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Shorewood council reviews budget priorities, rising cost pressures and new public-engagement steps
Summary
Finance Director Schmuck reviewed the 2026 budget schedule and public engagement plan, highlighting reserve use, falling project revenues, and rising public safety and capital costs; staff proposed Budget Work Session public comment time and open office hours to broaden resident input.
Finance Director Schmuck presented an overview of the 2026 budget schedule, public engagement plans and key fiscal variables to the Shorewood City Council at its June 9 work session.
Schmuck outlined the trajectory for taxable market values, net tax capacity and the distribution of the 2025 levy, and she described several budget pressures: staff had previously allocated about six hundred fifty-three thousand dollars from reserves, prior project revenues had been overstated and are being re-aligned, and building-related revenues are projected to decline. She said staff were preparing options to address the combined effect of higher expenses and lower revenues.
Councilmembers raised specific concerns about the apparent jump in costs this past year and whether multi-year increases were sustainable. City Administrator Nevinski noted the city has seen unusually high cost pressure this past year (roughly a 10 percent increase in some areas) and that a pending chiller replacement is an unbudgeted capital item. Mayor Labadie added that some items are "non-negotiable, such as the SCBAs," while Councilmember DiGruttolo said the council must be selective about which expenses proceed immediately.
Schmuck and Nevinski described several steps to expand public engagement around the budget: publishing clearer summaries in the Shore Report, scheduling targeted Budget Work Session presentations with brief public comment after each topic, and hosting open office hours so residents can speak directly with staff. Councilmember Sanschagrin proposed adding a formal line-item for cost-reduction initiatives in the strategic priorities to track savings over time; DiGruttolo agreed that tracking and communicating outcomes is important.
Councilmembers also discussed capital project timing. DiGruttolo asked about the Vine Hill Road trail/sidewalk request; Nevinski said that project is a joint effort with Minnetonka and cannot easily be swapped for another CIP item, but staff can supply cost-per-linear-foot estimates and interim options such as a skim coat.
The work session closed with agreement on the outreach approach and staff direction to return refined budget materials at upcoming Work Sessions so the Council can provide focused guidance before staff finalizes proposals for the formal budget process.
