Shorewood trustees get Quarter 1 finance update as long-range plan tackles water, lead lines and rising debt pressure

Contracted Finance Director David told the Business & Finance Committee on May 4 that the village’s Quarter 1 finances are within expected ranges and that no structural budget problems have emerged from three months of results. Revenues were tracking to plan and expenditures reflected timing variances from front-loaded contracts, subscriptions and insurance payments, he said. David flagged two watch items in the police department—overtime (about 25% of the year-to-date budget) and benefits (roughly 25.9%)—and said staff will continue to monitor both.

Why it matters: trustees began a budget kickoff for the 2027 long-range plan and underscored growing capital needs. Director Hickey told the Committee of the Whole that the village faces rising infrastructure demands, including lead service line (LSL) replacement, major sewer and water projects, and ongoing street and utility work. With limited growth in non-property-tax revenues, the village’s reliance on property taxes for operations is likely to increase, the memo warned.

Key details and next steps: staff said new water rates will be fully implemented in the August billing cycle (covering mid-May through mid-August) and will appear on bills due in September; trustees asked staff to finalize resident communications (bill inserts and village channels were discussed). Arcadis, the consultant handling Shorewood’s LSL plan and financing, intends to apply for an extension beyond the default 10-year replacement schedule (an illustrative 22-year plan was discussed). Staff emphasized that DNR approval and administrative precedent are still pending and that the department will only commit to schedules once the DNR’s review is complete.

Trustees also discussed the village’s debt posture and financing options. Staff explained the difference between revenue bonds (secured by project revenues) and general-obligation (GO) bonds, noting roughly similar maturities (about 20 years) and that the village still has statutory capacity under the legal debt margin. For planning, staff suggested revenue bonds may be used when appropriate but that rating and market conditions will be considered. A consultant-provided 10-year sewer-infrastructure assessment was reviewed; projects were prioritized by condition, with design work often starting a year before construction.

What trustees asked for: clearer, itemized reporting on public-safety costs (police separated from lumped public-safety figures), a more specific communication plan for the utility-rate change, and additional transparency in the long-range plan (LRP) packet for project timing and cost sensitivity. Staff said the full, calibrated LRP and financing options will return to the board in June for detailed review.

Bottom line: Q1 results do not yet signal a budget crisis, but the village is entering a period of significant capital investment and exposure to rising wage, benefits and infrastructure costs; trustees asked staff for more granular data and options ahead of the 2027 budget decisions.