Mayor Zerby Heading To Washington

12/29/13

One reader asked about Mayor Zerby's upcoming trip to Washington, D.C. and the Mayors Innovation Project Meeting. Council approved the trip at the 12/9 meeting for a cost of about $1500.

Readers can see the agenda for this boondoggle at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/167344/Page1.aspx and pages 91/92. The only agenda item that appears to relate to needs of a city like Shorewood is the one about working with allies outside your city. Zerby is still trying to merge Shorewood with Excelsior, not very successfully. Of course, maybe Zerby wants to attend to lend support to St Paul Mayor Coleman who is a panelist talking about how every child can get a great education. Maybe Zerby plans to merge Shorewood with the Minnetonka School Board?

To the reader who asked about this trip: How do you suppose Hotvet will praise Zerby's report on his return?

Of note is that Zerby's travel priorities didn't include attending this year's League of Minnesota Cities meeting even though it would have required only travel to St Paul. One suspects that this meeting would have had more value for Shorewood at far less cost.

Happy Reading!
The Insider

Volunteer For Commissions?

12/12/13

Shorewood has several appointed commissions and boards that do valuable work and provide guidance to the Council and City staff. Slots are available on the Parks, Planning commissions as well as seats on the Lake Minnetonka Communications Commission (cable TV and community communications) and the Lake Minnetonka Conservation District (manages the surface use of Lake Minnetonka for 14 member cities) boards.

Residents who volunteer can make a real impact on the City by influencing City policy and in some cases participate in making ordinances. Participation is a chance to learn how the City and the region actually works as well as make a real difference in operations and policy.

So having said this, why does the City have a tough time finding applicants and why has this gotten tougher in the past three or so years? The Insider would like readers to comment. Of course, if readers want to apply, they can call City Hall at 952-960-7900 or send email to: cityhall@ci.shorewood.mn.us.

Happy Reading!
The Insider

Tax Increase Of 2% Approved

12/5/13

Shorewood's Council approved the 2014 budget with a 2% tax increase Monday night. The approval was 4 - 0 with council member Siakel absent and followed the annual Truth-In-Taxation meeting. Readers can watch the meeting at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=9f25675d-ae8f-1031-8121-35eaf3043912

So, if the South Shore Center is to continue operations, Council intends to fund it from excess City reserves, not additional taxes.

Happy Reading!
The Insider

Tax Increase For South Shore Center Dropped

11/30/13

On the 25th, Council directed staff to remove the 1% tax increase in the 2014 budget that was to fund full operation of the South Shore Center. Readers may view the discussion at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=59e092df-a9a8-1031-8121-35eaf3043912 Look at the last item on the agenda list for the work session video.

The Insider is amazed that council member Siakel started the discussion, expressing her discomfort with raising Shorewood taxes to support the Center when the other cities which own the center haven't committed to financially support it. Ultimately, all the members echoed Siakel. Even Mayor Zerby whose wife is on the South Shore Senior Partners board voiced his agreement.

So, Monday night (the 2nd) the Truth In Taxation meeting at 700 PM at City Hall will feature a budget with $48K less in tax levy and a matching reduction in spending.

The Insider would be remiss if it wasn't mentioned that Siakel and her fellow council members did reach consensus that the City has plenty of excess reserves if its finally decided to operate the Center in 2014. The committee studying future operations is supposed to have a report by the end of December. So, it's possible the owner cities will agree to funding and forward movement.

Happy Reading!
The Insider

Last Chance To Speak Out On Taxes

11/25/13

Shorewood's Council is holding a work session tonight at 600 PM to put the finishing touches on the 2014 budget. Looking at the materials, nothing's changed since August.

Taxes are going up 3% with one third of that allocated to a yet to be defined new operating plan for the South Shore Center. Spending is also going up. While not in the materials to be discussed tonight, completion of the Excelsior Rd trail to nowhere and a new trail on Galpin Lake Rd are in the spending plans. As reported earlier, the Galpin Lake trail will be built with money borrowed from the sewer fund since there is no money left in the trail fund.

Residents have a chance to weigh in on the budget on Monday December 2nd at 700 PM when the City holds its state-mandated truth in taxation meeting. If you have something to say, it's the last chance.

See: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/167111/Page1.aspx
to read the budget presentation for tonight and a preview of the presentation for next Monday.

Happy Reading!
The Insider

Utility Rates And Trail Funding

10/31/13

On the 28th, Council heard a report from a consultant on recommendations for changes to the fees for sanitary and storm sewer service in Shorewood. In summary, both fees would be increased to assure funding for future projects already in City plans. One one of these projects is to build trails. Also recommended is that the storm sewer fund to borrow money from the sanitary sewer fund, paying it back with interest over 20 years. The cause of the borrowing is storm sewer work caused by building trails.

Of particular note is that the trails to be funded are: Galpin Lake Rd., Smithtown Rd. East and the completion of the trail to nowhere on Excelsior Blvd. So, there is no funding the remainder of the trails that are in the City's Trail Plan.

Council made no decisions except to continue the discussion of fee changes at its next meeting. One thing seems sure and that is that fees will go up.

View the meeting (last item on the agenda list) at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=674eac22-9324-1031-84e6-4d4a8ee9e3b7

Happy Reading!
The Insider

Trail Funding - Council Meeting Direction

10/21/13

Last Monday night's council work session on budgets didn't provide much clarity as to how to fund trails going forward. See: http://lmcc.granicus.com/MediaPlayer.php?publish_id=a1a37dbc-882d-1031-84e6-4d4a8ee9e3b7 and the last item on the agenda (work session video) to watch the work session and the discussion.

It appears that the funding need will be tied together with a sanitary and storm sewer rate study council has authorized. The study results are supposed to be presented during a work session on 10/28.

What does seem probable is that significant money will be pulled from the sanitary sewer fund reserves. Pulling reserves from the drinking water fund looks unlikely as this seemed to be felt unfair since water customers represent less than 50% of Shorewood homes. Sewers, on the other hand, are paid for by all property owners.

