05/13/1985 Meeting - Laserfiche WebLink

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e Mr. Rutan asked about the role of councilors. Mr. Guenzler said they were proposing that a policy decision would be made at a hearing on May 20. The recommendation will direct staff to prepare an ordinance enacting the rate. Mr. Gleason added that the costs were included in the Public Works budget, which previously had been reviewed by a subcommittee. Mr. Guenz1er said MWMC had additional reserves marked for specific purposes, including a replacement fund to take the plant to its designed life of 20 years. Ms. Bascom asked about the phase out of the old plant. Mr. Guenzler said the Springfield plant was shut down early last year, and minor maintenance is now being done by the City of Eugene until the City of Springfield decides what to do with it. LOCAL SEWER RATES Mr. Guenzler highlighted key issues related to local sewer rates. He said user fees began to be set aside for capital two years ago. The amount in the capital fund had been about $750,000 a year, and Mr. Guenz1er said a slight increase had been proposed. e He said customers have been charged for sanitary sewer maintenance and storm utilities at the same time. Another issue was how to charge the storm sewer portion of the bill. Mr. Guenzler said the proposal included costs for street sweeping as a storm sewer-related cost. As a final issue, Mr. Guenz1er cited a comparison of local and regional rates with those of other cities. Mr. Deis showed a slide on Program Needs and said it was basically a continua- tion of the maintenance program with the usual budget assumptions applied. Some areas that were added were street sweeping and capital. Mr. Guenz1er said a total of $10 million would be needed over two years, with a working balance of $700,000 a year. He also said Finance was forecasting almost no balance at the end of FY86. Mr. Holmer asked about the '84-85 information. Mr. Guenzler said he did not have that available but would prepare it for a future meeting. Mr. Hansen asked about the figures for indirect costs. Mr. Guenzler said indirect costs are not charged for capital, and he said the amount of indirect charged the local fund is only that indirect related to general fund support. Mr. Rutan asked whether the information would be available in writing. Mr. Deis said handouts and technical reports would be available after dinner. Mr. Gleason said the City tried to allocate the indirect rate using appro- priate cost-accounting methods and did not take advantage of the charge to the regional system, despite charges to that effect. He also said the portion of capital not allocated is intended for plant rehabilitation and reduction of ~ operating costs. MINUTES--City Council Dinner Session May 13, 1985 Page 4