HomeMy WebLinkAboutMinutes - 8/3/1994 - Finance and Personnel Committee � 1
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-- MINUTES: FINANCE CONIIKITTEE
WEllNESDAY, AUGUST 3, 1994 6:30 P.M.
� Members Present: Chairman Locke, Aldermen Lawson and Bates.
Others Present: Alderman Bolger, City Administrator Peterson, Director
of Public Works Batt, City Clerk Althoff, Harold Warren of Warren
Associates. Alderman Baird and Mayor Cuda arrived at 7:10 P.M.
Chairman Locke called the meeting to order at 6:35 P.M.
He statf�d the purpose of the meeting was to consider water and sewer rate
increasE�s, and consider alternative measures for billing sewer usage.
Aldermari Locke stated he had discussed the need for rate increases with
Administrator Peterson. He felt the increases are not essential for the
c��r:ent y�Gr, thzrefore r.e uoes not supporL a rate increase for this
year. However, he anticipates in the next few years, increases will be
necessary to cover operational and maintenance costs. City Administrator
Peterson provided information on year ending fund balances for last year,
projected year-ending fund balances this year, historic information for
water and sewer funds, capital expenditures this year for water and
sewer, and memos previously submitted to the Finance Committee on this
topic. Peterson reviewed this information with the Committee. The
projected fund balance for this year included a 10% water/sewer rate
increase to be implemented November 1, 1994.
City Administrator Peterson outlined capital pro�ects included in the
1994-95 budget as follows: contractual services with Baxter & Woodman for
engineering services to look at Well ��1, located next to underground
`- storage tanks; water meter replacement program; water system
improvements ($90,000); Central Wastewater Treatment Plant property
aquisition and trailer transfer; returnpiping and controls;
Donovan/Willow Street liftstation; lab completion for internal lab tests;
South Wastewater Treatment Plant dechlorination; and tank repairs at
Central Wastewater Treatment Plant. If rates are not increased this
year, he suggested some of these projects be delayed.
Alderman Bates requested Harold Warren speak to this issue before any
action be taken.
Batt stated the purpose for asking Warren to attend the meeting is to
explain the reason for the current rate structure. Warren stated
charging for sewer service on the basis for what goes through the water
meter is the only way of ineasuring what the City must recover for
operating and maintenance expenses of the sewer/water system. In
relation to the fairness of using this billing method, Warren pointed out
a lot of material other than just plain, untreated water goes to the
treatment plant from commercial and residential users (which is not
metered) , such as toxic waste materials discharged by a factory or plant,
or a household which discharges acids, BODs, suspended solids, etc. , all
of which must be treated.
Warren further stated under U.S. EPA guidelines in connection with the
award of grant monies, whenever grant monies are awarded to a
� municipality, the municipality must comply with certain regulations, one
being the development of a user charge system, which includes a certain
amount charged for operation and maintenance of the sewer system, an
amount for a replacement charge for equipment, and an amount for debt
service.
Finance Committee
• � August 3, 1994
Page 2
� Chairman Locke asked Warren for examples of alternative billing methods
being used by different municipalities. Warren responded if grant funds
are not involved, there are several different methods. Locke asked if
there was some type of statute of limitations on grant funds, so that in
the future, the billing method could be changed. Batt responded that if
the structure of rates is changed, future grant funds could be
jeopardized. Further discussion took place on the current rate
structure, other possible alternatives, and factors influencing rate
structures.
Chairman Locke called for a recess at 7:00 P.M. for Council pictures.
The meeting reconvened at 7:10 P.M. with everyone still in attendance.
Mayor Cuda and City Attorney McArdle arrived at 7:10 P.M.
Further discussion took place on whether or not the Committee should
recommend increasing rates, and if not now, what capital projects would
be eliminated or delayed? Whatever improvements are delayed now
eventually must be completed.
Alderman Bates stated if the rates were not raised this year, he would
not support a rate increase for the remainder of his term in office. He
suggested rates be increased in lesser increments over a period of time,
(5¢/1,000 gal. for water and 10¢/1,000 gal. for sewer) rather than one
large increase at one time.
�, Bates made a motion (contingent upon unanimous approval) to raise the
water rates this year by 5¢, and raise sewer rates this year by 10¢; and
to make up for the shortfall, raise rates by 3� on an annual basis.
Motion failed for lack of a second.
