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REGULAR MEETING JANUARY 13, 2003 <br />(14) years at one time because of adjustments that have been made. Nevertheless, they feel that the <br />rate structure that is proposed is fair for customers and keeps the City in a competitive position <br />when compared to other communities, not just in Indiana but across the Midwest. Mayor Luecke <br />thanked the Council for their attention and asked for their favorable consideration of this bill. <br />Councilmember Varner noted that everyone seems to agree that by and large the costs of operation <br />have been met on a continuing basis. He further noted that he believes there is universal agreement <br />that consideration to the environment has to be taken into account and answered in a measured way. <br />He stated that there has been a lot of reference to the large users but no one should lose sight of the <br />fact that they are also large employers. Councilmember Varner stated that this issue comes down <br />to a matter of perspective. One of the areas of disagreement is the fifty per cent (50%) surcharge <br />for out of City users. He stated that he does not absolutely disagree with the fifty per cent (50%) <br />surcharge but the idea of this increase all at once is something that he knows the City would disagree <br />if it were to happen to them. The second area of disagreement appears to be the functional change <br />in the rate structure that has been proposed. Mr. Skomp has done a great job of explaining the <br />numbers. However, this is one (1) perspective on the issue as the City sees it. Councilmember <br />Varner stated that he believes that the purpose of the advisory committee should be to determine <br />what the appropriate structure should be as there is more than one (1) way to calculate a rate <br />structure. Once the full perspective, as opposed to a unilateral one, is offered, he believes that the <br />Council can make better decisions for everybody. With that in mind, Councilmember Varner <br />encouraged the Council to consider the flat twenty-four per cent (24%) across the board two (2) year <br />rate structure consistent with the existing rate structure and not adopting a new one. He noted that <br />if the Council adopts the ordinance tonight as it is proposed whether they like the absolute numbers <br />or not the fact of the matter remains that they will have made a fundamental change in the adoption <br />of the rate structure. He believes it deserves a great deal more study and consideration and certainly <br />deserves an opportunity for the Council to hear other sides to this issue. Councilmember Varner <br />stated that after the comment session he would like to make a motion. <br />Councilmember Kelly stated that he is not an accountant and the figures presented are hard to work <br />out in his own mind. He noted that an across the board increase is being talked about which would <br />amount to a fifty five cent ($.55) increase to residential users in their monthly bill. Councilmember <br />Kelly asked for clarification on that issue. In response, Mr. Skomp noted that he was not sure how <br />the fifty-five cent ($.55) was derived. He noted that someone using one hundred (100) cubic feet <br />would see a three dollar ($3.00) increase in their monthly bill over the proposal so perhaps they are <br />talking about an average. But even at the average it would probably be about one dollar and fifty <br />cents ($1.50) or more so than the proposal. Mayor Luecke stated that using the typical residential <br />user at seven hundred (700) cubic feet, the proposal would have that customer paying fifteen dollars <br />and sixty-seven ($15.67) a month. An across the board increase would make that sixteen dollars and <br />twenty-two cents ($16.22) so it is fifty-five cents ($.55) above the proposal. It is three dollars and <br />fourteen cents ($3.14) above what that customer is currently paying. Mr. Skomp stated that on Page <br />35 of the Cost of Service Study you can see that it will vary. However, the lower end customer is <br />going to see a much greater increase. Councilmember Kelly commented that perhaps the twenty- <br />four per cent (24%) across the board increase for everyone might be the way to go as he does not feel <br />that this would be a major hit to the residential customer. <br />Councilmember White noted that she raised the question earlier about the impact an across the board <br />increase would have on the total plant operation and the service community as well and asked <br />