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<br />e <br /> <br />- <br /> <br />e <br /> <br />M I NUT E S <br /> <br />Eugene City Council <br />Dinner/Work Session <br />Eugene Community Conference Center--Wilder Room <br /> <br />April 10, 1989 <br />5:30 p.m. <br /> <br />) <br /> <br />COUNCILORS PRESENT: Ruth Bascom, Rob Bennett, Shawn Boles, Bobby Green, <br />Freeman Holmer, Roger Rutan, Debra Ehrman, Emily Schue <br />(after 6:40). <br /> <br />Mayor Jeff Miller called the City Council work session to order. <br /> <br />I. STATUS REPORT ON SEWER RATES <br /> <br />Public Works Director Christine Andersen briefly reviewed the process that <br />will be used to adopt new local and regional sewer rates. <br /> <br />George Jessie, Public Works Department staff, referred to the draft Regional <br />Sanitary Sewer User Rate Study (FY1989-1991), which was prepared for the <br />Metropolitan Wastewater Management Commission (MWMC) by the Lane Council of <br />Governments (L-COG). A year ago, it was anticipated that significant <br />regional rate increases would be needed; this recent study, however, <br />indicates that only moderate increases will be necessary, because of several <br />factors: declining administrative costs; only moderately increasing <br />operational costs; larger than anticipated reserves; and a moderate growth in <br />the customer base. The study indicates that rate increases of about 2.2 <br />percent in FY90 and 2.0 percent in FY91 will be needed. In response to a <br />question, Mr. Jessie said he did not expect that rate increases greater than <br />four to six percent would be needed for the years after FY91. <br /> <br />Mr. Jessie mentioned three factors affecting the local sewer rate: <br />moderately increasing operational costs; a great need for infrastructure <br />improvements; and a moderate growth in the customer base. He said the <br />following local sewer rate increases are expected: 6.1 percent for FY90 and <br />4.4 percent for FY91. <br /> <br />Mr. Jessie said that for the typical single-family dwelling, the combined <br />(regional and local) sewer rate increases would be about 4.3 percent in FY90 <br />and 3.5 percent in FY91. <br /> <br />Mr. Jessie also mentioned that the L-COG study recommended that a single-year <br />rate structure be used, rather than the current biennial rate structure. <br />Under a single-year rate structure, no over-charging would be required during <br />the first year in order to pay for cost increases in the second year, and <br /> <br />MINUTES--Eugene City Council <br /> <br />April 10, 1989 <br /> <br />Page 1 <br />