CCWS 09-20-2004 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORKSESSION September 20, 2004 2 . Sewer Rates- Arden Hills residents use an average of 24,000 gallons of water per household to operate the sewer system. This number is rather high in comparison to other communities of similar size. At the current sewer rates, the City will be operating in a deficit fund balance by 2006. Storm Water Rates- On average the storm water residential rates are $8.00 per quarter. At this rate, the City's funding source would be in a deficit by 2008. Mr. McDonald noted that an increase in rates is advised to create a positive fund balance for the future. It is also advised that inflationary factors be considered on a yearly basis when setting the utility rates. This will avoid large utility rate increases that are passed onto the residents. In comparison to other neighboring communities: 1. City of Roseville currently has a cash reserve of $18,000 and no debt. 2. City of Shoreview currently has a cash reserve of $3 million. Shoreview currently bonds for public improvement projects. Council Member Larson noted that it is very difficult to compare Arden Hills to other communities because the City handles construction projects differently. . City Administrator Wolfe also noted that Arden Hills has an aging infrastructure and tllat improvement projects will be more costly in the future. The utility rate proposal considers the sewer and storm water rates as a quarterly standard. The only portion of the bill that may fluctuate is the water rate. The water rates are based upon the property owner's consumption. The proposed rates will also be affected by changes that are made to the CIP (Capital Improvement Projects). City Council and staff will continue to review and modify the CIP list. Finance Director Siddiqui will continue to work with Abdo, Eick, and Meyers to create a final report that will be presented to the City Council in the near future. The City Council felt comfortable with a target rate of$18.00 and not the suggested rate of$22.74. Buildinl! Inspection Position Scott Clark, Community Development Director, provided a brief overview of the need to increase the current half-time building inspector position to full-time. The net effect on the budget is approximately $30,000 (salary and benefits) per year. The salary and benefit expenditures should be covered by revenues generated through the City. Currently the building inspector is a half-time position that is shared with the Lake Johanna Fire Department. At this time, the Lake Johanna Fire Department is looking at converting the existing Fire Marshall position to full-time. This in-turn would eliminate the job share position between the City of . Arden Hills and Lake Johanna Fire Department.