2020.12.08 CC Minutes - Laserfiche WebLink

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December 8, 2020 Page 8 of 10 Director Schlichting would be presenting this item to the Council. Financial Consultant Davitt stated the City’s water, sewer, stormwater and streetlight 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. The financial model has been updated with the recommended 2021 budgets for the Water, Sewer, Stormwater, and Streetlight Funds, as well as the projected results for 2020. Community Assets and Development Director Schlichting discussed the total projects costs within the CIP to 2040 and described the projects that would be completed for water, sanitary sewer, stormwater and streetlights. Staff described how the internal loans assist with keeping expenditures level over time. Financial Consultant Davitt reviewed the assumptions within the model with the Council. She explained water and sewer charges are based upon water usage, while stormwater and streetlights are flat charges. Water consumption is metered and is read quarterly. Sewer charges for residential properties without metered irrigation are based upon the customer’s water consumption during their “winter quarter”. The quarterly sewer charges are then “fixed” for the summer months and adjusted again the next year based on the next “winter quarter”. Water and sewer have a “fixed rate” component built into the charges. The fixed rate is established to pay for the fixed costs of delivering both water and sewer services to the property regardless of the how much of those services are used by the property. The water distribution system and the sanitary sewer collection system need to be maintained regardless of customer’s specific usage during any particular quarter. Staff provided further comment on the proposed water, sewer, stormwater and streetlight rates for 2021 and recommended approval of the proposed rates and charges. Councilmember Jacobsen thanked staff for the thorough report on the City’s utility rates. He explained projecting these rates and costs out 20 years was responsible budgeting. He stated he appreciated these efforts on behalf of the community. Councilmember Allen reported this budget addresses the concerns of today and tomorrow. He discussed how the City was addressing flooding concerns and stated he was impressed by the City’s willingness to look at ideas that improved the environment. A roll call vote was taken. 5 Ayes, 0 Nays-Motion Carried 5. Consider Renewal of Liquor Licenses. Mayor Johnson stated she would like the Council to consider delaying payment of on-sale liquor license fees for bars and restaurants. Motion by Councilmember Jacobsen, seconded by Councilmember Allen to approve the Renewal of the Liquor Licenses. A roll call vote was taken. 5 Ayes, 0 Nays-Motion Carried 5. Consider Renewal of Liquor Licenses.