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ARDEN HILLS CITY COUNCIL—DECEMBER 10, 2012 7 Councilmember Holden thanked FPAC for completing the water rate study and for the recommendations made to Council. Councilmember Holmes agreed stating the water rate proposal covers the City's fixed cost and gallons used, which was fair for all residents. Mayor Grant stated as a liaison to FPAC he was part of this process. He thanked FPAC and staff for coming together and providing a recommendation to the Council on the water rates. He explained the City was not trying to make money off of water rates. The City was simply trying to cover the cost of the expense to provide water to the residents. Finance Analyst Howard indicated Staff was recommending the sewer rates remain as is for 2013. He commented storm water rates would need an adjustment as this fund would go negative at the current rate. He estimated the rate would have to increase by $1.52 in 2013 and $1.76 in 2014. Councilmember Holden inquired how much more residents would be paying under the new rates. Finance Analyst Howard stated a 5,000 gallon user would pay an additional 22¢ under the new system. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to accept the Financial Plannine and Analysis Committee recommendations for the Utility Rate Study. Councilmember Holmes asked if the fee schedule was being approved at this time. Director of Finance and Administrative Services Iverson commented the rates would be adopted under Item 7D. The motion carried (5-0). D. Approve Ordinance 2012-010 Adopting the 2013 Fee Schedule and Authorizing Publication of the Ordinance Summary Deputy Clerk Died explained the Council reviews the fee schedule on an annual basis for administrative, building construction, liquor licensing, copying of maps and ordinances, parks and recreation facility usage, planning and zoning, utilities, business licenses, false alarms, utility fees and other miscellaneous permits and penalties that are enforced by the City. The Council reviewed the proposed changes to the 2013 fee schedule at their October 15, 2012, work session meeting. Deputy Clerk Dietl stated the Council consensus on October 15th was to raise fees by five percent to cover increased costs for providing services. These changes did not include any changes to the utility rates. Staff recommended the Council approve the fee schedule with the understanding that the utility rates would be amended using the rates adopted tonight.