Some comments were made about raising sewer rates to, in part, fund future trails. One comment was that the rate increase might only be  a few dollars per month. With Shorewood having about 2700 households, a $5 per quarter sewer rate increase would raise about $54,000 per year. At that rate, it would take more than ten years to fund, for example, the Galpin Lake Rd. trail segment. Who's going to be on the Council in ten years to see this through?

The discussion next Monday night should be fascinating.

Happy Reading!
The Insider

Trail Costs - The Ugly Truth

10/14/13

So what is the real story when it comes to what implementing the "Trail Plan?" What will it really cost? The meeting packet for tonight's council work session at 600 PM provides some reality. See page 5 at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/166513/Page1.aspx.

Summarizing:
- Completing this year's projects (Smithtown, Cty Rd 19 and Excelsior): $1.7 million ($56,000 more than all the money available for all trail projects)

- Completing Mill St, Galpin Lk, and remainder of Smithtown: $2.5 million (increasing the funding shortfall to over $2.6 million)

- Completing the rest of what is in the Trail Plan: over $5.6 million (total funding shortfall of more than $8.2 million)

To put some perspective to the new cost estimates, the City spends about $5 million per year, using about $4.8 million of property tax money. So, $8.2 million of new funding is nearly two years of all the property tax revenue. More to the point, what percentage of tax increase do Shorewood taxpayers want to assume to pay for $8.2 million of unfunded trails?

The council meeting tonight should be quite interesting.

Happy Reading!
The Insider

Trail Update

9/25/13

Trails were on the Shorewood Council's agenda on the 23rd.

It was reported that sod was down on the Cty 19 segment and the final item is to decide if any trees will be planted on the Xcel site (probably not). The Smithtown Rd. trail grading is started and putting down the actual trail surface is not far off. Most work and a usable trail is supposed to be done by the end of October. Council did approve about $25,000 of extra spending on this segment due to unexpected difficulties. The Excelsior Blvd. segment is likely not to be completed until 2014. This is the short segment being done along with the Met Council sewer improvement.

Per discussion, staff is supposed to come back to Council with updated costs for the above three segments. Seems Council has no idea how much money has been committed and spent from the approximately $1.6 million that was in the trail fund.

Mill Street and Galpin Lake Rd. segments were discussed. The direction was to hold a public open house to discuss the project details. However, with something like $1.5 million in costs for these two segments, the Council clearly does not know where to get enough money to proceed.

Watch the council meeting at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=a045d4fb-76f9-1031-bf4f-32d5966f69c1 and look at agenda items 8B and 12.A.3.

Blog readers have suggested establishing a trail fund like the road fund. This is possible. The road fund receives about $800,000 of property tax money each year. According to staff reports from the Council's March "retreat", the road fund can support the 20-year road plan with only small annual increases in the tax contribution (it's far from "empty" as one reader suggested).

A trail fund to pay for Mill Street and Galpin Lake Rd trails would need on the order of $1.2 million (assuming $300,000 is available from what's unspent today). $1.2 million could be raised in two years simply by raising property taxes about 12% for two years, 4% for six years and so on. Is this what taxpayers want?

Happy Reading!
The Insider

Paying For Trails

9/21/13

So, how to pay for a $1+ million shortfall in 2014 trail construction funding?

Well, one reader suggests using the proceeds from selling the city-owned house. Based on comments from City Administrator Bill Joynes, the net proceeds from selling the house might be in the $275,000 range. So, this still leaves on the order of $800,000 unfunded. Also, Joynes and staff have spoken about applying the house money to paying for the Badger Park renovation (need about $500,000 for this and only have about $250,000 in park funds).

One reader asked how the City pays for roads. It's simple. Each year nearly $800,000 of the City's tax money goes into a road fund (about 15% of the total City revenue each year). Based on the 20-year road plan, this is enough to fund the road projects. If sewer and storm water work are done with a road project, these costs from the sewer and storm water utility bill revenues. Of note, the storm water fund is running out of money and a rate study is underway.

Back to trails. So, using tax dollars to fund $1 million of 2014 trail projects would require a 2014 tax increase of about 20%. Since, the most the City can increase 2014 taxes is 3%, not much help here. Another approach would be to raise taxes a little each year and save the money until trails can be paid for. Of course this would mean it would take many years to complete the trails. The City could issue bonds for trails and pay them off over 20 years. $1 million of bonds would cost taxpayers about $90,000 in property taxes each year for 20 years, about a 2% tax increase. Issuing bonds would require the matter be on the ballot in 2014. Would voters approve this? Who knows?

Grants are also possible. However, best case seems that grants would only cover 30% of the trail's costs. So, this doesn't really solve the funding problem.

What will Council do? What do you want them to do?

Happy Reading!
The Insider

2014 Trail Projects - Can Shorewood Afford Them?

9/19/13

On the 17th, the Planning Commission toured the proposed Mill Street and Galpin Lake trail locations, then, they reviewed the engineering feasibility studies for these two 2014 projects. See the agenda packet at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/166204/Page1.aspx for the packet and details of the feasibility studies.

From the packet information, Mill Street trail cost is estimated at over $699,000 and Galpin Lake is over $911,000 for one option and $855,000 for another option. Both trails would be about 3000 feet long.

The Insider wonders how the Council will deal with the costs. Before construction started on the Smithtown and County 19 trail segments this year, Council had about $1.6 million for trails. Smithtown and Cty 19 appear to be costing about $1.3 million plus, Council approved something like $200,000 for the trail segment on Excelsior Rd. Change orders for the Smithtown project are coming. So, one could easily assume that more than $1.4 million is already spent. With less than $200,000 available to spend, how does Council pay for $1.6 to $1.8 million of new trail projects? Or should it?

