hey greg hey good afternoon how are you i'm good good [Music] what do you know for i don't sure anything for sure you know we got a lot of rain last night i guess yeah a couple inches i heard in uh in an hour or so yeah no hail though i don't think you know that the weather had it as hail down here but i don't think we certainly didn't see any damage from it here no i heard it though last night when i was sleeping yeah i didn't get up to look but i think it was pretty small but you could hear it blinking away why lightning was something else though yeah lots of people on facebook posting that just going crazy so hello everybody hello hi debbie hey scott how are you good good it's a nice pattern blouse or dress little summer sweater yeah but thank you i stopped liking anything political on facebook and just like pictures of vegetables and flowers and pets and so that's not a bad strategy scott a lot more refreshing so we won't have many staff here tonight i think it's just going to be joe rigdon and andrew and myself okay for the entire meeting or just this uh work session probably just joe um larry's on vacation in colorado where he took a couple of days off and uh sandy's out doing election stuff tonight oh yeah yeah yeah sure sounds good did i not turn my video on you didn't turn it on there it is i just see public relations johnson on the yeah my username is tied to my work so that's uh i got joe new microphone you can change it as many times as you like testing oh that's much better joe there's jennifer trying to get further out of the sun here you can change your name yep we allow everybody to change your name we don't uh just by clicking on the three dots yeah there you are greatest of all time very good what would tim can keen say about this yeah that would be bad no no no i realize we're all just oh playing around yeah are we we're one minute so i will get back to professional with one minute to go right on the mark [Applause] so so yeah you saw that chris was not going to be able to make the work session tonight yep so we got everybody we need right yep all right we will get started hello welcome everybody i'll call to order the city of shorewood city council work session it is monday august 10th 2020. an agenda has been prepared and distributed by staff to council and the public available online and at this time i will do a roll call for our attendance johnson hi labadie hi cycle hi sunberg i know is not here and mayor zurby is here this time i'd look for approval of the agenda if there are no changes i'll make a motion to approve the agenda a second motion by johnson second by cycle roll call vote johnson aye gravity i cycle hi zurby votes i also the agenda is approved the only item tonight is the 2021 proposed budget and we have a memo from our finance director joe rigdon joe would you like to start yeah i'm going to share my screen all right getting technical joe you see that yes great okay so what we're talking about tonight is the preliminary budget and levy we're looking at the the usual dates is end of september is when we want to get this thing wrapped up so we've got a little time and uh tonight we're gonna start it in with the general fund and kind of go from there the budget worksheets were distributed to department heads in the middle of june and we've been working on them for a while and greg has met with all the department heads and i've kind of thrown it all together in this pack that you see here what we're looking at is a preliminary general fund expenditure increase with auto cleaning transfers and more on that in a second is a 3.4 increase from the 2020 budget and i think the year before we did a 5.2 so we're doing a 3.4 so far for this year's a little bit less um total transfers are sort of being treated differently in this budget now it's kind of come down because we have issued these bonds as of today anyway and we need to basically have our levies for those bonds go directly into those debt service funds so it's a good time to take a look at our policy of doing the transfers out of the capital items out of the general fund so what we we're doing in the past was basically saying all of the revenue or the levy was in the general fund and then all the transfers were also in the general fund so we're saying we're going to eliminate that and we're going to levy directly to the funds themselves and the funds then being those normal capital funds that you're used to including streets parks and equipment and now also for that service funds that we're looking at doing you know once a year for probably up to five years anyway so it's a little bit of a difference but it's i think the way to do it and you can see that the decrease in the transfers went from one point two to two million two hundred two thousand that hundred two thousand is basically the the transfer to the south the community center and that one will remain as a transfer the revenues section we'll get to in a little bit i have a little bit of a chart there that kind of details this a little bit better but moving on into the current year expenditure budget for 2021 we have some personnel related assumptions so here we've got a administrative assistant position that is currently employed at half time would go from that 0.5 fte to a 1.0 fte and this person is currently split 50 to administration and 50 to planning and that will continue for at least 20 21. the second item here is that the community recycling coordinator position which is currently at 0.8 fte would be moved up to a 1.0 fte and that person is already getting benefits so it's not a very large expenditure increase the third item here is that we just hired you know a couple months ago the light equipment operator for