02/14/1983 Meeting (2) - Laserfiche WebLink

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said that many institutions were involved in setting and collecting rates in the area. He discussed changes that would need to be made at these institutions to allow initiation of a flow-based rate and said that a flow-based rate could probably be implemented within two years. Councilor Wooten said that at an earlier council meeting she had asked about the legality of having the new rate applied in March billings, which would essentially be retroactive to February 1--before the council had approved the increase. Mr. Smith said that the ordinance would automatically include a 30-day waiting period prior to implementation unless the council adopted it with an emergency clause. He said that the rates would therefore go into effect on March 15. He said that billings for March would be sent out in April. He said that in Springfield billings would be at the new rate beginning March 7. Ms. Wooten said she was concerned that the new rates not take effect until after final adoption of the ordinances. Responding to a question from Councilor Obie regarding the current and proposed costs for providing sewers to new development, Mr. Smith said that increase was approximately eight to nine percent. Councilor Ball asked if an alternate or "bare bones" budget for the plant had been considered. Mr. Smith responded that the MWMC had considered a stepped increase but had found that the initial step would have been so close to what was needed that it had not pursued step two. He felt that the local budget was a "bare bones" budget and noted that the council had examined that budget care- fully several times. Mr. Gleason said that cash for operation of the treatment plant was not available from other sources and that the MWMC therefore had to be careful to make certain sufficient funds were budgeted. He reiterated that the plant budget would be carefully audited and that unused funds would be applied ~ to offset future rates. Councilor Hansen asked if unused funds from the treatment plant budget could be placed in the City General Fund. Mr. Gleason said that this could only be done for direct administrative charges. He said that plant funds could be borrowed as a loan with suitable loan arrangements. Mr. Hansen asked why there was not a separate rate proposed for multi-family residences. Mr. Smith said that the rate was based on potential use and that it had been felt that there was the same potential use for multi-family residences as for single-family units. e e Councilor Holmer asked if the City's costs of risk management for the treatment plant would also be paid for through user fees. Mr. Gleason responded that administrative overhead, including risk management, would be covered by the new user rates, although he noted that the General Fund had subsidized such costs in the past. Councilor Holmer asked if the costs of leaf pick-up had been trans- ferred from the General Fund to the sewer fund. Mr. Smith responded that costs of leaf pick-up, fleet services, workers' compensation insurance, drainage ditch cleaning, and general services provided by City staff would all be transferred from the General Fund to the sewer fund. Councilor Holmer then discussed the $.90 portion of the rate increase that would be used to retire short-term bonds and said he understood that a bond issue over a longer term would have resulted in higher overall costs. Mr. Gleason responded that this was the case, primarily due to the costs of debt service. MINUTES--Eugene City Council February 14, 1983 Page 4