construction issues promptly. - Engineer Hours on City projects 1,248 - Engineer Hours on private develop 600 HIGHLIGHTS /COMMENTS: Staffing: .95 City Engineer .25 F/T Engineer Technician .02 Dir of Pub Wks .10 F/T Clerical Supplies /Materials: Computer maintainance/Upgrade Books, Materials and Software Support Services: Cellular phone Airtime & Pager Conferences and mileage; Terrasyne training Subscriptions and Memberships Tuition Reimbursement Charges & Fees: Capital Outlay: Trimble GPS external antenna; Microsoft Vista compatable plotter; Laptop computer 62 FUND: 101 DEPARTMENT: City Engineer 119,803 122,126 DEPT 43010 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 111,465 119,803 122,126 105,409 132,594 132,594 132,594 Supplies /Materials 579 1,485 875 391 900 900 900 Support Services 83,389 9,184 16,435 6,432 18,653 18,653 18,653 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 2,526 18,000 15,365 8,910 8,910 8,910 Transfers 0 0 0 0 0 0 0 TOTAL 195,433 132,998 157,436 127,597 161,057 161,057 161,057 STAFFING: Full time: City Engineer 0.00 0.92 0.95 0.95 0.95 0.95 0.95 Eng Technician 0.71 0.32 0.25 0.25 0.25 0.25 0.25 Clerical 0.10 0.01 0.10 0.10 0.10 0.10 0.10 Dir of Pub Wks 0.50 0.25 0.02 0.02 0.02 0.02 0.02 Part time: Clerical 63 FUND: 101 General DEPARTMENT MISSION: DEPARTMENT: Public Works Service Provide supervision and support for all public works functions; provides for public works utilities, DEPT NO: 43050 shop and equipment maintenance and fuels DESCRIPTION OF ACTIVITY: The Public Works Service department is responsible for all general public works duties, maintenance of all public works equipment, and maintenance of the public works facility. OBJECTIVES: - Perform preventative maintenance on all equipment after 100 miles of usage or within 10 hours of scheduled service - Perform various City building repairs and preventative maintenance using City personnel HIGHLIGHTS /COMMENTS: Staffing: Supplies /Materials: Includes motor fuel, maintenance of equipment and buildings, and inventory supply items Support Services: Uniforms for crew Janitorial Services Utilities and telephone service for public works building Conference, mileage, meetings & seminars Miscellaneous : damage to private property (mailboxes, etc) Hazardous Waste Licenses Miscellaneous equipment rentals Memberships Charges & Fees: Capital Outlay: Computer; chairs & table Transfers: Transfer to Equipment Replacement Fund (2008 - $175,000; 2009 - $175,000) 64 FUND: 101 DEPARTMENT: Public Works Service DEPT 43050 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 20 2009 Staffing 266,420 292,023 276,798 229,189 290,805 290,805 290,805 Supplies /Materials 53,501 70,206 65,050 61,213 80,800 80,800 80,800 Support Services 35,829 42,142 43,640 32,618 45,940 45,940 45,940 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 7,468 639 7,600 0 2,950 2,950 2,950 Transfers 200,000 200,000 175,000 0 175,000 1 175,000 TOTAL 563,218 605,010 568,088 323,021 595,495 595, 595,495 STAFFING: Full time: Pub Wks Dir 0.49 0.75 0.50 0.50 0.50 0.50 0.50 Lt Equip Oper 1.93 1.50 1.95 1.95 1.95 1.95 1.95 Clerical .08 .05 .05 .05 .05 .05 .05 Utility Maint. Operators .77 .67 .67 .67 .67 .67 .67 Utility Lead .44 .25 .50 .50 .50 .50 .50 65 FUND: 101 General DEPARTMENT MISSION: DEPARTMENT: Streets & Roadways To maintain and upgrade City streets, parking areas and storm water control systems in an efficient and DEPT NO: 43100 economical manner DESCRIPTION OF ACTIVITY: Includes ongoing maintenance consisting'of street patching, street sweeping, roadside mowing, painting of lane markings, and minor storm sewer repair. OBJECTIVES / ESTIMATED SERVICE INDICATORS Maintain the pavement management system to aid in scheduling of street projects - Paint lane markings on all designated streets - Sweep each City street at least once annually Mow roadsides at least twice annually - Visually inspect storm drainage grates annually and repair as needed HIGHLIGHTS /COMMENTS: Staffing: 1.15 LEO 0.2 Util. Lead Supplies /Materials: Rock, gravel & bituminous for street & road repair Support Services: Safety training Contracted road striping Transfers: Transfer to Local Street Reconstruction Fund $645,000 (2008) and $700,000 (2009) .. Actual Estimated - Miles of street 2007 2008 State 3 3 County 2 2 City - MSA 9 9 City - Local 50 50 - Miles Sealcoated 4.3 10 - Tons of patch material 1215 1,400 HIGHLIGHTS /COMMENTS: Staffing: 1.15 LEO 0.2 Util. Lead Supplies /Materials: Rock, gravel & bituminous for street & road repair Support Services: Safety training Contracted road striping Transfers: Transfer to Local Street Reconstruction Fund $645,000 (2008) and $700,000 (2009) .. FUND: 101 BUDGET ITEM DEPARTMENT: Streets & Roadways Actual Actual 2006 2007 Adopted 2008 YTD Oct 2008 Proposed 2009 Revised 2009 DEPT 43100 Adopted 2009 Staffing 87,376 87,344 89,272 95,727 93,895 93,895 93,895 Supplies /Materials 65,953 66,260 62,000 70,473 73,000 73,000 73,000 Support Services 11,379 17,617 32,000 14,834 23,500 23,500 23,500 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 550 550 550 Transfers 345,000 345,000 645,000 0 645,000 700,00 700,000 TOTAL 509,708 516,221 828,272 181,034 835,945 890,945 890,9 STAFFING: Full time: Lt Equip Operators 1.03 1.00 1.15 1.15 1.15 1.15 1.15 Util. Lead .25 .03 .2 .2 .2 .2 •2 67 FUND: 101 General DEPARTMENT MISSION: DEPARTMENT: Snow & Ice Removal Provide snow and ice control for public streets and City owned parking lots to ensure the safe and DEPT NO: 43125 efficient movement of traffic DESCRIPTION OF ACTIVITY: This department is reponsible for the plowing and removal of snow after a 2 -inch or greater snowfall has occured. Street sanding with a salt/sand mixture is used as a measure of ice control, and is performed as needed. OBJECTIVES / ESTIMATED SERVICE INDICATORS: - Remove snow and ice and complete salt/sand operations within 14 hours after the end of a snow event - Complete widening and clean up functions within 48 hours of a snow event Actual Estimated Estimated 2007 2008 2009 - Miles of street plowed 50 50 50 —Tons of salt used 375 285 385 - Tons of sand used 979 1035 1335 * Source: Public Works Director - Materials Analysis Worksheets HIGHLIGHTS /COMMENTS: Staffing: .4 LEO .05 Util Maint .05 Util Lead Supplies /Materials: Sand and salt for ice control 68 FUND: 101 DEPARTMENT: Snow & Ice Removal 33,960 39,166 DEPT 43125 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 14,468 33,960 39,166 22,370 41,172 41,172 41,172 Supplies /Materials 12,862 35,229 44,500 14,398 45,340 45,340 45,340 Support Services 0 0 0 0 0 0 0 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 1,900 0 0 0 0 Transfers 0 0 0, 0 0 0 0 TOTAL 27,330 69,189 85,566 36,767 86,512 86,512 86, 512 STAFFING: Full time: Lt Equip Oper (LEO) .14 .42 .40 .40 .40 .40 .40 Util Maint .04 .09 .05 .05 .05 .05 .05 Util Lead .04 .10 .05 .05 .05 .05 .05 69 FUND: 101 General DEPARTMENT: Traffic Control /St Lights DEPT NO: 43160 DESCRIPTION OF ACTIVITY: DEPARTMENT MISSION: Provide for street lighting and traffic signals at intersections and other locations throughout the City for the safety of pedestrians and