07/11/1988 Meeting - Laserfiche WebLink

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.. e In response to a question from Ms. Bascom, staff indicated that a few years ago, about about $500,000 of services ($400,000 for street sweeping and $100,000 for. leaf pick-up) were transferred from the general fund to the sewer fund. Mr. Jessie referred the council to a data sheet listing information on the amount of sewer lines in the community and the amount of maintenance work done each year. In response to a question from Mr. Holmer, staff indicated that the City follows a schedule so that all of the City's sewer lines will receive TV service during a 15-year cycle. Some lines, however, receive TV service more often. Mr. Hammitt said the local sewer rate increased in July 1987 from $5.65 to $6.13 per month for the average single-family dwelling. The average monthly local sewer fee revenue has increased from $358,000 to $388,000. Mr. Holmer asked how much of this increase was due to an increase in the number of users. Mr. Jessie said the number of single-family dwellings has increased about 1.25 percent over the last year. Mr. Jessie referred to.a eh~rt listing local sewer revenues for FY87 through FY89. Mayor Obie asked about the fluctuation in "other revenues" during this period. Staff said it would inves~igate this fluctuation and report back to the council. . Mr. Jessie mentioned four of the financial targets adopted when the sewer rates were changed in July 1987: fund operational service at current levels; maintain adequate working capital in the sewer utility fund; meet capital improvement requirements; and keep a contingency fund of $150,000 to $200,000. . ~e ~aid these goals have been met and added that the next rate review process will begin in November. Finally, Mr. Jessie mentioned that a 30 to 45 percent increase in the regional sewer charge will be necessary to replace the regional rate subsidy and to maintain existing service levels. Tony Mounts, Financial Division staff, referred the council to two six-year financial forecasts for the local sewer fund. Both forecasts assumed current sewer fee rates, the maintenance of an adequate working capital (about $1 million), the maintenance of an adequate contingency fund (about $100,000), and an annual contribution to the reserve fund of about $50,000 a year. Both forecasts were based on the list of projects in the CIP. One forecast, however, included capital expenses only for repair and replacement, whereas the other forecast included these capital expenses as well as new construction. Under the first forecast, the financial goals for the sewer fund would be exceeded and no rate increases would be necessary; under the second forecast, however, the sewer fund would begin to operate at a significant deficit in FY92. . MINUTES--Eugene City Council July 11, 1988 Page 2