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06/02/1987 Meeting
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06/02/1987 Meeting
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City Council Minutes
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6/2/1987
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<br />Mayor Obie asked each of the councilors to comment on the proposal. <br /> <br />e <br /> <br />Mr. Miller said it is important to have a good sewer system but financing it is <br />difficult. He said the council could re-assess the General fund if the <br />council does not want to raise sewer rates. <br /> <br />Ms. Wooten said she respects the operation of the sewer system but she is <br />concerned about the incorrect flow estimates and does not want them to happen <br />again. She wants to maintain rates as low as possible. She favors the $5.85 <br />rate and would like to consider changes that could be made between the $6.13 <br />and $5.85 rates. <br /> <br />Mr. Rutan said the sewer system and treatment plant are important and are one <br />of the community.s greatest resources. He wondered if the operation is in a <br />cost containment mode. He said customers want fair, stable, and predictable <br />rates. He said the City does not seem to know about future rates. He will <br />listen to others but, at this time, he prefers maintaining the existing rate. <br /> <br />Ms. Ehrman said she favors the $6.35 rate because it is less than <br />Springfield's rate. She said constituents have not called her about sewer <br />rates. <br /> <br />Mr. Holmer said the same level of service will be retained with both the $6.35 <br />rate and the $6.13 rate although reserves would be reduced with the $6.13 <br />rate. He does not fa'vor a rate less than $6.13. <br /> <br />e <br /> <br />~s. Schue said she favors the $6.35 rate because the staff recommends it. She <br />said contingencies are necessary because emergencies happen. She said she has <br />confidence in the staff. She said the regional rate was subsidized for some <br />time because the Eugene staff started the plant up for less than the estimated <br />cost. She said the council has decreased revenues too much in some areas and <br />she does not want that to happen with the sewer fund. Constituents have not <br />complained to her about sewer costs. She said water costs to heavy users are a <br />cost of doing business. <br /> <br />Ms. Bascom said previous council decisions have partly caused the present <br />problem. She emphasized the impacts of the sewer rate on other parts of the <br />budget. She said approval of the $6.35 rate would be wise and make the sewer <br />fund financially stable. <br /> <br />Mr. Bennett said he serves on the MWMC. He said he was impressed with the <br />staff presentation. He said contingencies and reserves are important and the <br />subsidies have been used. He said the flow estimates will be corrected. <br />Capital costs are necessary. He leans toward the staff recommended $6.35 <br />rate. He said he has no evidence that the Eugene rates are not competitive. <br /> <br />Mayor Obie said the way the community competes is a subjective judgment. <br />Local sewer rates and property taxes are high. He discussed companies that <br />have considered locating in Eugene. He said the recommended 70~ annual sewer <br />rate increase would finance a new library. He said the council should be <br />careful about increasing rates. He suggested a 35~ increase that would result <br />in a $6.00 monthly rate. <br /> <br />e <br /> <br />MINUTES--Eugene City Council Dinner/Work Session <br /> <br />June 2, 1987 <br /> <br />Page 6 <br />
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