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Committeemember Dr. Varner interjected, It was $5,000,000 for capital, and that's after you
<br />took out the pilots and everything else. There's a net $5,000,000 in cash.
<br />Mr. Julien responded, Just under $4,900,000 at which $4,100,000 was specifically -
<br />Committeemember Dr. Varner responded, So, in an effort to mitigate the rate, or the potential
<br />rate, and then look at it in the future —why can't we have some sort of a commitment to
<br />$2,000,000 and the other $3,000,000, if we actually need it, can come from TIF, come from
<br />COIT, come from EDIT. We're asking the Administration to use resources that we know exist
<br />for expenses that we say we absolutely need, or can project or propose that we need.
<br />Councilmember Broden stated, Well, different funding methods.
<br />Committeemember Dr. Varner responded, That's correct. But what would the rate be if it was a
<br />$2,000,000 cash increment? I know that's off the top of your head, but that would have to be
<br />forty percent (40 %), I'm sure.
<br />Mr. Julien responded, Well, there is a linear relationship. If you're asking for just under
<br />$5,000,000 and if you cut it —for every million dollars that you produce, you're looking at a
<br />twenty percent (20 %) reduction, so twenty percent (20 %) of the forty -three (43 %), so that would
<br />be something -
<br />Committeemember Dr. Varner interjected, About eight percent (8 %) each?
<br />Mr. Julien responded, Right, for each million. Utilities functions under the umbrella of the City
<br />and it's a matter of allocating resources. The only thing that I would make sure that you're
<br />focusing on is, we've got a multi -year capital improvement plan that has identified needs in
<br />excess of the $4,100,000 that's in the financial plan now. If you have additional resources that
<br />the City can reprioritize and move to Utilities, you might start thinking about funding that gap
<br />before you start reducing the rate increase. I obviously don't get any additional pleasure from
<br />having larger increases, but just from a financial standpoint, you are already taking a $2,000,000
<br />haircut in terms of identifying your capital goods, now.
<br />Committeemember Dr. Varner asked, What's that $2,000,000 haircut that you were talking
<br />about?
<br />Mr. Julien responded, Well, at the moment your capital improvement plan has an annual need for
<br />approximately $6,000,000. We're requesting $4,100,000, and that's the gap that I'm talking
<br />about.
<br />Al Greek, Utilities Director of South Bend, with offices at Riverside Drive and at North Pumping
<br />Station in South Bend, IN, stated that of the City's capital funds, $900,000 a year are spent in
<br />meters. He stated, Our meter program's got to come out of this $4,100,000. And we also spend a
<br />half a million dollars. We have to buy backhoes, we have to buy front -end loaders, we have to
<br />buy equipment, dial turn machines. So, that $4,100,000 he's saying is for capital cannot be used
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