Alderman Bolger suggested the matter be referred to the Public Works
Committee so an in-depth study can be done. Administrator Peterson
responded that he has provided all the information he can. ' No action was
taken.
There being no further business to come before the Committee, the meeting
was adjourn�� at ?:22 P.M.
Terry Locke, Chairman
L
MINUTES: FINANCE CONiNlITTEE
WEDNESDAY, AUGUST 3, 1994 6:30 P.M.
Members Present: Chairman Locke, Aldermen Lawson and Bates.
�
Others Present: Alderman Bolger, City Administrator Peterson, Director
of Public Works Batt, City Clerk Althoff, Harold Warren of Warren
Associates. Alderman Baird and Mayor Cuda arrived at 7:10 P.M.
Chairman Locke called the meeting to order at 6:35 P.M.
He stated the purpose of the meeting was to consider water and sewer rate
increases, and consider alternative measures for billing sewer usage.
Alderman Locke stated he had discussed the need for rate increases with
Administrator Peterson. He felt the increases are not essential for the
current year, therefore he does not support a rate increase for this
year. However, he anticipates in the next few years, increases will be
necessary to cover operational and maintenance costs. City Administrator
Peterson provided information on year ending fund balances for last year,
projected year-ending fund balances this year, historic information for
water and sewer funds, capital expenditures this year for water and
sewer, and memos previously submitted to the Finance Committee on this
topic. Peterson reviewed this information with the Committee. The
projected fund balance for this year included a 10% water/sewer rate
increase to be implemented November 1, 1994.
City Administrator Peterson outlined capital pro3ects included in the
1994-95 budget as follows: contractual services with Baxter & Woodman for
engineering services to look at Well ��1, located next to underground
storage tanks; water meter replacement program; water system
`-- improvements ($90,000); Central Wastewater Treatment Plant property
aquisition and trailer transfer; returnpiping and controls;
Donovan/Willow Street liftstation; lab completion for internal lab tests;
South Wastewater Treatment Plant dechlorination; and tank repairs at
Central Wastewater Treatment Plant. If rates are not increased this
year, he suggested some of these projects be delayed.
Alderman Bates requested Harold Warren speak to this issue before any
action be taken.
Batt stated the purpose for asking Warren to attend the meeting is to
explain the reason for the current rate structure. Warren stated
charging for sewer service on the basis for what goes through the water
meter is the only way of ineasuring what the City must recover for
operating and maintenance expenses of the sewer/water system. In
relation to the fairness of using this billing method, Warren pointed out
a lot of material other than �ust plain, untreated water goes to the
treatment plant from commercial and residential users (which is not
metered), such as toxic waste materials discharged by a factory or plant,
or a household which discharges acids, BODs, suspended solids, etc. , all
of which must be treated.
Warren further stated under U.S. EPA guidelines in connection with the
award of grant monies, whenever grant monies are awarded to a
municipality, the municipality must comply with certain regulations, one
,� being the development of a user charge system, which includes a certain
amount charged for operation and maintenance of the sewer system, an
amount for a replacement charge for equipment, and an amount for debt
service.
Finance Committee
August 3, 1994
Page 2
`" Chairman Locke asked Warren for examples of alternative billing methods
being used by different municipalities. Warren responded if grant funds
are not involved, there are several different methods. Locke asked if
there k•as some type of statute of limitations on grant funds, so that in
the fut:ure, the billing method could be changed. Batt responded that if
the st:ructure of rates is changed, future grant funds could be
jeopardized. Further discussion took place on the current rate
structure, other possible alternatives, and factors influencing rate
structures.
Chairman Locke called for a recess at 7:00 P.M. for Council pictures.
The meeting reconvened at 7:10 P.M. with everyone still in attendance.
Mayor Cuda and City Attorney McArdle arrived at 7:10 P.M.
Further discussion took place on whether or not the Committee should
recommend increasing rates, and if not now, what capital pro�ects would
be eliminated or delayed? Whatever improvements are delayed now
eventually must be completed.
Alderman Bates stated if the rates were not raised this year, he would
not support a rate increase for the remainder of his term in office. He
suggested rates be increased in lesser increments over a period of time,
(5¢/1,000 gal. for water and 10¢/1,000 gal. for sewer) rather than one
large increase at one time.
� Bates made a motion (contingent upon unanimous approval) to raise the
water rates this year by 5¢, and raise sewer rates this year by 10¢; and
to make up for the shortfall, raise rates by 3¢ on an annual basis.
