01/22/2001 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JANUARY 22, 2001 Council Member Carlson asked if other cities and their development will also be included in Factors to Consider. Staff advised other cities and their development will also be considered within the study. Council Member O'Donnell moved to adopt Resolution No. 2001— 07, as presented. Council Member Reinert seconded the motion. Motion carried unanimously. Resolution No. 2001— 07 can be found in the City Clerk's office. PUBLIC HEARING, Resolution No. 01— 05, Proposed Utility Rates for 2001— 2003, John Powell — Staff advised the City Charter states "The Council shall endeavor to make each municipal utility financially self-sustaining". The City staff has prepared cost and revenue projections for the next three (3) years and is prepared to recommend utility rates for 2001 through 2003. Mayor Bergeson advised two (2) Council Members have requested action be delayed on this item until further discussion is held at the next work session. Mayor Bergeson opened the public hearing at 6:41 p.m. Council Member Carlson moved to continue PUBLIC HEAR Utility Rates for 2001— 2003, until the February 12, 2001, Reinert seconded the motion. Council Member Dahl stated she wants more inf Mayor Bergeson advised Council M work session. Motion carried unanimousl o. 01— 05, Proposed g Council Member nd material to review before taking action. st any specific material from staff prior to the Authorize Water an ity Operation Budget, Al Rolek — Staff advised the City Council reviewed the proposed S 1 ater and Sewer Operating Budgets at their Budget work session held August 31, 2000. Since "? ` at time three (3) items in the budgets have been amended. First, the new 49er's contract calls for an "On Call" payment to employees required to carry pagers. A line item has been added to each budget for this new pay category. Second, the MCES Treatment Charges have been increased to reflect a more recent estimate of this expense. Finally, depreciation expense has been added into the budgets for both funds. This is a departure from past budgeting practice and establishes a policy in the City's utility rate -setting structure. The addition of this expense will remind the City that at some point the water and sewer systems will need to be replaced. By including depreciation in the budget the City provides for the collection of revenue over the life of the current infrastructure to finance its replacement at the end of its useful life. The proposed revenues for this budget assume that the City Council has reviewed, adjusted and adopted the new utility rate structure proposed by staff.