Shorewood board keeps 2026 levy near 2.8% and agrees on several budget items after wrap-up discussion
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Summary
At a special committee-of-the-whole meeting, the Village Board of Shorewood reviewed held-over budget items for 2026, confirmed a 2.81% levy projection backed by use of fund balance, and reached consensus to keep several capital and program items while deferring others; the board also agreed to pilot an internal popular annual financial report.
The Village Board of Shorewood on Tuesday reviewed remaining items from its 2026 draft budget and confirmed a levy projection of 2.81% while planning to use general fund balance to close a roughly $400,000 gap.
Village Manager Ewald told trustees that "the proposed budget... includes a projected 2.81 percent increase in tax levy and utilizes fund balance to cover the remaining gap," and emphasized that the draft stays below the 3% increase trustees asked for.
Why it matters: the board’s decisions now shape the document that will be presented for adoption in November. Board members spent the session weighing whether to cut or keep specific projects and capital replacements while ensuring the village remains above its fund-balance policy target.
The board heard staff context that, after the proposed transfers and uses, the village’s projected ending general fund balance would be about $7 million, which is roughly $2.5 million above the village’s target level (a 30% guideline built from a 25% minimum plus a 5% contingency). Trustees were told that using roughly $400,000 of fund balance to close the budget gap is within established practice and would still leave the village well above its policy minimum.
Trustees reached consensus on several individual items discussed during the meeting. Major determinations included:
- Police parking vehicle (right-hand-drive enforcement vehicle): the board left the proposed purchase in the draft budget after discussion about market availability and vehicle downtime; trustees said they want to explore alternative vehicle types in the coming years but agreed to keep the line item for now. The parking-enforcement vehicle cost in the discussion was presented as roughly $90,000 (parking utility/enterprise fund implications were noted as requiring separate action if the board chose to pay from that fund).
- Plow truck replacement: trustees kept the replacement on the schedule as part of the village’s regular equipment-replacement plan. Staff clarified this purchase would be for a chassis and body (the dump bed), and that a separate spare plow blade (about $13,000) would not be included in the truck’s base price and would be a separate item.
- Neighborhood Greenways Initiative ($65,000): the board agreed to keep a one-year planning budget to hire a consultant to develop the plan and lead community engagement; trustees noted the project is generally a one-time cost but could lead to additional future funding requests for implementation.
- Popular Annual Financial Report (PAFR): trustees agreed to a one-year internal pilot to produce a citizen-friendly summary of the budget and finances rather than immediately outsourcing a formal PAFR. Staff said an outsourced PAFR could cost roughly $10,000–$15,000; the board directed staff to attempt an internal version in 2026 and return after one year to evaluate whether an external PAFR is warranted.
- Groins at Atwater preliminary study ($15,000): the board decided to defer the groins study for at least a year, citing numerous competing capital priorities (streetlights, water-main work, lead-service-line replacement, public-works building projects) and concerns about near-term implementation and long-term costs.
- Emerald ash borer work: trustees kept the budgeted $40,000 allocation for ash-borer-related work.
- Park and street refuse containers and liners ($7,500): trustees agreed to keep this funding to support park cleanliness and weekly servicing schedules.
Board members also confirmed that the 2.81% figure presented is the net levy covering the general fund, the library, debt service and capital funds. Trustees asked and staff agreed that the final budget packet presented for adoption in November will include (1) a salary listing by job title (not by name) and (2) an updated capital-asset list.
Separately, trustees were told that a proposed increase from the North Shore Health Department aligns with the existing intergovernmental agreement and bylaws between the health department and the North Shore Fire Department; no separate board vote was required at this meeting on that increase.
The meeting ended with a procedural motion to adjourn moved by Trustee Kudo and seconded by Trustee Stokebrand; the motion carried on a voice vote.
Next steps: staff will incorporate the agreed changes and clarifications into the draft final budget for presentation and formal adoption at the board’s November meeting.
