09-24-02 CCM - Laserfiche WebLink

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Water Enterprise Fund The Finance Director asked that the City Planner assist with talking to these projects. She mentioned that at a prior budget meeting, Council member Siedow had inquired about repeat funding for certain projects. The Finance Director responded that the City is putting money aside each year for projects that will be done in the future, including the future looping of water mains, the replacement of water mains, the 2A connection to Oakdale for the Lake Jane system, and repainting the water tower. The detail narrative expresses which year of pre -invest is being addressed. The benefit to the City is that we are not hit with a big cost at one time which would require bonding. Council member Armstrong inquired if the money would come from the general fund. The Finance Director responded that it would be revenue from the enterprise fund. The City Planner added that these are revenues from people paying into the water fund and that we don't know if there is sufficient funding to put aside for these projects yet. The Finance Director added that the analysis needs to be completed. The Mayor suggested we need to look at adjusting water rates to cover operating expenses. The City Planner added that part of the money paid is to cover the capital expenditure and part is to cover the operating costs, He further added that generally the bulk of the costs to cover capital expenditures comes from the hook-up costs. Because of the number of hook-ups over the last couple of years we are using up the number of hook-ups that can be attained. Council member Armstrong inquired about why the water rates have not been changed in the last few years. The City Planner responded that we cannot use connection charges to fund operating expenses and that for many years the water rates were never adjusted. In 1999, water rates were adjusted. Council member Armstrong expressed that these rates need to be adjusted now. The Finance Director mentioned she has a resolution prepared for the first meeting in January to adjust the rates once the usage and operating costs are reviewed and it is a high priority. Sewer Enterprise Fund The City Planner stated that the sewer enterprise fund operates the same way. Council member Armstrong inquired if the 201 system is the old 201 system or is it the city system. The City Planner responded that that is what it has been called but it is not bringing back the old 201 system. The reference in the CIP will be changed from "201 system" to "municipal system" to avoid confusion or another naive the staff agrees upon that accurately describes the system. Council member DeLapp inquired about the Wetland Treatment 32"a Street Drainfield. The City Planner stated that the staff are looking to upgrade the system because of concerns about the useful life. Council member Siedow asked about back-up systems, what happens if the second system fails? The City Planner stated he has not heard of a second system failure. Council member Siedow asked about the life expectancy of the Page 8 of 9