11-26-73 Council Special Meeting Minutes

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SECOND READING ON ORDINANCE NO. 5608 -73 (CONTINUED) be high. He stated that one person, possibly even two people, would have a normal bill of $2.20 for a two -month period for water in most cases. He mentioned that the minimum amount of water every two months was 1,000 cubic feet with an annual bill around $13. He stated that, for $13 annually, the meters must be read, bills collected and replacement and repair of equipment accom- plished. Mr. Uldin felt that some of the money could be reduced from the Depreciation Fund and applied to reduce,the proposed increase. Council President Nemeth indicated that the Sinking Fund and Depreciation Fund were established by law and the payments must be made into the funds to pay off the bonds. Mr. Uldin maintained that $18 was too much for a retired person to pay every two months. Mr. Maurice Cohen, 725 East Eckman, expressed concern about the city providing services to the new.iy annexed areas. tie taixea brietiy about the adopted budget and the projection made by Mr. Krueper for the next four years. Miss Fanny Grunwald, 227 South Frances Street, stated that her water bill for two people had been approximately $9.54 for two months. She did not understand why there was a 50% increase proposed. Mr. Krueper indicated that Miss Grunwald's bill was probab. in the amount of $9.33 which was a minimum for sewage and water for two months. He stated that $2.20 from that amount was for the water. Mr. Gene Evans, a member of the staff of the Civic Planning Association, indicated that the report made on the proposed increase eluded to the exten- tion of mains in the newly annexed areas. He stated that spending out of the improvements might be one possibility in cutting the increase. He also suggested that 25% of the users of water who use a minimum each month be allowed to remain at the present rate. He mentioned the income pro- duced by the meters. He felt the income was a small portion and would not jeopardize the budget. He concluded that the Civic Planning Association also recommended that the Waterworks System pro- ceed immediately to effect a savings within the department, primarily in the area of billing proce• dures. Mr. Richard Wilson, 2606 Miami, presented a schedule of figures for the estimate of a need( increase. He did not feel 50% was needed. He came up with the figures using a 35% increase and the increased budget items were public and private fire protection and metered sales. He stated that there would be a deficit of $35,000 over a four -year period using the 35% increase. He state( that he had made an error in computing which would add $47,000 per year. In order to operate in the black, an additional 3% would have to be added to the rate to offset the additional expense. He felt that a 38% increase in the water rate should be more than adequate to cover the necessary costs. Council President Nemeth questioned the gross revenues. He stated that the 1974 budget included a $400,000 deficit, and Mr. Wilson stated that he had only used the 35% for nine months out of the year. He briefly explained his figures. Mr. Krueper indicated that there was also an amount to consider of leak insurance, miscellaneous income, service charges and interest income which were not included in Mr. Wilson's figures. Mr. Evans indicated that Mr. Wilson was reading from the budget and these items were included plus $40,000 from the Redevelopment Department. Mr. Wilson stated again that the only income increased by 35% was the public and private fire protection and metered sales. Councilman Miller asked about the items included in the figure of $721,000. Mr. Krueper stated that this was 35% of the anticipated income for 1974 and must be transferred to the Sinking and Depreciation Funds. Councilman Miller stated that, regarding the income, the total would be $2,040,000. Mr. Krueper indicated that he was using the figure of $2,062,500. Councilmai Miller stated that this was where the difference came in the figures. The budget on page 9 does not take into consideration the actual amount that has to be put into the Depreciation and Sinking Funds for distribution which would be $721,875 as established by the bond ordinance. Council President Nemeth wondered how much money was required to be maintained in the Depreciation Fund. Mr. Krueper stated that anything in that fund must be kept or spent. He stated that, in the Sinking Fund, the excess could be taken back to the General Fund in the amount of $180,925 that was transferred back the first year. Councilman Miller stated that the Waterworks was in debt $122,000 at the present time and that amount must be made up. Council President Nemeth stated tha• on behalf of the Council, the Council has been most responsible in handling the situation. He felt the Council had not "shirked" from its responsibility and the "touch issues ". He indicated that the Council had hoped a lesser increase could be arrived at; however, based on the figures presented, the 50% increase must be given in order to keep the Waterworks "out of the red ". He reminded the citizens that, when the increase had been requested, the Council had required that a budget be submitted to enable the Council to study and research the matter. He stated that $200,01 had been cut from the budget, and he felt the Council should be praised for its efforts. Councilman Serge made a motion that the ordinance pass, seconded by Councilman Parent. The motion carried and the ordinance passed by a roll call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth). Councilman Taylor made a motion to adjourn the meeting, seconded by Councilman Parent. The motion carried and the meeting adjourned at 6:53 p.m. Council President Nemeth announced that the regula: meeting would begin at 7:00 p.m. ATTEST: CITY CLERK i � ++++++++++ + + + + + + + +..... + + + + + +..... + + + + +�_ te ++++++++++++++ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++