CC PACKET 10141997 - Laserfiche WebLink

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Item #9, Sub-division (4) An additional levy cannot be included in the 1998 budget. The State imposed levy limits are in affect for.1998 and could be in place for the next two or three years. To accomplish making this a permanent budget line-item, existing budget's would have to be trimmed which could affect services to the community. Item #9, Sub-division (5) The increase in the quarterly stormwater fee is reflected accurately and would increase the annual revenue to $150,000. However, proposed rate increases could be interpreted by residential and commercial property owners as disproportionate to inflation. The proposed rate increase to residential would be 3 times what they are now paying ($3.00 to $9.00 per quarter). The proposed.commercial rate would increase to their rates, most likely would create questions concerning justification of that high of an increase. For example, Apache Plaza's stormwater fees would increase from $4,000 annually to $12,000. Another example would be Lowry Grove's stormwater fee would increase from $960 annually • to $2,880. Positive aspect of increasing the rates: An alternative approach to establish funding would be to use the additional revenue created by the rate increase to bond or borrow $1,000,000. This becomes a more favorable option because: 1) The financial concerns created by the proposed transfers would be alleviated. 2) The increase in the stormwater fees to make the annual payments is excluded from the General Fund levy limits. 3) The cost is spread out evenly over 15 years without large decreases to the current fund balances. I am in the process of meeting with Bob Thistle from Springsted to determine the impact of borrowing the money and to determine if the proposed rate increase is adequate to make the annual payments. I will advise you accordingly.