HomeMy WebLinkAbout04/11/1988 Council Minutes1
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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
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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
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B JAMIN G. BENSON
Mayor