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MINUTES OF THE <br />ORONO CITY COUNCIL <br />Monday, February 14, 2011 <br />7:00 o’ clock p.m. <br />_____________________________________________________________________________________ <br /> <br /> Page 14 of 18 <br /> <br />(16. 2010 FINANCIAL REPORT, Continued) <br /> <br />McMillan noted water revenue has decreased and asked whether that is attributable to the rate increase. <br /> <br />Olson stated water consumption was down last year, which could have been a result of the wet spring and <br />summer. Olson stated the drawback to the tiered system is that the loss in revenue occurs at the high rate. <br /> <br />McMillan asked whether Staff has the water usage figures for the past few years. <br /> <br />Olson indicated that information would go back ten years. <br /> <br />McMillan noted Minnegasco has also implemented a tiered rate system. <br /> <br />Franchot pointed out the City has ended up with approximately $240,000 more than was expected, and <br />asked how much money was raised by the City's tax increase. <br /> <br />Olson stated the tax increase of .77 percent raised approximately $38,000. <br /> <br />Franchot asked whether the City is committed to that tax rate. <br /> <br />Olson indicated they are since that information has already been provided to the county and the property <br />tax statements will be sent out to the residents sometime next month. <br /> <br />Franchot commented he would like to see the City’s reserves discussed at some point in the future and <br />that the City's reserves should be reflected somewhere on the City's budget. <br /> <br />Olson noted the monies would go into the various fund balances and that anything over 50 percent of <br />fund balance would be transferred into a construction fund. <br /> <br />Bremer stated if the reserves are put into a separate fund, it would be easier to track. <br /> <br />No formal action was taken by the City Council on this item. <br /> <br />*17. WESTERN COMMUNITIES ACTION NETWORK (WeCAN) REQUEST FOR <br />SUPPORT <br /> <br />Bremer moved, Printup seconded, to approve sending a letter of support for the CDBG grant <br />application being submitted by the Western Communities Action Network. VOTE: Ayes 4, Nays 0. <br /> <br />18. BIG ISLAND – REMOVAL OF STRUCTURES <br /> <br />Gaffron stated approximately five years ago the City completed the purchase of Big Island Veterans <br />Camp. At the time of purchase approximately 14 buildings existed. A number of cabins have since been <br />removed and they were left with a total of six buildings until a couple of years ago. The City has <br />experienced vandalism to a number of the buildings over the years due to the difficulty in securing the <br />buildings year-round. Most recently there was a fire at the most southerly tip of the park resulting in one <br />pavilion being burned down and the other pavilion being vandalized. <br />Item #03 - CC Agenda - 02/28/2011 <br />Approval of Council Minutes 02/14/2011 <br />[Page 14 of 18]