vehicular traffic Includes maintenence of semaphores and traffic control devices, and maintenance/replacement of regulatory and informational road signs. Provides for electricity for street lights and traffic control devices. OBJECTNES / ESTIMATED SERVICE INDICATORS: - Number of street lights 195 - Number of traffic signals 6 HIGHLIGHTS /COMMENTS: Supplies/Materials: Maintenance to semaphores and Hwy 7 & Vine Hill Road, Christmas Lake Road, County Road 19, Hwy 41, Old Market Road; County Road 19 and Smithtown Road. Street signs & posts Support Services: Includes street light utility (electricity) expense 70 FUND: 101 BUDGET ITEM DEPARTMENT: Traffic Control/Street Lighting Actual Actual Adopted 2006 2007 2008 YTD Oct 2008 Proposed 2009 Revised 2009 DEPT 43160 Adopted 2009 Staffing 0 355 0 0 0 0 0 Supplies/Materials 1,415 4,067 1,500 2,873 4,000 4,000 4,000 Support Services 40,286 34,852 42,300 31,813 43,600 43,600 43,600 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 41,701 39,274 43,800 34,686 47,600 4 7,600 47,600 STAFFING: 71 FUND: 101 General DEPARTMENT: Sanitation/Weed Control DEPT NO: 43200 DEPARTMENT MISSION: Provide for the general sanitation and cleanliness of the City and provide for the treatment of noxious weeds on City properties. DESCRIPTION OF ACTIVITY: Activities include spraying of boulevards and roadways for weed control, and clean -up of properties in violation of City zoning and sanitation codes, as necessary. OBJECTIVES / ESTIMATED SERVICE INDICATORS - Resolve 100% of weed complaints No of weed complaints - No of notices served Miles /roadside sprayed HIGHLIGHTS /COMMENTS: Actual Actual Estimated 2007 2008 2009 7 5 8 4 5 5 50 50 50 Staffing: Miscellaneous staff time for property clean -ups Support Services: Miscellaneous property clean -ups Contracted weed spraying services 72 FUND: 101 BUDGET ITEM DEPARTMENT: Sanitation/Waste Removal/Weeds Actual Actual Adopted YTD Oct 2006 2007 2008 2008 Proposed 2009 Revised 2009 DEPT 43200 Adopted 2009 Staffing 608 2,667 641 2,005 645 645 645 Supplies/Materials 0 0 500 32 500 500 500 Support Services 5,395 1,791 4,500 7,402 4,400 4,400 4,400 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 6,003 4,458 5,641 9,440 5,545 5,545 5,5 STAFFING: 73 FUND: 101 General DEPARTMENT MISSION: To provide diseased tree inspection services to DEPARTMENT: Tree Maintenance residents; to remove diseased trees located on City property; and to maintain and trim trees located on DEPT NO: 43250 City rights -of -way and other property DESCRIPTION OF ACTIVITY: This department is responsible for detection and removal of diseased and unsafe trees on City rights -of -way and other properties, and pruning of trees on city property. Tree inspection services are provided to residents on an on -call basis. OBJECTIVES /ESTIMATED SERVICE INDICATORS: - Remove 100% of diseased trees on public property - Respond to all property owner requests to identify diseased trees - Maintain and trim trees on City property which present a hazard to public - No of trees removed - Yards of brush hauled HIGHLIGHTS /COMMENTS: Staffing: .25 LEO Supplies /Materials: Small Tools - Chain Saw Paint for tree marking Safety chaps and equipment Support Services: Contracted tree and brush removal Tree inspection certification Annual Estimate 37 320 74 FUND: 101 BUDGET ITEM DEPARTMENT: Tree Maintenance Actual Actual 2006 2007 Adopted 2008 YTD Oct 2008 Proposed 2009 Revised 2009 DEPT 43250 Adopted 2009 Staffing 22,122 17,801 16,128 16,865 16,968 16,968 16,968 Supplies /Materials 1,323 502 3,150 112 2,600 2,600 2,600 Support Services 7,110 11,295 11,000 4,742 11,000 11,000 11,000 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 0 TOTAL 30,555 29,598 30,278 21,718 30,568 3 0,568 30, 568 STAFFING: Lt Equip Operator (LEO) .27 .25 .25 .25 .25 .25 .25 75 FUND: 101 General DEPARTMENT MISSION: Maintain City parks, trails & beaches to ensure safe DEPARTMENT: Parks & Recreation and enjoyable recreational amenities, and coordinate recreational opportunities for City residents of all DEPT NO: 45200 ages and physical abilities DESCRIPTION OF ACTIVITY The department is responsible for the maintenance of all City parks, including playgrounds, ballfields, trails, ice rinks, buildings and other play areas. Winter ice skaing and surrnner rec programs are coordinated by this department. OBJECTIVES: - Continue promoting the benefits of investing in Shorewood parks and park improvements. HIGHLIGHTS /COMMENTS: Staffing: Part time includes Park Commission Secretarial Seasonal includes Summer employees and Winter Rink Attendants Supplies/Materials: Maintenance to park equipment and buildings Rock, black dirt, gravel, sand, fertilizers, seed for parks Support Services: Park Coordinating Svcs ($18,500); Crescent Beach Lifeguard Svcs ($6,000); Contributions to 'Music In The Parks' ($2,500), Friends of Center ($0); Friends Fund- raising Match ($0); Buckthorn. Removal Prog ($1,600); Portable toilets ($9,200). Charges & Fees: Capital Outlay: Transfers: Transfer to Park Capital Improvement Fund (2008 - $15,000; 2009 - $45,000) 76 Actual Estimated Estimated 2007 2008 2009 Acres of maint park 99.70 99.70 99.70 Cost of maint per acre 1600 1600 1600 No. of ballfields Softball 3 3 3 Baseball 5 5 5 No. of Tennis Courts 4 4 4 No. of hockey rinks 2 2 2 No. of skating rinks 3 3 3 No. of tunes rinks are cleaned 58 58 58 No. of shelters 4 4 4 No. of picnic tables 47 47 47 Miles of Trails 3.50 3.50 3.50 HIGHLIGHTS /COMMENTS: Staffing: Part time includes Park Commission Secretarial Seasonal includes Summer employees and Winter Rink Attendants Supplies/Materials: Maintenance to park equipment and buildings Rock, black dirt, gravel, sand, fertilizers, seed for parks Support Services: Park Coordinating Svcs ($18,500); Crescent Beach Lifeguard Svcs ($6,000); Contributions to 'Music In The Parks' ($2,500), Friends of Center ($0); Friends Fund- raising Match ($0); Buckthorn. Removal Prog ($1,600); Portable toilets ($9,200). Charges & Fees: Capital Outlay: Transfers: Transfer to Park Capital Improvement Fund (2008 - $15,000; 2009 - $45,000) 76 FUND: 101 DEPARTMENT: Parks & Recreation DEPT 45200 BUDGET Actual Actual Adopted YTD Oct Proposed Revised Adopted ITEM 2006 2007 2008 2008 2009 2009 2009 Staffing 112,753 126,592 131,408 113,701 137,710 137,710 137,710 Supplies/Materials 6,861 8,836 12,400 13,706 12,300 12,300 12,300 Support Services 49,797 55,491 74,800 66,967 52,200 52,200 52,200 Charges & Fees 0 0 0 0 0 0 0 Capital Outlay 0 10,000 0 0 0 0 0 Transfers 15,000 15,000 15,000 0 30,000 45,000 45,000 TOTAL 184,411 215,919 233,608 194,374 232,210 247,210 247,210 STAFFING: Full time: Dir of Public Wks .07 -- .03 .03 .03 .03 .03 Lt Equip Oper 1.51 1.50 1.25 1.25 1.25 1.25 1.25 Clerical .30 .33 .35 .35 .35 .35 .35 Part time: Clerical -- Seasonal: Summer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Winter (rinks) 10.00 10.00 10.00 10.00 10.00 10.00 10.00 77 S DEBT SERVICE FUNDS Debt service funds are used to account for the payment of interest and principal on long- term general obligation debt other than debt issued for and serviced primarily by enterprise funds. 