11-08-2010 Council Packet - Laserfiche WebLink

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Orono City Council Committee of the Whole October 26, 2010, 6:30 p.m. Orono City Council Chambers Page 1 of 1 Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and Jim Murphy; City Administrator Jessica Loftus, Finance Director Ron Olson, City Clerk Lin Vee 1. 2011 Budget Discussion Finance Director Ron Olson presented information on the enterprise fund budgets. Operating expenditures include chemicals and administrative charges, as well as the final year of replacing manual read meters. Water rates are based on a tiered system of water usage. The recent utility rate study recommended an increase in water rates of 5.5%. Capital expenditures for 2011 include pump maintenance and rehabilitation of an Ion Exchanger. Council agreed to consider reducing the water rate increase to approximately 3% and spreading the difference into future years. Water Fund Metropolitan Council Environmental Services (MCES) fees are increasing 12% for 2011. The utility rate study recommends a 4% increase in sewer rates. Orono’s sewer rates are higher than many cities because of a high number of lift stations for a relatively small system. Capital expenditures include upgrading two lift stations, adding a generator and a rehab project. The city pays a surcharge for I & I, but will receive credit for I & I work that is done by the city. Council agreed to the proposed 4% sewer rate increase. Sewer Fund The rate study suggests a 10% increase per year indefinitely. Another alternative is to bond for storm water projects. The SWPPP identifies projects, required funding and a timeline for implementation. Council agreed to the proposed 10% storm water rate increase. Storm water fund Council discussed operating losses and revenue for the golf course operation. Council agreed to move the golf course from an enterprise fund to the general fund to be considered as a recreation program that Council supports. Golf Course 2. Comments Regarding Information Updates There were no comments. 3. Other Issues of Current Interest The interview schedule for Planning Commission applicants was discussed. Three interviews will be scheduled prior to the November 8th and November 22nd Council meetings. The 2011 goal setting work session will be scheduled for Tuesday, November 23rd from 3:00 p.m. – 7:00 p.m. 4. Closed Session – 2011 Union Negotiations Council closed the work session to discuss police officer negotiations. The meeting closed at 7:38 p.m. ATTEST: ________________________________________ _______________________________________ Linda S. Vee, City Clerk James M. White, Mayor Item #03 - CC Agenda - 11/08/2010 Approval of Council Work Session Minutes 10/26/2010 [Page 1 of 1]