11-25-13 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION November 4, 2013 DRAFT 135 Mayor Reinert suggested that there are real costs here and you can't pretend they are 136 different. The supply and labor costs have been reviewed by the council and savings 137 achieved. Is there an alternative to raising rates? Council Member O'Donnell asked if 138 easing into rate increases is possible and Mr. Rolek suggested that while it's possible it 139 doesn't get where it needs to be as quickly. Council Member O'Donnell asked for 140 impacts on the average sewer bill and staff noted a table in the staff report. Council 141 Member Roeser discussed how wells and septic systems fit into the city's equation and he 142 also suggested that it is most appropriate to keep these rates as a user fee, meaning they 143 represent what the services cost. 144 145 Director Rolek discussed the process for changing rates which would involve a public 146 hearing and an ordinance amendment to the city's fees. The council discussed where the 147 majority of the residents fall under the water rate structure. Mr. DeGardner explained the 148 difference between winter and summer use and noted as part of that description that high 149 summer use is what drives the capacity discussion and need to increase infrastructure at a 150 cost. Council Member Stoesz asked about changing the flat REU charge and Mr. Rolek 151 said that could be done but the study information is really based on changing rates. 152 Mayor Reinert noted that he doesn't necessarily see water and sewer as the same and 153 wonders if a three year increase is needed; he doesn't like automatic increases. He is 154 more interested in a four percent on sewer and two percent on water. When a council 155 member asked if increases should be considered each year, Mr. DeGardner noted that 156 process includes a public hearing that would be required each time. Council Member 157 Stoesz said he still questions no change in the REU and wonders about a decrease for 158 people who are gone for the winter or businesses that aren't open. Mr. DeGardner 159 explained that those cases still have costs associated with having a water and sewer 160 system available. 161 162 The council concurred to consider a two year plan with water increasing by four and then 163 three percent and sewer increasing by two and then two percent. The council will hold a 164 public hearing on the rate increases on November 25, 2013 at the regular council meeting. 165 166 Mr. Rolek reviewed the Recreation Budget. 167 168 6. Funding for Parks — Council Member Roeser explained that Xcel Energy uses a 169 "round up" program where people can chose to donate the change portion of their bill 170 automatically. He is wondering if the city could do that with its utility bills for its 171 recreation center project; it could be called "pennies for parks ". Also is it possible in 172 connection with other utility bills. 173 174 Mayor Reinert noted that he'd like to see a parks funding initiative begin in 2014 and 175 perhaps this idea could be a part of that puzzle. He recommends that the parks funding 176 initiative be added to the Monthly Progress Report. He sees the city council coming up 177 with ways to move on the parks project. 178 4