Laserfiche WebLink
<br />ARDEN HILLS CITY COUNCIL WORK SESSION - NOVEMBER 17, 2008 <br /> <br />3 <br /> <br /> <br />Mayor Harpstead questioned which option would be the easiest for the City to <br />implement, along with the pros and cons. <br /> <br />Finance Director Iverson indicated she felt Option 2 would meet all the criteria <br />and would be the easiest to handle from an expense standpoint. She noted the <br />City's fixed expenses would be covered under this Option as well. <br /> <br />Mr. North then reviewed how the Council could proceed with Option 2 and reduce <br />the need for outside debt through the use of Interfund Loans. He referred to his <br />handouts noting rates would increase by 13% in 2010, 12% in 2011, 12% in 2012, <br />and 1% in 2013-2014 to cover the capital in the water fund with the use of <br />Interfund loans. <br /> <br />Ms. Diaz noted in the projection in May, there was a placeholder for Interfund <br />proceeds but that the difference between Option 2 and 2A were that the usage rates <br />were being increased more slowly. <br /> <br />Mr. North indicated the low end users will receive a better water rate based on the <br />numbers within Option 2A but would still be charged a meter fee to cover the <br />City's fixed costs. He further eXplained the differences between the senior rates in <br />2008 versus the new proposed rate, along with their new meter rate. <br /> <br />Mayor Harpstead questioned if the proposed rate structure met the new DNR <br />water conservation mandate. <br /> <br />Ms. Diaz eXplained the proposed rate structure did meet the mandate as there was a <br />percentage difference between the three water usage tiers. <br /> <br />Mr. North reiterated the fact that Option 2A would reduce the rate increase impact <br />to the residents in 2009. Further discussion ensued regarding the rate increases. <br /> <br />Mr. North reviewed the effect of Option 2B and stated Intefunds would not be <br />used with this option, only cash. He stated the needs of the system would require <br />13%, 25% and 10% rate increases projected for 2010-14. <br /> <br />Mr. North explained that with Option 2, presented in May, shows the rate <br />increases for 2010 would be 6%, along with years 2011-14. He indicated the <br />means used to pay for the capital expenditures will greatly affect the rate increases <br />and if the debt repayment is spread out over a number of years. <br />