City Council Minutes 2015 05 19 - Laserfiche WebLink

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City Council Meeting Minutes May 19, 2015 Page 28 of 34 2. The current Multifamily Wastewater Readiness to Serve charge should be applied on a per dwelling unit basis and not a per account basis. The incorrect wastewater rates result in revenues roughly $500,000 dollars less than estimated in the financial plan for the 2015 fiscal year. Staff determined through review with Raftelis the reduced revenue could be absorbed while maintaining debt service coverage ratios, appropriate cash reserves, and previous future estimated rate increase levels. This ability to absorb this error is a direct result of better than anticipated loan payment terms in the financial plan for the wastewater treatment plant and stormwater outfall project loan. The city finance staff was able to secure these terms by working with the City's lending partners to structure a repayment schedule that considers existing city Utility Fund debt payments and structures the new loan payments to have a lower payment in the beginning and a larger payment towards the end once existing debt has been paid off. He noted staff does not take this error lightly and that a representative from Raftelis was present for any questions. Staff recommends City Council approve a resolution correcting Multifamily Wastewater Readiness to Serve charges on a per dwelling unit basis instead of a per account basis. COUNCIL COMMENT Council member Stolzmann wondered since customers have not seen the wastewater increase yet, if there was a way to update this to what it is intended to be on the June bill instead of waiting a year. Public Works Director Kowar noted a mailer has been sent out to all customers concerning the new rate. He felt the financial plan could absorb this change. Staff will watch revenues and tap fees and determine if there is a point in time where something else is needed; Council would be made aware. Council member Keany supported the suggestion of staff, and noted that he was very disappointed with this whole process. Mayor Muckle was glad this was identified and corrected and supported what staff is recommending. RESOLUTION No. 31, Series 2015 MOTION: Council member Stolzmann moved Council approve Resolution No. 31, Series 2015. Seconded by Council Member Keany. City Attorney Light asked for clarification on Section 2, that revised rates would take effect May 1, 2015. Public Works Director Kowar confirmed.