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1 <br />1 <br />1 <br />CITY COUNCIL MEETING JULY 25, 1994 <br />Mayor Reinert noted that vandalism to the lift station cost the <br />City extra time and extra money. <br />Ron Bennett, 6966 Sunset Road said he was unhappy four (4) years <br />ago when he was charge Lino Lakes rates for use of the Blaine <br />utility system. He noted that by 1996, his bill will increase by <br />another 15% and said that this was unacceptable. <br />Mr. Bennett said he had conducted his own survey of surrounding <br />cities and found that Lino Lakes was the most expensive. He also <br />noted that Lino Lakes is making money by charging him Lino Lakes <br />rates and paying Blaine the much lower rates. Mayor Reinert <br />explained that all residents are being charged the same rate. <br />Mr. Schumacher explained that the City could not charge some <br />residents one rate for snow plowing and other residents a <br />different rate. Everyone is charged the same rate. <br />Council Member Kuether noted that the City Council is bound by <br />the City Charter requirements. Mr. Bennett asked if the City <br />Charter said that the City could not make a profit from the <br />utility system. Mr. Schneider said that the City is not making a <br />profit, only providing a reserve for future repairs and <br />additional facilities. He explained that the City cannot use <br />general tax dollars to subsidize the utility fund. Mayor Reinert <br />explained that if the City Council increased taxes to accommodate <br />breakdowns in the utility system, the Council chambers would be <br />full of residents protesting a tax on something that does not <br />benefit them. He also said that the City Council must look at <br />the utility system as a business and businesses need reserves. <br />Mr. Bennett said he felt that a rate increase should be something <br />that the citizens could vote on. Mayor Reinert said that is not <br />easy for the City Council to vote for the rate increase. <br />Mr. Klante asked what the bond payments were for. Mr. Schneider <br />explained that bonds pay for the construction of the water tower, <br />new wells and other such structures. He noted that the City will <br />be able to add a new well without further increasing rates, <br />however a reserve is needed and this will not come without <br />increasing rates. <br />Mr. Klante asked if the City has made projections for 10 years in <br />the future. Mr. Schneider said yes and also 20 years in the <br />future. However, he noted that these estimates are very "fuzzy". <br />Mr. Klante said he felt a two and one-half percent increase in <br />rates would be sufficient. <br />Mayor Reinert read a letter from Mr. Kelly Sharkey, 174 White <br />Pine Road protesting the increase in sewer and water rates. Mr. <br />Sharkey said he felt rates should be decreased sharply. <br />PAGE 13 <br />3(-►' <br />