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Mulberry remain until the construction is finished <br />to ensure that the traffic uses the designated <br />route. Staff acknowledged that this could be <br />done. <br />Mayor Fauson moved that Resolution #41 be <br />approved with the amendment that the barricade at <br />the end of Mulberry remain until the construction <br />is finished. Mohr seconded. By Roll Call Vote, <br />Resolution #41 was approved unanimously. <br />ORDINANCE #914 - WATER SERVICE AND RATES - <br />FIRST READING Rautenstraus read by title only Ordinance #914, <br />"An Ordinance amending Title 13 of the Louisville <br />Municipal Code concerning administration and <br />enforcement of water service, water service <br />regulations and amending rates for metered <br />service." Permission is being sought to place the <br />ordinance out for publication and a public hearing <br />be set for October 7, 1986. <br />Hundley explained that one of Council's ten <br />strategic objectives for the City of Louisville <br />was to establish sound financial plans and <br />practices for the City of Louisville. This <br />ordinance regarding City water rates is a major <br />step towards accomplishing this goal. Within the <br />ordinance is a provision to reduce the minimum <br />gallon usage from 10,000 to 8,000 gallons per <br />month, and increase water rates depending on the <br />amount of water used by the customer and the 8,000 <br />gallons would go from $8.00 to $8.40 with <br />incremental increases at 14,001 and 20,001 <br />gallons. There is also a provision for late fees <br />of 1$ of the unpaid balance and a bulk water <br />purchase procedure would be established also. In <br />only one year since 1978 has water sales covered <br />City operating costs. Over an eight year period <br />$614,611 has been diverted from the City's new tap <br />fee revenues to subsidize City water service. <br />This has resulted in less money being available <br />for capital construction and water line repair and <br />maintenance. Given the proposed water utility <br />improvements proposed over the next five years, <br />the City cannot afford to divert any tap fee <br />monies to subsidize water service rates because of <br />the extensive demands for new capital construc- <br />tion. The City estimates that this ordinance will <br />increase City water services revenues by 21~. <br />Hundley further pointed out that the City has a <br />rebate program for Seniors who are on fixed <br />incomes and this will continue. Those people who <br />use the water pay for it. This ordinance provides <br />an incentive to conserve water by a pricing <br />6 <br />