CC_Minutes_2013_1118 - Laserfiche WebLink

Home

Minutes from the February 11, 2013 Council Meeting c.Continue Discussion on Water and Sewer Rates Water Consumption Data from 2000 - 2012 was provided as a bench handout, attached hereto and made a part hereof. At the request of Councilmember Laliberte, Finance Director Miller advised that no news had been received from the City of St. Paul as of today regarding their 2014 rates. Mayor Roe noted the additional information provided by staff for background to further discussion of the public policy issues raised at the last meeting. At the request of Councilmember Willmus regarding previous questions raised by Councilmember McGehee (Attachment A) related to the senior discount, reference was made to page 4, line 86 of the RCA dated February 11, 2013. Councilmember McGehee referenced page 4, lines 124-125 of the RCA regarding senior discounts being currently available for 22% of all single-family homeowners. Finance Director Miller confirmed for Mayor Roe that no one at this time is receiving the poverty-based version of that discount, and only one property had received it over the last few years; indicating that since added, it was not popularly used. With this information now available, Councilmember McGehee opined that more people over age 65 would be applying, since they may not have been aware of its existence in the past. Councilmember McGehee also noted an example where a home now owned by a younger family but previously owned by seniors still continued to receive the senior discount when now qualified to do so, but nor realizing the rate differential. Councilmember McGehee advised that she and Finance Director Miller had also found a few mistakes with small businesses and small meter sizes. Councilmember McGehee opined that it did not appear that the conservation rate had served any purpose; and noted that her research found that the City of Shoreview's tiered rate had not accomplished much either. Councilmember McGehee suggested other methods under the parameters of the DNR document to encourage water conservation until something was found that worked. In the nature of capital funding and enterprise funds, Councilmember McGehee noted a disconnect in the City's infrastructure seen as a capital investment that was depreciated over time, yet paid for by fees rather than part of the tax levy or deductible as part of property taxes. Councilmember McGehee suggested bonding for those base water fees similar to that of the park renewal system across the city rather than putting the expense on park system users. Given the age of the infrastructure, Councilmember McGehee opined that it wasn't particularly fair or reasonable to pay for this capital improvement with fees; and referenced various options she had outlined that could also reduce fees by voluntary consumption reduction. Councilmember Willmus spoke in support of eliminating the senior discount program. 14