79 City of Shorewood Schedule of Bonds Payable 12/31/2008 Bonds (Additions) (Reductions) Bonds Original Outstanding Issued Paid Outstanding Issue Item Fund Issue 12/31/2007 2008 2008 12/31/2008 Amount #1 601 GO Water Revenue 1996A (A506) 290,000 0 60,000 b) 230,000 860,000 #2 304 EDA Public Safety West Fire Facility Lease Revenue Bonds, Series 2002A 3,450,000 0 150,000 a) 3,300,000 3,865,000 #3 304 EDA Public Safety Police Facility Lease Revenue Bonds, Series 2002B 3,590,000 0 155,000 a) 3,435,000 4,025,000 #4 304 EDA Public Safety East Fire Facility Lease Revenue Bonds, Series 2002C 1,840,000 0 80,000 a) 1,760,000 2,060,000 #5 305 EDA Public Safety West Fire Facility Lease Revenue Bonds, Series 2003A 1,095,000 0 50,000 a) 1,045,000 1,195,000 #6 305 EDA Public Safety Police Facility Lease Revenue Bonds, Series 2003B 1,115,000 0 50,000 a) 1,065,000 1,220,000 #7 601 Water Revenue Crossover Refunding Bonds, 2003 525,000 0 135,000 c) 390,000 815,000 #8 601 GO Water Revenue Bonds 2005A 1,400,000 0 55,000 b) 1,345,000 1,525,000 #9 601 GO Water Revenue Bonds 2006A 1,450,000 0 0 b) 1,450,000 1,450,000 #10 307 EDA Public Safety Fire Facility Lease Revenue Crossover Refunding Bonds, Series 2007 4,130,000 0 0 a) 4,130,000 4,130,000 #11 307 EDA Public Safety Police Facility Lease Revenue Crossover Refunding Bonds, Series 20071 4,285,000 0 0 a) 4,285,000 4,285,000 #12 307 EDA Public Safety E. Fire Facility Lease Revenue Crossover Refunding Bonds, Series 20071 1,585,000 0 0 a) 1,585,000 1,585,000 #13 310 EDA City Hall Project Improvement Bonds, Series 2008A 0 1,310,000 0 a) 1,310,000 1,310,000 Totals $24,755,000 $1,310,000 $735,000 $25,330,000 $28,325,000 a) EDA Lease Revenue Debt: $ 21,915,000 $23,675,000 b) Water Revenue Debt: 3,025,000 3,835,000 cl Water Refunding Debt 390,000 815,000 TOTAL: $ 25,330,000 $28,325,000 G U �eY9 1Vr'011S l @rte 100 N. Riverside Plaza Suite 2220 Chicago, IL 60606 July 25, 2008 Ms. Boivlie Burton Finance Director City of Shorewood 5755 County Club Road Shorewood, MN 55331 -8927 Henrietta Chang Vice President /Sr. Analyst Tel: 312.706.9960 Fax: 312.706.9999 E -mail: henrietta.changQmoodys.com Dear Ms. Burton: We wish to inform you that on July 18, 2008, Moody's Investors Service reviewed and assigned a rating of Aa3 to Shorewood Economic Development Authority, MN's Public Project Lease Revenue Bonds, Series 2008A. In order for us to maintain the currency of our ratings, we request that you provide ongoing disclosure, of current financial and statistical information. Moody's will monitor this rating and reserves the right, at its sole discretion, to revise or withdraw this rating at any time in the future. The rating, as well as any revisions or withdrawals thereof, will be publicly disseminated by Moody's through normal print and electronic media and in response to verbal requests to Moody's Rating Desk. Should you have any questions regarding the above, please do not hesitate to contact me or the analyst assigned to this transaction, Molly Shellhorn at 312- 706 -9972. Sincerely, Henrietta Chang cc: Mr. Paul Dolma Northland Sccunties Global Credit Research = New Issue 1N tty's fin vastars ser ics 21 JUL 2008 New Issue: Shorewood Economic Development Authority, MN MOODY'S UPGRADES TO Aa2 FROM Aa3 THE CITY OF SHOREWOOD'S (MN) UNDERLYING GENERAL OBLIGATION RATING AND UPGRADES TO Aa3 FROM Al OUTSTANDING LEASE REVENUE DEBT RATING ASSIGNS Aa3 TO SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY'S $1.4 MILLION PUBLIC PR03ECT LEASE REVENUE BONDS, SERIES 2008A Municipality MN Moody's Rating ISSUE RATING Public Project Lease Revenue Bonds, Series 2008A Aa3 Sale Amount $1,400,000 Expected Sale Date 07/24/08 Rating Description Lease Rental Opinion NEW YORK, Jul 21, 2008 -- Moody's Investors Service has assigned an Aa3 rating to the Shorewood Economic Development Authority's (MN) $1.4 million Public Project Lease Revenue Bonds, Series 2008A. Concurrently, Moody's has upgraded to Aa2 from Aa3 the rating on the city's outstanding general obligation debt, affecting $3.4 million of total general obligation debt. Moody's has also upgraded to Aa3 from Al the rating on the Shorewood Economic Development Authority's (EDA) outstanding lease revenue debt, affecting $22 million in post -sale lease revenue debt. All of the city's outstanding debt has fixed interest rates. Proceeds of the bonds will finance renovations and improvements to the city hall facility. The issue is secured by the City of Shorewood's pledge to make lease payments, subject to annual appropriation, to the Shorewood EDA. Assignment of the Aa3 rating reflects the essential nature of the project being financed, the annual risk of non - appropriation, and the general obligation credit characteristics of the City of Shorewood. The city's Aa2 rating and upgrade reflect the city's mature economy with affluent wealth levels and healthy tax base growth; strong financial operations characterized by healthy reserve levels and retained financial flexibility; and average debt levels.. LEASE PAYMENTS FOR ESSENTIAL CITY HALL FACILITY SUBJECT TO ANNUAL APPROPRIATION Moody's believes the legal provisions outlined in the lease agreements provide bondholders with a satisfactory level of protection. The City of Shorewood and the Shorewood Economic Development Authority have entered into a lease agreement in which the city will make lease payments, subject to annual appropriation, sufficient to cover debt service on the bonds. The lease payments are subject to annual appropriation, are to be included in the city's annual operating budget, and are unconditional for the year in which they are appropriated. The city will use property taxes from its General Fund levy as the source of revenue for the lease payments. While the availability of the property tax levy does not altogether offset appropriation risk, Moody's believes it adds strength to bondholders' security. Lease payment dates are scheduled 15 days prior to debt service payment dates. Moody's considers the leased asset (the city hall facility) to be of an essential nature for a municipality. STRONG FINANCIAL OPERATIONS CHARACTERIZED BY AMPLE RESERVES Moody's expects the city to maintain stable financial operations due to a history of conservative budgeting, characterized by the maintenance of healthy reserves, as well as the lack of reliance on state aid. The city has historically maintained very healthy reserves, typically exceeding 60% of General Fund revenues. Most recently in fiscal 2007 the city posted an operating surplus of $378,000, increasing the General Fund balance to 73.2% of General Fund revenues. The city adopted a formal General Fund balance policy in the fall of 2007. The policy requires the undesignated General Fund balance to be maintained at a level between 55% and 60% of the following year's budgeted expenditures. Any amount exceeding 60% will be used for one- time expenditures or to offset the property tax levy. Should the undesignated balance fall below 50 %, the city will take immediate action to restore reserves. The fiscal 2008 budget included the application of $100,000 of General Fund reserves and management reports