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Commerce Drive would generate sufficient funds to pay off the bonds, even though a <br />project of this type would usually have a city contribution. However, the once planned <br />Target development on nearby Lino Lakes land has not materialized, making it unlikely <br />that the value of the city land will be sufficient to fully retire the bonds. Various <br />strategies were discussed, but consensus was that the city should concentrate on <br />generating enough cash in the fund to cover the year by year debt service, but expecting <br />the sale of the city land would occur prior to the balloon payment on the bonds in 2018. <br />Cash available in the debt service fund will likely cover debt service through 2014, so the <br />initial plan would concentrate on generating the cash needed for 2015 and 2016. A bond <br />levy increase may be needed to accomplish the goal. <br />Utility funds budgeting and rates. <br />Water Fund --Rates should be adequate. New customers added this year will provide <br />some additional revenue.. <br />Sewer Fund—Administrator Larson suggested a slight modification to treatment rate <br />from $1.90 to $2.09 per 1000 gal. The current rates do not quite generate revenue needed <br />to pay MCES treatment cost, but would like to see the October billing report to better <br />judge the need. Consensus was that the treatment rate should be high enough to pay <br />MCES for the treatment costs and a rate increase may be necessary. <br />Stormwater Fund. Administrator Larson reviewed possible expenditures that may be <br />needed over the next two to three years. Current revenue may not be sufficient and a <br />small rate increase may be indicated. He suggested that the residential, flat -rate be <br />increased from $13 to $14 per quarter and the variable rate from $0.00372 to $0.00387 <br />per square foot to generate an additional $7,000 per year. Consensus was that an <br />additional increase was expected, given the number of ponds and ditches and the <br />potential future costs. <br />It was noted that the suggested changes to all of the rates would add about $4 per quarter <br />to a typical bill. <br />Utility Billing. Larson offered the following suggestions with the utility billing: <br />a Billing frequency increase from four to six times per <br />year. Typical bill would go from about $135 per <br />quarter down to about $92 per bi-monthly period. <br />Automated reading system would make it practical for <br />monthly bills, if desired. <br />b Convenience fee. Recommend that we illiminate <br />convence fee for using credit/debit cards to pay. <br />c Change online credit service company to PSN <br />from RevTrac. Transaction costs would be <br />about 1.5%. Several advantages, auto <br />