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186 <br />COUNCIL WORK SESSION FEBRUARY 8, 1988 <br />Mayor Benson opened the Work Session at 6:38 P.M. Council <br />Members present: Bisel, Bohjanen, Reinert. Council Members <br />absent: Marier. City Administrator Randy Schumacher, <br />Engineer Ron Stahlberg, Public Works Director Don Volk and <br />Clerk - Treasurer Marilyn Anderson were also present. <br />Mr. Stahlberg explained that he has prepared a study of the <br />sewer and water rates for the City and a copy of the study <br />was sent to all members of the Council. The study contains <br />projections of costs as well as suggested rate increases. <br />Mr. Stahlberg explained where all of his figures came from <br />and how he prepared the projections. Mr. Reinert expressed <br />concern because it appears that costs are being added <br />without adding benefits. Mr. Stahlberg noted that Metro <br />costs are going up each year and the City has not had a rate <br />increase since 12/82. Mr. Bisel asked where Lino Lakes <br />rates were compared to other communities. Mr. Reinert asked <br />if Lino Lakes was getting to a point where builders are not <br />going to build here. <br />There was discussion regarding putting administration <br />expenses into the utility department. Mr. Schumacher <br />explained that these expenses included the utility clerks <br />time for preparing the billing and maintaining the records. <br />Mr. Volk also explained that as the system grows more and <br />more time will be spent maintaining the system. Mr. <br />Stahlberg indicated the figures show that there has to be <br />user fee increases from time to time. Mr. Reinert asked how <br />this City could justify such increases. Mr. Stahlberg noted <br />that the largest expense is debt retirement and the Council <br />has already indicated that some of the money for debt <br />retirement will come from user fees. <br />There was discussion regarding whether the system would ever <br />be self supporting. Also there was discussion regarding <br />whether all administration costs should be allocated to the <br />utility fund since these users also pay taxes. Mr. Bisel <br />also indicated that commercial users are needed to offset <br />the costs to the homeowners. <br />Mr. Stahlberg was requested to extend his projections <br />further into the future to a point where the system appears <br />to be self supporting. He was also asked to contact several <br />metropolitan communities to determine their sewer and water <br />PAGE 1 <br />1 <br />