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MINUTES <br />CITY COUNCIL <br />MARCH 12, 2014 <br />*APPROVAL OF TEMPORARY ON -SALE LIQUOR LICENSE FOR <br />ST. JOHN'S SCHOOL SILENT AUCTION; <br />*ACCEPTING UTILITY AND DRAINAGE EASEMENT FROM <br />RAMSEY WASHINGTON WATERSHED DISTRICT AND <br />AUTHORIZING THE ACTING MAYOR AND CITY <br />ADMINISTRATOR TO EXECUTE ON BEHALF OF THE CITY; <br />*CALL FOR A PUBLIC HEARING FOR WEDNESDAY, APRIL 23, <br />2014 AT 7 :30 P.M. TO CONSIDER LIQUOR LICENSE FEE <br />INCREASES AD RECOMMENDED BY CITY STAFF <br />The foregoing resolution was duly seconded by Keis. <br />Ayes (4) <br />Nays (0). Resolution declared adopted. <br />SEWER & The City Administrator reviewed his March 7, 2014 report relative to <br />WATER the 2014 Water and Sewer Budgets and proposed rates. He began with <br />BUDGET a review of the Water Fund which anticipated a net loss of $15,261 for <br />AND RATES 2013 while projected actual results anticipate a net loss of $35,305. The <br />negative variance of $20,044 is largely attributable to an increase of <br />$32,000 in depreciation due to improvements to the water system, mainly <br />due to the full impact of the water meter replacement program. The <br />Administrator also reported that the City is anticipating a reduction in St. <br />Paul Regional Water Services charges for 2014 associated with their rate <br />study that was conducted last year. The reduction will result in a savings <br />ofjust over $58,000 for 2014. This is subject to execution of a new <br />contract with St. Paul Water. Based on these factors, the Administrator <br />reported that staff is proposing a 2% increase in the City's water rates for <br />2014, which will result in an anticipated loss ofjust under $15,000. The <br />Administrator noted that projecting a small loss in the Water Fund has <br />been an acceptable practice as long as the City's covers its operating costs <br />and the projected transfer of depreciation to the Water & Sewer Capital <br />Replacement Fund. The Administrator also noted in response to a <br />question posed by the Mayor, that the projections and rate <br />recommendation is based on a three year average of water purchases from <br />the City of St. Paul. <br />The Administrator then reviewed the Sewer Fund noting that the 2013 <br />Budget projected a deficit of $34,234, and projected actual is a loss of <br />$52,871. This is attributable to no investment income being allocated due <br />to unrealized losses versus a projected amount of $12,000. Another factor <br />is an increase in depreciation of just over $16,000. Taking those two <br />2 <br />