Shorewood reviews long-term financial plan; council presses on 2029 capital spike

Shorewood — At a June 23 work session, the City Council reviewed a Long-Term Financial Management Plan prepared by Northland Securities that projects revenues, expenses, utility rates and potential debt issuance over multiple years. Finance Director Schmuck introduced the study and Tammy Omdal of Northland Securities presented the firm's approach and findings.

Omdal told the council the LTFP "is not a budget and [is] intended to serve as an ongoing guide for managing the City's funds," explaining that the document models revenue sufficiency, levy and rate calculations, projected fund balances, utility-rate comparisons, capital spending and expected debt issuance. Schmuck said staff will use the plan as a tool to run scenarios and test assumptions before recommendations reach the regular council meeting.

Councilmembers asked several technical questions during the discussion. Councilmember Gorham noted a pronounced spike in the capital improvement program in 2029 and asked whether the model assumed new borrowing to cover those projects; Omdal said the spike reflected a handful of larger projects and that bonding for street improvements was assumed. City Administrator Nevinski said staff believed the spike aligns with the Grant Lorenz reclamation project but cautioned that project timing and scope could change.

Councilmember DiGruttolo pressed for more information on the model's sensitivity and assumptions about growth; Finance Director Schmuck said the plan took a conservative approach to growth projections and relied on County Assessor valuations where available. Schmuck also said Northland had added fifty basis points to its existing debt spectrum from March 2025 "to be conservative" when projecting future borrowing costs.

Schmuck told the council that accepting the LTFP is being recommended at the regular City Council meeting as a tool to guide further discussion; no formal acceptance vote occurred during the work session. Staff encouraged public feedback and noted open office hours and the option to schedule meetings with staff for more detail.

Next steps: the LTFP will be presented in abbreviated form at the regular council meeting for possible acceptance and will remain available for staff scenario modeling and public review.