utilities and i think 90 of that person's time is recorded in the water and sewer funds and prior to that that position that was there was essentially general fund in nature so we did have some shifting out of general fund costs to the utilities under this proposed budget any of the 2021 regular pay step increases on our scale have been included we currently have a cola in the budget about 3.0 percent and that is the same amount that the public works union is uh receiving for 2021 at this point health insurance premiums are actually only increasing eight percent roughly it's hard to say that but it's only eight percent uh and then the employer contribution we have going from eleven eighty plus fifty dollars per month to eligible employees to twelve hundred thirty dollars per month starting in twenty twenty one you've seen this graph before basically where are we spending the money public safety at 43 percent general government 28 streets 22 parks and rec 7. and that hasn't changed general fund revenue side not including transfers in are right now budget at 5.46 million or it shows as a 16 and a half percent decrease from the 2020 budget but again this is due to the levied taxes not all being put into the general fund anymore so those levy taxes are again going to the capital funds and debt service funds directly so if you were to go apples to apples and say that's 16.5 if we didn't do that and general fund revenue budget would be about one percent higher so that's basically the levy the overall levy is proposed that i think is 2.0 percent and it's uh basically due to the general fund being about one percent increased and the other transfers to the capital and debt funds up about six point seven percent so when you merge that six point seven and weighted against the 1.0 for the general fund comes out to 2.0 percent is what we're showing in this proposed budget so the general fund portion of properties levy is proposed increased by 42 thousand dollars which is pretty modest and the general fund levies would be about seventy four thousand dollars that's mostly due to the infrastructure fund where we are moving in substantial dollars this one here no again no surprise where are we getting the money from it's 87 property taxes the licenses and permits that we always talk about are only four percent everything else is about six nine percent of the total so not much then to balance that general fund budget right now we have in the budget a use of reserves of 198 245 dollars and that one is basically due to what we're asking to have is a surplus the general fund related to the covid cares money and greg is going to speak to that in a few minutes so i'm not going to delve into it too much for you know the storyboard community event center has traditionally been funded by transfers from the general fund so again in 2021 we would be suggesting a transfer of seventy thousand dollars to assist with operations and thirty two thousand dollars for transfers and that remains as a transfer out of the general fund into the special revenue fund as you know we've got four enterprise funds the water sewer storm water and recycling and these are the types of funds that are supported by the user charges utility fees and we're looking at doing some rate adjustments there to basically fund our capital improvement plan and that you've probably seen something coming from us fairly soon on that for the third quarter of 2020 we were going to do a adjustment to the utility rates but we decided with everything going on with the pandemic that we would just hold off on at least through third quarter so we're looking at maybe coming back with something for fourth quarter now again the levy we talked about is about two percent higher in the budget and as a side note you can by the end of september you can approve a levy that is at a max so you cannot actually increase it after that you can only move it down if you chose to do so but again the levy is two percent right now as proposed in the market value for the city you had a 6.3 increase in the taxable market value here these prior three years were about four percent a year so we had a little bit of an extra bump which always helps things taxable market value and then the same as the tax capacity that's up six point seven percent so a bit of a bump and we can see that it's a little bit higher curve there probably tax levy that we're proposing is 5.97 million that is 2 higher if you remember from last year which i certainly had to look it up we have a 5.9 percent increase so we're going from a 5.9 to 2.0 so it's a flattening of the line here then the rate that you always want to look at is the of the rate doing and we were decreasing it for the first couple years here at a 1.6 percent increase from 19 to 20 and then we've got a four and a half percent decrease from 20 to 21 as a result of that increased market value and also the basically flattening out of the general fund budget so if we correlate that to a homeowner just picking six hundred thousand dollar home as an example the tax rate is 27.71 propose as we have it now based on infant county data that's as good as we can get at this point but i feel fairly comfortable that it's going to be close and that 600 000 home with that four and a half percent decline in the tax rate results in a four and a half percent decline in the actual property taxes due to the city which in here would be a deduction or a reduction of 81 from paid 20 to pay 21. then if we say okay that's not realistic we don't have a lot of properties that don't move around in value so i'm using a four percent increase in this scenario and i just looked it up earlier today it looks like our existing residential homes has added 3.6 average