Happy Reading!
The Insider

Bonding For Chaska Senior Facility

9/19/13

No action on the bonding previously commented on in this blog was taken during Shorewood's 9/14 council meeting. Seems the parties planning to build the facility and to which the money would be lent by Shorewood received bids to build the project that were way above expectations. So, they have withdrawn their request for money.

It's possible this'll come back.

Happy Reading!
The Inisder

South Shore Center - Meeting today

9/17/13

Sorry for the late post, but the blog site has had some problems.

The fourth (of three expected) meeting of the owner cities is 4:00 PM today at Shorewood City Hall. It's expected the "final" positions regarding Center support by the owner cities will be presented.

Stay tuned to learn meeting results.

Happy Reading!
The Insider

South Shore Center - Who's In or Out?

9/3/13

The previous post about the 3% tax increase and the budget for the Center was not too clear.

Tonka Bay and Deephaven appear to have no interest in funding Center operations. Greenwood is still discussing, but seems to be leaning against any funding as well.

The Insider expects little or nothing to be offered by Excelsior. So, Shorewood looks to be going forward on its own (as it has been for the past three plus years).

The SSSP wants to stop paying rent and for Shorewood to hire a full-time manager to run the Center. So, basically, they're bailing on responsibility, but want to keep using the Center, offering their programs and keeping the money they raise. If Shorewood bites on this deal, City staff is saying the operating deficit that has to be supported by tax dollars will go from $60,000 (estimated for 2013) to $140,000 for 2014.

So the question is how much is keeping the center open worth to the taxpayers? Shorewood's Council appears to believe no amount is too much. Do you?

Happy Reading!
The Insider

Taxes For 2014 - Up 3% (Maybe)

8/31/13

As predicted here, Shorewood's Council approved a 3% preliminary tax increase on 8/26. Readers can view the discussion at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=717594f9-622e-1031-bc96-29b50f2ba9d1 Look at the work session for detail and the actual vote during the regular meeting at agenda item 10C.

Half of the increase is for general expenses and the plan is to use excess reserves to cover the rest of the spending increases. The other half of the 3% seems destined to be used to increase the subsidy for the South Shore Center to something like $140,000 from the $60,000 expected in 2013.

According to the work session, the increase in subsidy would be to hire a full-time person to manage the Center. This meets the wish of the seniors as shown in the SSSP "Vision." The Insider questions how this can be justified. There is still no plan that shows a full-time manager is needed or warranted.

The Commission of the five Center owner cities did meet on the 27th. Seems that a fourth meeting will happen, but that Tonka Bay and Greenwood are both saying they will not participate in funding any operations. Also, it looks like Greenwood is leaning the same direction. It appears that Shorewood may be in it alone going forward.

Of course, things can change and the tax increase could be reduced before the end of the year or a decision made to spend some or all of the money earmarked for the Center on things like parks where funding is critically short. What would you, the readers do?

Happy Reading!
The Insider

South Shore Center Commission

8/24/13

Shorewood has scheduled a third Commission meeting for Tuesday, 8/27 at 5:00 PM in the Shorewood City Hall. The agenda and draft minutes from the second meeting are now on Shorewood's website at: http://weblink.ci.shorewood.mn.us/WebLink8/DocView.aspx?id=165922&dbid=0

The Insider's read of the minutes gives rise to the feeling that Shorewood is the only owner city with any real interest in doing something with the Center (with most of this coming from Mayor Zerby and his wife). The rest committed to discuss it with their respective councils, but they seem to be looking for some outside agency to come to the rescue (like MCES?).

The gist appears to be let's fill up the building with users. So, the real objective seems to be to find a use for a building (of course, Shorewood would like to get out from under bearing all the expenses). The Insider muses that the approach is like owning an empty garage and deciding it needs a car to fill it.

Tuesday night should bring some clarity.

Happy Reading!
The Insider

Funding Bonds in Chaska?

8/23/13

One reader has questioned Shorewood possibly funding a retirement facility in Chaska, citing having "read" about it.

Well, there is an item on the council meeting agenda for Monday the 26th that refers to this. The reader must be reading the agenda packet on the City's website. You can read it too and look for item 10B on the regular meeting agenda. See: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/165898/Page1.aspx

So, staff wants to know if there should be a formal policy about using the City's bonding authority to issue revenue bonds where the project is a not a City one. The practice of a city using its bonding authority to loan money to a project is common. Deephaven recently did just this for the construction of the St Therese retirement housing project. St Therese promised to pay back the bonds and Deephaven taxpayers have no obligation if the bonds are not repaid.

Should/will Shorewood do this? According to the staff memo, it has done so at least once before. Of  course a major reason for doing this would be that Shorewood would be paid a large chunk of money from the bond sales proceeds. So it may come down to how money hungry the Shorewood Council feels. The Insider notes from the staff memo that Chanhassen and Greenwood are considering selling bonds for this project too.

The reader also commented on potential changes in Badger park. Again, these were discussed recently in a council meeting that is on TV and the web. Of note is that the cost of the changes would use all the parks capital funds leaving nothing for other improvements unless the council finds more money. Maybe use all the money from the sale of the City-owned house? Council has not yet decided.

Standby for more on this.

Happy Reading!
The Insider

South Shore Center - Advisory Commission Progress?

8/21/13

So far the Advisory Commission has had two meetings. The rep for Excelsior did not attend the first meeting. All the owner cities did have reps at the second meeting.

Other than discussing some background, it seems the first meeting (see minutes at: http://weblink.ci.shorewood.mn.us/WebLink8/DocView.aspx?id=165733&dbid=0) only resulted in deciding to have the second one. Of course Mayor Zerby, who is not on the commission, but must feel he has to be in control, suggested a consultant should be retained. This is the usual cop-out approach taken to Center issues and is likely to prove not useful without a strong commitment from the cities. The Insider does not see a strong commitment.

