11/26/2012 Council Packet - Laserfiche WebLink

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• • CITY COUNCIL WORK SESSION November 5, 2012 DRAFT 46 supplemental appropriation would not bring the project over the levy amount. The 47 council concurred that they would consider the matter at their next regular meeting. 48 49 3. Circle Pines /Centennial Utilities Franchise Ordinance- Administrator Karlson 50 recalled that the franchise agreement has expired and that previously the utilities 51 commission proposed a change in fees and in response the council established a 52 subcommittee of Mayor Reinert and Council Member O'Donnell who proceeded with 53 discussions with Centennial and eventually other providers (Xcel and CenterPoint) about 54 the option of city purchase of the utilities. In the end a franchise agreement has been 55 negotiated with Centennial for a fee of 4% for non - interruptable service and 2% for 56 interruptible service. The agreement also includes language that allows for an increase 57 under certain circumstances and also that the fee will continue to be collected during 58 negotiation of a new agreement within a year. Mr. Karlson added that the agreement does 59 not provide for a representative on the commission board and that is an appropriate 60 change in his opinion. An ordinance establishing the franchise is on the next council 61 agenda. The city attorney has reviewed that ordinance. 62 63 Mayor Reinert added that much time was spent working out this issue and he feels the 64 city came out in a good position. Users in Lino Lakes will be seeing a reduction from 65 what they were paying through Centennial Utilities. Council Member Stoesz confirmed 66 that the users in Lino Lakes that buy from different providers (Xcel and CenterPoint) will 67 be paying about the same as Centennial users. 68 69 Staff will bring forward the ordinance for council consideration. 70 71 4. 2013 Budget — Finance Director Rolek distributed and reviewed a draft of the water 72 and sewer budgets for 2013. The budgets are made up of personnel services, chemicals, 73 maintenance of the systems, recovering depreciation costs and debt service for projects of 74 the fund. The water fund budget is proposed to be reduced in 2013, mostly due to the 75 retirement of debt for that fund. The sewer fund budget is proposed to be higher in 2012 76 mainly due to an increase in flow services purchased from the Metro Council. He added 77 that the city is in the midst of a utility rate study and recommendations are expected in the 78 near future; an increase in sewer rates are anticipated and possibly the water rates through 79 structuring. Council Member Roeser noted that staff has indicated that the current sewer 80 rate has not covered all costs and so the fund has been subsidized; he wonders if there is 81 wisdom in establishing some type of rate plan. 82 83 Mr. Rolek noted that the council received information on the recreation program fund, 84 another revenue fund. The fund indicates an anticipated surplus but some of the costs are 85 included in the general fund (recreation supervisor positions). There will be some 86 program fee increases as was discussed earlier and that should help to offset some of the 87 general fund participation. 88