04-07-88 Utilities - Laserfiche WebLink

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a , complexes. He also advised the Council that they were attempting to reach an out-of-court settlement since the City of South Bend lost the last case with Mr. Brademas. Councilman Voorde questioned whether the City could continue to include approximately $250, 000. 00 for salt in the Utility budget. Mayor Kernan stated that this is a policy decision which has been going on for the past ten years. It was his understanding that the State Board of Accounts and the City of South Bend had reached agreement that this was proper, however, ongoing discussions were still taking place. Councilman Luecke questioned when the last sewage rate increase took place. He was advised that the minimum rate had not changed since 1980, however, the other rates have changed since then. Mayor Kernan noted that there is a deficit situation and that in a few months there will be more information available. In his opinion, the responsible thing to do was to infuse capital and make a sound business decision. Councilman Slavinskas stated that in his opinion it would be irresponsible for the City not to have proper rates in effect to address the deficit situation. He further stated that he would like to keep the increase to a minimum. Councilman Niezgodksi stated that he was hoping to reach a compromise and make an even rate adjustment. Mayor Kernan stated that many of the details with regard to financing will not be available until September but that the cost of service material will be available next month. After considerable discussion, Councilman Puzzello made a motion seconded by Councilman Slavinskas that Bill No. 138- 87 which incorporates a 36% rate increase be recommended favorably to Council. The motion passed by a 3 to 1 vote with Councilman Niezgodski in the minority. There being no further business to come before the Council, the meeting was adjourned at 5: 30 p.m. Respectfully submitted, Councilman Don Niezgodski, Chairman Utilities Committee DN:srk Attachments