Utility Committee Agenda and Packet 2021 02 09

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talking about now does not include the down payment it is strictly 100 percent financing which is the recommendation we talked about earlier. The 2.8% includes the 120 day reserves and not the 90 day. • Committee discussed the charts on the previous pages and agreed to discuss tap fee rates next year as they need some more modeling to understand the fees, water and how we should treat for future. Mr. Kowar suggested bringing in the Planning Department. Councilmember Lipton suggested we have a more focused conversation in the first quarter of next year. Mayor Stolzmann added that we do have to set the rates for next year. Then asked if they are comfortable sticking with these numbers through next year and leave it as staff has presented it or are you suggesting you'd like to put in different. Councilmember Lipton said yes he'd be satisfied with leaving it and resume this conversation in January and asked the Committee what they think. Mayor Pro Tern Councilmember Maloney agreed with accepting what we have but said we do need to understand the tap fees and how it fits in the model more effectively. Councilmember Fahey agreed as well. Councilmember Lipton then stated we need to have more discussion and asked staff to schedule something in January to continue this discussion and include the Planning Department. Mr. Kowar agreed and will get something set up. • Councilmember Lipton referred back to the Cash Reserves on page 28. The Committee and staff discussed the percentage of 25% versus 33%. Mrs. Balser liked being conservative at the 33%. Mr. Watson discuss that and stated he's good either way. Mayor Pro Tern Councilmember Maloney said he's fine with going with the 25% policy but it raises a question on how you calculate the 25%. Councilmember Fahey agreed with the 25% policy. Committee moved to continue discussion in January. Councilmember Fahey motioned to bring to the first quarter for more discussion and Mayor Pro Tern Councilmember Maloney Second the motion. • Councilmember Lipton then referred to page 38; staff has made a recommendation on the water rate increases. Mr. Kowar stated that we have to adjust that number now to recognize the 25%. Councilmember Lipton asked if we can make a motion to approve the recommended rate changes subject to that adjustment of the Cash Reserves. Mayor Pro Tern Councilmember Maloney asked if this 2.8% calculated to 2.5% includes current tap fees or tap fees in the rears. Mr. Peterson said the 2.8% presented is the tap fees in the rears. Mr. Kowar said we will modify to show current tap fees at 25% and present that. Then we'll