12-02-2020 Workshop Minutes - Laserfiche WebLink

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WORKSHOP MINUTES CITY COUNCIL DECEMBER 2, 2020 contingency fiind was lowered by $5,000. The Finance Director stated the levy would decrease to 2.81 %. Fischer stated he would be in support of lowering the Council Contingency Fund from $15,000 to $10,000. Keis agreed. The Finance Director clarified that the HIA fund transfer would only be a one-time transfer so these dollars would need to be made up for in the 2022 budget through an increase in revenue, decrease in expenditures or increase the levy. Torkelson is concerned about having to make much up that much for the next budget cycle so maybe the Council contingency fund should not be lowered this year. Keis asked the Council if they had any thoughts about the other optional changes. Torkelson stated that he was not interested in doing any of the optional reductions at this point. There was Council consensus to make the staff suggested General Fund budget changes as presented, and none of the optional changes. DISCUSS WATER & SEWER RATE STUDY The Finance Director reported that Bolton and Menk worked on a utility rate study earlier this year, and in an effort to fully analyze and better understand the sewer rates, staff has been refining the study for the past several months. She explained that the City has been very proactive in increasing utility rates on an annual basis, but the 2019 increase was held off until the study was completed. She reviewed the average annual rate increases and stated that staff is proposing an increase in 2021. Keis asked what a typical household bill increase would be. The Finance Director stated that a bill based on 12,000 gallons, the price would increase a few dollars. The Finance Director explained that Little Canada has 56 properties and three manufactured home parks that are on wells but using city sewer, but we only charge a flat rate for sewer since we do not see how much water they are using. She noted the manufactured home park assumptions are 7,000-10,000 gallons per day. The Public Works Director reported that the Five Star manufactured home park in Vadnais Heights recently connected to city water to do repairs on their well, and when on a meter, Vadnais Heights saw that they were actually using quite a bit more than 9,000 gallons per day. Torkelson questioned how manufactured homes are using more water than the average single-family home, and wondered if maybe their pipes were leaking underground. The Finance Director stated that staff is proposing a 3% increase for water rates and 4% increase for sewer rates beginning with first quarter 2021 billing. Torkelson stated that he is an advocate for the manufactured home park residents, but he also does not think they should be paying a lower water and sewer bill than anyone else. There was Council consensus to follow staff s recommendation on water and sewer rate increases in 2021. The Finance Director stated that the next step will be bringing the rate increases back to the Council to approve, and staff will look at the properties that are on wells to see when their last increases are, and correct their rates to be in line with other similar properties 2