2015.01.12 CC Packet Combined - Laserfiche WebLink

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December 8, 2015 Motion by Councilmember Burg, seconded by Councilmember Strub to adopt a Resolution Approving the Final Tax Levy for Taxes Payable in 2016 for the Bicentennial Pond Storm Sewer Improvement Taxing District. 5 Ayes, 0 Nays -Motion Carried 5. Consideration of Resolution Establishing the Utility Rates and Charges for 2016. City Manager Lotter indicated Finance Director Davitt would be presenting this item to the Council. Finance Director Davitt: indicated the City's water, sewer, stormwater and street lights enterprise operations are each accounted for in their own separate and distinct fund. Each fund/operation has been established to be financially independent. The revenues of each fund are designed to cover its operating costs, capital maintenance and replacement. Rates are adjusted in accordance with costs. The rate setting process is intended to provide for gradual annual adjustments whenever possible, focusing on the long-term strategy. Each year assumptions are reviewed and adjusted as necessary. The long-term plan then reflects the most current assumptions and financial conditions. Adjustments to the recommended rate for 2016 for Water is much higher from last year's analysis due to previous years of lower than projected water consumption as well as continued water restrictions needed for the next few years. Sewer rates are lower than those anticipated from last year's analysis while Stormwater is slightly higher. There is no change to the recommended 2016 rates for Street Lights from last year's analysis. Community Assets & Development Director Schlichting discussed the water and sanitary sewer infrastructure improvements that would be made in the coming years. He then provided comment on the residential water meter replacement plan. Staff reviewed the proposed new rates further in detail with the Council and recommended approval of the 2016 utility rates and charges. Councilmember Bauman did not believe the City needed to purchase Jones Lake and for this reason she would not be supporting the 2016 utility rates and charges. Councilmember Strub clarified that staff was requesting the Council to approve the proposed utility rates and charges and not the purchase of water meters or lakes. Councilmember Burg was in favor of the Council focusing on the long-term financial stability of the City. She believed that by properly budgeting for on-going expenditures and City infrastructure the community would benefit. She explained how the City was proposing to use Jones Lake for storm water. She thanked staff for their thorough report. Mayor Jacobsen discussed the importance of the Council making long-term investments in the City's infrastructure. He believed that the Council considering the purchase of Jones Lake was reasonable and responsible. Councilmember Jacobsen thanked Finance Director Davitt for providing the Council with utility rate projections going into the future. He believed this would greatly assist the Council in establishing proper utility rates. Councilmember Bauman clarified that she did not claim the City would be spending $1 million on a swamp. City Manager Lotter commented Jones Lake was a chunk of land was identified by the Comprehensive Plan as a part of the City's park land, however it would serve the City even better for upland water storage and improvement. He discussed the flood mitigation study that was completed after the 2012 storm noting the results of this study led the City to consider the purchase of the Jones Lake property. He reiterated that the rates proposed by the City were the second lowest when compared to peer cities' 2015 rates. Page 8 of 11 5. Consideration of Resolution Establishing the Utility Rates and Charges for 2016.