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HomeMy WebLinkAbout04/11/1988 Council Minutes1 1 COUNCIL WORK SESSION APRIL 11, 1988 The Council work session was called to order by Mayor Benson at 6:08 P.M. Council Members present: Bisel, Bohjanen. Mr. Reinert arrived about 6:30 P.M. City Engineer, Ron Stahlberg; Public Works Director, Don Volk; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. Mayor Benson explained the purpose of the work session is to discuss the sewer and water utility rates. Mr. Stahlberg gave a brief background of the first work session regarding utility rates on February 8, 1988. He explained since then he and Mr. Volk have been to Metro Waste Control and from the information gathered there it appears that Metro Waste will continue to maintain and operate the lift station at Baldwin Lake Court and in the future this City will be responsible for the maintenance and operation of the lift stations in Shenandoah and on Black Duck Drive. Mr. Stahlberg has prepared a letter dated March 9, 1988 and has had attached data requested at the previous work session: a tabulation of sewer and water rates for ten adjacent communities, a tabulation of sewer rate for nineteen communities prepared by West St. Paul, a revised income - expense tabulation for the Lino Lakes utility system and suggested new rates. The new rates would give an average user a $78.00 per quarter utility bill. He explained that Lino Lakes has not had a rate increase since 1982 and this proposal would equal a 3% increase for each year since then. The largest change would be the increase from $7.50 per quarter to $20.00 per quarter user fee. Mr. Bisel asked what could be done to avoid such a large increase in the future. Mr. Stahlberg said most communities review their rates on an annual basis and add an inflation factor. Mr. Bisel was concerned about such a large increase at this time of the year because it will really affect the summer users. He suggested phasing in the increases over several quarters. Mayor Benson referred to the expenses analysis document and noted that some charges to the utility could be covered by taxes. He asked if some administration expenses could be funded by General Fund. Mr. Stahlberg explained these charges are all due to the operation of the utility and PAGE 1 002. COUNCIL WORK SESSION APRIL 11, 1988 should be paid by those who benefit from the services. There was further discussion on what charges were figured in the operation of the utility. Mayor Benson asked that the staff calculate the average number of gallons of water a household would use in one quarter. This will give the Council a better understanding of how the proposed increase would affect the users. He also asked that the residents be made aware of the benefits of the utility system and the fact that there has not been a rate increase since 1982. There was discussion regarding rates in other communities. There appears to be a wide range of rates. The staff was requested to send a letter with this quarter's statements giving the date of the public hearing on rate increases and listing the benefits of using the utility sytem. The benefits include better water pressure due to the new water facilities and lower fire insurance premiums. The date of the public hearing well be set at the regular Council meeting tonight under Old Business. Mr. Bohjanen moved to adjourn at 7:02 P.M. Mr. Bisel seconded the motion. Motion carried unanimously. These minutes were considered and approved at a regular council meeting on April llth 1988. MAR1,LYI G. ANDERSON Clerk- Treasurer PAGE 2 B JAMIN G. BENSON Mayor