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<br />\: <br /> <br />1.111 <br />" I <br /> <br />RESOLurION NO. 86-125 <br /> <br />STATE OF MINNESOI'A <br />COUNTY OF RAMSEY <br />CITY OF NEW BRIGH'IQN <br /> <br />RESOLUTION EsrABLISHING A POLICY FOR THE FINANCING OF EXTRAORDINARY COSTS <br />IN THE t1rILITY SERVICES <br /> <br />Whereas, the City believes that the public benefit is best served if users of <br />the utility system pay for the cost of services; and <br />Whereas, from ti1re to ti.rre events may occur which are extraordinary in nature; <br />and <br />Whereas, the contamination of the water supply is an example of an extraord' <br />event which resulted in significant costs being incurred by the water utility; <br />and <br />! Whereas, it is recognized now that the preferred means for finance of the <br />contamination costs ~uld have been through user rates, however, conditions <br />in 1981-82 dictated the use of alternate financing; and <br />Whereas, in recognition of this earlier decision along with the proximity of <br />settlerrent, the continued use of alternate financing is allowed; <br /> <br />NOW, therefore be it resolved that: <br /> <br />1. The contamination litigation costs and the water service I s share of the <br />reconstruction debt shall be excluded from water user rates and in lieu <br />thereof, alternate financing shall be used, if available. 'Ihe ~clusion <br />of these costs shall bec~ effective when rates are set next. <br />2. 'Ihe use of a tax levy shall continue for 65% of the contamination debt. <br />3. Qw"ing to contamination costs, a .loan shall be extended to the water <br />service in order to maintain its cash at a level which meets the needs of <br />cash flOW', emergencies, and variances in operating revenues. <br />4. The use of items 1, 2, and 3 above is pennitted only until such tiIre <br />as the lawsuit is settled and upon the settlerrent the above payers shall <br />be repaid. <br />5. Extraordinary events occurring in the future shall be paid from <br />the appropriate utility revenue. <br /> <br />Adopted this <br /> <br />lOth <br /> <br /> <br />ATI'EST: <br /> <br />~A. <br />I . . <br /> <br />Egan, Finance Director <br /> <br />SEA:lj) <br /> <br />-8- <br />