1986-08-26 - Laserfiche WebLink

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Council Meeting Minutes August 26, 1986 , Council Business, continued Egan stated a portion of the report states the taxpayers should be repaid for any costs that they financed in the interim, which would be through a combination of utility rates and a reduction of taxes. Schmidt stated the report says we should take $375,000 out of the closed bond fund now; Egan believes a rate study will show it will be difficult to accomodate that portion of the Board's recommendation. Gunderman asked for clarification of what a rate study would include; Egan stated the councilmembers would be included and look at what the Board is recommending, review the costs, and including what would have to be covered at the minimum; it would be a comprehensive financial package for handling water and sewer rates. I Brandt commented on the rationale of a consumption-based system; it's the only way consumers will get control over what they are actually paying and people will be able to conserve and tie that to the dollars in their pocket which will benefit not only the city but future generations in terms of conserving natural resources. Benke feels the m1nlmum charge seems to be creating problems for winter-time out of towners, but believes the system-access plus consumption cost system seems to make a lot of sense and felt that portion should be resolved fairly quickly. Poston stated the 7,000 gallons minimum is designed to be a system-ready mechanism so that the consumer is being charged for the right to be hooked to the system because the city has to the system (chemicals, pumping stations, and other infrastructure and personnel). Poston continued that if consumers never did turn on their tap, they would still get charged every month for the "right" to turn on the tap at any time (the useage-base component would start as soon as the tap goes on). Poston stated the Board is proposing that that useage component begin with gallon "one" and that the rate be consistent for however many gallons are used; however, they are proposing different classes of users based on consumption pattern so that the "fixed" cost is shared by the different classes in relation to the consumption of those different classes. 1 Benke requested confirmation that if we are to proceed with a change in the rate structure, it can be done independently of the cash flow issue; Egan confirmed. Williams inquired when the appropriate time would be for the city to adopt a policy regarding how the monies from the Army will be allocated. Page Four