Motion failed for lack of a second.
Alderman Bolger suggested the raatter be referred to the Public Works
Committee so an in-depth study can be done. Administrator Peterson
responded that he has provided all the information he can. No action was
taken.
There being no further business to come before the Committee, the meeting
was adjourned at 7:22 P.M.
Terry Locke, Chairman
�
• • ,_./� `• !
MINUTES: FINANCE COMMITTEE �/� ��� r { �;
� ��
WEDNESDAY, AUGUST 3, 1994 6:30 P.M. ,� ;; ;
�
�. Members Present: Chairman Locke, Aldermen Lawson and Bates.
Others Present: Alderman Bolger, City Administrator Peterson, Director
of Public Works Batt, City Clerk Althoff, Harold Warren of Warren
Associates. Alderman Baird and Mayor Cuda arrived at 7:10 P.M.
Chairman Locke called the meeting to order at 6:35 P.M.
He stated the purpose of the meeting was to consider water and sewer rate
increases, and consider alternative measures for billing sewer usage.
Alderman Locke stated he had discussed the need for rate increases with
Administrator Peterson. He felt the increases are not essential for the
current year, therefore he does not support a rate increase for this
year. However, he anticipates in the next few years, increases will be
necessary to cover operational and maintenance costs. City Administrator
Peterson provided information on year ending fund balances for last year,
pro�ected year-ending fund balances this year, historic information for
water and sewer funds, capital expenditures this year for water and
sewer, and memos previously submitted to the Finance Committee on this
topic. Peterson reviewed this information with the Committee. The
projected fund balance for this year included a 10% water/sewer rate
increase to be implemented November 1, 1994.
City Administrator Peterson outlined capital pro�ects included in the
1994-95 budget as follows: contractual services with Baxter & Woodman for
engineering services to look at Well ��1, located next to underground
� storage tanks; water meter replacement program; water system
improvements ($90,000); Central Wastewater Treatment Plant property
aquisition and trailer transfer; returnpiping and controls;
Donovan/Willow Street liftstation; lab completion for internal lab tests;
South Wastewater Treatment Plant dechlorination; and tank repairs at
Central Wastewater Treatment Plant. If rates are not increased this
year, he suggested some of these projects be delayed.
Alderman Bates requested Harold Warren speak to this issue before any
action be taken.
Batt stated the purpose for asking Warren to attend the meeting is to
explain the reason for the current rate structure. Warren stated
charging for sewer service on the basis for what goes through the water
meter is the only way of ineasuring what the City must recover for
operating and maintenance expenses of the sewer/water system. In
relation to the fairness of using this billing method, Warren pointed out
a lot of material other than �ust plain, untreated water goes to the
treatment plant from commercial and residential users (which is not
metered), such as toxic waste materials discharged by a factory or plant,
or a household which discharges acids, BODs, suspended solids, etc. , all
of which must be treated.
Warren further stated under U.S. EPA guidelines in connection with the
award of grant monies, whenever grant monies are awarded to a
municipality, the municipality must comply with certain regulations, one
�' being the development of a user charge system, which includes a certain
amount charged for operation and maintenance of the sewer system, an
amount for a replacement charge for equipment, and an amount for debt
service.
Finance Committee
August 3, 1994
Page 2
L
Chairman Locke asked Warren for examples of alternativ.e billing methods
being used by different municipalities. Warren responded if grant funds
are not involved, there are several different methods. Locke asked if
there was some type of statute of limitations on grant funds, so that in
the future, the billing method could be changed. Batt responded that if
the structure of rates is changed, future grant funds could be
jeopardized. Further discussion took place on the current rate
structiire, other possible alternatives, and factors influencing rate
structiires.
Chairman Locke called for a recess at 7:00 P.M. for Council pictures.
The meeting reconvened at 7:10 P.M. with everyone still in attendance.
Mayor Cuda and City Attorney McArdle arrived at 7:10 P.M.
Further discussion took place on whether or not the Committee should
recommend increasing rates, and if not now, what capital projects would
be eliminated or delayed? Whatever improvements are delayed now
eventually must be completed. It was suggested rates be increased in
lesser increments over a period of time rather than one large increase at
one time.
It was agreed not to raise rates this year.
