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MINUTES OF THE <br /> ORONO CITY COUNCIL MEETING <br /> Monday,November 13,2012 <br /> 7:00 o'clock p.m. <br /> (15. UTILITYRATE DISCUSSION, Continued) <br /> Printup noted the City Council discussed at the work session cutting the sewer rate increase from 4 <br /> percent down to 2 percent and asked if that would keep the City's expenses on an even keel with the <br /> revenues. <br /> Olson stated it would basically keep the City even since the Metropolitan Council charges are decreasing. <br /> Olson stated in his view the City would do fine with an increase of 2 percent but that if the City Council <br /> wanted to plan for future capital improvements,a 4 percent increase would be better. <br /> Printup indicated he is okay with the 2 percent increase for the sewer fee and that he is fine with the other <br /> percentages being proposed. <br /> Olson stated as it relates to enterprise rates,there was not much discussion at the work session about the <br /> 10 percent and that there was some discussion about whether the City needs to complete all the projects <br /> listed in the CIP. <br /> McMillan noted the City is not yet mandated on storm water projects and the storm water fund is <br /> relatively new since it was started in approximately 2002. <br /> Franchot asked if the City has any sense on when some of those storm water projects would get <br /> mandated. Franchot stated if it is going to be within the next three to five years, it is more important that <br /> the fund be supplemented now. <br /> Gaffron indicated he is not aware of the time frame but that it is probably going to be more likely five to <br /> ten years rather than three to five. <br /> McMillan stated CIP planning helps give the City some guidance on possible future costs. McMillan <br /> indicated she is okay with the increase in the water charges but that she would like to see the sewer <br /> increase only 2 percent. McMillan indicated she does receive a few phone calls regarding the sewer rate <br /> and that the City should be mindful of the costs. <br /> McMillan stated she personally would like to see the storm water fund increase by only 5 percent rather <br /> than 10 percent. The City currently pays the Minnehaha Watershed District approximately half a million <br /> dollars a year,which is another entity the City could go to for financial assistance with various projects. <br /> Printup asked if she is agreeable with the 6.5 percent increase in the water rate. <br /> McMillan indicated she is due to the issues the City faces with maintaining the system. McMillan noted <br /> that maintenance of private wells is also fairly expensive and that in her view the City's water charges are <br /> reasonable. <br /> Bremer indicated she is fine with the 2,4 and 5 percent increases. <br /> Franchot asked if Staff has a sense of the range on the Wayzata customers <br /> Olson stated a reading could be done at the end of the year to determine their usage. Olson noted at the <br /> present time approximately 45 percent of Orono residents have water meters. <br /> Page 10 of 11 <br />