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Council Meeting Minutes November 22, 1994 Page 4 Council Business. continued Benke noted that schools pay water and sewer fees and also contribute runoff to the stormwater system. The City has made many improvements to school ball fields and tennis courts and also pays fees to use school facilities, this could be viewed as double taxation. The City is trying to provide the most equitable way to charge stormwater management which allocates costs based on proportion. He senses there may be significant changes to the ways government services will be funded in the future due to changes in local government aids. Council would call upon the newly created Public Policy Commission to review issues. He feels the City needs to proceed with a rational plan for financing stormwater management. If it is found that this is not the correct method, the funding could be returned to the general fund strategy. He encouraged residents to apply for membership on new commissions. Meyer questioned the fees required for the start up of the system and feels the financial aspects should be researched. Benke confirmed that staff discussed the fund's proposed budget and its financial needs at a recent public meeting, and staff could share this information with Meyer personally. Gunderman noted that historically, the City's individual departments have underspent their annual budgeted amounts and act responsibly. Walt Witzke, 711 Emerald Drive, noted that if the utility plan was not adopted, those costs would go to the general property tax levy and possibly some projects may not be performed. He asked if the plan could be applied to 1995 property taxes. Benke said that if the costs were applied to the general tax levy, about half of the projects would need to be trimmed. The City is under a Federal mandate to perform a stormwater management plan, but this could be deferred. Benke noted that reconstruction projects will be reviewed in the Spring of 1995; and many projects are combined to provide for the most favorable bids. Witzke questioned the dollar amounts in the general fund budget. Fulton confirmed that any access dollars that are in the general fund which have not been expended are reverted back to the general fund. Council policy is that any surplus dollars in the general fund that remain at the end of the year are allocated to offset taxes two years hence. Witzke found that some businesses had no knowledge of this plan. Brian Olson, Civil Engineer I, confirmed that business and residential property owners were notified though a bulk mailing. Witzke noted that some businesses are owned by other property owners. Fulton spoke to members of the Chamber of Commerce and found not much reaction to the proposal. It may be that it is not a substantial amount and is viewed as a cost of doing business. Witzke noted a letter from Lunds Grocery which opposes the stormwater fund. Fulton confirmed that any accrued interest goes back into the fund. State law restricts any costs which do not relate to stormwater management from being applied to the fund. Benke said that this Council wants to keep this utility fund clean and it will only include direct costs charged for stormwater management. The budget will be open for public review and comment on an annual basis. Witzke said the budget appears to be accelerating. Benke said the budget reflects two items occurring simultaneously which require costs associated with reconstruction of the aging street system and the method to pay for those costs. Witzke said a task force should review this issue, and feels residents should be more involved with the management of their neighborhood stormwater system. Council Business I Stormwater Utility Plan Report 94-271 Ordinance 608 I I