The minutes from the second meeting are yet not posted. It seems that city reps agreed to poll their councils about direction and come back for a third meeting yet this month. Maybe some of the cities will "come clean" as to their interest in the center operations in the future. So far, it appears the idea that because there is a building, so something great must be done with it doesn't resonate with all the cities.

Meanwhile, Shorewood has its draft budget supporting the Center in 2014 as the City has so far in 2013. This amounts to taxpayers spending $60,000 to keep it open.

Stay tuned.

Happy Reading!
The Insider

Slow Summer Musings

8/2/13

Well, it's the dog days of summer and things at Shorewood City Hall are slow too.

At the last council meeting, the 2014 draft budget was discussed. Not much was accomplished. The City Administrator presented a budget with no tax increase and was short of more than $200,000 in funding to be balanced. Staff reported that the levy limit imposed by the State wasn't much of an issue in that loop holes would allow the City to raise taxes more than $600,000.

Sale of the City-owned house on country Club Rd. is expected to raise $250,000 which can be used in any way the Council wants.

Meanwhile, a rate study for the sanitary sewer and storm sewer funds is getting underway. The storm sewer fund is running out of money. A hefty rate increase there is likely unless spending plans are curtailed. Cutting spending may be impractical since new federal and state rules are driving more expensive approaches to controlling storm water and pollution.

The sanitary sewer fund is also heading into negative territory, but not as soon as storm sewer. One may recall that about five years ago, $1 million was taken from this fund and placed in the Community Infrastructure fund along with about $800,000 left from sale of the liquor stores. Now, the sewer fund is getting short and Council Member Hotvet's pet trail projects have spent about 80% of the money to do about 20% of the 10-year trail plan. No word from Hotvet as to how the rest of the trail projects will get funded.

Enough.

The Insider forecasts a 3% general levy increase for 2014. Reserves also will be used to bring the budget into balance. Storm sewer and sanitary sewer rates will go up by the end of this year. Hotvet will want to spend all the house proceeds on trails and kick the can down the road on dealing with other budget issues. Will the rest of Council go along?

Happy Reading!
The Insider

Badger Park Sports Field Condition

7/25/13

The condition of Badger Park's sports field was brought up during "Matters From The Floor" at Monday night's council meeting. See: http://lmcc.granicus.com/MediaPlayer.php?publish_id=614bd76d-45e8-1031-bc96-29b50f2ba9d1 and item #4 on the agenda.

One resident stated that he coaches football and Badger field is the worst one in the Minnetonka sports area. He said that for the past two years, large parts of the field have been dirt, not turf. He also asked what the plans for the field might be.

Staff replied that the Parks Commission has been working on a redevelopment plan for Badger park and the field for more than one year. Seems that Council will see a recommendation for changes at the August 12th meeting. One change appears to be reorienting the field to north/south from its current east/west orientation.

The Insider recalls concern expressed by some council members about the cost of a Badger rework. So, what to you the readers think about spending money on Badger and its field. Should the field be a showplace? There appears to be some funding in the City's capital plan for the work, but readers might recall that the Parks Capital Fund will run out of money in the next couple of years if spending occurs per the capital plan.

Should more capital money go into parks and Badger? If yes, where does it come from?

Happy Reading!
The Insider

South Shore Center Advisory Committee

7/15/13

The first meeting of the Committee is set for Tuesday, the 23rd, from 5 PM to 6:30 PM at Shorewood City Hall. It's likely this session will be sharing of history and some issue brainstorming.

Attendees:
- Deb Kind, Greenwood Mayor
- Mary Jo Fulkerson, Council Member from Excelsior
- Paul Skrede, Deephaven Mayor
- Elli Ansari, Tonka Bay Council Member
- Kristine Sundberg, Shorewood City Council Member
- Erik Sill,  Minnetonka Schools
 - Theresa Zerby, South Shore Senior Partners (wife of Shorewood's Mayor, Scott Zerby)
- Shorewood staff

The meeting is open to the public. So, the Insider hopes some blog readers will attend and comment back to the blog.

Happy Readung!
The Insider

2014 Budget - Tax Increase Seems Certain

7/11/13

Monday night's council work session was about the 2014 budget. Staff presented some of the slides used in the March "retreat" which show the City's reserves being spent down if taxes aren't increased, spending isn't reduced or, both.

Council members asked for staff to look at places for reductions, but seemed resigned to a tax increase. Also discussed were additional fees for sewer, storm sewer and recycling.

Staff seems to be proposing a 2% general tax levy increase although, up to a 3% incfrease could be possible under current levy limits. Fees for the other services will be reviewed in a rate study coming in the next month or so.

The fee rates and the tax levy haven't been increased for at least four years. It'll be fascinating to watch those council members who've been ready to spend millions on things like trails have to come to grips with making residents pay more taxes and fees so spending can keep going.

Watch the work session at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=487155b3-3ad7-1031-bc96-29b50f2ba9d1  and the budget item at the end of the list.

Happy Reading!
The Insider

June 24th Council Meeting

6/28/13

Some highlights from the 6/23 Council Meeting:

- The auditors gave their report on 2012. The City added over $130,000 to its reserve fund in 2012. This was unexpected. So what to do with this windfall? Read on.

- Public Works offered a dismal review of the City's street sweeper condition. Seems it has been in the shop for repairs almost as much as it's been on the street this year. Staff recommended buying a replacement which Council approved at a $170,000 cost (there goes the $130,000). Of note is that the planned replacement for the sweeper was 2020. The Insider wonders how long the staff has known this sweeper has been in such sad shape and that replacement parts are often unavailable. The City has a staff mechanic. Doesn't this person report equipment condition?

- Council appointed Council Member Sundberg to serve on the South Shore Center committee. Staff reported that one of the other four owner cities (unidentified at this point) had appointed a person and Greenwood had placed the item on their upcoming council agenda. The Insider is anxiously awaiting the naming of the reps from the other cities. Just the discussions in the various council meetings leading up to appointments (or lack thereof?) should be informative. Keep reading this blog for more.

