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
Thursday, October 31, 2013
Monday, October 21, 2013
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
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
Monday, October 14, 2013
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
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
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