City Council Minutes 1982 05 04 - Laserfiche WebLink

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5/4/82 Page .,..15- other service provided. The people are still pay;i:ng':: for it; they are paying a little less and he agreed the revenue is not adequate, but he did not feel the costs were being hidden - they were there. He suggested when the flyer goes out on the incr~=ase it should be shown that oper- ating costs are still not being met. Mayor Meier Commented it was his opinion that the rate schedule as set up in the ordinance does not fully cover operating and main- tenance costs, and definitely does not cover any capital improvements they would hope to do; therefore the bond issue is being considered. Councilman Fauson Wished to speak to the statement made by Councilman Cussen - costs being hidden. It was his understanding, during the work session, that the Auditors recommended the fees be increased. At that time he in- quired if the City was bound by State Statutes to increase the fees to cover the costs of operating and maintenance, and it was his understanding it was not, but an auditing recommendation. Fauson inquired if revenues from sales tax, etc. could be used to supplement the water and sewer funds? Administrator Wurl advised the State Account- ing and Audit Board dictates the criteria under which the City should operate. It is not a la~7; but they set the standards and we will be criticized in the audit that the 0.& ~L costs are not being met for the operation of the enterprise system. Addition- ally in the bond ordinances which have been passed over the years, the Councilor the City guarantees that the City will establish rates that will defray the costs. It was his opinion by using revenue from other funds, it did effect, to some degree, the City's ratings in the future, which will effect the amount of interest we will be paying. Wurl stated, from a business point of view, those costs must be met, whether it be presently or in the future. If the sales tax revenue i,e. front the Mall will be used to supple- ment the enterprise funds, this may be 2 years hence. He felt this problem needed to be dealt with now.