05/11/1987 Meeting - Laserfiche WebLink

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e asked about the percentage that could be attributed to conservation and said it made no sense to switch to a flow-based system and then to charge people for what they did not use. She added that she agreed with Mr. Rutan1s suggestion to examine cost-cutting rather than supporting an increase in this biennium. Mr. Miller said he agreed with Ms. Ehrman's observation about the impact of shifts toward user fees. He said the shi ft from the Genera 1 Fund was a IICatch 22" because it resulted in a need to compensate for those funds. He said he liked the idea of user fees, especially if they had cost-containment features that would prevent continued escalation. Mr. Miller asked when it became counterproduct i ve to charge too much, and he added that he thought more information about reducing costs would be helpful. Ms. Schue, a former member of the Metro Wastewater Management Commission, said she favored attempting to find more efficiencies. She said she understood that the increase was required because of the shift from the General Fund to the Sewer Fund, the error in projections, and inflation. She suggested that the council might consider further the idea of a two-year phasing but added that she was comfortable with the general direction. e Ms. Schue also said the treatment plant had been built with the capacity to serve 30,000 people in River Road/Santa Clara, who always had been part of the project and who soon would be served. She said she did not think the facility was overbuilt, although the full capacity was not now being used. Responding to Ms. Ehrman's question, staff said the facility would not reach capacity from the addition of only the River Road/Santa Clara area. Ms. Wooten said she understood the need for future capacity, but she was concerned about the escalation of capital costs for the facility. Mr. Holmer said he agreed with the importance of the service in terms of economic development and sustaining the community's needs. He said he expected to be faced with continuing increases and he thought they would be better addressed annually as part of the general budgetary process of the City, rather than as IIbiennial crises.1I He said he thought it was appropriate to move the positions to their area of cost, adding that he would agree to start with a rate of 59~ next year and then to adjust rates annually. Mayor Obie said he was concerned about the shift from the General Fund. He said street cleaning fees previously had been moved, and based on that, he did not favor another shift now. The Mayor also said he thought another answer could be found to the discovery of the mistake in projections than to propose an increase to the public. He suggested changing expectations in terms of accomplishments, and added that he favored a one-year inflationary increase of 3.3 to 3.5 percent. Ms. Wooten said the budget that was being presented included the transfer of expenditures from the General Fund into the Sewer Utility Fund. Mayor Obie said that was a management problem. Ms. Schue said the council had instructed staff to pursue user fees. Mr. Whitlow said transfers from the General Fund to special funds occurred only when proposed in the budget document. He also noted that a limited number of funds could receive personnel expenses. e MINUTES--Eugene City Council Dinner/Work Session May 11, 1987 Page 6