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02-12-18-R
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02-12-18-R
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ARDEN HILLS CITY COUNCIL WORK SESSION – JANUARY 16, 2018 2 <br /> <br /> <br />Councilmember Dave McClung mentioned that the Governor released his bonding proposal <br />focusing on statewide infrastructure projects but the public safety emergency operations center <br />that was slated to go on the TCAAP property was not listed. He also noted the Governor <br />proposed money for the Metropolitan Council to continue Inflow and Infrastructure (I&I) grants to <br />cities. Councilmember McClung asked that Representative Jessup strongly support that program. <br /> <br />Mayor Grant asked what types of funding Representative Jessup would favor. <br /> <br />Representative Jessup responded that bonding will most likely be a part of the budgeting process <br />but right now the forecast is good and there may not be much budget work to be done. <br /> <br />Councilmember Holden wanted to revisit the I&I and the possibility of the formula being <br />changed to penalize cities that have been working on the I&I. <br /> <br />Representative Jessup concurred that cities that have been proactive should not be penalized. <br /> <br />Mayor Grant requested that Representative Jessup come back to a regular Council meeting to <br />give a recap of the upcoming legislative session. <br /> <br />B. Utility Rate Study <br /> <br />Ehlers Senior Municipal Advisor Stacy Kvilvang shared a Powerpoint presentation <br />highlighting the utility rate study that was conducted by Ehlers to assess the health of the City’s <br />utility funds. The main findings were: the water fund had a sufficient cash balance; the sewer <br />fund has an insufficient cash balance and will need increases; the storm water fund is sufficient; <br />the City should eliminate the undeveloped surface water management fee, and could eliminate the <br />standby fee and incorporate it into a flat fee meter charge. None of these findings will create a <br />significant impact to users. <br /> <br />Councilmember Holden asked for an explanation of the difference between the charges of meter <br />and standby. <br /> <br />Ms. Kvilvang stated that meter is the actual water meter charge, standby is an additional fee that <br />is charged for water hydrant replacement, fire protection etc. <br /> <br />Ms. Kvilvang clarified that the rates they are proposing for 2018 also includes the debt service. <br /> <br />Ehlers Senior Financial Specialist Jeanne Vogt explained the options they are presenting are all <br />revenue neutral. So when the meter charge is lowered slightly the consumption charges go up <br />slightly to generate a sufficient amount of revenue, but only as much as customers need to be <br />charged to balance the funds. <br /> <br />Mayor Grant felt that eliminating the miscellaneous charges by bundling them will make the bill <br />easier for the customers to read and understand. <br /> <br />Ms. Kvilvang mentioned that the rates should be looked at annually. <br />
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