06/10/1987 Meeting - Laserfiche WebLink

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e e e IV. ORDINANCE CONCERNING LOCAL AND REGIONAL SEWER USER RATES City Manager Micheal Gleason said the council had several work sessions on proposed sewer rates and held a public hearing on June 8, 1987. He said councilors seemed to want a monthly local sewer rate of $6.00 this year and stable rates in the future. Therefore, he proposed approval of a local sewer rate of $6 the first year and a $6.35 the second year. He said the proposal will provide rate stability in sewer operations three and four years from now. He emphasized that the council controls capital sewer projects. He said approval of a monthly $6.13 sewer rate would not provide rate stability three and four years from now. He said rates below $6.13 will affect the operation and maintenance of the sewer system. Mayor Obie said he would like a monthly local rate of $6 the first year and $6.13 the second year. Answering a question from Ms. Ehrman, Mr. Gleason said approval of the $6 and $6.35 rates would mean capital projects would be cut in the first year, cash balances would be increased and some capital projects would be accomplished in the second year, and probably some capital projects would be eliminated the third and fourth years to provide rate stability. He said the $6.13 rate would provide corrections for the flow estimates, maintain the operations of the system, and necessitate decreased capital projects in the first two years. There probably will be both operational and capital problems in the third and fourth years. Mr. Miller said he wished the council had considered sewer rates before it considered the General Fund budget. He said the council assumed that sewer rates would finance the system. Consequently, previous assumptions affect - some of the decisions he must make. He said citizens want justification for proposed rate increases. Ms. Wooten moved, seconded by Mr. Rutan, that the council direct the City Manager to prepare an ordinance that authorizes an increase in local sewer rates that results in a charge of $6 each year. Respondi n9 to questions from Mr. Rutan, Mr. Gl eason said approval of the motion would result in less maintenance of the sewer system and a reduction in capital sewer projects. Mayor Obie said approval of the motion would increase the rates six percent the first year when inflation will probably be three percent and personnel costs will probably increase three percent. He said he could support either $6 or $6.13 the second year. Mr. Holmer said the staff provided the council with options and the council should consider those options because the impacts of new proposals are not known. He said the $6.13 rate would correct the flow estimates and provide for three percent inflation each of two years. He said he will oppose the motion. MINUTES--Eugene City Council June 10, 1987 page 6