Happy Reading!
The Insider

South Shore Center - New Committee

6/15/13

During the 6/10 Shorewood council meeting, the Council reviewed a proposal by Mayor Zerby to form a committee to make recommendations about the Center's future. Council approved going forward and some details follow.

The committee is to be formed from appointees from the five cities that own the Center (Zerby said he wanted elected officials), one person from South Shore Senior Partners (they've been handling the senior activities for the last three years), one from the organization that supported the Center before Shorewood took over management (the Insider assumes this is Senior Community Services which the Insider hears is involved in running the Gillespie center in Mound) and supporting members of Shorewood's staff.

The plan is to hold meetings during the summer and to have a recommendation ready by September 9th.

It'll be interesting to see how much interest and involvement the other four owner cities bring forward. As reported in this blog previously, their interest has been near zero for the past three years.

One thing for sure that won't have any effect is renaming the Center as Bob Newman, president of the SSSP, is reported to be advocating (see this week's "Excelsior/Shorewood Sun Sailor"). Calling a horse a cow doesn't make it a cow.

Happy Reading!
The Insider
.

Parks Budget & South Shore Center

6/6/13

The Insider is seeing questions about the parks budget and its relationship to the South Shore Center costs. So, see the following.

The parks maintenance budget for 2013 is $153,000. Of this, $103,000 is for City staff compensation.

There is a Recreation budget for programs, etc. The total is $100,000 with $36,000 of this being for staff and $42,000 going to the park capital equipment fund.

So, totally, parks cost residents $253,000. This is about 5% of the total City expenditures.

Note that the parks costs are before subtracting revenues the City receives from sports teams, program participants, etc.

The South Shore Center cost the City $60,000 (after subtracting the revenues) in 2012, $47,000 more than budgeted. None of this is in the above parks numbers.

Of note is that supporting the Center would add 24% to the total parks cost.

So, take the Center costs out of existing parks budget? This'd cause major cuts in the parks system. Fold the Center into the Parks budget and increase taxes? Maybe.

The Insider would like to hear from readers if they think spending 24% of what is spent on the entire park system on the Center alone is how they'd prioritize.

Happy Reading!
The Insider

Excelsior 4th of July Funding - More

6/6/13

Maybe a little late, but here is the report on what happened.

On 5/23. Council voted 4 to 0 to approve the budgeted $5,000 to support the Excelsior Chamber's 4th celebration.

The subject of council member Hotvet being the Chamber Executive Director and if she'd recuse herself from the vote was moot as she did not attend the council meeting. No reason was given for her absence.

Happy Reading!
The Insider

Shorewood's Financial Health

5/29/13

A recent comment from a reader about if the South Shore Center running a big deficit and the real possibility that a tax increase would be needed if this continues and being fear mongering causes the Insider to write the following.

The Insider suggest those who believe the City has large reserves just waiting to be spent on things like a subsidy for the Center should read the minutes for the March 23rd council retreat (http://weblink.ci.shorewood.mn.us/weblink8/0/doc/164666/Page1.aspx). The materials presented by staff at the meeting may be read at: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/164185/Page1.aspx

Staff made the point that the City is solvent, but that a number of tough financial decisions need to be made or the City cannot continue to spend without exhausting available funds. One of the big issues discussed was the South Shore Center's subsidy needs (note that staff did not include increased subsidies for the Center to fund things like a full-time manager, this only makes things worse).

A second big decision is if, after four years of zero tax increases, council will act to solve part of the future problems by increasing taxes. Of course another tough decision alternative is cutting spending to fund increasing needs like the Center.

 From the Insider's perspective, the situation is serious, but not dire. It will take straight thinking and some tough decisions to keep Shorewood's excellent financial position. One thing for sure, council can't keep spending without raising more revenue and/or cutting costs elsewhere.

The work on the 2014 budget will start in about one month. Watch this blog or attend work sessions to learn how council is addressing the challenge.

Happy Reading!
The Insider

Follow-up: South Shore Center Work Council Session

5/28/13

Council and staff did meet the evening of the 20th to discuss what to do with the Center. The Insider had hoped that minutes (apparently no video of this meeting) would be in tonight's meeting packet. but not there. Maybe in the packet for the 6/10 meeting?

Seems that the South Shore Senior Partners presented their "vision" for the center going forward. Highlights of this are: the SSSP turns operations totally over to Shorewood; Shorewood is to hire a full-time person to run the center; SSSP will provide advice on programming, but Shorewood does all the programming for seniors and other users.

It seems Council reached no conclusions as to how to proceed. Materials from the recent council retreat show that the Center needed over $60,000 of City support in 2012. The SSSP proposals would call for even more subsidy. So, the council is facing the challenge of how much is too much. Of course, some council members never met a dollar that they couldn't spend.

The Insider can see the 2014 tax levy being increased to support the Center.  Do tax payers want this?

Happy Reading!
The Insider

Time To Fund Excelsior, Again

5/25/13

Again this year, the Excelsior Chanber is requesting funding for the 4th celebration from Shorewood.. This time the request is in a letter from Council Member Hotvet who is the Chamber's Executive Director.

According to the packet for the council meeting on the 28th, Shorewood has budgeted $5,000 for this event. Two years ago, then council member Zerby (who, at the time, was President of the Chamber) upped the ante on the budget, voted for,  and got approval to spend $7500 on a $5000 budget. Last year Zerby backed down and "only" $5000 was sent to the Chanber.

Will Hotvet try to bust the budget and/or fail to recuse herself from the vote? After all, isn't being on the giving and receiving side of the issue a conflict of interest?

Happy Reading!
The Insider

Council Holds South Shore Cdnter Meeting Monday

5/19/13

Shorewood's Council is holding a work session Monday, the 20th, from 500 PM to discuss the future of the South Shore Senter. The location is City Hall and it's open to the public.

