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City of Centerville <br />Council Meeting Minutes <br />November 16, 2016 <br />stated an overall average of 7%. She stated that water rates have not been increased for two (2) <br />years and suggested a 3% increase to keep pace with inflation. Council Member King stated that <br />the water and sewer funds would both increase by $100,000 due to the payback of the interfund <br />loans associated with the Centerville Road Project (one (1) with the payback of Item 42 for <br />sewer and in 2017 the anticipated transfer for water). Ms. Paulseth concurred. Administrator <br />Ericson stated that fund balances are approximately 1.3 million. Council Member King <br />questioned adequate funding and Ms. Paulseth replied that the City has approximately 24 million <br />worth of infrastructure in water and sewer systems. She stated that depreciation should be <br />adding to the balance each year so that you have adequate cash flow to replace capital needs <br />when they arise. Engineer Statz stated that the City purchased the water tower several years ago <br />with cash rather than bonding for it and it would be Council's desires as to have adequate <br />reserves or bond for replacement. Ms. Paulseth stated that she provided Council with a listing of <br />infrastructure and planned dates for replacement. She also stated that it may be rather outdated <br />and Council may desire more in depth research on costs, needs, replacement dates, etc. <br />Discussion ensued regarding interfund loans versus bonding and paying interest on loans to <br />complete projects, economic recovery, amount of debt the City has and the Mayor credited the <br />current Council for decreasing that debt. <br />Council Member Love questioned at what point does the Council need to make a decision on <br />these matters. Ms. Paulseth replied you will be considering adopting your budget levy at your <br />next meeting and these proposed figures would be included. <br />Ms. Paulseth addressed her recommendation to increase the Storm Water fee which is $4.20/bi- <br />monthly billing cycle to residents to $5/bi-monthly billing cycle. Ms. Paulseth stated she was <br />unaware of how long it had been since an increase had been made to these fees but did state that <br />the amount in the fund is not enough to dredge one pond. Ms. Paulseth stated that the fund was <br />drained due to paying off an interfund loan associated with the downtown. She stated that these <br />funds would also be utilized for curb and gutter, raingardens on a street project. <br />Motion by Council Member Love to table this item. Subsequent to additional discussion <br />about splitting the items for consideration, Council Member Love removed his motion <br />from the floor. <br />Motion by Council Member Fehrenbacher, seconded by Council Member Love to Increase <br />Sewer Rates by 10% Commencing 2017 to Provide an Adequate Reserve Level in the Fund <br />to Support Infrastructure Replacement as presented. All in favor. Motion carried. <br />Motion by Council Member Fehrenbacher, seconded by Council Member King to Increase <br />Water Rates by 3% Commencing 2017 to Provide an Adequate Reserve Level in the Fund <br />to Support Infrastructure Replacement as presented. Council Member Love opposed. <br />Motion carried 3-1. <br />Motion by Council Member Fehrenbacher, seconded by Council Member Love to Table <br />Consideration of Adiusting Fees Associated with Storm Water for 2017 Until Council's <br />December Meeting. All in favor. Motion carried. <br />Page 6 of 9 <br />