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I I I Council Meeting Minutes Oecember 23, 1986 Public Hearing, continued Benke believed it is also important that the meters used are accurate and that, if there appear to be discrepancies, the con- sumer should have a phone number to call to have it checked; and that the consumer needs to know our system is in a transition period and that we'll need their help if problems arise. In response to Gunderman's concern, Egan stated we have a reason- able gauge on what will happen, noting there are a lot of unknowns that could present themselves. Egan indicated a somewhat favor- able thing for the consumer is that as you move toward a billing that relies more heavily on consumption, the consumption patterns change. The proposal suggests a review of the rates within one year, anticipating that things may be more favorable or unfavor- able, and to monitor to verify that we are heading in the right direction. As there were no further comments or questions by councilor staff, and as no one was present to be heard, Brandt moved, seconded by Gunderman, to CLOSE THE PUBLIC HEARING. 4 Ayes - 0 Nayes, Motion Carried Motion by Gunderman, seconded by Williams, to WAIVE THE READING AND ADOPT A RESOLUTION ESTABLISHING WATER AND SEWER UTILITY RATES. 4 Ayes - 0 Nayes, Motion Carried Benke asked that staff act on the above-named concerns. Council Business Egan introduced Rick Poston, Chairman of the Financial Policy Advisory Board, who then made a presentation of the proposed Closed Bond Fund policy. Poston highlighted some areas of background information, ques- tions, suggestions, and items the Board believed important in the policy. Benke asked if the analysis could be summarized that the reserves we have are more than adequate and we need to gradually bring them down to a lower level; Poston responded affirmatively, but noted that the problem is quantifying what is adequate. The city's bond counsel has commented having reserves is basically advantageous when they review for the city's credit rating; however, no one will quantify that advantage. Poston noted that having reserves is a plus, not having reserves is not a minus; the Board is willing to say some minimum reserve is perhaps appropriate to have as a contingency fund, but wants to relate that to the risk involved. After due consideration, 20% was selected as a maximum but, if council determined 5% or 0% is appropriate, this policy allows flexibility. Page Four Council Business Closed Bond Fund Policy Report 86-328 Resolution 86-143