Shorewood council directs staff to develop organized hookup program, new fees and follow procedures for Mill Street watermain

The Shorewood City Council on June 9 directed staff to advance several measures aimed at addressing a projected $4.5 million shortfall in the city’s Water Fund by 2035 while encouraging more homeowners to connect to municipal water.

City Administrator Nevinski presented staff’s review of the system’s history, separate east and west water systems, survey results and a 19‑option menu of policy choices before the Council. Finance Director Schmuck told the Council the staff projection assumed current rate structures and typical 15–20 year bonding practice and showed revenues falling short of capital and debt needs.

Why it matters: the council’s choices will shape Shorewood’s capital plan and utility finances for decades. Several actions taken on Monday aim to make it easier and cheaper for property owners to connect and to spread system costs more broadly across beneficiaries, including fire protection that accrues to the community.

What the council approved and directed

- Public information campaign: By motion the Council asked staff to pursue Option 1 (Improve Public Perception) with a small outreach budget (about $5,000) for brochures, mailings and comparative information that explains municipal water testing and differences with private wells. Councilmember DiGruttolo said the comparative data is important; Finance Director Schmuck noted private-well data is limited to required reports and rental-property data.

- Organized connection program: The Council directed staff to develop options for an Organized Connection Program (Option 2) to coordinate contractor work, reduce homeowner complexity and help residents apply for grant or deferred‑assessment assistance. City Engineer Budde described how coordinated construction can reduce per‑household costs.

- Fees and rate structure: The Council moved to pursue Option 3 (Water Availability Fee) and Option 4 (Infrastructure Fee) and to modify the water usage rate structure (Option 5). Finance Director Schmuck said staff would return with details and corrected calculations (she noted a formula error in an earlier table).

- Assessment and connection requirements: The Council directed staff to pursue Option 6 (allow assessment of complete connection costs), and to require connection in certain future circumstances: Option 7 (require new subdivisions to connect — passed 4–1), Option 8 (require connection upon sale — passed 4–1), and Option 9 (require connection upon complete reconstruction). The Council voted not to pursue Option 10, which would have required payment of a water‑access charge without requiring physical connection.

- Connection fee and treatment options: Councilmembers asked staff to return with a graduated approach to increasing the current $10,000 connection fee (Option 11). The Council also directed staff to pursue Option 12 (improve water treatment options) and declined several other code or funding changes (Options 13–16, 18–19); it will revisit timing for city‑initiated watermain projects (Option 17) later.

Council comments and resident concerns

Residents who spoke during matters from the floor, including Dwayne Lorelei and Greg Larson, said past assessment practices felt inconsistent and urged clearer, fairer policies. Larson argued the city should “approach water like a business” by surveying demand before large capital spends; Lorelei said the historical assessment pattern seemed unfair. Mayor Jennifer Labadie and other councilmembers repeatedly said staff were seeking direction and that detailed policy design, cost estimates and communications would return to the Council for approval.

On water quality, City Engineer Budde and Finance Director Schmuck stressed Shorewood’s municipal water meets drinking-water requirements; several councilmembers acknowledged persistent customer complaints about iron and discussed incremental treatment options and tradeoffs between system improvements and household costs.

Next steps and Mill Street project

The Council adopted Resolution No. 25-055 to prepare final plans for the Mill Street Trail Watermain Project (City Project 24‑07) and added direction that staff should follow the newly discussed procedures: charge the $10,000 water‑access fee for properties adjacent to the project and encourage connection through the City-led organized connection program. Staff will bring detailed cost estimates, a rate-study update and options for a graduated connection‑fee schedule back to the Council, including the Long-Term Financial Management Plan and rate study at the June 23 meeting.

Quotes

"If the City approached water like a business, it would not be that difficult," resident Greg Larson said during public comment, adding the city should survey demand before spending. Mayor Labadie told residents the council expected a lengthy discussion and invited them to stay for staff presentations.

Ending

Council direction Monday was broad and procedural: staff now must return with detailed plans, cost estimates and outreach materials. The Mill Street design work was authorized, and staff were told to develop the organized connection approach and fee/rate options for future council action.