year -to -date ope ti s are on track for balanced operations and to maintain undesignated reserves in compliance W he new policy. In addition to ample General Fund reserves the city also retains several other areas of financial flexibility. In 2007 the city sold its liquor stores to a private operator. The approximately $1 million gain from the sale is currently available for operations or capital needs, though the city council has not yet determined how these funds will be used. The city also retains a measure of flexibility in its operating budget because the capital program is primarily financed through General Fund transfers. In 2008 a total transfer of $945,000 was budgeted for capital expenditures. In 2009 and future years the city may explore alternate methods for funding street reconstruction and other capital projects, freeing up General Fund dollars for other needs. Both the proceeds from the sale of the liquor store operation and the funding of the capital program provide the city with room to make budgetary adjustments if necessary. In fiscal years 2009 through 2011 property tax levy increases for Minnesota local governments will be limited to 3.9 %, plus the percentage of net new construction and household growth. Officials anticipate the city will be able to adhere to the new guidelines and report that the 2009 budget will likely be based on a flat General Fund levy and include the application of approximately $200,000 of reserves. Favorably, the city is not dependent on state aid and relies primarily on property tax revenues, which comprised 67.9% of operating revenues in fiscal 2007. Moody's believes the city's solid finances will continue due to prudent management and the maintenance of healthy reserves that provide significant budgetary flexibility and financial cushion. MATURE AND WEALTHY SUBURB OF THE TWIN CITIES Located about 15 miles west of the Minneapolis (general obligation rated Aa1) /St. Paul (Aa2) region along the southern shore of Lake Minnetonka, Shorewood is a mature bedroom community with limited available land for taxbase growth. City officials report most of the taxbase's average annual growth of 10.8% in recent years is due to natural appreciation of existing properties and the replacement of older residential properties with larger, more valuable, homes - particularly along the lakefront. Moody's believes the taxbase will continue to grow, though at a more moderated pace, due to the City's desirable lakefront location and proximity to the Twin Cities. The city displays very strong wealth indices with per capita income of 191.5% of state average and median family income of 183% of state average (census 2000). For a residential taxbase, full value per capita is very healthy at $244,018, and the City's fiscal 2007 full valuation is over $1.8 billion. AVERAGE DEBT BURDEN AND LIMITED CAPITAL NEEDS Moody's expects the city's average overall debt burden of 2.3% (1.2% direct) to remain manageable moving forward due to the city's limited future borrowing needs and continued tax base growth. Although all of the city's general obligation debt is supported by water revenues, the percentage of expenditures dedicated to debt service for fiscal year 2007 was above average at approximately 24% due to amount of lease rental backed debt. Payout of outstanding obligations is below average with 57.6% of principal retired in ten years. Officials report the city does not plans to issue any additional debt over the near to medium -term. KEY STATISTICS 2007 Population (estimate): 7,490 2007 Full Valuation: $1.8 billion 2007 Full Value per Capita (estimated): $244,018 Direct debt burden: 1.2% Overall debt burden: 2.3% Payout of principal (10 years): 57.6% Fiscal 2007 General Fund Balance: $3.76 million (73.2% of General Fund revenues) Hennepin County Unemployment Rate (May 2008): 4.6% 2000 Per Capita Income as a % of State: 191.5% (205.8% of US) 2000 Median Family Income as a % of State: 183% (208% of US) Analysts Molly Shellhorn Analyst Public Finance Group Moody's Investors Service 83 Rachel Cortez Backup Analyst Public Finance Group Moody's Investors Service Contacts Journalists: (212) 553 -0376 Research Clients: (212) 553 -1653 © Copyright 2008, Moody's Investors Service, Inc. and /or its licensors including Moody's Assurance Company, Inc. (together, "MOODY'S "). All rights reserved. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY COPYRIGHT LAW AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, such information is provided "as is" without warranty of any kind and MOODY'S, in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information. Under no circumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency within or outside the control of MOODY'S or any of its directors, officers, employees.or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any such information, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever (including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages, resulting from the use of or inability to use, any such information. The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER. Each rating or other opinion must be weighed solely as one factor in any investment decision made by or on behalf of any user of the information contained herein, and each such user must accordingly make its own study and evaluation of each security and of each issuer and guarantor of, and each provider of credit support for, each security that it may consider purchasing, holding or selling. MOODY'S hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MOODY'S have, prior to assignment of any rating, agreed to pay to MOODY'S for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,400,000. Moody's Corporation (MCO) and its wholly -owned credit rating agency subsidiary, Moody's Investors Service (MIS), also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5 %, is posted annually on Moody's website at www.moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy." 84 CAPITAL PROJECT FUNDS Capital Project funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Public Facilities - This fund was established to account for various capital improvement facility projects that may be financed without the need to issue bonds. Technolop_y /Office Equipment Fund - This fund accounts for technology enhancements and other technology capital improvements. Park Capital Improvement Fund - This fund accounts for parkland acquisition and other capital improvements in the City parks. Equipment Replacement Fund - This fund was established for the purpose of funding the replacement of capital equipment. Street Reconstruction Fund - This fund was established for the purpose of funding the periodic reconstruction of City streets and roadways. MSA Road Reconstruction Fund - This fund was established to account for the accumulation of Municipal State Aid (MSA) to fund the periodic reconstruction of MSA designated roads. EDA City Hall Improvement Proiect Fund — This fund was established to account for the construction of the addition and renovation to the City Hall building. CAPITAL IMPROVEMENTS FISCAL POLICY GENERAL POLICY Shorewood's Capital Improvements Program reflects an assessment of the community's needs and its ability to pay for major improvements. It is founded on the policy that reinvestment required for replacement, maintenance, or the increased efficiency of existing systems shall have priority over investments for expansion of existing systems or the provision of new services. FUNDING PRIORITIES Capital spending proposals will generally be funded on the following priority basis: 1. Those projects necessary for contributing to the public health and welfare. 