11-26-73 Council Special Meeting Minutes

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482 SPECIAL MEETING NOVEMBER 26, 1973 11 11 IICALL OF THE MEETING (CONTINUED) An Ordinance establishing a new schedule of rates and charges for services rendered by the Waterworks System of the City of South Bend and repealing Ordinance No. 4320 -60 and Ordinance No. 4345 -60. The Chief of Police or any member of the Police Force is directed to serve a copy of this notice to each member of the Common Council and make due return hereon. Dated: November 21, 1973 s/ Odell Newburn s/ Terry S. Miller s/ Walter M. Szymkowiak s/ Walter T. Kopczynski s/ Frank Horvath Attest: s/ Barbara Byers Deputy City Clerk The within call came to hand this 21st day of November, 1973, which I served by reading the same to each councilman upon the date designated. s/ Joseph T. Serge s/ Walter M. Szymkowiak s/ Terry S. Miller S/ Roger Parent s/ Robert G. Taylor s/ Walter T. Kopczynski s/ Frank Horvath s/ Odell Newburn s/ Peter J. Nemeth or by leaving a certified copy thereof at the last and usual place of residence of such members as I was unable to find, as follows: IIORDINANCE NO. 5608 -73 S/ Cpl. Edward R. DeCraene Member of the South Bend Police Department #170 AN ORDINANCE ESTABLISHING A NEW SCHEDULE OF RATES AND CHARGES FOR SERVICES RENDERED BY THE WATERWORKS SYSTEM OF THE CITY OF SOUTH BEND AND REPEALING ORDINANCE NO. 4320 -60 AND ORDINANCE NO. 4345 -60. This ordinance had second reading. Council President Nemeth indicated that a public hearing on the proposed ordinance had previously been held and comments from various persons were heard and questions answered. He stated that, since that time, the budget as requested by the Council had been submitted and passed. He requested that any remarks made be limited to how the rate increase related to the budget. Mr. Paul Krueper, Manager of the Bureau of Water, made the presentation foi the ordinance. He explained that, in order to meet the expenses and outlay approved, a 50% rate increase was necessary. He stated that this was the first increase since 1960 and that 13% of the operating revenues must be placed in the Depreciation Fund to be used for improvements to the system and replacement of worn -out equipment and not for operating expenses or payment of the bond: There is a serious inflation problem of 6% each year, and each year, the 6% is compounded and the total outlay, in four years, would be nearly $350,000 more. With the 50% increase and payment of the bond principal and interest, at the end of 1974 there would be a surplus of $107,706. In 1975, there would be a surplus of $174,579, and in 1976, there would be $47,215. In 1977, the Waterworks would again have a deficit. He stated that one of the reasons for this is the fact that many peop] are moving to the suburbs and it is very difficult to predict a growth within the system. He explained that, at the present time, there was a deficit of $274,429.18. A transfer from the Sinking Fund in the amount of $130,000 and $22,015.20 from the Depreciation Fund would be necessary There would then be a deficit at the end of the year of $122,423.98. With a profit realized in the General Fund of $71,813 in 1974, the deficit would be decreased. He stated that all the figures he had presented had been computed using the 50% rate increase. He stressed the fact that the increa: was necessary to enable the system to operate for the next four years. At the end of four years, the matter would again have to be considered. Mr. Krueper indicated that the working capital woul< not be increased or built up if the increase was not approved. He talked briefly about the constri tion of the sewage treatment plant, indicating that the Waterworks System had been neglected at that time. He compared the rates of the surrounding cities with the rate of South Bend and stated that all the other rates were higher. He concluded by requesting that the Council act favorably oz the proposed ordinance. Mr. Warren Uldin, 1821 North College, indicated that he was representing his mother who resided at 906 Cleveland Avenue. He stated that he had his mother's water bill with him and the amount was about $18 for two months. He indicated that his mother lived on a fixed income and could not afford an increase to the already too -high bill. Mr. Uldin stated that he appreciated the problem the Waterworks System had; however, he wondered about the problems the retired people would have with the increase. He felt that the people on fixed incomes should be given consideration. Mr. Krueper asked Mr. Uldin if his mother lived alone, and Mr. Uldin stated that she and two other people lived in the house. Mr. Krueper indicated that that was the reason why the bill seemed to