City Council Minutes 2018 02 20 - Laserfiche WebLink

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City Council Meeting Minutes February 20, 2018 Page 10 of 16 Councilmember Stolzmann stated there is strong public support for this and the literature shows the signs can create unnecessary animosity. She sees no reason to include this restriction, it doesn't add value. Councilmember Stolzmann made a substitute motion to approve Ordinance No. 1756, Series 2018 as written, Keany seconded the motion Roll call vote on the substitute motion. Motion passed 4-3; no votes from Councilmember Loo, Mayor Pro Tem Lipton, Mayor Muckle. (the original motion dies) RESOLUTION NO. 13, SERIES 2018 — A RESOLUTION SETTING CERTAIN, WATER, WASTEWATER, STORMWATER AND OTHER FEES, RATES, AND CHARGES FOR THE CITY OF LOUISVILLE, COLORADO Mayor Muckle introduced the item. Director Kowar stated staff recommends increasing utility rates for the 2018 calendar year in the amount of 3% for water, 7% for wastewater and 7% for stormwater to address smoothing of rates and debt increases All are in accordance with financial policies and debt coverage requirements as part of loan packages. Councilmember Maloney asked about the debt service coverage calculation. He asked if is it our policy or the lenders policy that these be by functional area or can it be an aggregate Finance Director Watson stated it can be combined; the bonds are issued as a combined utility. However, we try to get each utility to function on its own. This is set by the bond holders Director Watson stated at one point we consolidated all enterprise funds into one large fund to increase coverage factors Councilmember Maloney stated if one ratio is used across all the enterprises it is more efficient Director Kowar stated the funds are separated so each utility charges appropriately for that enterprise fund At some point each utility has to take control of its own debt coverage requirements. Councilmember Maloney noted there would be ups and downs in each category over the life of the bond. That then affects the fee calculation from year to year. Kowar noted the covenant requirements get as specific as saying your debt coverage ratios have to be met on a monthly income basis not an annual overall. Councilmember Maloney suggested unless the calculation is combined there is a risk of the calculation being higher than it needs to be. Mayor Muckle stated it is intentional to do it this way so we can determine if each fund is actually working appropriately and the fees are justified to maintain each utility.