Looks like the South Shore Senior Partners will unveil their vision for the Center's future followed by the council discussion.

So, is it a senior center? Is it a community center? Is it a park? As some who who've commented in this blog have suggested, is it a youth center? How much will taxpayers have to subsidize it?

It's sure to be an enlightening meeting. Maybe readers should see for themselves!

Happy Reading!
The Insider

LMCD 2014 Budget - Do You Care?

5/12/13

The Insider is wondering if Shorewood residents actually care about the budget of the Lake Minnetonka Conservation District.

Why would you care? Well, the LMCD's main revenue source is the "membership" fees paid by the cities that border Lk. Minnetonka. In 2013, the total membership fee revenue is $439,000 of which Shorewood pays just under $32,000, or 18 percent. This is about $4 for every woman, man and child residing in Shorewood, or about six tenth's of one percent of Shorewood's annual budget.

In the past few years, the LMCD has kept its budget increases at or near zero. For 2014, it's proposing two budget alternatives. One, has an increase of about 3% and the second has an 18.6% increase. The first budget is supposed to maintain the status quo. The second has a major increase in spending for AIS management. Shorewood's piece of this increase would be about $3400, or about 40 cents per resident per year.

While the budget draft doesn't specify exactly how the increase in AIS management funds would be used, it seems pretty obvious that it would be for chemical treatment of milfoil according to the LMCD's recently adopted management plan.

So, what do you, the residents of Shorewood want to do? Support increased AIS funding at the LMCD or not? Note that Shorewood has been funding milfoil chemical treatment at $6000 to $7000 per year for several years by supporting the Lk Minnetonka Association's treatment test program for Phelps and Gideon's bays. Does Shorewood continue this funding and spend an additional $3400 or, what?

Happy Reading!
The Insider

Don't Forget - Opportunity To Meet Tax Assessor Monday Night

5/4/13

Don't  forget that Shorewood property owners have an opportunity to discuss the tax valuation of their property with the Hennepin County Assessor Monday, 5/6, at City Hall Starting at 5:00 PM. This is the best place to bring questions and concers about the valuation statement you recently received.

Make sure your neighbors know about this.

While other chances to appeal your tax valuation will occur later this spring, these are located at the County office in Minneapolis and are much less convenient.

Every year, there are property owners who receive their property tax bill in March who want to appeal. Now is the time to appeal, not March of 2014. When the tax bill arrives the appeal processes are long over.

Happy Reading!
The Insider

Organics Recycling Report

4/27/13

Buried at the end of the council packet for the 4/22 meeting was a one page report on the City's organics recycling pilot program. For those not familiar with the subject, keep reading.

Two years ago the City (urged on by Council Member Hotvet) obtained a grant from Hennepin County to pilot an organics recycling program (the grant was about $20,000). The idea was to get households in part of the city to sign up for six months with the grant paying for the recycling and the City's costs of running the program. Staff elected to offer the pilot to the west part of the city (let's see: Oh, all of council lived there). Well, the six month pilot is long over and staff finally issued a report.

Forty households are participating. The Insider estimates that something like 600 were eligible. Seems once residents have to pay $6 per month, they lose interest. Hotvet, at a recent council meeting, described the program as just wonderful. Seven percent participation seems less than wonderful.

The Insider can see why the staff report was not discussed during the council meeting. It looks like the program is a flop and Hotvet doesn't want to talk about it.

Happy Reading!
The Insider

South Shore Center Financial Sink Hole

4/20/13

As reported several times in this blog, the South Shore Center is draining tax money from the City.

According to the 2012 year-end financials in the meeting packet for the 22nd council meeting, the center was subsidized $13,600 in the budget. But, it also overspent the budget by $47,552! (See: http://weblink.ci.shorewood.mn.us/weblink8/0/doc/164497/Page1.aspx and pages starting at 141 for the financial information).

So, the Center cost Shorewood taxpayers $61,152 in 2012. This  amount does not count City staff time spent on helping promote the Center and various other expenses that could easily add $10,000 more.

Will Shorewood's Council keep spending? It's unclear. It appears there will be a work session (May 20th was discussed at the last council meeting) during which staff will present the situation to Council. Maybe readers of this blog will want to attend?

Happy Reading!
The Insider

House For Sale

4/13/13

Shorewood's Council heard about sale of the city-owned house at the last council meeting. See:
http://lmcc.granicus.com/MediaPlayer.php?publish_id=4ce3b2ce-f415-1030-bce9-7f882e4cf4e2
 and agenda item #10A.

Seems the recent  "retreat" meeting included Council directing staff to look into the sale. Now, the City Attorney is preparing information and soliciting Realtors.

Background is that Shorewood bought the house next to City Hall some sever years ago as part of a plan to build a new city hall on that lot. The purchase price was about $300,000. Since then, the City decided to renovate the existing city hall and to rent out the house.

The Insider's not sure why some council members seem determined to sell the house now. The market is recovering, but it's unlikely that a sale now would recoup the purchase price. There's no specific need for the money (although, sarcastically one could look to the recent Council penchant for giving money away as a need for funds).

Want to buy a house?

Happy Reading!
The Insider

Fencing The City Garden Plots

4/4/13

The Council approved spending $6500 to erect a six-foot high plastic-coated chain-link fence around the garden plots at the Skate Park.

Seems the Parks Commission felt that having the individual garden plot renters continue to do do their own fencing caused an eyesore. Of course, it seems that the most important reason was that Excelsior had a really nice looking fence around its garden plots adjacent to County Rd. 19.

Interestingly, if one views the council meeting, one can hear Planning Director Nielson saying that a six foot fence wasn't high enough to keep out deer. Deer was the other justification.

So, $6500 to fence in 16 garden plots and not high enough to keep out deer, but just as nice as Excelsior's fence. Is that how you'd spend money if it was yours (oh!, yes it is yours).