increase so i'm thinking this is pretty much online so if you had an increase of 4 you would have the home go from 600 to 624 the rate would still be the 27.71 but you'd have basically an even or no change in taxes locally or so 0.1 so that's with a 2 levy increase and a 6.7 increase in tax capacity so again we welcome your feedback so we're looking at this two percent budget you know as overall we know some homes will be a little less a little more but we think it's pretty close to where we're going and again i asked greg to step in and maybe briefly discuss this what i call use of reserves and how we're going to handle that dollar amount so the the cares funding that the city received totals 579 thousand dollars we believe that of the unbudgeted uh unanticipated covet expenses will be somewhere these are expenses that would be eligible between march 15th and november 15th we believe will be somewhere under 150 000 um the other the remaining part of the funds and of course all those will be brought forward and approved by the council the remaining amount of the funds we are planning right now to reimburse ourselves for police and fire personnel expenditures according to the cares ruling those expenditures are eligible to be reimbursed and so since we've already levied for them we are in effect basically where the money will fall to the bottom line or to the fund balance which allows us then to use 198 000 of that in reducing the tax levy for next year the remaining amount will be um available this covid situation is not over it will be available for us to meet any kind of unanticipated uh or uh expenditures that we're just not seeing and this is consistent with kind of the conservative budgeting we like to do uh we'll be prepared to um to meet those unknown costs uh but right now the main value in it is allows our levy to be less than uh say a higher number uh which has the value to everybody of lowering their taxes and i think that's certainly within the spirit of the cares funding and so with that i'd certainly answer any questions you have specifically regarding cares and joe and i anything about the the budget prep at this point all right thank you council any questions i have a quick question i'll ask uh a couple questions so uh who is the administrative assistant in the position that's being increased nelia okay that's my that was my guess and is there any thought as to uh the improvements for the community center are there specific items yet for that 32 000 we do have i don't have a cip or if you want to bear with me i'll turn my camera off we have a 10-year cip that we put in place uh at the time that the building became ours uh and if you bear with me i'm gonna turn my video off and i will search for what our plan is for next year for that um if we've okay go ahead and you can keep talking all right um [Music] the rest of it to me seems um well thought through i think i don't hear any other questions oh just waiting for great greg i think that the thinking with the cares act um funding makes a lot of sense we don't know what's going to happen and certainly keeping that so that we keep costs low really make a lot of sense and it's going back directly to our residents so i think that would be a good use of those fonts agreed we agree with that hi uh mayor's ruby can i supply that at a future meeting i am not seeing where i think it should be certainly yep it was more of a curiosity i know i remember now as you said that we have this plan i know there's a number of improvements that are needed so i'm fine with getting that information later okay i guess you have it joe yeah so looking at 2021 there's mechanical system doors exterior there's some other areas in 2020 they don't know if they've been done mechanical systems another 10 grand there's a retaining walls and patio for 10 grand some things of 2022 windows fire suppression attic system the kitchen exhaust system on the horizon the the plan some of that work has already been done the patio for example and the fence and retaining walls at work has been done and so that that um the actual cip number may be lower i think we did not replace one of the furnace units we have 10 individual hanging furnaces in that building and they're all started with the when the building was built and so we have a plan to replace one per year until they're all up to date um i think it's important to know we did keep the uh community event center in the general fund and didn't set up a cerebral levee because we don't think we should be loving for a positive balance in that fund that fund should you know man it should take in what it what it takes in and we should only be transferring what we need to make that fund not negative and so if we pick a levy number if the number is too high that sits in that fund and that we shouldn't be taxing for that that fund is just an enterprise fund it's meant to generate and cover its expenses and until the time that it does we will just levy what is needed to do the improvements and the operations okay perfect well we'll get a specific list of uh of that i know i know this probably in the spreadsheet i just can't lay my hands on it right now that's fine thanks if there's no other questions and staff doesn't have anything else to add i guess i'd look for a motion to adjourn um i'll move to adjourn the work session a second and i also want to thank joe for uh again presenting this in a manner that's easily digestible thank you yeah thank you joe all right we have a motion by johnson or a motion by cycle and a second by johnson i'm sorry and we'll do a roll call vote johnson hi bobby aye cycle hi zurby votes i also we stand adjourned and we'll see you in 40 minutes okay thanks everyone thank you