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MINUTES <br /> EN HILLS <br /> FINANCIAL PLANNING&ANALYSIS COMMITTEE <br /> Tuesday,December 4,2012 <br /> 6:00 P.M. <br /> Council Chambers,Arden Hills City Hall <br /> CALL MEETING TO ORDER AND ROLL CALL <br /> The meeting was called to order by Jim Ostlund at 6:00 pm. <br /> MEMBERS PRESENT:Jim Ostlund;Arlene Mitchell;David Radziej;Katy Peters <br /> MEMBERS NOT PRESENT:John Braun;David Grant,Council Liaison <br /> OTHERS PRESENT: Sue Iverson,Kyle Howard <br /> Call to Order <br /> 1. APPROVAL OF THE AGENDA <br /> Motioned:David Radziej <br /> Seconded:Arlene Mitchell <br /> 2. UNFINISHED AND NEW BUSINESS <br /> A. Continue Discussion of Utility Rate Study <br /> Further discussion was held on the rates for each tier.It was decided that 0-10,000 at$2.50 per <br /> thousand; 10,001-35,000 at$3.25,and 35,000—infinity at$5.75 was the preferred option.Next <br /> 1111 the meter fee was discussed.This fee was decided at$22.50,so approximately 50-60%of the <br /> cities fixed cost would be covered.This gives the City favorably projected cash flows for the <br /> Water Fund and covers the planned projects in the City's 5 Year CIP. <br /> Discussion was also held on the Sewer and Storm Water Funds. Staff explained that the Sewer <br /> Fund is expected to go into the negative for 3-4 years,mainly due to the large number of capital <br /> projects which were moved up in the CIP to take advantage of favorable pricing.The model is <br /> projecting that cash flow will recover without a rate change,based on the assumptions and rates <br /> from the 2008 study.Staff also recommends that no changes be made to the rates at this time. <br /> Storm Water was also projected to drop into a negative cash flow within the next two years.Staff <br /> recommended that this fund will need to have the rates adjusted to correct the cash flow.The long <br /> term forecast model also shows that the fund will go negative and stay negative without change. <br /> The reason cash will run negative is due to major road construction projects in the upcoming <br /> years. Staff recommended that an increase of the rates over the next 2 years would allow the fund <br /> to rebound and return to a positive cash flow.An increase of 15%for the next 2 years and then 3% <br /> for years after are what staff has recommended. <br /> 3. REPORTS <br /> A. Reports from the City Council <br /> No reports from the Council. <br /> • City of Arden Hills <br /> 1245 West Highway 96•Arden Hills Minnesota 55112 <br /> Phone 651.792.7800•Fax 651.634.5137 <br /> www.ci.arden-hills.mn.us <br />