4A, Draft Minutes 12-10-12 Regular

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ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 6 Councilmember Holmes thanked those present this evening for providing Council with their concerns. Councilmember Holden asked what the total increase in the budget was for fire, police and 911 services. Director of Finance and Administrative Services Iverson explained the increase for police was 3.3%; fire increased 5.5% and 911 services increased 5.7%. The total increase was approximately $57,000 or 1.8% of the budget. Councilmember Werner indicated police and fire were core services that had to be provided by the City. Mayor Grant stated police and fire services would be far more expensive if provided directly by the City. He noted the contracts greatly benefited the City. Councilmember Holden commented she would be supporting the 3% tax levy as presented this evening and commended the City for keeping costs under control while still meeting the core functions for the residents of the Arden Hills. Mayor Grant explained he has always worked to lower this percentage but noted he would be supporting the 3% as the 2013 budget was necessary. The motion carried (5-0). C. Utility Rate Study Discussion Finance Analyst Howard stated the utility rates were discussed on November 19th in a work session. He noted the goal was to make the billing more equitable and fair for residents, while promoting water conservation. The current system was receiving complaints because homeowners were not using the full 10,000 gallons with the original meter fee. Finance Analyst Howard explained FPAC recommends the Council bill from gallon one on. This would allow low end users to pay only for the amount of water used and not 10,000 gallons. The FPAC would also recommend the meter charge be adjusted to cover 60% of the fixed costs. In addition, the rates should be tiered for 0-10,000 gallons, 10,000-35,000 gallons and 35,000+ gallons. He then asked for questions or comments from the Council. The rate for the first tier would be $2.50, the second tier would be $3.25 and the last tier would be $5.75. Councilmember Tamble was pleased with the proposed rate structure as it would collect on the actual water gallons used. Councilmember Holden questioned if the rates with Roseville were stable. Finance Analyst Howard stated this was the case; the rates have been stable over the past three years.