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08-09-2021 CC WS MinutesCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS MONDAY, AUGUST 9, 2021 6:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 6:00 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers Johnson, Labadie, Siakel, Gorham, and Callies; City Administrator Lerud; Finance Director Rigdon; Planning Director Darling; Director of Public Works Brown; and, City Engineer Budde Absent: None B. Review Agenda Siakel moved, Gorham seconded, approving the agenda as presented. Motion passed 5/0. 2. 2022 BUDGET Finance Director Rigdon gave a brief overview of the preliminary budget and explained that it is subject to change. This preliminary budget and levy will be adopted by the end of September 2021. Staff is proposing a 4.5% increase in expenditures and noted that this excludes transfers out. He reviewed the personnel -related assumptions, including no new employees being budgeted for 2022, a cost of living adjustment proposed at 3%, and a health insurance premium increase of 6%. He reviewed the expenditures and transfers out in public safety, general government, streets, and parks and recreation. He stated that there was a use of reserves in 2021 but that is not expected to occur in 2022 with a structurally balanced budget. He explained that the overall levy is looking at a 2.9% increase. He reviewed details about the Shorewood Community and Event Center funding, the Enterprise Funds, and the property tax levy. He reviewed the graph representations for the taxable market value, tax capacity, property tax levy, and City local tax capacity rate. He stated that staff is looking for feedback from the Council on the budget and would also like to discuss the American Recovery Plan Action money. Councilmember Callies asked about the tax levy and asked if it will say on the statement the different percentages that go towards the different things, such as parks. Finance Director Rigdon clarified that it will not outline those details on the statement, but there will just be a notice that will state the change from 2021 to 2022 and will show the County levy, the school district levy, and the City levy, but will not break it down into parks and streets. He stated that it is done internally but noted that there are forms that are submitted to Hennepin County because they disseminate the funds. Councilmember Siakel stated that she thinks the amount proposed for the levy is appropriate and thinks the City provides incredible value in what is provided for the residents. She stated that the City does not assess for the roads, so there is a lot that a resident of the City gets. She CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES AUGUST 9, 2021 Page 2 of 3 commended Finance Director Rigdon for his work and thinks the Council has been a very good steward of the public dollars. Mayor Labadie and Councilmember Johnson stated that they both supported the proposed 2.9% levy increase. Councilmember Johnson stated that he would even support a slight increase in this amount if there was something worthy for the money to be spent on. Councilmember Siakel stated that from whatever is approved in September, the Council can go down, but cannot go up and suggested that a 3% or a bit more of an increase would be a bad idea. Councilmember Johnson stated that he was thinking perhaps 3.2% of 3.3% which he still believes is a very small increase. Councilmember Callies stated that when you look at the actual dollar amounts, the impact on property owners is pretty small. Councilmember Gorham stated that he would support that. Councilmember Siakel stated that she didn't think it was a bad idea. Councilmember Johnson suggested that the Council go with a 3.3% increase in the levy. There was consensus of the Council to increase the tax levy by 3.3%. Finance Director Rigdon stated that the City has received half of about $855,000 from the American Recovery Act funds. He explained that there was no rush on using the funds and the City is given until the end of 2024 to commit the money and until the end of 2026 to finalize it. He briefly reviewed the approved list of ways the funds can be used such as invest in water, sewer, and broadband infrastructure. He explained some of the possible options for use of the funds including Covington Road watermain improvement project, replacement of water meters, or furthering broadband access. He reminded the Council that they do not need to make a decision on the use of funds tonight, but could begin discussions. Councilmember Gorham stated that he thinks the City may be able to move forward with a few of the ideas presented by Finance Director Rigdon. The Council discussed details of the work involved in the permitting process as part of furthering broadband. Councilmember Siakel noted that she feels the Covington Road watermain project is just one of the things that just happens at the City and has to pay for. She explained that, to her, she feels the American Recovery Act funds should be for things above and beyond the usual such as the water meters and the broadband. Councilmember Johnson stated that he had come to the same conclusion but had a different rationale. Councilmember Gorham stated that if there is a cost to add more functionality to the chambers in order to create a hybrid approach to have Zoom and in -person meetings, that may also be a good use of the money. Mayor Labadie stated that she thinks the City is already doing that because the Council meetings can be viewed via Zoom. Councilmember Johnson stated that he would like to hold this conversation when City Attorney Keane is present to ensure that whatever is done follows Minnesota Statute. Mayor Labadie stated that she is also leaning towards support of the water meter replacement program and work to further broadband access. She stated that she thinks that the City may be able to complete a good portion of both of those items. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES AUGUST 9, 2021 Page 3 of 3 Finance Director Rigdon reminded the Council that they do not need to make a decision tonight but staff wanted to get them thinking about possibilities for the funds. Councilmember Callies noted that the City can raise its rates to pay for water projects. Councilmember Siakel suggested that the Council may want to allocate money for the broadband, then the remainder can go towards the water meter program and if anything is left can be allocated to the Water Fund to cover other projects. She asked if there were any there any other unfunded project, such as buckthorn removal in Freeman Park where the funds could be used. She stated that she agreed with Councilmember Callies that the City could just go ahead and raise its rates to pay for the water projects. She stated that she would like to see if there are other things that are out there that the City should consider. Councilmember Callies suggested that this could be something that is discussed at the Council retreat. Public Works Director Brown stated that right now there is new equipment that is being stored outside because they are out of room at their Public Works facility. He stated that they have just started talking about expanding the building in very preliminary terms. Mayor Labadie asked if that would be an appropriate use of these funds. Finance Director Rigdon stated that he did not think it would necessarily qualify. City Administrator Lerud stated that staff can research it more closely in order to be entirely sure that it would not be an option. Mayor Labadie stated that she liked Councilmember Siakel's suggestion that staff take some time to see if there any additional items that could be considered in addition to the three that are listed. 3. ADJOURN Johnson moved, Siakel seconded, Adjourning the City Council Work Session Meeting of August 9, 2021 at 6:46 P.M. Motion passed 5/0. ATTEST: quw (46- Sandie Thone, City Clerk J nif r La adie, Mayor