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City Council Regular Meeting Minutes August 25, 2009 Page 4 1 Councilmember Roth questioned if a rate increase to .0036 rather than .0035 would be advised to 2 avoid the need for a readjustment in the next few years. City Manager Morrison indicated staff 3 will provide information on the .0035 rate in dollar figures, as well as other options. 4 5 Mayor Faust noted that in the past the City has attempted to make the sewer fund balance 6 without using it as a revenue source and/or anticipating and building up funds. A philosophical 7 discussion would be needed on any change in this practice. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Councilmember Roth requested that the next discussion on this topic includes a monthly or quarterly sewer bill to provide context as to the sanitary sewer percentage of the budget. Mayor Faust inquired about the required date for adoption of the tiered water rate structure. Finance Director Larson indicated that the ordinance will need to be amended, which requires three readings. The tiered water rate structure needs to be in place by January 1, 2010. There is a little buffer in that the first quarter billing is not done until April, so the rate structure will need to be completed by the end of this year or the very early part of next year. He advised that the rate structure will be applied to all user groups, including residential, commercial, and multi -family units. Mayor Faust suggested requesting a one year extension on the adoption of the tiered rate structure to allow for a period of experience for analysis of conservation that may be achieved at the School District due to the recent renovations of major buildings, water reduction devices, and a new building maintenance management team. He noted there should also be discussions about the requirement to change the rate structure with the commercial users in the City, such as Happy's Potato Chips, which is one of the largest consumers of water in the City. City Manager Morrison indicated that this topic will be included in every City newsletter until there is an adopted rate structure. The topic will come forward for further discussion by the City Council at the last meeting in September or the first meeting in October. Consensus of the City Council was to direct staff to request a one year extension on the required adoption of the tiered water rate structure due to the changes discussed above at the School District and the desire to hold discussions with the business community. The topic is to be included on the September 29, 2009 scheduled joint meeting with the School District. Staff is to inform Happy's Potato Chips of the State Statute requirements on the water rate structure. The topic should come back before the City Council no later than the October 13, 2009 City Council meeting. VI. GENERAL BUSINESS OF COUNCIL. None. VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. City Manager Morrison reported on the following: R