WATER/SEWER RATE STUDY RECOMMENDATION
Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at PRESENT: Mayor Bauer, Councilmembers Dave Benson, Doug Borgschatz, Willard Eberhart, Betty Jo Grothe. Others present: City Accountant Mary Rohe, Community Development Director Angie Bersaw, Public Works Director Rick Lohmann, City Attorney Matt Rockne, David Drown and Elizabeth Blakesley, of David Drown Associates, Bill Anderson and Don ______ of Yaggy Colby Associates and Paul Qualy.
The sole purpose of this special meeting was to present the Water/Sewer Rate Study Recommendation.
Mayor Bauer opened the meeting at with the Pledge of Allegiance.
Public Works Director Rick Lohmann gave a review of his Infrastructure Improvements Report, which details priority areas in need of water, sewer and street repairs. These areas were identified through the sewer televising and water distribution studies completed earlier. Estimated costs for all of these projects would be over six million dollars. Rick had consulted with the city’s financial advisor, David Drown and cut the projects roughly in half by cost – to make the total more financially feasible and get the most necessary repairs done first.
David Drown provided an overview of the project costs. He recommended both short term bonding and long term increases in property taxes and utility rates to accomplish these projects. Issuing bonds for $3,100,000 would require a 15% raise in sewer rates. Water rates would require a 10% rate increase now and a future 15% increase to keep funding replacements in future years.
Discussion centered on which rates are adequate and which need to be adjusted. It was felt the developer’s fees of $1750 per acre due at time of final plat and the builder’s fees of $825 per connection due at time of building permit were adequate. Water and sewer rates have not increased since 1997. It was felt these should be increased, with the basic charge and the usage charge kept in proportion.
A full copy of the report is available at City Hall.
Mayor Bauer adjourned the meeting at
Richard Bauer, Mayor