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1 <br />1 <br />COUNCIL WORK SESSION APRIL 11, 1988 <br />The Council work session was called to order by Mayor Benson <br />at 6:08 P.M. Council Members present: Bisel, Bohjanen. <br />Mr. Reinert arrived about 6:30 P.M. City Engineer, Ron <br />Stahlberg; Public Works Director, Don Volk; Administrator, <br />Randy Schumacher and Clerk - Treasurer Marilyn Anderson were <br />also present. <br />Mayor Benson explained the purpose of the work session is to <br />discuss the sewer and water utility rates. <br />Mr. Stahlberg gave a brief background of the first work <br />session regarding utility rates on February 8, 1988. He <br />explained since then he and Mr. Volk have been to Metro <br />Waste Control and from the information gathered there it <br />appears that Metro Waste will continue to maintain and <br />operate the lift station at Baldwin Lake Court and in the <br />future this City will be responsible for the maintenance and <br />operation of the lift stations in Shenandoah and on Black <br />Duck Drive. <br />Mr. Stahlberg has prepared a letter dated March 9, 1988 and <br />has had attached data requested at the previous work <br />session: a tabulation of sewer and water rates for ten <br />adjacent communities, a tabulation of sewer rate for <br />nineteen communities prepared by West St. Paul, a revised <br />income - expense tabulation for the Lino Lakes utility system <br />and suggested new rates. The new rates would give an <br />average user a $78.00 per quarter utility bill. He <br />explained that Lino Lakes has not had a rate increase since <br />1982 and this proposal would equal a 3% increase for each <br />year since then. The largest change would be the increase <br />from $7.50 per quarter to $20.00 per quarter user fee. <br />Mr. Bisel asked what could be done to avoid such a large <br />increase in the future. Mr. Stahlberg said most communities <br />review their rates on an annual basis and add an inflation <br />factor. Mr. Bisel was concerned about such a large increase <br />at this time of the year because it will really affect the <br />summer users. He suggested phasing in the increases over <br />several quarters. <br />Mayor Benson referred to the expenses analysis document and <br />noted that some charges to the utility could be covered by <br />taxes. He asked if some administration expenses could be <br />funded by General Fund. Mr. Stahlberg explained these <br />charges are all due to the operation of the utility and <br />PAGE 1 <br />