2. Those projects which will help to maintain an existing system. 3. Those projects that will make an existing system more efficient. 4. Those projects representing the expansion of an existing system for new service or completely new public facility or service. FUNDING PRINCIPLES As a result, the following principles shall govern the implementation of the recommended Capital Improvements Program: 1. The City will make all capital improvements in accordance with the adopted Capital Improvements Program. 2. The City will develop a multi -year plan for Capital Improvements and update it annually. 3. The City will coordinate development of the Capital Improvements Program with development of the annual operating budget. Future optional costs associated with new capital improvements will be projected and included in operation budget forecasts. City of Shorewood, Minnesota Capital lmprovenieW Pr - Oal_a771 2008 thnl 2012 PROJECTS BY DEPARTMENT Department Project# Priority 2005 2009 2010 2011 2012 Total qipment Replacement Speed Awareness Display E -08 -51 n/a 10,000 10,000 Dump Truck - Ford L8000 (1988) E -09 -01 nla 172,000 172,000 Dump 1 ton - 4 x 2 Ford F -350 E -09 -02 n/a 51,067 51,067 Sanders E -09 -03 nla 18,000 18,000 Pickup -4 x 4 Ford F350 E -09 -04 nla 39,719 39,719 Attach - Flail side mower Ag Tractor E -09 -05 nla 22,000 22,000 Sweeper - Tennant 240 E -10 -01 n/a 22,000 22,000 Tractor - Ford 3910 E -10 -35 n/a 39,094 39,094 Trailer 12' Tops E -10 -41 n/a 3,458 3,458 Groundsmaster Mower - Toro 328D E -10 -57 n/a 26,314 26,314 Dump Truck -Ford L8000 (1995) E -10 -68 n/a 168,000 168,000 Mower - Toro Walk Behind 44 E -10 -73 n/a 3,308 3,308 Ford 555 Backhoe E -11 -01 n/a 85,000 85,000 Flatbed - 4 x 2 Ford F350 E -11 -02 n/a 51,800 51,800 Add Wing Plow E -11 -03 nla 20,000 20,000 Trailer 24' - Trail King E -11 -21 n/a 23,111 23,111 Air Compressor - Ingersoll Rand 185 E -11 -38 n/a 17,453 17,453 Skid Steer -Bobcat 753 E -11 -76 n/a 28,450 28,450 Sand Pro 3000 E -11 -77 n/a 13,548 13,548 Mower - Toro Groundmaster 328D (84) E -12 -03 nla 29,566 29,566 Dump Truck - Ford E -12 -04 n/a 182,464 182,464 Attach - Flail rear mower Ag tractor E -12 -05 nla 1 D,813 10,813 Equipment Replacement Total 10,000 302,786 262,174 239,362 222,843 1,037,165 ( Local Street Re construction Harding Lane LR -09 -01 1 650,500 650,500 Smithtown Lane LR -09 -02 1 199,700 199,700 Nelsine Drive LR -10 -03 1 354,750 354,750 Meadowview Road LR -10-04 1 347,900 347,900 Star Roads LR -12 -03 1 623,700 623,700 Maintenance- Bituminous Sealcoating LR -12 -100 nla 194,400 204,200 214,400 225,100 236,300 1,074,400 Maintenance- Bituminous Overlays LR -12 -99 nla 155,700 163,500 171,600 180,200 189,200 860,200 Local Street Reconstruction Total 350,100 1,217,900 1,088,650 405,300 1,049,200 4,111,150 Municipal Stat Aid Streets Vine Hill Road: Mill & Overlay (Shorewood portion) MSA -03 -05 1 4,569,200 4,569,200 Municipal State Aid Streets Total 4,569,200 4,569,200 Municipal Wa ter System Amesbury Well Controls Replacement W -07 -03 n/a 145,000 145,000 Department Project# Priority 2008 2009 2010 2011 2012 Total Water Meter Radio Read Project W -07 -05 n/a 75,000 125,000 200,000 SE Area Water Tower - painting W -08 -01 n/a 457,000 457,000 Amesbury Lineshaft Well - Pull & Inspect W -08 -02 n/a 23,000 23,000 Woodhaven Well Bldg Demolition W -08 -03 nla 18,000 18,000 Boulder Bridge Well #2 - Pull & Inspect W -09 -01 n/a 24,000 24,000 Municipal Water System Total 718,000 149,000 867,000 Parks Badger Park - Hockey Rink Lights P -07 -01 We 50,000 50,000 Cathcart Park - Resurface tennis Courts P -08 -03 n/a 6,000 6,000 Freeman Park- Picnic Shelter Rehab P -09 -02 n/a 3,000 3,000 Manor Park - Resurface Tennis Courts P -09 -03 nia 6,000 6,000 Manor Park Shelter Building Addition P -09 -04 n/a 50,000 50,000 Silverwood Park - Picnic Shelter Canopy P -09 -06 nla 50,000 50,000 Silverwood Park Resurface 1/2 - Basketball Court P -09 -07 n/a 2,000 2,000 Signage - Various parks & entry points P -09 -09 n/a 30,000 30,000 Silverwood Park- Bituminous Parking Lot P -10 -01 n/a 18,000 18,000 Freeman Park - Wetland Enhancement P -11 -02 n/a 500,000 500,000 Badger Park- Tennis Court Resurface P -11 -03 n/a 12,000 12,000 Cathcart Park -Swing Set Replacement P -11 -04 n/a 2,500 2,500 Cathcart Park - Picnic Shelter Canopy P -11 -05 nla 50,000 50,000 Cathcart Park - Replace Hockey Rink Lights P42 -01 nla 50,000 50,000 Parks Total 50,000 147,000 18,000 564,500 50,000 829,500 f Public Facil City Hall Renovation Project - Construction PF -08 -02 1 800,000 385,000 1,185,000 City Hall Renovation Project - Furnishings PF -08 -03 2 75,000 75,000 5795 Country Club - Residence PF -09 -01 n/a 5,000 5,000 Public Facilities Total 800,000 465,000 1,265,000 Sanitary Sew Lift Station 12 Rehab -5705 Christmas Lake Pt. SS -08 -01 n/a 110,000 110,000 Lift Station 16 Rehab -4915 Shady Island Rd SS -08 -02 n/a 104,000 104,000 Portable Lift Station Control Panel SS -08 -03 nla 7,000 7,000 Lift Station 15 Rehab-4360 Enchanted Dr. SS -08 -06 n/a 200,000 100,000 Lift Station 17 Rehab -5295 Shady Island Rd SS -09 -01 n/a 8,000 70,000 78,000 Annual Lift Station Inspect & Rehab SS -11 -03 n/a 25,000 25,000 25,000 25,000 25,000 125,000 Infiltration and Inflow Reduction SS -11 -05 n/a 50,000 50,000 50,000 50,000 50,000 250,000 Sanitary Sewer Total 296,000 283,000 145,000 75,000 75,600 874,000 L Stormwater Managemen Harding Lane Drainage STM -09 -01 1 97,000 97,000 Lake Mary Outlet STM -09 -02 1 457,000 457,000 Smithtown Lane STM -09 -03 1 60,000 60,000 Meadowview Rd Storm STM -10 -01 1 20,000 10,000 Nelsine Dr Drainage STM -10 -02 1 16,000 16,000 6180 Murray Drainage STM -10 -03 1 36,000 36,000 5925 Grant Drainage STM -10 -04 1 49,000 49,000 Vine Hill Road Stormwater STM -11 -01 1 556,000 556,000 Boulder Bridge Lift Station STM -12 -01 1 243,000 243,000 Department Project# Priority 2008 2009 2010 2011 2012 Total Star Roads Stcrmwater STM -12 -02 1 89,000 89,000 Stratford PI Drainage STM -12 -03 1 30,000 30,000 Rampart Ct. Drainage STM -12 -04 1 8,000 8,000 Lake South Auto Drainage STM -12 -05 1 21,000 21,000 5830 Echo Rd Drainage STM -12 -06 1 33,000 33,000 6180 Chaska Rd Drainage STM -12 -07 1 4,000 4,000 Valleywood Rd, Drainage STM -19 -03 1 45,000 45,000 Stormwater Management Total 614,000 121,000 556,000 473,000 1,764,000 ( Technology /O ffice Equip Phone System (VOIP or other) - City Hall Project T -09 -01 1 50,000 50,000 City Hall Copier & Maintenance Contract T -09 -02 n/a 20,000 20,000 Computer Upgrades T -11 -06 3 10,000 10,000 10,000 10,000 10,000 50,000 Technology /Office Equip Total 10,000 60,000 30,000 10,000 10,000 120,000 GRAND TOTAL 2,234,100 3,238,686 1,664,824 6,419,362 1,880,043 15,437,015 [o eJ x ,.. s,� tom' � ;�✓ � � �tL'� .r +u t u a gA RE iwX Y 90 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the costs of providing services to the general public are financed primarily through user charges. Water Debt Service Fund - This fund is used to account for accumulation of funds for, and payment of, debt service for the City water system. Water Operations Fund - This fund is used to account for the activities of the City water system. Sewer Fund - This fund is used to account for the activities of the City sanitary sewer system. Recycling Fund - This fund is used to account for the activities of the City recycling program. Stormwater Management Utility Fund - This fund is used to account for the activities of the City Stormwater Management system. 