HomeMy WebLinkAbout11-13-2017 Council Work Session Minutes Minutes of the
Orono City Council Work Session
Monday, November 13,2017
Council Chambers 5:00 p.m.
PRESENT: Mayor Dennis Walsh, Council Members Aaron Printup, Richard F. Crosby II,
Victoria Seals and Wendy Dankey. Representing staff were City Administrator Dustin Rief,
Finance Director Ron Olson, Community Development Director Jeremy Barnhart,City
Attorney Soren Mattick, Director of Public Works Adam Edwards and City Clerk Anna
Carlson.
Printup joined the meeting at 5:35 p.m.
Dankey joined the meeting at 6:43 p.m.
Meeting Start Time: 5:20 p.m.
2. Enterprise Fund
Finance Director Ron Olson presented the Enterprise Fund item. Olson began
discussion about the Water Fund. The fund has historically been operating at a loss
but the loss has been covered by revenue received from antenna leases and changing
technologies. Olson mentioned that water rates have been increased by 11%each
year for the past four years and with the present 5% increase for 2018 in the budget,
the future increases are projected to be in the 3%range. Olson also noted that the
operating budget as presented for 2018 will break even.
Mayor Dennis Walsh mentioned that he would like to see the antenna revenues
transferred out of the Water Fund and put into the General Fund.
Discussion regarding the Water Fund budget followed.
Olson stated that the Sewer Fund has also been operating at a loss. The 2018 budget
is presented with a rate increase of 4%. The Met Council disposal charges are the
single largest expense in the Sewer Fund. The past two years we have seen
approximately 9.5%-9.6% increases from the Met Council for disposal charges and
4%has typically been the rate increase used annually. Olson noted that we typically
do not match the Met Council increases due to the differing Inflow & Infiltration
totals annually.
Walsh pointed out that in the next six years we will be at a significant loss unless we
begin to plan now. Walsh asked how we can solve this.
Olson mentioned that the only way to compensate this would be by either raising
rates or gaining more users.
1
City Administrator Dustin Rief inentioned that we fell behind due to the combination
of the Met Council's disposal charges increase and depreciation. We should be
raising our rates enough to compensate for both.
Council Member Aaron Printup noted that everybody pays the same rate for Met
Council disposal charges.
Council Member Richard Crosby also stated that the charges are based on total use
versus individual use.
Walsh reiterated that he would like to focus on this and make sure that we are keeping
an eye on it as we proceed.
Olson presented the Storm Water budget and stated that it does not have a lot of
operating budget. We have been increasing it 10% every year for cleaning the ponds
and also we anticipate the significant projects that are in need.
Walsh noted that it appears that at least this has a profit which will get us through the
year 2026.
Olson noted that we have been increasing rates to decrease need for special
assessments.
Discussion followed regarding possible future plans to create an equipment fund for
things such as street sweepers and other equipment used to maintain the Storm Water
system.
Walsh would like to revisit this again. Walsh noted it would be nice if we aze 6-7
years ahead of the curb every time.
Olson presented the Recycling fund. He stated that the biggest expense is collection
of recycling and that we won't be needing an increase for this fund at this time.
Olson also noted that we receive grants annually that help out to some degree and are
only used for Recycling.
Olson presented the Cable Fund and noted that the only revenue gained in this fund is
the cable franchise fees. The cable franchise fees are steady and regular.
Discussion followed regarding the Cable Fund.
1. Open Meeting Law
City Attorney Soren Mattick presented a Power Point presentation of the Open
Meeting Law item.
Council member Victoria Seals asked a question regarding the meaning of a
Committee.
2
Mattick mentioned that some committees should be treated as if they are governed by
the Open Meeting Law. Notices of ineetings should be posted and minutes should be
taken. Especially if the committee is conducting business and/or sending
recommendations to City Council.
Mattick discussed the email Open Meeting Law standards for technology use and
social gatherings as well.
Discussion followed regarding Open Meeting Law standards.
Meeting End: 6:45 p.m.
ATTEST:
Anna Carlson, City Clerk Dennis Walsh, Mayor
3