CC Minutes - 02/24/99 WS - Laserfiche WebLink

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for how long it took to work through each system depended on the level of detail the committee wished to go into. If the local wastewater system was an example, he believed each system would take six months or more of committee work. Mr. Meisner was supportive of the RAC's recommendations. He asked if the drop in the single- family residential rate reflected the fact costs were being allocated more precisely, or if the total revenue base was being reduced. Mr. Lyle said that the formula basis review had caused the drop. Mr. Meisner asked Mr. Lyle if the proposed methodology would have recovered the same amount as the current methodology for the year 1998, for example. Mr. Lyle said the City would have collected less. He attributed the reduction in the rate to a revision of the City's capacity calculation and problems in the initial assumptions established for the methodology in 1991. Mr. Meisner asked if that implied the City had previously been over collecting for the system. Mr. Lyle said yes. Mr. Pap~ agreed with Mr. Kelly regarding the diversity of the committee and said that it had reached consensus added credibility to its recommendations. Responding to a question from Mr. Pap~, Mr. Lyle clarified that the local wastewater SDC was only focused on the City's collection system. The regional SDC was focused on the treatment plant and regional pump stations. The Metropolitan Wastewater Management Commission had recently made modifications to the regional SDC, which the City collected on its behalf. He assured Mr. Pap~ that the City did not duplicate those rates. Mr. Farr congratulated Mr. Lyle on the work of the committee. He asked where the funds collected to this point were spent. Mr. Lyle said that those funds were spent on capacity- enhancing projects approved by the council in the Capital Improvement Program, and on reimbursing the user fee for components of the existing system. Mr. Fart said that it appeared the City had an over funding situation if it had overcharged in the past and continued to charge for the current cost of the system. Mr. Lyle did not think an over-funding situation existed, stating that the need for the infrastructure existed in the community and would continue to exist for many years. He believed the funding would be appropriately used for capital needs. Mr. Farr asked if Mr. Lyle envisioned needs beyond what the funds would cover. Mr. Lyle said no. Mr. Farr asked how much had been over collected. Mr. Lyle was not sure, saying he would have to do some research to find out that information. He said that the rates were adjusted to ensure they covered the value of the existing system and captured the cost of the true share of new development. Mr. Pap~ indicated his hope that the reduction to the wastewater SDC would not be politicized. Mr. Fart said that he did not want the council to lose sight of the need to discuss Iow-income housing subsidies and their funding source. Mr. Kelly requested that staff prepare a recommendation regarding a new mechanism by which the council could provide relief to Iow- income housing from SDCs. Mr. Fart encouraged the council and staff to look at sources outside the General Fund. Ms. Nathanson suggested that the City could demonstrate its support for Iow-income housing without waiving fees. She preferred to subsidize SDCs for Iow-income housing from another source rather than waive the SDCs. Mr. Johnson recollected that over the past five years the General Fund had contributed $300,000 to $500,000 for fees associated with Iow-income housing; only recently had the council begun to waive fees outright. MINUTES--Eugene City Council February 24, 1999 Page 7 11:30 a.m.