11-30-2022 Workshop Minutes - Laserfiche WebLink

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MINUTES OF THE WORKSHOP MEETING CITY COUNCIL LITTLE CANA.DA, MINNESOTA NOVEMBER 30, 2022 Pursuant to due call and notice thereof a Workshop meeting of the City Council of Little Canada, Minnesota was convened on the 30th day of November, 2022 in the Conference Room of the City Center located at 515 Little Canada Road in said City. Mayor John Keis called the meeting to order at 6:00 p.m. and the following members of the City Council were present at roll call: CITY COUNCIL: Mayor Keis, Council Members McGraw, Fischer, Torkelson and Miller. Absent: None. ALSO PRESENT: City Administrator Chris Heineman, Public Works Director Bill Dircks, Finance Director Sam Magureanu, Parks & Rec/Community Services Director Bryce Shearen, City Clerk/HR Manager Heidi Heller, Council -Elect Amanda Gutierrez and Council -Elect Dave Miller. DISCUSS WATER & SEWER RATES The City Administrator stated that the City has reviewed the water and sewer costs a few times over the last few years, but not this in depth. He explained that Little Canada is a wholesale customer of finished water from St. Paul Regional Water Services, and the purchase cost is a pass -through cost. He stated that there are going to be significant increases in water costs over the next several years from St. Paul Water due to a large reconstruction project of their facility. The Finance Director stated that the water and sewer funds are self -supported by charges to the users of water and sewer. He stated that water and sewer rates were reviewed- several years ago and it was anticipated that increases of three to four percent would be needed each year going forward, but that was prior to learning about the reconstruction of the water facility. He explained that due to the reconstruction cost of the McCarron's water treatment facility, they will be raising the cost of water significantly over the next three years. He explained that unless the city's water rates are increased, the water fund will be negative by 2026. He stated that this fund pays for all maintenance to the City's water system infrastructure, including the water tower. The Finance Director stated that the sewer fund is not as concerning as the water fund. He explained that Fund 604 is the water & sewer infrastructure fund and used to pay for all maintenance costs of the City's water and sewer systems, including the water tower. He noted that money was borrowed to build the public works building and the debt payments also come out of this fund. Fischer stated that we are charging water and sewer rates that are significantly lower than other area cities, but asked if a resident's bill is still the same as other cities since the debt service payments come out of these funds. The Finance Director stated the rates were not increased when the debt occurred. Torkelson clarified that the rate increase proposal is to help balance the