Laserfiche WebLink
<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />April 27, 1999 <br /> <br />Page 5 <br /> <br />Council Business. continued <br /> <br />The water utility rate change would be effective May 1, and relates to an increase from <br />$1.05 to $1.07 per 1,000 gallons. The last increase in water rates was in 1995. A <br />homeowner using 20,000 gallons of water per quarter would see an increase of 40c. <br /> <br />The largest expense associated with the sewer utility is the Metropolitan Council <br />Enviromnental Services (MCES) fee which represents 50% or $1.1 million for treating <br />discharge. MCES has proposed a rate reduction which allows the City to retain its <br />present rates. <br /> <br />The stormwater utility remains the most difficult to manage due to its large capital <br />outlay. The bond issuance will provide close to $750,000 to finance current projects. <br /> <br />Benke requested clarification of the water rate increase. Egan explained that operating <br />costs will increase by $100,000 with no growing water customer base to absorb this <br />overhead. The sewer utility will not see a rate increase because of the high number of <br />costs paid by reserves. Even though the City expects lower MCES rates, there would <br />still be volume increases. The utility fee survey of surrounding communities found <br />New Brighton's fees compare very favorably. In regards to Hoffman's question, the <br />1995 water rate increase was 91C to $1.05. <br /> <br />Motion by Gunderman, seconded by Samuelson, to WAIVE THE READING AND <br />ADOPT THE RESOLUTION ESTABLISHING THE 1999 CUSTOMER <br />CHARGES FOR THE UTILITIES. <br /> <br />5 Ayes - 0 Nayes, Motion Carried. <br /> <br />Egan presented authorization for various financing actions for the Tax Increment <br />Districts (TIF). Through TIF, the State permits local govermnents to be actively <br />involved in the redevelopment of their community. The premise of TIP is the growth in <br />taxes from redevelopment can be used by the community to pay redevelopment costs. <br /> <br />New Brighton has 25 active TIFs, and accounting records show all revenue associated <br />with each district. Although these individual accounting records exist, the City's overall <br />plan anticipates revenues from a district will first be applied to the cost for that particular <br />district, and any remaining funds will finance costs in other districts. The mixing of <br />these revenues between districts is called pledging. The City's bond attorney has <br />prepared resolutions to strengthen the City's intent to pledge funds. <br /> <br />Motion by Larson, seconded by Samuelson, to WAIVE THE READING AND ADOPT <br />THE RESOLUTIONS AUTHORIZING VARIOUS FINANCING ACTIONS FOR <br />THE TAX INCREMENT DISTRICTS. <br /> <br />5 Ayes - 0 Nayes, Motion Carried. <br /> <br />Egan presented the 1998 Firefighter's Relief Association Report. The report was <br />prepared by staff, and the auditor provided a qualified opinion. The fund has seen an <br />increase in assets from $2.1 to $2.5 million through matured investments and interest. <br />An actuarial study will be performed to determine if the assets are sufficient to cover <br />pension liability. This study would provide information to determine if pension benefit <br />changes are needed. These results will be presented to Council upon completion. <br /> <br />Council Business <br /> <br />1999 Utility Rates <br />Report 99-098 <br />Resolution 99-036 <br /> <br />TIF Appropriations <br />Report 99-099 <br />Resolution 99-037 <br />Resolution 99-038 <br />Resolution 99-039 <br /> <br />Firefighters Relief <br />Ascn. <br />Report 99-099A <br />Resolution 99-040 <br />