The Shorewood Budget & Finance Committee voted 2–1 to adopt a capital equipment planning and funding policy that establishes an annual levy funding mechanism beginning in fiscal year 2026 and requires a rolling 10‑year equipment replacement schedule aligned with the village’s long‑term financial goals.

The policy clarifies the village’s capital-equipment definition to match existing policy number 6 (items with a useful life of two or more years and a purchase cost of $5,000 or more) and states that funds may be raised through the annual levy unless the board approves borrowing. The motion directs staff to maintain a rolling 10‑year equipment replacement plan and to include the planned levy amounts in future budget materials.

Why it matters: Committee members said the policy is intended to create a transparent, planful way to set aside funds for expensive future equipment — for example, a bucket truck or squad vehicles — rather than making year‑by‑year decisions without a long‑range plan. Staff and supporters said the policy does not delegate purchase authority to staff and that purchases would still require board approval.

Debate and vote: During committee discussion, one trustee voiced concern that routinely setting money aside without strict legal restriction could act as a “slush fund” and reduce the board’s flexibility to respond to other priorities. That trustee also questioned assumptions about useful life and urged stronger “green” and conservation considerations before routine replacement. Supporters responded that the fund would not be legally restricted funds (meaning the board retains the authority to reallocate designated balance) and that annual review of useful lives would be part of the process. The motion to adopt the policy passed 2–1.

Budget implications and clarifications: Staff told the committee that historically the village has levied about $600,000 annually for capital improvements in the capital equipment fund. Staff said the policy is intended to make the village’s fund balance more transparent by documenting the planned uses of capital-equipment fund balances and that large items such as refuse trucks could still be funded either by bonding or by the capital fund depending on future board decisions.

Discussion versus decision: The committee adopted the policy; implementation details, including precise levy amounts for 2026, will be recommended in the budget process. Committee members asked staff to return with a schedule and the recommended 2026 levy amount; staff said the recommendation would reflect historical levy practice unless the board directs otherwise.

Next steps: Staff will finalize a 10‑year replacement schedule, clarify how useful lives will be reviewed annually, and present recommended levy amounts for the board’s 2026 budget deliberations.