Council_Minutes_1983_03_28 - Laserfiche WebLink

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Mounds View City Council March 28, 1983 Regular Meeting Page Two He showed maps of the sewer and water system in Mounds View, depicting when they were built, and summarized with his recommendations for both the sewer and water systems. His recommendations included a maintenance program for the water system to the year 2000 at a cost of $42,500 per year and a 3 -5 year capital improvement program at a cost of $328,800. He also recommended an inspection, maintenance and improvement program for the sewer system at an annual cost of $33,100. Finance Director Brager gave a presentation, stating that Staff has made a detailed financial analysis of the situation, and presented a proposed budget for both the sewer and water systems. Finance Director Brager reviewed the previous rates charged, versus the proposed rates and the difference in cost in the County's billing to the users. The Council thanked Staff for the excellent job they have done on this project. Josey Warren thanked Staff for the thorough presen- tation they made on March 19 and for the public hearing. She stated that as far as rates are concerned, she felt Staff's recommendations are very favorable, and that while they are proposing a large percentage increase, the City has not increased the water rates since 1980, so when averaged out, would represent approximately an 8% increase. She recommended that funds be dedicated to cover maintenance and replacement costs, and asked how the problem of a large increase in one year could be avoided in the future, and recom- mended appointing a citizens panel to review the problem and make a recommendation to the Council. Councilmember Doty replied that the Council must set the rates yearly, and in order to avoid a yearly increase, would have to set them higher now to plan for the future. He added he was not sure a citizens group would be able to help out. Mayor McCarty stated that maintenance to this point has been a repair by crisis program, and they have found the rates were not set high enough to meet the depreciation rate of the equipment, and knowledge of the history of the City was necessary to understand how the problem occurred. He pointed out that Finance Director Brager was hired in the summer of 1978 and engineering expertise was recently made available via staff reorganization which has given the City additional talent to r utility problems. He added that while he is in favor of citizens groups, the Council was elected to represent the citizens and serve them and the Council and staff had already addressed most of Ms. Warren's suggestions.