Alderman Bolger suggested the matter be referred to the Public Works
Committee so an in-depth study can be done. Administrator Peterson
� responded that he has provided all the information he can. No action was
taken.
There being no further business to come before the Committee, the meeting
was adjourned at 7:22 P.M.
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Terry cl , Chairman
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MINUTES: FINANCE CONII�IITTEE
WEDNESDAY, AUGUST 3, 1994 6:30 P.M.
`"' Members Present: Chairman Locke, Aldermen Lawson and Bates.
Others Present: Alderman Bolger, City Administrator Peterson, Director
of Public Works Batt, City Clerk Althoff, Harold Warren of Warren
Associates. Alderman Baird and Mayor Cuda arrived at 7:10 P.M.
Chairman Locke called the meeting to order at 6:35 P.M.
He stated the purpose of the meeting was to consider water and sewer rate
increases, and consider alternative measures for billing sewer usage.
Alderman Locke stated he had discussed the need for rate increases with
Administrator Peterson. He felt the increases are not essential for the
current year, therefore he does not support a rate increase for this
year. However, he anticipates in the next few years, increases will be
necessary to cover operational and maintenance costs. City Administrator
Peterson provided information on year ending fund balances for last year,
pro3ected year-ending fund balances this year, historic information for
water and sewer funds, capital expenditures this year for water and
sewer, and memos previously submitted to the Finance Committee on this
topic. Peterson reviewed this information with the Committee. The
projected fund balance for this year included a 10% water/sewer rate
increase to be implemented November 1, 1994.
City Administrator Peterson outlined capital pro�ects included in the
1994-95 budget as follows: contractual services with Baxter & Woodman for
� engineering services to look at Well �1�1, located next to underground
storage tanks; water meter replacement program; water system
improvements ($90,000); Central Wastewater Treatment Plant property
aquisition and trailer transfer; returnpiping and controls;
Donovan/Willow Street liftstation; lab completion for internal lab tests;
South Wastewater Treatment Plant dechlorination; and tank repairs at
Central Wastewater Treatment Plant. If rates are not increased this
year, he suggested some of these pro�ects be delayed.
Alderman Bates requested Harold Warren speak to this issue before any
action be taken.
Batt stated the piarpose for asking Warren to attend the meeting is to
explain the reason for the current rate structure. Warren stated
charging for sewer service on the basis for what goes through the water
meter is the only way of ineasuring what the City must recover for
operating and maintenance expenses of the sewer/water system. In
relation to the fairness of using this billing method, Warren pointed out
a lot of material other than just plain, untreated water goes to the
treatment plant from commercial and residential users (which is not
metered), such as toxic waste materials discharged by a factory or plant,
or a household which discharges acids, BODs, suspended solids, etc. , all
of which must be treated.
Warren further stated under U.S. EPA guidelines in connection with the
award of grant monies, whenever grant monies are awarded to a
� municipality, the municipality must comply with certain regulations, one
being the development of a user charge system, which includes a certain
amount charged for operation and maintenance of the sewer system, an
amount for :a replacement charge for equipment, and an amount for debt
service.
�
i
Finance Committee
August 3, 1994
Page 2
�
Chairman Locke asked Warren for examples of alternative billing methods
being used by different municipalities. Warren responded if grant funds
are not involved, there are several different methods. Locke asked if
there was some type of statute of limitations on grant funds, so that in
the future, the billing method could be changed. Batt responded that if
the structure of rates is changed, future grant funds could be
jeopardized. Further discussion took place on the current rate
structure, other possible alternatives, and factors influencing rate
structures.
Chairman Locke called for a recess at 7:00 P.M. for Council pictures.
The meeting reconvened at 7:10 P.M. with everyone still in attendance.
Mayor Cuda and City Attorney McArdle arrived at 7:10 P.M.
Further discussion took place on whether or not the Committee should
recommend increasing rates, and if not now, what capital pro�ects would
be eliminated or delayed? Whatever improvements are delayed now
eventually must be completed. It was suggested rates be increased in
lesser increments over a period of time rather than one large increase at
one time.
It was agreed not to raise rates this year.
Alderman Bolger suggested the matter be referred to the Public Works
� Committee so an in-depth study can be done. Administrator Peterson
responded that he has provided all the information he can. No action was
taken.
There being no further business to come before the Committee, the meeting
was ad�ourned at 7:22 P.M.
���� 0��2-;.��-r ��')'3"-,
Terry �G c , Chairman
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