City Council Agenda and Packet 2015 11 02

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City Council Meeting Minutes October 13, 2015 Page 4 of 18 Council member Stolzmann felt Council should provide staff with the level of expectation and then ask the Public Works Director to determine the cost. She asked for clarification on the dollar amounts the previous council members spoke of. She felt Public Works Director Kowar was saying $415,000 additional dollars were needed. Council member Keany responded, yes this was the figure for 2016, but he was also looking at the additional funds in water and sewer. Council member Stolzmann noted the water and sewer projects are incredibly large, with large dollar increases and those dollar amounts will not contribute significantly above that. She was not concerned about the dollars spent on water and sewer. City Manager Fleming noted there would not have to be dramatic cuts in 2016 to meet the level of funding, but a problem could arise in 2017 and 2018 due to phasing of water and sewer funds and following up on work done previously. Public Works Director Kowar emphasized the water and sewer replacement is the constraint. It is what is holding back the booster program on the streets. It is important to be aggressive on the water and sewer; the rate increases are primarily a function of increasing revenues to meet the debt service coverage requirements. There is a good reserve in the Utility Fund and this is a good use of it. Staying aggressive over the next three years in the utility and getting that part out of the way is important. Then when the paving funding is established, staff would be ready to go. Council member Stolzmann would like to do more in 2016, but recognized not everything can be done now. It is not about a dollar amount, but about setting a goal and determining the cost. Multi -year budgeting may help in getting a better rate. She supported being aggressive in 2016 and developing a plan for out years to buckle down and budget for paving. This would include addressing streets not involved in the water /sewer replacement. Council member Loo asked City Manager Fleming to clarify if there was not a problem to find the moneys in 2016 and what was the dollar figure. City Manager Fleming pointed to a table in the packet showing the additional funding needed to raise all streets above Overall Condition Index (OCI) 35 in five years. For 2016, the Capital Projects Fund would need to increase $415,000, accomplished by either drawing down the fund reserves which still leaves $1 million in reserves or as both he and Council member Lipton suggested, other cuts if Council wishes to keep the Capital Projects Fund reserves higher than the million dollars. Mayor Pro Tem Dalton noted the Public Works bid process is changing and could result in a staff capacity issue. Road conditions as a goal needs to take place not in this budget but urgently addressed in 2016. This budget needs an added half million dollars as a down payment toward paving. 17