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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o’clock p.m. _____________________________________________________________________________________ Page 4 of 16 Olson indicated they would not go towards that since the sewer fund is its own fund and separate from the water fund. Staff has reviewed the City’s CIP and has changed it slightly to help defer some of the costs. In addition, Staff evaluated whether a 25percent increase would be sufficient, but it was found that would not work and the City would end up getting pretty far behind. Staff determined a rate increase of 30, 30, and 25 percent would work the best. Walsh noted Staff actually proposed higher increases , but after a review of the CIP, it was determined that some items could be pushed further out. In addition, more people will be paying in to the water fund as a result of some of the new developments that have occurred. Seals asked what an average family pays for water per year or quarterly. Rief stated the first tier of rates is 15,000 gallons per quarter , which the majority of people fit into. If that property uses all 15,000 gallons, they would pay $105.56, and the 30 percent increase would raise that to $128.60, which is about a $25 dollar increase over three months. The higher tier ed water users will have a higher increase . Walsh stated the average increase will be about $8 per month. Johnson stated as he read through the information, he had the same question and that 30 percent seems like a big number. Currently the City is borrowing money to pay for improvements and that the City wants to capture the true costs of water and that they do not want to be supplementing other cities that are utilizing Orono’s water system. Seals stated she receives a fair amount of questions about the amount of taxes people pay for different things and that when it is broken down, it makes more sense. Walsh noted Orono does not levy special assessments for roads or other improvements and it is now a budgeted item. Printup commented he likes the fact that it is geared towards becoming self -sustaining in the future and that any change to that policy will be transparent. Crosby stated by not borrowing money to do the repairs in the future , the City will also be saving the interest on that debt, which is being fiscally responsible. Crosby moved, Printup seconded, to increase the 2019 water rates by 30 percent, to approve the implementation of a working reserve of 25 percent of operating expenses and a capital reserve of 25 percent of capital expenses. VOTE: Ayes 5, Nays 0. PLANNING DEPARTMENT REPORT 7. LA19-000003 – FINE LINE DOCKS ON BEHALF OF THOMAS AND KELSEY HAMILTON, 1795 FOX STREET – RESOLUTION NO. 6956 Barnhart noted the Planning Commission recommended approval of this dock and that the applicant is proposing that this seasonal-styled dock w ill be placed in this location permanently.