03-08-06 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MARCH 8, 2006 The foregoing resolution was duly seconded by Montour. Ayes (4) Blesener, Montour, Allan, Keis. Nays (1) LaValle. Resolution declared adopted. 2006 The Finance Director presented her report dated March 3, 2006 SEWER & relative to 2006 sewer and water rates. The Director noted that the WATER City had an estimated income of $44,693 in the sewer fund for 2005. RATES This income is the result of increased revenues and reduced costs. The Director indicated that 2006 budgeted operations are expected to produce an income of $26,163. The Director noted that Met Council has increased its rates by 2.4°Io for 2006, but this increase can be absorbed by the budget. Therefore, there is no sewer rate increase proposed for 2006. Blesener asked the status of the billing issue with the City of Vadnais Heights. The Director reported that Metropolitan Council charges approximately $25,000 per year for infiltration/inflow from the County Road D area in Vadnais Heights. The Director anticipated that the collection of these past charges from Vadnais Heights will be settled soon. She noted that this cost was not factored into the 2006 Budget. The City Administrator reported that the City Attorney's office is researching the issue. Once all the issues have been identified and the Attorney determines Little Canada's standing, a meeting will be held with the City of Vadnais Heights. The Administrator pointed ouC That adjusting Metropolitan Council's billing practice going forward is not the issue. The issue is the collection of past charges that Little Canada was mistakenly charged for Vadnais Heights' properties. The Administrator noted improvements that the City has been making to address infiltration/inflow issues such as replacement of manhole covers and repair of sewer service problems in the Carla Lane area. He also noted that there are additional corrections planned in the County Road B-2 area. All these repairs result in continued progress in improving infiltration/inflow rates into the City's sewer system. The Finance Director reviewed the 2006 Water Budget, pointing out that a $.07 increase is proposed in water rates, or a 3.5% increase. This proposed increase hacks with the 2006 increase in rates charged to the City by St. Paul Water Department. The Director noted that even with this increase, the water fund is expected to have a small operating loss of $9,000. However, given that the City's depreciation is a non-cash expense, the Director expected that the budget could absorb this loss.