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GRAFT <br />MINUTES <br />'It <br />--AVEN,HILLS <br />FINANCIAL PLANNING & ANALYSIS COMMITTEE <br />Thursday, November 15, 2012 <br />6:00 P.M. <br />Council Chambers, Arden Hills City Hall <br />CALL MEETING TO ORDER AND ROLL CALL <br />The meeting was called to order by Jim Ostlund at 6:00 pm. <br />MEMBERS PRESENT: Jim Ostlund, Arlene Mitchell, David Radziej, John Braun <br />MEMBERS NOT PRESENT: Katy Peters, David Grant; Council Liaison <br />OTHERS PRESENT: Sue Iverson, Kyle Howard <br />Call to Order <br />1. APPROVAL OF THE AGENDA <br />Motioned: David Radziej <br />Seconded: Arlene Mitchell <br />UNFINISHED AND NEW BUSINESS <br />A. Continue Discussion of Utility Rate Study <br />The first thing covered at the meeting was the new suggested tier structures that the FPAC requested at <br />the November 7`" meeting. These tiers where entered into the excel model being used to calculate total <br />revenue for the utility funds. After reviewing the new tiers FPAC moved on to looking at the actual <br />cost associated with each level of the tiers. Discussion started out covering what the cost to the City <br />was to purchase water from Roseville and projected increases in future years. It was state that the City <br />currently pays $2.40 per 1,000 gallons of water purchased from Roseville. This was a combination of <br />the pass through cost that Roseville pays St. Paul for the water, plus the over head that they add to the <br />charge. Sue Iverson noted that Roseville will be increasing the overhead they charge by $8,000 next <br />year. Staff would continue working the cost per each tier that would give the proper cash flow to cover <br />the capital expenses and operating budget <br />The next issue looked at was the tier structure. From the last meeting it was asked that 3 new tiers be <br />created to show what the affect is on the average residential bill. These tiers showed that there wasn't <br />any major benefit gained by creating the new tiers. It was decided that staff should use the current tier <br />system and add a new level of 0-10,000 gallons. This structure was decided to be the best solution <br />since the current rate structure is working and that the goal is to help the low end users. <br />REPORTS <br />A. Reports from the City Council <br />No reports from the Council. <br />City of Arden Hills <br />1245 West Highway 96 • Arden Hills Minnesota 55112 <br />Phone 651.792.7800 • Fax 651.634.5137 <br />www.ci.arden-hills.mn.us <br />