06/02/1987 Meeting - Laserfiche WebLink

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e e e Replying to questions from Mr. Rutan, Mr. Jessie said about 52 percent of the City's flow is from commercial and industrial users. He said the proposed increase is the same percentage for all types of users. He said customers are concerned about the percentage of increase rather than the specific dollar amount. Mr. Gleason discussed the characteristics of industrial and residential flows and said the proposed rates are fair. Ms. Andersen said attempts have been made during the last few years to make residential and industrial rates equitable. Mr. Miller wondered when the rates would preclude heavy users from locating here or would cause them to move. Ms. Andersen said it is difficult to compare Eugene rates to rates in other communities but data indicate that Eugene rates are less than Salem rates and more than Portland rates. Mr. Gleason discussed rates and said he believes the combined Eugene rate is no higher than the combined rate in other areas. Mayor Obie said Eugene rates are usually compared to Portland rates. He said some business owners tell him they cannot compete with Salem businesses. Mr. Gleason responded that EPA standards for Eugene are higher than the standards for other communities. Answering a question from Ms. Ehrman, Ms. Andersen said the local Springfield rate is hi gher than the Eugene rate because Spri ngfi e 1 d capi ta 1 costs are higher. A flow correction had to be made in Springfield also. Ms. Bascom said the proposed rate increase seems to be caused by past council decisions. .. Replying to a question from Mr. Bennett, Mr. Gleason said street sweeping charges affect both residential and commercial sewer rates and depend on the flows. Ms. Anderson said a 2.5 percent growth has been included in the projected revenues and that seems reasonable. She said the staff looked for costs that support the sewer fund and have been paid for from other sources in the past and, if those costs are moved now, the operation and maintenance part of the sewer fund probably will be stable in the future. Future rate changes probably will be due to capital improvements. Mr. Miller wondered if another 12 percent increase will be needed in two years. Ms. Andersen responded that the operational costs probably will not increase so much in the future. Mr. Gleason said the sewer fund must pay for capital improvements. Otherwise, a general obligation bond would have to be issued. He said the council could review a cost analysis of the entire program. Responding to comments from Mr. Holmer, Ms. Andersen said developers and others who benefit from capital improvements are assessed some of the cost of the improvements. Several accounts are outstanding and will produce revenue. She said the Storm Drainage Study may identify projects that should be financed in the future and that will have an effect on future sewer rates. Mr. Holmer pointed out that deferring the Storm Drainage Study will result in deferring expenditures for improvements to the storm sewer system. MINUTES--Eugene City Council Dinner/Work Session June 2, 1987 Page 5