Happy Reading!
The Insider

Hotvet and Excelsior Chamber

4/3/13

The Insider can't resist clarifying the circumstances of Hotvet's recent employment as Chamber Ececutive Director.

Hotvet was elected to Shorewood's council in 2010 nd her term started January, 2011. Her employment at the Chamber started at the end of 2012.

Zerby was a seated council member when Hotvet was elected to council. He was also president of the Chamber during her first year as a council member.

So, the notion that the Chamber did not know Hotvet was on Shorewood's council until after she was hired is pure bunk.

Happy Reading!
The Insider

Giving Money Away, Again

3/27/13

During the 3/25 council meeting the involvement of Shorewood with Excelsior's Music In The Park events was discussed. The Park Commission recommended support following their meeting with8 Excelsior's Parks Commission and an agreement that more coordination and support between events of both cities makes sense.

So, the first show of support was Shorewood's Council to writing a check for $1000. Interestingly, this unbudgeted expense will come out of the Parks budget. The Insider wonders how the Parks Commissioners feel about taking money from their pot. Bet they didn't expect that!

See the council meeting at:
http://lmcc.granicus.com/MediaPlayer.php?publish_id=8e5f5d24-e7c7-1030-b4c5-84d7a9c8f15d
Look at agenda item 7B.

Happy Reading!
The Insider

Council Retreat Report

3/27/13

The "Retreat" was held on Saturday, 3/25. Blog readers may read the agenda and presentation at:
http://weblink.ci.shorewood.mn.us/weblink8/0/doc/164185/Page1.aspx

A video was not made. So, actual discussion is not public. Yes, you needed to be there if you wanted to know what was really said.

From the materials, one could get the impression that the City was going to run out of money in the next 10 years.

Basically, for four years there have been no property tax increases and no meaningful changes in fees for things like sewer. Yet, costs have gone up and will continue to do so. Looking at the materials one can see that staff is recommending Council increase taxes between 1% and 2% per year along with reviewing/changing some fees and possibly using excess funds in some reserves to fill holes.

So, the City is not going broke unless Council does something incredibly stupid. In fact, there is about $14 million in the bank.

Watch for more on tax and fee changes as well as measures to manage expenses such as sharing services with other cities.

Happy Reading!
The Insider

Council "Retreat" - Location Change

3/18/13

Saturday's (the 23rd) "Retreat" has been moved to the Police/Fire Building basement conference room. Start time appears to be 8:00 AM.

You are going to attend, aren't you?

This'll be the first time in six years the Council will have a strategy discussion not lead by Chris Lizee.

No final decisions are supposed to be made.

Hapy Reading!
The Insider

AIS Back In The News

3/14/13

Council was back to talking about AIS. Monday night, it approved funds for the Lake Minnetonka Association to chemically treat for milfoil on Phelps and Gideons Bays. It also approved doing boat inspections at the Christmas Lake landing. Readers may view the meeting at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=7a935e95-dd8d-1030-b4c5-84d7a9c8f15d

Dick Osgood of the LMA spoke about the milfoil treatment program and ended by asking for $12,000, twice what the City has in the 2013 budget. It seems that the LMA's other sources of funds are less than in previous years and the expectation was the City should make up the shortfall. Council ended up authorizing $7,000, the same amount it authorized in 2012. If one listens carefully, several of the council members were leaning toward giving the whole $12,000. More of the let's spend even if the money is not there behavior at work.

This year the City is on its own to operate the Christmas Lake inspections, but does expect to get a grant from the watershed and appears to have a verbal agreement that the Lake Association will cover the balance of the expense. With this funding, the City's costs should be some staff time, the same as in 2012. This is good because the 2013 budget has no dollars for this inspection program.

How much should the City spend for AIS chemical treatment programs? One should keep in mind that directly benefiting on the two affected bays are about 40 properties in Shorewood.

Happy Reading!
The Insider

Council Retreat Scheduled

3/4/13

Shorewood's Council has scheduled a "retreat" for Saturday the 23rd at South Shore Center. The agenda appears to be pending, but one item that's sure to get some discussion is the center itself.

In 2011 and again in early 2012 the Council held some strategic planning and visioning sessions. These seemed to be marked by lack of agreement, and certainly lack of any meaningful results. So, will this meeting produce anything different?

What would readers of this blog have on the agenda if they were running the meeting?

Note that the meeting is open to the public and starts at 8:30 AM. The Insider suspects the Council would be surprised to have some of their constituents present. Might be fun!

Happy Reading!
The Insider

Does Shorewood Need Zoning Permits?

2/24/13

Shorewood's Council is, again, considering requiring permits for items already regulated by zoning law, but not requiring a formal permit to install. Items potentially requiring these "zoning permits" could include invisible dog fences, underground sprinkler systems, structures smaller than 120 square feet (think of a shed for storage of garden tools), children's play equipment, and driveways.

City staff says that they have regular problems with such items being installed such that they violate setback requirements, orher aspects of City code and even that they encroach on neighboring properties. Staff believes requiring residents to apply for a permit will solve these problems by avoiding them to start.

Interestingly, staff is also saying they don't intend to actively enforce the permits. Moreover they admit they probably won's even inspect installations when a permit has been obtained. So, the Insider wonders if readers of this blog think zoning permits have any merit. Remember, the existing zoning code covers these items, it just doesn't require permits before they're installed.

Happy Reding!
The Insider

South Shore Center _Woody Love Speaks

2/16/12

Former Mayor, Woody Love, spoke about the South Shore Cdnter during the council meeting on Monday the 11th. The speech was more of the same from Woody and the same gang of center advocates. The senior group, SSSP, has embarked on a visioning effort and, as is often the case when people have no idea what they're doing, they've hired a consultant to help them.

The message was that Shorewood's senior population is growing and this wonderful asset is needed to support this growing population as they "age in place." One of Woody's major objectives is to get the support of one city (guess which one). No mention was made of how this wonderful effort is to be funded or how many seniors actually use the facility now.

