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Regular City Council Meeting Monday, October 15, 2012 Page 14 tial recycling was similar to that of other communities; with a revenue sharing program also in place. Councilmember Willmus questioned if the reserve ac- count was being built from that revenue sharing or other sources. Mr. Miller advised that the revenue sharing had generated the surplus; however, he noted the significant variables in that revenue sharing, with it almost disap- pearing in 2010; making the Recycling Fund susceptible to spikes —negative or positive — as well as a portion of its annual revenue funding source from the SCORE grant from Ramsey County of between $65,000 - $70,000, that was not a given either. In response to Councilmember Willmus, Mr. Miller advised that the intended use of the reserve funds was to mitigate future rate increases, or revise types and/or frequencies of pick-ups. Mr. Miller noted that the use of the reserves was at the discretion of the City Council and their preferred business model ap- proach for this Enterprise Fund. At the request of Councilmember Willmus, Mr. Miller advised that the recent rate increase with Eureka Recycling was not mitigated with reserve fund bal- ances to reduce it, since most of the reserve was received in 2012. Mr. Miller reiterated that, if the Fund took a hit from reduced SCORE grant funding from Ramsey County or revenue sharing was significantly reduced again, the surplus would go away as well. In recognizing that the original intent of revenue sharing was to offset resident costs, Councilmember Willmus sought to make sure that was how it was being utilized. Mr. Miller responded that it was; however, he clarified that the City did not know the amount of its revenue sharing annually; and suggested when the City Council took action to set its rates later this year, it should determine trends and set rates accordingly. In response to Councilmember Willmus, Mr. Miller advised that, at the City Council's discretion, revenue sharing projections and application could be used as a criterion in weighing and evaluating future RFP's of potential vendors. At the request of Councilmember McGehee, Mr. Miller provided projected im- pacts in 2013 for median value homes in Roseville and annual levies for average homeowners, compared with 2012 numbers. Councilmember McGehee noted that there would be an increase for water utili- ties fees as well as an increased property tax levy. Mr. Miller clarified that the utility fee increases were different for each utility (e.g. water, sewer, storm sewer),but that total for all three(3) in 2012 was $6.23