06/10/1987 Meeting - Laserfiche WebLink

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e Ms. Ehrman said she opposes the motion because it would result in postponing problems. She said it does not provide for emergencies or adequate capital projects. Mr. Bennett said he opposes the motion because it does not address the difference in operating and capital needs. He said funds designated for capital projects are sometimes used for operations. Then capital projects are deferred. He said the council should ask the staff about ways to cut operating costs if it thinks the proposed increases are too much. He said the proposed increases are not caused by inflation. They are caused by using reserves and misjudging flows. Ms. Wooten said she asked the staff on June 8 to present alternatives to the proposed options and the staff said there was no new information. The motion failed 2:6 with Councilors Wooten and Rutan voting aye and Councilors Ehrman, Holmer, Schue, Bascom, Miller, and Bennett voting nay. Ms. Ehrman moved, seconded by Mr. Holmer, that the council direct the City Manager to prepare an ordinance to authorize a local sewer rate of $6 in FY88 and $6.35 in FY89. Mr. Holmer said he would like to keep the rate below $6.35 and would vote for a charge of $6.13 each year. He said the $6.13 rate addresses the inflation costs and operating problems. He said an assurance that the rate would remain $6.35 after FY89 might cause him to support the motion. e Answering a question from Mr. Bennett, Mayor Obie said he would support a charge of $6.13 each year. Ms. Ehrman said it is impossible to know what the rate will have to be in three or four years but approval of the $6.35 rate is the best way to assure rate stabil i ty. Ms. Schue said she agrees with Ms. Ehrman. are worried about capital improvements. motion. Ms. Schue said she and the staff Therefore, she wi 11 support the Mayor Obie said he is concerned about people who have fixed incomes because the proposed increase will negatively affect them. He said he is also concerned about commercial users. He said they cannot raise prices in other places because Eugene sewer rates have risen. Responding to Mayor Obie, Ms. Schue said the flow-based sewer rate was adopted to respond to the problems of people with fixed incomes who do not use much water. e MINUTES--Eugene City Council June 10, 1987 Page 7