91 FUND: Water SUBFUND: Water Debt Service FUND NO: 601 MISSION: To provide for the retirement of debt incurred to construct water system improvements. DESCRIPTION OF ACTIVITY: Responsible for the accumulation of resources for the retirement of Water Fund debt, and for the periodic payment of principal and interest. OBJECTIVES: To assure adequate resources to retire debt as scheduled, or more quickly if prudent. HIGHLIGHTS /COMMENTS: Revenues: Special Assessments on Water Improvements Connection Charges Interest Income Transfers from Water Operating Fund Expenses: Staffing: Supplies/Materials: Support Services: Charges & Fees: Capital Outlay: Other: Debt service payments - Principal and interest Fiscal Agent Fees M FUND: #601 FUND: Water - Debt Service DEPT # 49400 BUDGET Actual Actual Budget YTD Oct Proposed Adopted ITEM 2006 2007 2008 2008 2009 2009 REVENUE Sp Assess /Connect Chgs Misc. Revenue Transfers 663,633 61,926 0 96,710 91,387 0 105,000 40,000 260,000 88,066 45,608 0 90,000 40,000 260,000 90,000 40,000 260,000 TOTAL REVENUE 725,559 188,096 405,000 133,675 390,000 390,000 EXPENSES 687,641 1,039,245 800,291 800,291 817,291 817,291 Staffing 0 0 0 0 0 0 Supplies /Materials 0 0 0 0 0 0 Support Services 0 0 0 0 0 0 Charges & Fees 0 0 0 0 0 0 Other- Debt Service 373,955 427,050 388,000 319,874 381,500 381,500 Capital Outlay 0 0 0 0 0 0 Transfers 0 0 0 0 0 0 TOTAL EXPENSES 373,955 427,050 388,000 319,874 381,500 381,500 SERVICE INDICATORS Outstanding Debt, Year End 3,920,000 3,665,000 3,415,000 3,415,000 3,165,000 3,165,000 CASH FLOW IMPACT: Beginning Cash Balance 687,641 1,039,245 800,291 800,291 817,291 817,291 Revenues 725,559 188,096 405,000 133,675 390,000 390,000 Expenditures (373,955) (427,050) (388,000) (319,874) (381,500) (381,500) Ending Cash Balance 1,039,245 800,291 817,291 614,092 825,791 825,791 STAFFING: 93 FUND: Water SUBFUND: Water Operations FUND NO: 601 MISSION: To provide a safe, clean, unintemrpted supply of drinking water to all City residents connected to the City water system. DESCRIPTION OF ACTIVITY: Responsible for operation and maintenance of six (6) well systems, including all pumps and well houses, maintenance of water towers and treatment plant, and extension of new watermain and construction of new water facilities, as necessary. OBJECTIVES: - Supply a safe, clean uninterrupted source of water to all connections - Explore possibility of interconnecting with other communities HIGHLIGHTS /COMMENTS: Revenues: Estimated water sales based on the current quarterly billing at a tiered rate of $2.95 - $3.75/1,000 gallons Connection and permit revenues Miscellaneous Income includes interest income and Cellular Antenna Space Rentals Expenses: Staffing: .15 Dir of Public Wks .25 Engineering Technician .15 Utility Lead Person .53 Utility Operator .I0 Senior Accounting Clerk .05 Receptionist/Secretary Supplies/Materials: Office Supplies, including billing forms and postage Maintenance contracts for computer hardware and software Maintenance of gate valves Small tools and chemicals for water treatment Support Services & Charges: Engineering Water Operations Licenses & Training Insurance on water system Water testing & Water Quality Reporting Capital Outlay: Radio Read Meter project - ($125,000 - 2009) Boulder Bridge Well #2 - Pull & Inspect ($24,000 - 2009) Other: Water Purchased from other communities Meter purchases Well utility charges Transfers to Water Debt Service Fund Depreciation (Non -cash expense accounts for future system replacement) 94 FUND: #601 FUND: Water Operations DEPT # 49400 BUDGET Actual Actual Budget YTD Oct Proposed Adopted $S % ITEM 2006 2007 2008 2008 2009 2009 Cha Change REVENUE Charges for Service 585,112 666,897 583,500 494,760 677,000 677,000 93,500 16.02% Bond Proceeds 1,402,585 396 0 0 0 0 0 0.00% Misc. Revenue 163,218 193,008 130,000 87,460 145,000 145,000 15,000 11.54% TOTAL REVENUE 2,150,915 EXPENSES Staffing 75,163 86,677 109,659 Supplies/Materials 53,323 52,757 76,625 Support Services & Charges 94,756 123,233 96,425 Capital Outlay 0 0 494,000 Transfers 0 310,000 260,000 Depreci 184,105 201,790 185,000 77,566 100,029 100,029 (9,(130) -8.78% 29,908 71,350 71,350 (5,275) -6.88% 90,907 100,100 100,100 3,675 3.81% 199,386 149,000 149,000 (345,000) - 69.84% 0 260,000 260,000 0 0.00% 175,204 202,000 202,000 17,000 9.19% TOTAL EXPENSES 407,348 774,456 1,221,709 572,970 882,479 88 2,479 (339.230) - 27.77% SERVICE INDICATORS: Miles of Water Line 16 16 16 16 16 16 No. of Connections 1,252 1,285 1,285 1,285 1,285 1,285 No. of Hydrants 272 280 280 280 280 280 Annual Gals Wtr Pumped* 175,000,000 188,509,000 188,509,000 Pending Pending Pending Avg Daily Consump- gals 479,452 516,463 516,463 Pending Pending Pending Water rate/1000 gals 2.95/3.75 2.95/3.75 2.95/3.75 2.95/3.75 2.95/3.75 2.95/3.75 CASH FLOW IMPACT: Beginning Cash Balance 2,356,223 2,693,608 2,939,760 2,939,760 2,616,551 2,616,551 Revenues 2,150,915 860,301 713,500 582,219 822,000 822,000 Expenditures (407,348) (774,456) (1,221,709) (572,970) (882,479) (882,479) Depreciation 184,105 201,790 185,000 175,204 202,000 202,000 Construction of Infrastructure - Other Cash Flow Impacts (1,590,288) (41,482) 0 0 0 0 Ending Cash Balance 2,693,608 2,939,760 2,616,551 3,124,213 2,758,072 2,758,072 STAFFING: Dir. of Public Wks - - .15 .15 .15 .15 City Engineer - - - - - - Engineer Technician .08 .25 .25 .25 .25 .25 Utility Lead Person .14 - .15 .15 .15 .15 Utility Operator .77 1.15 .75 .75 .53 .53 Acctg. Clerk .085 .125 .06 .10 .10 .10 Sec. /Recep. .100 .10 .05 .05 .05 .05 * Source: Annual DNR reports 860,301 713,500 582,219 822,000 822,000 108,500 15.21% 95 FUND: Sanitary Sewer SUBFUND: Sanitary Sewer DEPT NO: 611 MISSION: To provide a safe, sanitary sewer service to all City residents DESCRIPTION OF ACTIVITY: Major activities include maintenance of fourteen (14) lift stations, and cleaning, televising and repairing sewer mains to control inflow and infiltration. Sewage treatment is performed by Metropolitan Council Environmental Services (MCES) and is provided for in this area. OBJECTIVES: - Work with MCES to monitor inflow and infiltration into the sanitary sewer system - Refurbish two lift stations per year HIGHLIGHTS /COMMENTS: Revenues: Quarterly