06/08/1987 Meeting (2) - Laserfiche WebLink

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e e e Steve Duffy, 2372 Rockwood, is President of Eugene Linen. He said people were asked to present comparative information about sewer rates to the council on very short notice and many people could not attend the hearing. He asked the council to reconsider the proposed 12 percent increase in sewer rates. He said sewer rates were raised two years ago and business owners were told then that it was the end of dramatic increases in sewer charges. He said businesses like his that use much water cannot afford the proposed 12 percent increase. He said the sewer rates put such businesses at a competitive disadvantage. He said his business employs 63 people in Eugene. Mr. Duffy suggested the council instruct the staff to evaluate its efficiency rather than spend time justifying big rate increases. He said hundreds of thousands of dollars spent by commercial users on water conservation have been offset by sewer rate increases. Mr. Duffy said City policies make it difficult for existing businesses to succeed in Eugene. He said many dairies, beverage distributors, and laundries do not maintain plants in Eugene. They serve this area from other cities. He said Eugene's good supply of clean water is an advantage in recruiting industries but that advantage is offset by unaffordable sewer rates. Mr. Duffy said he serves on the MWMC. He suggested the council follow MWMC's example and direct the staff to decrease operating expenses. He also recommended an efficiency study of sewer maintenance. Mr. Duffy said sewer rates were increased 300 percent in 1982 and 34 percent in 1985. Now, a 12 percent increase is proposed. He asked when the increases will stop. .. John Timmons, 2825 El i nor, said he represented the Eugene Area Chamber of Commerce. He said he supports the regi ona 1 sewer rate recommended by the MWMC, although he questioned completing a performance audit after a rate increase. He said sewer rate stability is very important and increases in costs should be paid for by increased use of the sewer system. He said budgeting for the sewer system should be based on existing revenues plus customer growth. Cost should be cut and additional customers aggressively sought if existing revenues are not sufficient. He said the staff reports do not justify the proposed rate increase. There being no additional requests to testify, Mayor Obie closed the public hearing. Responding to the testimony, Ms. Andersen said the sewer system is supported primarily by user charges. The capital projects the sewer fund finances are primarily rehabilitation or reconstruction of existing sewers. The exceptions are the River Road lateral sewers in the FY88 budget. She said the $3.3 million in reserves was used to match Federal grants for the extension of sewers to the River Road/Santa Clara area and will be recovered as the area is annexed. Ms. Andersen said she will meet with Ms. Bentsen to discuss the use of sewer funds. She said the budget was developed to maintain the existing system. MINUTES--Eugene City Council June 8, 1987 Page 7