HomeMy WebLinkAboutCity Council Committees - Public Works/Planning - 02/27/1995 (3) PUBLIC WORKS COMMITTEE `
FEBRUARY 27, 1995
PRESENT: Paul Mann Roger Lubovich
Tim Clark Gary Gil
Jim Bennett Bill Wolinski
Don Wickstrom Mr. & Mrs. Rust
Drainage Utility Rate In rgre se
Wickstrom said that since our public hearing we have been reviewig the rate proposal.
We have looked at a proposal to even-out the rate over a two y0ar Period. We also
looked at using a councilmanic bond issue versus a revenue bond 19sue. By doing so, we
could reduce our coverage factor. This in turn means the revenue tllat the rates need to
generate to cover our debt is less and as such the rates can be lower. Wickstrom stated
that by averaging, we would be averaging the improvements over that two year period, and
the rate would then have a less immediate impact in the first year. 'He said the Chamber
has expressed some concerns in that no one has budgeted anything, for this in '95 so
some of the businesses have a budget constraint; they would like to see the impact
stretched out over a longer period of time so that it wouldn't be subh.a significant impact
to start with. Wickstrom explained that since meeting with th eChaMber on the 24th, we
have looked at a three year option; 'essentially looking at the '06, '96 and '97 Capital
Improvement Program which is about an $18 million dollar program and averaging it out
to about $6.5 million per year over that three year period. That resulted in a significant
reduction in the first and second year's rate. He explained that he is still working on the
third year's rate; he said that he still wants to review the cash flow scenario because of the
way the projects have to be constructed, making sure there wasn't o,,prioblem with actual
implementation of the projects. He stated that the Lagoon project' the major cost factor
and once it starts, you have to go all the way to completion. Theire may be some
adjustment back in order to make the rate effective January 1, 191 ;and then allow us to
start construction in 1996. Wickstrom said he looked at starting cpnstrucction in 1995 with
a councilmanic debt schedule that corresponded with the rate but t'.impact in the second
year was more than our original two,year averaging. As such, wi ' are looking at a three
year proposal with affective implementation date of January 1, 1 . He explained that
he needed a little more time and asked that this be delayed tp the next Committee
meeting, and not passed out of Committee until we could have qome actual rates.
Wickstrom said that we are asking that Council adopt a six yew plan; look at using
councilmanic bonds for at least the three years; '95, '96 and '97,prdgram and then, have
the rates implemented effective January 1, 1996 which would give everybody fair notice
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