08-12-24 CC WS MinutesCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS
MONDAY, AUGUST 12, 2024 5:30 P.M.
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION MEETING
Mayor Labadie called the meeting to order at 5:30 P.M.
A. Roll Call
Present. Mayor Labadie; Councilmembers Labadie, Callies, Maddy, Sanschagrin, and
Zerby; City Administrator Nevinski; Parks and Recreation Manager Czech; City
Clerk/HR Director Thone; Planning Director Darling; Director of Public Works
Morreim; City Engineer Budde; and Finance Director Schmuck
Absent: None
B. Review Agenda
Zerby moved, Maddy seconded, approving the agenda as presented. Motion passed 5/0.
2. BUDGET 2025
City Administrator Nevinski stated that this would be the first discussion of the proposed 2025
budget for the City. He introduced Tessa Beuning from Abdo and explained that staff was looking
for feedback from the Council on the proposed budget items. He stated that this would be brought
back before the Council on September 9, 2024, for additional discussion and the preliminary levy
would need to be accepted by the end of September.
Tessa Beuning, Abdo, explained that she had been working with the City for the last eight months
as they have been transitioning to a new Finance Director. She gave an overview of the following
areas: budget assumptions; General Fund Reserve recommendations and policies; General Fund
balance and impact of proposed transfers; reviewed the General Fund Revenue and
Expenditures; reviewed other City funds; property valuations and tax levies; and outlined the
estimated residential and commercial tax impact.
Councilmember Callies asked about the Shorewood Community and Event Center and asked for
the rationale of this now being shown on the levy.
Ms. Beuning stated that they had done that in order to keep it consistent with how the other fund
sources were coming in.
Councilmember Maddy stated that the biggest line item was for Public Safety and asked if they
were working with some older proposed public safety numbers in her report because the
information that was included later in the packet was different than her presentation.
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City Administrator Nevinski explained that the packet had the actual budgets from the
Departments which show their increases and their operations. He stated that what Ms. Beuning
was showing was how the overall Public Safety budgets change, relative to the City's budget.
The Council discussed the schedule and dollar amounts for various equipment replacement plans
as well as water usage projections and differences in years where there are drought conditions.
Councilmember Zerby asked if City staff had a communications plan for getting this information
out to the residents.
City Administrator Nevinski stated that they have put information out on the Finance page of the
website, have put information in the newsletter, and will continue to put additional information on
the website and noted that people can also sign up for e-mails.
Councilmember Zerby suggested that this information be added to the front page of the website.
He asked if Abdo had anything similar to the feedback tools that engineering had used for projects
that made it easy for people to comment on specific projects that would be used to help explain
the budget.
Ms. Beuning stated that they have budget presentations that they can do for residents to help
understand the process but do not have a tool like Councilmember Zerby is describing.
City Administrator Nevinski stated that he appreciated Councilmember Zerby's suggestions and
could try to add some of them to the process.
Councilmember Callies asked what someone would click on the website for the budget
information.
City Administrator Nevinski explained that you would start by clicking on Government, then City
Departments, then Finance, and finally the tab that says City Budget.
Councilmember Zerby stated that was a lot of places to click in order for people to find the budget
information and suggested that they find a way to reduce that in order to make it easier for
residents.
Councilmember Callies referenced the Preliminary Budget memo and stated that one of the things
she noticed was that there were a number of bullet points related to contractual services under
almost every department. She stated that she would like to know what some of those contractual
services were and gave the example of Administration whose contractual services increased by
six thousand dollars.
City Clerk/HR Director Thone stated that those contractual services would include things like the
minute taking and NeoGov and noted that she could share that budget detail with the Council.
Mayor Labadie explained that they have another meeting immediately following this meeting and
suggested that they try to wrap up their comments and questions related to the budget.
Councilmember Sanschagrin stated that an overall comment he had was that sometimes when
you take a `conservative' approach, you end up biasing the budget in a certain way which is what
he believes may have built up their general reserve funds. He stated that he would encourage
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staff to tighten things up a bit and try to be as accurate as they can, rather than just taking a
conservative approach. He stated that he would also like to get feedback from staff for things like
what they can do to improve things, for example the Water Fund, in order to increase revenue or
reduce the costs, even though that goes beyond the budgeting process.
Mayor Labadie noted that this had been a large part of the Council's discussion at their most
recent retreat and suspects it would continue to be a conversation for many years on how the City
can improve the various Enterprise Funds.
Councilmember Sanschagrin asked if the budget included anything for tree removal or
investments in potential traffic calming speed signs.
Ms. Beuning stated that under the Park Maintenance budget, there are costs under contractual
services relating to buckthorn removal.
Public Works Director Morreim stated that there was also tree removal in the contractual services
for Public Works. He noted that traffic calming signs will probably require a bit of a larger
discussion because they can be quite expensive but explained that they had been actively
working with the SLMPD to put out the speed monitoring device.
Councilmember Callies asked about funding for contractual services for buckthorn removal and
compared what was budgeted in 2024 with what they have actually spent.
Public Works Director Morreim explained that there were fifty thousand dollars of the contractual
costs reimbursed through the DNR and there was also a seventeen thousand dollar match and
noted that none of the matching funds had been spent the previous year.
Councilmember Callies asked what feedback and suggestions the Council was supposed to give
to staff.
City Administrator Nevinski stated that staff was looking for feedback on things like the seven -
and -a -half percent levy and whether there was anything that they were seeing in the budget that
they had questions or concerns about or if there were any specific initiatives that they wanted to
ensure were funded.
Councilmember Zerby stated that he has always encouraged trying to 'squeeze more out of the
rock' and would challenge staff to try to find areas that they could trim and present those
alternatives to the Council.
Councilmember Callies stated that she agreed and noted that, for example, she did not realize
that the City had a drone and asked who used it.
Planning Director Darling stated that the drone is used by the Building Official for roof inspections
rather than going up on every roof.
Councilmember Callies asked about the additional legal fees for the prosecution retainer.
City Administrator Nevinski stated that for prosecution services, those fees are proposed to go up
and has been told that some of that has to do with what has been happening coming out of the
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pandemic because there is more activity and also with the way Hennepin County is processing
cases.
Councilmember Maddy stated that when this is published, he felt that most people did not
understand how tax levies work and suggested that the City should include a narrative that
explained those numbers.
Councilmember Sanschagrin stated that he felt it would be helpful to highlight what has been
done to increase productivity and reduce costs, such as the software investments.
Mayor Labadie stated that she would also like to see them get the budget put together in a way
that the average resident is able to look at it and understand it without having to have a finance
degree.
3. ADJOURN
Maddy moved, Sanschagrin seconded, Adjourning the City Council Work Session Meeting
of August 12, 2024, at 6:31 P.M. Motion passed 5/0.