Sewer service charges at $70.00 per quarter Interest revenue from investment of Sewer Fund cash balances Repayment of Interfund Loans Expenses Staffing: .15 Dir of Public Wks .25 Engineering Technician .10 Utility Lead Person .53 Utility Operator .10 Senior Accounting Clerk .05 Receptionist/Secretary Supplies/Materials: Office Supplies, including billing forms and postage Maintenance contracts for computer hardware and software Support Services: Sewer Main Cleaning Inflow & Infiltration Control Insurance on sewer system Utilities Travel & seminars Charges & Fees: Charges for sewage flow into City of Excelsior trunk mains Metropolitan Council Environmental Services sewage treatment charges - per MCES Capital Outlay: Refurbish Lift Stations 15 (construction stage) & L.S. 17 (design stage) - 2009 Inflow & Infiltration Reduction Transfers In (2009): Debt Service to Sewer Fund: Residential Property purchase by Genl Fnd($60,000) & Stormwater Fund ($65,000) Transfers Out (2009): Internal Loan to Stormwater Fund ($300,000 - 2009) Depreciation (Non -cash expense accounts for future system replacement) W FUND: # 611 FUND: Sanitary Sewer DEPT # 49450 BUDGET Actual Actual Budget YTD Oct Proposed Adopted $S % ITEM 2006 2007 2008 2008 2009 2009 Change Change REVENUE 65 65 65 65 65 2,824 2,824 2,824 2,824 Charges for Service 991,659 1,046,199 950,500 698,931 937,550 937,550 (12,90) -1.36% Transfers 0 112,500 60,000 0 125,00 125,000 65,000 108.33% TOTAL REVENUES 991,659 1,158,699 1,010,500 698,931 1,062,550 1,062,550 52,050 5.15% (1,959) 11,703 - - - - Ending Cash Balance 3,958,626 EXPENSES 4,354,941 4,263,426 4,093,037 4,093,037 Staffing 46,260 85,257 90,236 70,560 94,638 94,638 4,402 4.88% Supplies/Materials 17,864 11,559 14,100 6,660 30,600 30,600 16,500 117.02% Support Services & Charges 517,448 645,152 639,282 538,512 641,216 641,216 1,934 0.30% Capital Outlay 0 0 299,000 206,833 258,000 258,000 (41.000) - 13.71% Transfers 0 0 0 0 300,000 300,000 300,000 0.00% Depreciation 204,064 210,138 205,000 160,01 205,0 205,000 0 0.00% TOTAL EXPENSES 785,636 952,107 1,247,618 982,578 1,529,454 1,5 2 9, 454 281,83 22. 59% SERVICE INDICATORS: Miles of Sewer Line No. of Connections No. of Lift Stations Flow (Mill. Gals.) 7/1 - 6/30 65 65 65 65 65 65 2,824 2,824 2,824 2,824 2,830 2,830 14 14 14 14 14 14 299.52 375.81 322.89 328.46 N/A CASH FLOW IMPACT: - .15 .15 .15 .15 .13 Beginning Cash Balance 3,550,499 3,958,626 4,387,059 4,387,059 4,354,941 4,354,941 Revenues 991,659 1,158,699 1,010,500 698,931 1,062,550 1,062,550 Expenditures (785,636) (952,107) (1,247,618) (982,578) (1,529,454) (1,529,454) Depreciation 204,064 210,138 205,000 160,014 205,000 205,000 Other Cash Flow Impacts (1,959) 11,703 - - - - Ending Cash Balance 3,958,626 4,387,059 4,354,941 4,263,426 4,093,037 4,093,037 STAFFING: Dir of Public Wks Engineer. Technician Utility Lead Utility Operator Sr. Acctg. Clerk Receptionist/Secretary - - .15 .15 .15 .15 .13 .25 .25 .25 .25 .25 .07 .25 .10 .10 .10 .10 .29 .67 .53 .53 .53 .53 .087 .025 .10 .10 .10 .10 .12 .05 .05 .05 .05 .05 97 FUND: Recycling MISSION: To provide weekly pickup of recyclables SUBFUND: Recycling to all City residents; provide for the annual City Clean -up activities FUNDNO: 621 DESCRIPTION OF ACTIVITY: Weekly pick -up of newspaper, corrugated cardboard, recyclable plastics, glass and metal, and other recyclable materials. Includes annual City community clean -up at a drop -off site. OBJECTIVES: Continue weekly pickup of recyclable materials - Hold City community clean -up in the Spring of the year - Provide a leaf and yard waste disposal site in Fall of the year HIGHLIGHTS /COMMENTS: Revenues: County Aid is a Hennepin County grant Charges for Service includes City Clean -up fees and a City Recycling Fee of $1.75 per month per household Tranfers /other includes transfers, interest income and revenue sharing from the Recycling Contractor Expenses: Staffing: Miscellaneous staffing for City Clean -up and Yardwaste Disposal Supplies/Materials: Office Supplies Support Services: Recycling contract with Veolia Recycling ($2.50/household/month for 2,800 households - 2009) City Clean -up costs (Est. $10,000 - 2009) FUND: #621 FUND: Recycling DEPT # 49550 BUDGET Actual Actual Budget YTD Oct Proposed Adopted $$ % ITEM 2006 2007 2008 2008 2009 2009 Ch Change REVENUE County Aid 20,971 20,631 21,000 0 21,000 21,000 0 0.00% Charges for Service 123,383 68,928 74,000 46,057 61,000 61,000 (13.000) - 17.57% Misc Revenue 2,738 4,536 2,450 2,749 2,450 2,450 0 0.00% TOTAL REVENUE & 147,092 94,095 97,450 48,806 84,450 84,450 (13.000) - 13.34% OTHER SOURCES EXPENSES Staffing 0 0 0 1,110 0 0 0 0.00% Supplies/Materials 164 0 500 1,421 500 500 0 0.00% Support Services & Charges 124,189 91,157 99,175 80,429 94,175 94,175 (5,00()) -5.04% Capital Outlay 0 0 0 0 0 0 0 0.00% Transfers 0 0 0 0 0 0 0 0.00% TOTAL EXPENSES 124,354 91,157 99,675 82,959 94,675 94,6 (5,0 -5.49% SERVICE INDICATORS: Est. Avg. mo. Participant Hshlds 1,100 1,100 1,100 1,100 1,100 1,100 Avg. mo. Tonnage* 90 77 - 67 90 90 CASH FLOW IMPACT: Beginning Cash Balance 61,905 83,554 94,646 94,646 92,421 92,421 Revenues 147,092 94,095 97,450 48,806 84,450 84,450 Expenditures (124,354) (91,157) (99,675) (82,959) (94,675) (94,675) Other Cash Flow Impacts (1,090) 8,155 Ending Cash Balance 83,554 94,646 92,421 60,493 82,196 82,196 * Annual Recycling Tonnage Reported: 2001 - 965 tons 2002- 1,008 tons 2003- 1,206 tons 2004- 1,093 tons 2005- 762 tons 2006- 897 tons 2007- 919 tons 2008 - YTD 666 tons FUND: Stormwater Management MISSION: To provide proper surface water and SUBFUND: Stormwater Management ground water management throughout the City. FUND NO: 631 DESCRIPTION OF ACTIVITY: Activities include maintenance of storm sewer system, including cleaning of catch basins, dredging of drainage ditches and retention ponds, and minor repairs to system problem areas. Provides partial funding for larger subwatershed drainage projects. OBJECTIVES: - To manage and maintain stomtwater and comply with the SWPPP (Storm Water Pollution Prevention Program) and NPDES (National Pollutant Discharge Elimination System) mandates. HIGHLIGHTS /COMMENTS: Revenues: Stormwater Management Utility Charges - The current residential rate is approximately $15 per quarter. Misc. Revenue includes interest income and other misc. revenue Internal Loan from Sewer Fund for 2009 CIP items ($300,000). Repayment over a 5 -year period beginning 2009. Expenses: Staffing: .15 Dir of Pub Wks .05 City Engineer .25 Engineer Technician .05 Senior Accounting Clerk .22 Utility Maintenance Operators Supplies/Materials: Drainage Correction/Maintenance Materials Support Services: Engineering Contractual Services for drainage correction Contractual Services Debt Service: Annual debt service to repay internal loan from Sewer Fund for CIP items (2009) Capital Outlay: $614,000 budgeted in 2009 for Lake Mary, Harding Lane, & Smithtown Lane Road Construction 100 FUND: #631 FUND: Stormwater Management Utility BUDGET Actual Actual ITEM 2006 2007 Budget 2008 YTD Oct 2008 DEPT # 49600 Proposed Adopted 2009 2 009 $S C hange % C hange REVENUE 36.55% 1,871 750 6,700 7,053 