06/14/2007 (2) - Laserfiche WebLink

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• unanimously approved moving forward with the proposed fee. Any postponement of the revised rate would most likely lead to the necessity of a greater rate increase in the future. Cahill introduced John Farnkopf, HFH Consultants. Farnkopf proceeded with a p � p PowerPoint presentation and review of the tables included in the "Sewer Service Charge and Connection Fee Study" report. The study included an overview and history of sewer rates; projected proposed revenue increases that would generate sufficient additional revenue to cover the increasing revenue requirements; LAH current and proposed annual fees compared with similar communities; Sewer Fund balance with and without a rate increase; and, cost per connection related to expansion projects. Farnkopf reviewed the graph that detailed the projected growth and revenue from current rates and a ten year projection of the Town's revenue requirements that must be generated by sewer service charges. The Town's future expenses were based on the preliminary FY 2007-08 operating and capital improvement budget and extrapolated to FY 2026-27 based on inflation, growth and other associated costs. A deficit was projected for FY 2006-07 and additional, increasingly larger deficits were projected in subsequent years without rate increases. Farnkopf provided an overview of the rate increase and subsequent increases that were being proposed to off set the deficit and maintain the Sewer Fund at an appropriate target balance. • Cahill clarified that going forward all residents served by the Town, including those in the Sphere of Influence, would be charged the same rate. He noted that there were several outstanding issues that needed to be resolved with the County to have the fee, if approved, on the Tax rolls but staff was working to address the problems. Council discussion ensued. O'Malley offered that the Town's Sewer Fund was currently being used for maintenance of the aging infrastructure and projects including the Pine Lane Diversion Project and the study and proposed rate analysis did not include any expansion projects. He supported moving forward with the proposed increase for the FY '07-08 to curb the projected deficit, noting that if Council did not act, it would be another eighteen months before the Town would receive an increase. O'Malley believed that it was appropriate to raise the annual fee and then revisit the sewer fee charge after there was a better assessment of the Town's needs. Councilmember Mordo suggested that the Council consider a multi-year approach to the sewer charge. He noted that the process to raise fees was cumbersome and this would allow the Council to increase the rates as needed. If a multi-year increase was approved, and the designated amount was not needed (example 10%), Council could stipulate what was needed up to the 10% after a more refined analysis. He noted that most likely, the Council would have to initiate the process again in April to raise the rates for FY '08-09 if they approved a single year increase. 2 Special City Council Meeting Minutes June 14,2007