Draft Minutes November 19, 2012, Work Session

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ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 19, 2012 5 Mayor Grant summarized the options before the Council this evening. The first option would be to leave the rate structure as is. The second option would be to create a tiered rate structure, with the rates being 0-5,000 gallons, 5,000-35,000 gallons and 35,000+ gallons. The last option would be to create a tiered rate structure, with the rates being 0-15,000 gallons, 15,000-35,000 gallons and 35,000+ gallons. Ms. Mitchell encouraged the Council to consider how water conservation would be encouraged through the proposed rate structures. Councilmember Holden inquired how much Roseville would be raising their water rates to the City each year. Director of Finance and Administrative Services Iverson explained there would be a 6% increase. Finance Analyst Howard stated if the utility rates remained as is, the surface water management fund would show a negative fund balance in 2015. For this reason, a change should be made to the rates. Councilmember Holden supported the 75% fixed cost suggestion. Councilmember Holmes questioned why water rates for low users were going up instead of going down. She indicated she would have to continue to study the proposals. Director of Finance and Administrative Services Iverson explained the new rate structure would charge from gallon one and those users would no longer receive the 10,000 gallons rate. She noted the meter charge would be reduced to reflect this change. Mayor Grant requested staff to create a narrative on how the numbers were reached and report back to the Council on December 10th on how residents would be affected by the proposed tiered systems. Director of Finance and Administrative Services Iverson commented the current rate structure would remain in place until a decision was reached by the Council. A. City—County Joint Powers Agreement for TCAAP Mayor Grant requested the Council return to this item to provide staff with final comments on the JPA. The Council began on Page 6. Councilmember Holden asked if the Comprehensive Plan had a legend or definition for open space and green space. She recommended this category be added prior to completing the Master Plan. Community Development Director Hutmacher stated an Open Space District was proposed.