CCP 05-26-1987 - Laserfiche WebLink

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- Minutes of Regular Finance Committee Meeting . Village of Arden Hills April 23, 1987 Village Hall Call to Order The meeting was called to order at 7:35 p.m. by Chairman Erickson. Roll Call Present: Larry Erickson, Charlotte McNiesh, Ed Menze, Chuck Mertensotto, Trudy Rautio, Judith Stafford, Tom Steele Absent: Eric Nesset, Bob Rehkamp, Ramanik Shah Also Present: Mayor Robert Woodburn, Clerk Administrator Patricia J. Morrison, Treasurer Don Lamb ' . Approval of Minutes It was moved by McNiesh, seconded by Rautio, that the minutes of March 26 be approved as submitted. Motion carried unanimously. Utilitv Rate Subcommittee Report An increase in sewer rates to Arden Bills' residents has not been made since 1981. Studies made by this subcommittee show that the average yearly increase in disposal costs with MWCC, over the past four years, (1981 to 1985) has been $.0325 per thousand gallons. The average yearly increase in Arden Bills' operating costs has been $.0073/thousand gallons. Adding the increased costs of these four years, and anticipating continued . yearly cost increases of this magnitude, results in an overall .2147/thousand gallons flowage increase in operating costs of the Sewer Utility in the period from 1981 to 1989. Commercial accounts, whose sewage output is measured, are currently charged $1.46 per thousand gallons of output. The subcommittee is recommending that the .2147 increase in operating costs per thousand gallons be rounded to 22 cents making the charge $1.68, or a 15% increase covering the next four years of this eight year period (7-1/2% increase per year). The subcommittee recommended that residential and senior rates be increased 15% also. This increase, if approved, would be the minimum required to cover operating costs of the sewer utility until 1989 and provide a minimal amount of "cushion" to help cover the costs incurred in building the Interceptor. In discussion, it was noted that it had been anticipated by the Council, that between reserves in the Sewer Utility and tax ~nies. enough money was available to pay for the Interceptor; however, the bids came in $100,000 above the estimate. It was also noted that in view of that fact that no increase in sewer rates had been made since 1981, this is a relatively small increase (prorated over this period of time). Mertensotto asked the possibility of different sewer rates for different types . of accounts (business, tax-exempt, residential), While this does not seem feaSible, the Clerk-Administrator was asked to have a survey made of . neighboring communities' (including Minneapolis and St. Paul) sewer and water rates, and methods of computation of these. The subcommittee's recommendation regarding water utility rates was given to ---------