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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 />_____________________________________________________________________________________ <br />  <br />  Page 10 of 11   <br />   <br />(15. UTILITY RATE DISCUSSION, Continued) <br /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <br />Printup asked if she is agreeable with the 6.5 percent increase in the water rate. <br /> <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 /> <br />Bremer indicated she is fine with the 2, 4 and 5 percent increases. <br /> <br />Franchot asked if Staff has a sense of the range on the Wayzata customers <br /> <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 /> <br />Item #03 - CC Agenda - 11/26/2012 <br />Approval of Council Minutes 11/13/2012 [Page 10 of 11]