CC 03-09-1992 - Laserfiche WebLink

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. . . Arden Hills Council 7 March 9, 1992 funds until 1989 at which time a quickly growing disparity began to occur between fees collected and cost of services. He supported Counci lmember Ma lone' s approach of gradua 11 y correcting the utility fund problem. Mayor Sather commented that the City, in addition to implementing a plan to correct the present problem, must also address the future needs of the utility funds and the ultimate goal of gaining utility reserves which would accumulate interest to help defray costs. Sather supported the gradual approach Councilmember Malone had presented. Councilmember Hicks suggested that the City, when presenting the utility rate increases to the public, explain the impact in dollars and cents rather than dealing in percentages, He said that dollar figures appear less drastic while percentages make the situation sound worse and may create confusion. Counci lmember Mahowal d said that since the mul ti -phase concept may be very confusing, it may also be appropriate to explain the concept in simplest fashion. Councilmember Hicks asked that councilmember Malone provide the City Accountant with his calculations so that detail and projections may be drafted. MOTION: Hicks moved, seconded by Mahowald, to adopt the following schedule of utility rates. Motion carried unanimously (5-0) : Residential: 19.2% water rate increase each year for the next two years 25% sewer rate increase each year for the next two years Continue minimum rates based on 11,400 gall ons/ quarter Continue senior discounts using the same premise as currently utilized Commercial: 1992 rates of $2.19/1,000 gallons 1993 rates of $2.60/1,000 gallons Staff was directed to draft a letter to the public explaining the increased rate schedule and reasons for the increases, and forward the draft to Council for comments no later than March 16, 1992.