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10-18-2011 WSPage 1 MINUTES OF THE CITY COUNCIL WORK SESSION Tuesday, October 18, 2011 Raspberry Room - 6:30 p.m. The meeting was started at 6:36 p.m. Present were Mayor Maxwell and Council members Rick Brausen, Kristi Halverson, Bruce Rowan, City Manager Mike Mornson, Finance Director Christine Harkess, Public Works Director Steve Stadler and City Engineer John Bradford. New business: 2012 Budget/Enterprise Funds Ms. Harkess, Mr. Bradford and Mr. Stadler reviewed the Enterprise Fund Budgets and the updated Utility Master Plan with the Council. Utility Master Plan/Water Fund Staff discussed with Council the updated Utility Master Plan, the projected revenues, proposed projects over the next 13 years, capital expenditures, utility replacements and projected bond issues. There was much discussion by Council concerning the timeframe for utility replacement, the ongoing water meter replacement project, projected water rate increase, average amount of water bills and water usage. Mr. Stadler explained that Hopkins has one of lowest water rates in metro area. Sanitary Sewer Fund The Sanitary Sewer rates will increase at the same rate as the Met Council rates for wastewater treatment. Council suggests a public educational piece about the fees and asked that city staff re -visit the Utility Master Plan at a City Council meeting as part of the budget discussion. Storm Sewer Fund There is no proposed rate increase for Storm Sewer. There was much discussion about upcoming improvement projects, the Watershed District requirements and future equipment acquisition. Council would like further explanation of Watershed District regulatory requirements and how they measure pollutants going into the storm sewers. Refuse Fund There is no fee increase proposed for refuse; rate increase for recycling is a proposed 25 cents. There was much discussion by Council about recycling participation and continuing to provide the public with educational information. Pavilion Fund The budget is projecting an increase in rental revenues and staff continues to market the Pavilion. Currently revenues exceed the operating expenses. There was discussion by Council about the capital replacement projects. Page 2 OTHER: • November 22nd Work Session includes the 2012 Budget Hearing. • 2012 Budget will be on the December 6th City Council meeting agenda. With no further business to discuss there was a motion by Council member Brausen and a second by Council member Rowan to adjourn the meeting at 7:25 p.m. Respectfully Submitted, Debbie Vold ATTEST: Eugene J. Mi6xwell, Mayor