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MINUTES <br />'It <br />"ENILLS <br />DRAFT <br />FINANCIAL PLANNING & ANALYSIS COMMITTEE <br />Tuesday, December 4, 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, Katy Peters <br />MEMBERS NOT PRESENT: John Braun, David Grant; Council Liaison <br />OTHERS PRESENT: Sue Iverson, Kyle Howard <br />Call to Order <br />APPROVAL OF THE AGENDA <br />Motioned: David Radziej <br />Seconded: Arlene Mitchell <br />2. UNFINISHED AND NEW BUSINESS <br />A. Continue Discussion of Utility Rate Study <br />Further discussion was held on the rates that each tier would be charged. It was decided that the 0- <br />10,000; $2.50/ 10,001-35,000; $3.25/ 35,000 — infinity; $5.75. Next the meter fee was discussed. <br />This fee was decided at $22.50 approximately 50% of the cities fixed cost would be covered. This <br />would give the city guaranteed funding for the upcoming capital expenditures that are planned in <br />the upcoming years. <br />Discussion was also held on the Sewer and Storm Water funds. Staff explained that Sewer was <br />expected to go in the negative for 3-4 years, this was due to the high number of capital projects <br />that were added to 2012 CIP. These projects where moved up in the CIP due to discounted pricing <br />received. The way that the model has projected the cash flow shows that it will recover following <br />the assumptions and rates from the 2008 study. Staff recommended that no changes be made to the <br />rates at this time. <br />Storm Water was also projected to drop to a negative cash flow in the next two years. Staff <br />recommends that this fund would need to have rates adjusted to return the cash flow to a positive <br />balance. The reason that the cash will run negative is due to major road construction projects in the <br />next years. Staff recommended that a gradual increase of the rates over the next 2 years would <br />allow the fund to rebound and return to a positive cash flow, increase of 15% for the next 2 years <br />and then 3%. <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 />