Laserfiche WebLink
<br />City Council Study Session Minutes- 01/12/04 <br />Page 10 <br /> <br />depreciation); variable costs from purchase or use of outside <br />services; capital replacement costs; current customer base, rates <br />and rate structure. <br /> <br />Mr. Miller noted that staff anticipated an increase of <br />approximately five percent (5%) in the purchase of water from <br />the City of St. Paul; and an estimated four percent (4%) increase <br />in the treatment costs, in addition to an expected increase in the <br />City's own operating costs of five percent (5%), placing pressure <br />on the rates for those specific enterprise funds to keep up with <br />increased operating and capital costs. Mr. Miller reviewed <br />comparison charts for each enterprise fund with the 2003 base <br />rates, and proposed 2004 base rates that would recognize the <br />factors outlined above. Mr. Miller noted that the proposed <br />adjustments represented an approximate 3.8% rate increase to the <br />City's residential customers. <br /> <br />Councilmember Maschka sought clarification from staff <br />regarding status of the City's Pavement Management Program <br />(PMP) and capital improvements completed to-date on the storm <br />sewer system. <br /> <br />Staff confirmed that residential areas were essentially completed; <br />with the County Road C project, fulfilling Phase II standards on <br />regional ponds, and other unfunded mandates to meet state and <br />federal requirements. <br /> <br />Both Finance Director Miller and Assistant Public Works <br />Director Deb Bloom confirmed that the City had made good <br />progress to-date, and with continuation for another 2 - 3 years of <br />a healthy capital replacement plan, the City should stay on track. <br /> <br />Further discussion included potential Arona site and Twin Lakes <br />redevelopment projects and their impact on enterprise funds; <br />ongoing periodic maintenance for sediment removal in regional <br />ponds; continuing changes for storm water quality regulations; <br />and staff's work with neighborhoods on backyard drainage issues <br />that represent small projects and minimal costs. <br /> <br />Councilmember Schroeder addressed the need for the City to <br />implement an I and I (Inflow and Infiltration) program for <br />