HomeMy WebLinkAbout12-04-2012 Minutes MINUTES
EN HILLS
FINANCIAL PLANNING&ANALYSIS COMMITTEE
Tuesday,December 4,2012
6:00 P.M.
Council Chambers,Arden Hills City Hall
CALL MEETING TO ORDER AND ROLL CALL
The meeting was called to order by Jim Ostlund at 6:00 pm.
MEMBERS PRESENT:Jim Ostlund;Arlene Mitchell;David Radziej;Katy Peters
MEMBERS NOT PRESENT:John Braun;David Grant,Council Liaison
OTHERS PRESENT: Sue Iverson,Kyle Howard
Call to Order
1. APPROVAL OF THE AGENDA
Motioned:David Radziej
Seconded:Arlene Mitchell
2. UNFINISHED AND NEW BUSINESS
A. Continue Discussion of Utility Rate Study
Further discussion was held on the rates for each tier.It was decided that 0-10,000 at$2.50 per
thousand; 10,001-35,000 at$3.25,and 35,000—infinity at$5.75 was the preferred option.Next
1111 the meter fee was discussed.This fee was decided at$22.50,so approximately 50-60%of the
cities fixed cost would be covered.This gives the City favorably projected cash flows for the
Water Fund and covers the planned projects in the City's 5 Year CIP.
Discussion was also held on the Sewer and Storm Water Funds. Staff explained that the Sewer
Fund is expected to go into the negative for 3-4 years,mainly due to the large number of capital
projects which were moved up in the CIP to take advantage of favorable pricing.The model is
projecting that cash flow will recover without a rate change,based on the assumptions and rates
from the 2008 study.Staff also recommends that no changes be made to the rates at this time.
Storm Water was also projected to drop into a negative cash flow within the next two years.Staff
recommended that this fund will need to have the rates adjusted to correct the cash flow.The long
term forecast model also shows that the fund will go negative and stay negative without change.
The reason cash will run negative is due to major road construction projects in the upcoming
years. Staff recommended that an increase of the rates over the next 2 years would allow the fund
to rebound and return to a positive cash flow.An increase of 15%for the next 2 years and then 3%
for years after are what staff has recommended.
3. REPORTS
A. Reports from the City Council
No reports from the Council.
• City of Arden Hills
1245 West Highway 96•Arden Hills Minnesota 55112
Phone 651.792.7800•Fax 651.634.5137
www.ci.arden-hills.mn.us
MINUTES
•
EN HILLS
4. ADJOURNMENT
Motioned:Jim Ostlund at 7:00 pm.
Seconded:David Radziej
Jim Ostlund,Chair Susan K.Iverson,Finance Director
•
. City of Arden Hills
1245 West Highway 96•Arden Hills Minnesota 55112
Phone 651.792.7800•Fax 651.634.5137
www.ci.arden-hills.mn.us