8,800 8,800 2,100 Grant Proceeds 0 0 0 4,748 0 0 0 0.00% Special Assessments 0 0 0 0 0 0 0 0.00% Charges for Service 69,177 164,347 218,000 145,885 218,000 218,000 0 0.00% Misc. Revenue 72,323 14,579 10,000 9,380 10,000 10,000 0 0.00% Transfers /Internal Loans 25,000 41,049 0 0 300,000 300,000 300,000 #DIV/0! TOTAL REVENUE & OTHER SOURCES EXPENSES Staffing Supplies/Materials Support Services Charges & Fees Other - Debt Service Capital Outlay Transfers Depreciation TOTAL EXPENSES 166,500 219,975 228,000 160,012 528,000 528,00 300,000 131.58% 10,193 26,707 47,880 11,979 65,381 65,381 17,501 36.55% 1,871 750 6,700 7,053 8,800 8,800 2,100 31.34% 42,733 14,132 59,100 54,752 8,600 8,600 (50,500) - 85.45% 0 0 0 0 0 0 0 0.00% 4,438 2,466 0 0 65,000 65,000 65,000 0.00% 90,056 0 100,000 0 614,000 614,000 514,000 0.00% 0 52,500 0 0 0 0 0 0.00% 19,833 19,833 20,000 14,875 20,000 2 0,000 0 0.00% 169,125 116,387 233,680 88,658 781,781 781,78 548,101 234.55% CASH FLOW IMPACT: Beginning Cash Balance 300,316 275,950 322,116 322,116 336,436 336,436 Revenues 166,500 219,975 228,000 160,012 528,000 528,000 Expenditures (169,125) (116,387) (233,680) (88,658) (781,781) (781,781) Depreciation 19,833 19,833 20,000 14,875 20,000 20,000 Other Cash Flow Impacts (41,574) (77,255) 0 0 0 0 Ending Cash Balance 275,950 322,116 336,436 408,345 102,655 102,655 STAFFING: Dir of.Ptlb Wks - 0.0 .15 .15 City Engineer - .045 .05 .05 Engineer Technician .07 - .21 .25 .25 Utility Maint. Ops. /Foreman .00 .10 .10 .0 .22 .22 Sr. Acctg. Clerk .085 .05 .05 .05 .05 .05 101 d mo ......_ t '�n R �%- R Y �5 i 4.'� a1 � rt 0 S,'S:�'^w"�,a• � '� t w }_.� dvyu+- "_.`a`a "a.S�3d�. 'CA ^a. n �d` pis 102 GLOSSARY ALLOCATED Distribute costs between reporting divisions or funds. APPROPRIATION A grant of money by a legislative body to carry out a governmental function or program. BOND ISSUE A security representing a long -term promise to pay a certain sum of money at specified times with a fixed rate of interest payable to the holder. BOND REFERENDUM An election for a bond issue. BUDGET (1) A statement describing the revenues and expenditures of all governmental units, and (2) a mechanism for controlling, managing, planning and evaluating the activities of each governmental unit. CAPITAL ASSET Assets of significant value and having a useful life of several years; also called fixed assets. CAPITAL OUTLAY Expenditures for the acquisition of capital assets. CAPITAL PROJECTS Funds used to account for activity of capital projects FUND and equipment initiated or purchased by the City. COMMUNITY A federal grant program intended for community DEVELOPMENT development, rehabilitation and other public purposes BLOCK GRANT purposes that enhance the community. COMPARABLE Mandated by State law; a system which establishes the value of jobs WORTH by weighting tasks performed on a point scale. Ensures comparable wages for jobs within a comparable point range within the jurisdiction. CONTRACTUAL A legally binding document that provides both parties perform specific duties. COMPREHENSIVE A comprehensive short-range and long -range plan intended to guide the PLAN growth and development of a community, and one that includes analysis, recommendations, and proposals for the community's population, economy, housing, transportation, community facilities, and land use. DEBT LEVY A tax collected to pay for bonds issued. DEBT SERVICE Established to account for the accumulation of financial sources for the FUND payment of principal and interest on debt incurred by the City. Debt incurred for improvements of an enterprise are accounted for in the appropriate enterprise fund. 103 ENTERPRISE FUND Established to account for operations that are financed and managed in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. EXPENDITURE The amount of cash or property paid, or to be paid, for a service rendered, goods received, or an asset purchased. FISCAL DISPARITIES A metropolitan program that distributes a percentage of property tax revenue from new commercial and industrial development to all metropolitan communities. FUND A fiscal and accounting entity with a self - balance set of accounts that are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE The residual balance resulting from all fiscal activity within a fund which is available for appropriation. FUND EQUITY The residual balance, reserved and unreserved, resulting from all fiscal activity within a fund. GASB 34 The governmental financial reporting model for state and local governments issued by the Governmental Accounting standards Board (GASB) as Statement No. 34. GENERAL FUND Used to account for all financial resources except those required to be accounted for in another fund. The General Fund includes most operating functions of City government. GOAL A statement of broad direction, purpose, or intent based on the needs of the community. A goal is general and timeless; that is, it is not concerned with a specific achievement in a given time period. GRANT A contribution or gift of cash or other assets from another government to be used or expended for a specified purpose, activity or facility. HOMESTEAD AND State of Minnesota program that distributed revenue to cities as a result AGRICULTURAL of state reductions in property taxes collected to keep property taxes CREDIT AID (HACA) at a reasonable level. JOINT POWERS A contract between two or more government jurisdictions to provide AGREEMENT a common service. LEVY LIMITS Statutory restriction on amount of property tax that may be levied. MUNICIPAL STATE State of Minnesota program which provides for the distribution of AID PROGRAM (MSA) of highway user funds to qualifying cities over a population of 5,000. Funds are appropriated annually for construction and maintenance of MSA streets and roads. 104 MUNICIPAL STATE Designated by the City to be eligible for Municipal State Aid payments AID STREETS (MSA) for construction and maintenance of collector streets and roads. OBJECTIVE Desired output which can be measured and achieved within a given time period. ORDINANCE A municipal law. SPECIAL A cost paid by landowners for specific improvements to their property ASSESSMENT that adds at least as much value and benefit as the amount of the special assessment. TAX INCREMENT The additional, or incremental, property taxes collected within a tax increment district. Increments are the difference between the taxes collected on the total value of the district and the taxes collected on the original value of the district. Increments include taxes levied by all taxing jurisdictions. TAX LEVY The total amount of dollars assessed in taxes against property for the purpose of producing funds to meet financial obligations. TAXING A geographic area within which it is permitted to tax landowners. JURISDICTION TRANSFERS Money moved from one fund to another with City Council authorization. TRUTH -IN- State law that provides residents notice of proposed property tax changes TAXATION through public hearings and newspaper publications. ZONING Regulation of land use by districts ensuring that certain land uses are compatible. 105 . V "IM 4D 106