09-08-1997 Council Packet - Laserfiche WebLink

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Request for Council Action Continued September 4,1997 Proposed 1998 Budget and Tax Levj’ - Resolutions Sewer and Water Infrastructure Rehabilitation and Utility Rate Increases A. Water Fund. The Council has determined that water rates should be sufficiem to fully fund 100% of depreciation on all water infrastructure. This will provide funding to enable the city . to address long term water infrastructure rehabilitation needs. The Council has also authorized staff to move forward with the project review and approval process related to the rehabilitation of the Navarre water plant. This project has a cost of $740,000. Staff has projected that in order to fund the water plant rehabilitation and 100% of depreciation on water infrastructure, the water rates will need to increase 2.9% per year over thw next 20 years. B.Sewer Fund. The Council has directed that the sewer rates be set so that the depreciation on sewer infrastructure would be 100% funded. To accomplish this, the minimum sewer rate increase, on an annual basis over the next 20 years, needs to be 3.2%. Street Infrastructure Repair and Maintenance The city provides for general street maintenance activities, such as pot hole patching and snow and ice control, with in-house staff and equipment. Other activities designed to e.\tend the life of the city's streets, such as sealcoating and overlays, are provided through the use of private contractors. The 1998 budget includes $97,000 for contractual street maintenance in the General Fund. As in 1997, an additional amount ($40,000) is included in the PIR Fund to enable the city to do more overlay work. The overlays can extend the life of a roadway by up to 10 years and also reduce or eliminate the need for other maintenance activities during this pe»^od. Funding for Storm Drainage Infrastmr.tiire There are currently a substantial number o^^ stormwater drainage problem areas in the city. Although some of these can be solved with projects costing in the range of $20-30,000, several of these could require projects with costs approaching $100,000. In addition, there are a number of areas in the city in which a large volume of "untreated" stormwater flows directly into Lake Minnetonka. The Surface Water Management Plan being completed by Bonestroo and Associates will identify a set of stormwater improvement projects that will address many of these problem areas in addition to addressing other stormwater drainage needs. The storm drainage infrastructure will require a large amount of funding from a number of different sources over the next 10 to 20 years. As a significant step in providing funding for storm drainage infrastructure, the city initiated, in the 1996 budget a levy amount of $40,000 per year for storm