HomeMy WebLinkAboutCity Council Minutes 01-25-2011 SpecialAdopted Minutes
Special Council Meeting
January 25, 2011
Mayor Slavik called a Special Meeting of the Plymouth City Council to order at 5:42 p.m. in the
Medicine Lake Room, 3400 Plymouth Boulevard, on January 25, 2011.
COUNCIL PRESENT: Mayor Slavik, Councilmembers Stein, Murdock, Willis, Bildsoe, and
Councilmember Johnson (arrived at 6:13 p.m.).
ABSENT: Councilmember Black.
STAFF PRESENT: City Manager Ahrens, Administrative Services Director Portner, Public
Works Director Cote, Community Development Director Juetten, Recreation Superintendent
Evans, Finance Manager Bursheim, Financial Analyst Deb Potz, and Deputy City Clerk Tiegs-
Roussell.
Updated Rate Study and Utility Trunk Fund analysis
Administrative Services Director Portner provided a brief background on the rate study and
utility trunk fund analysis.
Water & Sanitary Sewer Rate Study
The updated Water and Sanitary Sewer Rate Study has adjusted a number of the base
assumptions including inflation, interest income, and water consumption rates. As a
result of the changed assumptions, the final report recommends no rate changes.
Utility Trunk Fund
Staff recently completed an updated Utility Trunk Fund analysis showing new
construction is covering the cost of new infrastructure. Like the Utility Rate Study,
the new Utility Trunk Fund analysis updates a number of assumptions and increases
are proposed. Area charges and REC fee increases are on this evening's Regular
Council Meeting agenda for consideration and approval.
Comprehensive Annual Financial Report (CAFR)
The current budget for water and sanitary sewer was based on the Ehlers study which
recommended 5.5% rate increase. The updated study does not recommend an
increase and would eliminate the transfers -out expenditure to Utility Trunk Fund
replacement).
Adopted Minutes 1 of 2 Special Meeting of January 25, 2011
Staff recommends a $5.5 million transfer from the Trunk (replacement) to Trunk
expansion). Staff further recommends moving the remaining $5.7 million from Trunk
replacement) to the water and sanitary sewer fund reserves where the City currently
maintains dedicated reserves for infrastructure replacement.
Councilmember Willis requested clarification of the cash balance separation within the
funds. Administrative Services Director Portner stated the fund is comprised of five
components; Utility Trunk Fund (expansion), Utility Trunk Fund (replacement), water sewer
construction fund, water operation, and sewer operation.
Councilmember Willis expressed concern that the funds are not separated for better
management. Administrative Services Director Portner stated the funds are reported in the
CAFR as one fund. Each fund is maintained independently. The $5.5 million transfer from
the Trunk (replacement) to Trunk (expansion) would ensure cash flow in the event of a
capital project so the fund would not go below the targeted fund balance or could be
transferred back if it is not needed.
Councilmembers inquired about the daily water usage trends decreasing which could delay
the need to construct future wells. Public Works Director Cote stated it is difficult to
manage the peak demand even though daily trend for demand is decreasing.
Councilmember Willis stated water can be purchased from Maple Grove during the peak
time.
City Manager Ahrens reviewed the top commercial account users. Public Works Director
Cote stated that irrigation was the primary reason commercial account usage increases.
Councilmember Stein stated commercial users need to understand and practice conservation
methods.
Councilmember Willis requested staff to research adding another commercial tier for
irrigation to encourage commercial irrigation to trend downward similar to current
residential usage. The Council indicated their interest in studying the commercial tiered rate
for next year.
Future Study Sessions
No study sessions were scheduled.
Adiournment
Mayor Slavik adjourned the meeting at 6:27 p.m.
Diane Tiegs- o usselyDeputytity Clerk
Adopted Minutes 2 of 2 Special Meeting of January 25, 2011