07/10/1978 Council Minutes - Laserfiche WebLink

Home Search

136 June 21, 1978 The regular meeting of the Lino Lakes City Council was called to order at 8:05 P.M. on July 10, 1978 by Mayor Karth. Council members present; McLean, Kulaszewicz, Schneider. Absent; Zelinka. Mr. Locher was not present. Mr. Kulaszewicz moved to approve the minutes of the June 26, 1978 meeting as present- ed. Mr. McLean seconded the motion. Motion declared passed. Water and Sewer Rates Mayor Karth asked Mr. Schneider to present his study on utility rates. Mr. Schneider explained the City hired the firm of Anfinson, Hendrickson & Co. to study the utility rate structure. The rates have not been adjusted since the sys- tem began operation in 1972 and there was an operating loss of over $2000.000 in 1977 and it appears there will be and operating loss for 1978. Mr. Schneider explained he revised some of the figures on the Audit Report; the salary figure was adjusted downward, the utility figure was reduced and considered the ef- fect of the sale of the lift station. Mr. Anfinson had suggested large increased in both the water and sewer rates. Mr. Schneider had compared the present Lino Lakes utility rate to 23 other Cities in the Metro Area. Our present rates are low; however, Mr. Anfinson's proposed rates would be very high. The average water rate for there 23 Cities is 58.64. Mr. McLean asked what effect the sale of the lift station will have on the rates. He asked if there was a reserve for maintenance. Mr. Schneider explained there is no reserve at present and it has not been determined what is the legal way to handle the sale of the lift station. Mr. Schneider was asked what effect additional customers will have on the rate. said at this time it is difficult to tell. Mayor Karth suggested that the rate could be increased to 77(C and reviewed annually. Mr. McLean asked if they were considering water rates only and was told yes. Mr. Schneider moved to raise the water rate from 48 per 1000 gallons to 77 per 1000 gallons effective October 1, 1978 and review this rate during December 1978. Mr. Mc- Lean seconded the motion. Motion declared passed. Mr. Johnson from the audiance said he received the impression from the Circulating Pines that the water rate also reflected depreciation. Mayor Karth explained that the rate suggested by Mr. Anfinson and the rate suggested by the City did not reflect depreciation or any reserve. Mr. Kolstad from the audiance asked where the additional monies to operate this utility system came from if it was actually operating in a deficit. He was told the money came from General Funds. Mr. Anfinson's study indicated a sewer charge of $23.55 was needed to cover expenses of operating this utility. This will not cover depreciation or reserve. Mayor Karth suggested tabling this item until December 1978 and study it at the time the water rates were reviewed. The sale of the lift station was discussed. Mr. McLean said +here has been no indi- cation when the sale will be completed. Also it has not been determined how these monies should be handled - returned to the affected property or try to locate the or-