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Minutes of the <br /> Orono City Council Work Session <br /> Monday, November 13,2017 <br /> Council Chambers 5:00 p.m. <br /> PRESENT: Mayor Dennis Walsh, Council Members Aaron Printup, Richard F. Crosby II, <br /> Victoria Seals and Wendy Dankey. Representing staff were City Administrator Dustin Rief, <br /> Finance Director Ron Olson, Community Development Director Jeremy Barnhart,City <br /> Attorney Soren Mattick, Director of Public Works Adam Edwards and City Clerk Anna <br /> Carlson. <br /> Printup joined the meeting at 5:35 p.m. <br /> Dankey joined the meeting at 6:43 p.m. <br /> Meeting Start Time: 5:20 p.m. <br /> 2. Enterprise Fund <br /> Finance Director Ron Olson presented the Enterprise Fund item. Olson began <br /> discussion about the Water Fund. The fund has historically been operating at a loss <br /> but the loss has been covered by revenue received from antenna leases and changing <br /> technologies. Olson mentioned that water rates have been increased by 11%each <br /> year for the past four years and with the present 5% increase for 2018 in the budget, <br /> the future increases are projected to be in the 3%range. Olson also noted that the <br /> operating budget as presented for 2018 will break even. <br /> Mayor Dennis Walsh mentioned that he would like to see the antenna revenues <br /> transferred out of the Water Fund and put into the General Fund. <br /> Discussion regarding the Water Fund budget followed. <br /> Olson stated that the Sewer Fund has also been operating at a loss. The 2018 budget <br /> is presented with a rate increase of 4%. The Met Council disposal charges are the <br /> single largest expense in the Sewer Fund. The past two years we have seen <br /> approximately 9.5%-9.6% increases from the Met Council for disposal charges and <br /> 4%has typically been the rate increase used annually. Olson noted that we typically <br /> do not match the Met Council increases due to the differing Inflow & Infiltration <br /> totals annually. <br /> Walsh pointed out that in the next six years we will be at a significant loss unless we <br /> begin to plan now. Walsh asked how we can solve this. <br /> Olson mentioned that the only way to compensate this would be by either raising <br /> rates or gaining more users. <br /> 1 <br />