11-20-02 Utilities Committee - Laserfiche WebLink

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Utilities Committee November 20, 2002 Page 4 Council Member Kirsits stated that the Council takes its responsibilities very seriously. He stated that they will continue discussions which may result in " a compromise, having the bill pulled, postponed or continued". Mr. Terry Miller of the Chamber of Commerce then asked questions with regard to data on page 10 of the cost of service study regarding %580,000 property tax increase and whether the rate goes against that figure. Mr. Gilot noted that a policy decision would have to be made with regard to taxes and payment in lieu of taxes. Mr. Gilot stated that the payment in lieu of taxes is a commonly accepted formula Mr. Miller then inquired about information set forth on page 21 of the cost of service study and voiced concern over the refunding amounts. Mr. Gilot stated that he would contact the City Controller and/or bond counsel. Dr. Varner noted that by using the 2003 base rate that in 2008 the$800,000 plus figure would not be included in reference to the questions raised about the figures on page 21. Mr. Miller then inquired about the information on page 28 with regard to "o & m" and the inside costs and the 25%outside costs. Mr. Gilot stated that he would defer to Mr. Skomp. Mr. Miller stated that the CSO issue is a state-wide issue. Indianapolis and Gary are in "horrendous shape", and the state will have to address this issue in 2004. He stated that he does not believe that the problem can be totally addressed locally. He added that most communities will not meet the CSO requirements set for 2003. Mr. Miller contended that at least$1.6 million should be deleted, and that further study needs to be done on further capitalization. He urged the Council to look at all alternatives so that there will be a"win/win for everyone". Council Member Coleman asked if everyone had received all the information they needed on PILOT since a specific formula is applied uniformly in this area Mr. Miller questioned about depreciation and urged that debate take place on the public policy issues. Council President Kelly asked for a reaction of the comments made by Mr. Gilot, the City's Public Works Director,and inquired"where do we go from here". Mr. Gilot stated that with regard to Mr. Brock's report that he would not support funding items with a useful life of 10 years and paying for them over 20 years. He noted that after four (4) years, there "would be zero for capital" available whereas the City's proposal provides ongoing investment for sustainable assets. Mr. Gilot stated that the City has made several:moves since their original proposal made-this summer---the proposed bill recommends three (3) phases and a partial debt service component. With regard to the comments from the New Carlisle Public Works Director, he noted that there is a 1989 agreement currently in place which provides that March 2, 2004 would be the 1st time that the City could negotiate rates with New Carlisle. Mr. Gilot noted that he has no comments with regard to the remarks made by the Marriott representative. With regard to the comments from Mr. Miller and Clay Utilities, Mr. Gilot stated that the lease period is not over, and that the City advanced paid Mr. Miller. He would have the date of the end of the lease by Monday's meeting.