When asked by a council member about the schedule for the visioning activity, Woody didn't know and deferred to Bob Neuman, former mayor of Greenwood and another long-time Center advocate. Neuman said there was no real timetable, but eventually he and Woody concluded that end of 1st quarter would be it. So, an effort that is of critical importance has no formal schedule. Typical for this group.

The Insider noted that one Council Member said it'd be preferable that more than one city would be in support. At least one person may be thinking that this thing looks like a setup for Shorewood's taxpayers to get stuck with an even larger bill.

View the council meeting and item 6A: at http://lmcc.granicus.com/MediaPlayer.php?publish_id=858

Happy Reading!
The Insider

Shouth Shore Center Manager Leaving

2/9/13

According to the agenda for Monday night's Council Meeting, Kristi Anderson, the South Shore Center Manager (contractor) has given notice of termination of her contract as of March 31st. Readers of this blog should recall that the Center has been running increasing deficits and is projecting much lower revenues for this year.

One would assume that significantly lower commission expectations for Ms Anderson had something to do with her decision to leave.

On Monday night's agenda is a presentation by former Mayor Woody Love, representing the South Shore Senior Partners, on a ""visioning" activity the Partners are conducting. One can only speculate what might come of this.

Maybe it's time for the five cities who own the Center (Deephaven, Greenwood, Excelsior, Tonka Bay and Shorewood) to come together and get real about its future. Shorewood is the only city that's put any operating money into the center for the past three years while the other cities have taken a free ride. Some might say Shorewood volunteered for this (and they'd be correct), but how much is enough for Shorewood taxpayers?

Happy Reading!
The Insider

What's City Water Worth?

2/3/13

On 1/18, Council approved engineering work and public meetings to consider road improvements on Valleywood Lane and Valleywood Circle.. Also proposed was extending City water to the properties.

The estimate for water extension results in a proposed assessment for each property of over $11,000. Will Council go ahead with water? It's not clear. One thing for sure, this is not an affluent neighborhood and $11,000 of cost is likely to come at a time when it's just not affordable.

Last time road improvements were done in this area, residents came out strongly against putting in water and Council voted against the water portion of the project.

What will Council do under Mayor Zerby's leadership? He's been in favor of water extension.

Happy Reading!
The Insider

Zerby's Highest Priority?

1/19/13

Appears newly seated mayor Scott Zerby intends to make his mark by focusing on seniors.

In December he floated the idea of creating a senior commission. At the end of the 1/14 council Meeting, he reported that he'd had staff send Council information on what some other communities in the neighborhood had been doing with senior commissions. Click on agenda item 11A at: http://lmcc.granicus.com/MediaPlayer.php?publish_id=827

Zerby seemed surprised when council member Woodruff reported that he'd discussed senior commission activities with Minnetonka, Chanhassen and Victoria. According to Woodruff, Minnetonka's commission focuses solely on activities in their senior center. Victoria's commission meets, but doesn't really do anything. Chanhassen's was reported to be quite active.

So, the question for Zerby and Shorewood is: What problem is it that will be solved by creating a senior commission? Maybe the good readers of this blog can enlighten the Council?

Happy Reading!
The Insider

Artic Fever This Weekend

1/15/13

Shorewood's own celebration of winter is happening this weekend. It's become a regional event and well worth visiting.

See: http://www.arcticfever.net/ for information.

Be sure to get to Badger Field (next to City Hall) on Friday evening to see the ice sculptures. Some will be done by professionals.

Happy Reading!
The Insider

Interim Administtator Is Permanent

1/13/13

As previously predicted, Council made Bill Joynes a permanent part-time City Administrator awarding him a two year contract with extension option.

Everyone seems happy with Joynes' performance as the part-time Interim Administrator. Will they stay that way?

Happy reading!
The Insider

New City Administrator Contract - More

1/4/13

Two astute readers challenged the Insider's analysis of the proposed pay on an annualized basis and pointed out a contractor typically pays their own benefits, etc.

Maybe these two should re-read the contract. See previous blog for more and a link.

The contract says $70 per hour for 25 to 30 hours per week of work. Assuming two weeks' vacation is unpaid, and 30 hours per week, the total cost is $105,000. This is more than the $95,000 described as a not-to-exceed figure in the contract. If the work performed averages more than 27 hours per week, the $95,000 will be exceeded and the contract says there needs to be a negotiation about exceeding this amount. Suppose more than 27 hours per week, on average, is needed to get the job done. Will Council say stop work at $95,000? The Insider thinks not.

If one reads the Cost of Service clause in the contract one sees that the City has to pay a monthly insurance "stipend." Although the amount is not specifically listed it's to be what the City pays for insurance for other employees (something just under $1000 is a likely amount). So, there are benefit costs in addition to the $70 per hour.

Happy Reading!
The Insider

Special Council Meeting - City Administrator Contract

1/4/13

Happy New Year!

No council meetings since early December and hollidays make for little news, but now things are heating up (except outside).

Monday night there's a "Special" council Meeting. Agenda is swearing in the new council members, appointments of council members to various committees and most interestingly, making permanent the Interim Administrator, Bill Joynes.

As reported here last month, it seemed Council was working on an agreement to change Joynes to permanent status. Now, it seems sure to happen Monday night.

See: http://weblink.ci.shorewood.mn.us/weblink8/docview.aspx?id=162372&dbid=0 to read the contract. A summary of details is:
- Joynes remains a contractor
- He remains part-time (25 to 30 hours per week)
- He get paid $70 per hour
- Annual cost to the City is supposed to be no more than $95,000
- For the first two years, he gets $45,000 if the City terminates the contract

So, for pay equivalent to $145,600 annually when calculated on a 40 hour per week basis, Shorewood gets a part-time administrator. He'd better be able to walk on water.

Happy Reading!
The Insider