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City Council <br />Meeting Minutes <br />October23, 2018 <br />Page 7 of 8 <br />REVENUE, OPERATING EXPENDITURES AND CIP BUDGETS FOR UTILITY <br />FUNDS <br />Director Watson noted that after getting everything in sync in the utility funds it looks like <br />there is a little less rate adjustment needed <br />Public Works Director Kowar noted there had been analysis of the different projects. <br />Cuts were made on the operational side and matched up per Council and Utility <br />Committee discussion He went over the utility rate projections. He felt there was a <br />good long-term CIP plan <br />Mayor Muckle was glad to see the CIP broken out from the operating and maintenance, <br />it will help to compare in the future. <br />Mayor Pro Tem Lipton asked to hear from the Utility Committee on how they got to this <br />and how comfortable they are with the process and product. <br />Councilmember Loo noted she was trying to look at this as a resident and wondered if <br />being on a fixed income and having to pay an extra ten dollars a month causes an <br />issue <br />Councilmember Stolzmann noted the capital projects are driving the increase over time <br />The Utility Committee looked at several scenarios and how to reasonably charge and <br />fund to support the projects. There are still large increases needed in stormwater to <br />fund the reserve without cutting projects. She noted it is a lot to ask residents to <br />continue to pay more. <br />Mayor Pro Tem Lipton asked what the Utility Committee looked at for financing options. <br />Councilmember Stolzmann noted the Utility Committee didn't find borrowing favorable, <br />but changed the way of looking at debt service coverage which did lower rate increases. <br />There are increases to project costs. <br />Director Kowar noted the raw water master plan which put projects in line so they can <br />move water around to optimize what we have. Windy Gap firming continues to have <br />challenges but we are still committed to it. Water use per year is staying fairly static. <br />Councilmember Stolzmann noted there is a lot of money in water and suggested <br />spending it on water for the future <br />Director Kowar felt the infrastructure had been ignored and now we are catching up and <br />want to continue to stay on top of it along with managing costs. <br />Councilmember Stolzmann noted staff is working on a total cost of assets to help with <br />future planning <br />