07-28-08 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JULY 28, 2008 having an independent review that the Council might retain for an additional financial advice would certainly help with the duties that will given. Mr. Skomp stated that by taking it out of the IURC’s hands and putting it in the Council’s hands, it is actually putting it on par with what the City is already doing with sewer rates; trash fees; and taxes. The Council will be reviewing the study and for what ever reason it doesn’t feel comfortable with the study that was presented, then the Council could always have an independent financial review. The other thing is that when it comes to utilities, the Council could say that they want an independent financial review, but the greatest thing that drives utility rates is the capital projects that are needed for the system. A lot of what drives utility rates is the expense that is needed for capital improvements, to extend the system, to improve it with the right pressures and those types of things, so when you look at it from a financial side you kind of putting the puzzle together after all the pieces are there and it you don’t reshuffle all the pieces, an independent financial review might not do as much as you are expecting out of it. That is something that can be looked at when it is brought up. Councilmember Varner stated that it has to be understood that a reshuffling of all the pieces is entirely possible when you take that approach. Whereas, it never comes to the Council with the discussion with what pieces are going to be or could be reshuffled. That becomes another responsibility that the Council accepts in addition to. He stated that he has gone on record saying that there is this same conflict on other presentations and go on record doing it to themselves now, and have to be prepared to take those steps going forward. Council President Rouse asked Councilmember Varner if he is comfortable with the way the sewer rate increase take place. Councilmember Varner stated that the entire sewer rate project is absolutely beyond the understanding of any individual Councilmember and beyond the understanding of any collective Councilmember, which is why Gary Gilot hired someone to do the sewer study, because it is enormous in its requirements. Once you realize that, you have a better understanding of why there are other people participating. He stated do we need to clean up the river, absolutely, do we need to do what we have to do, absolutely, do we need to do more, the city needs to look at that and say that it isn’t quite necessary. He stated that is where the City falls short. He stated that he says that not to be critical, but because that is the city’s responsibility. Councilmember Kirsits questioned about putting the question back on the ballot of going back to the IURC, could the Council follow that process. Mr. Kile responded yes, the Council could do that if they choose. All that would need to be done is to adopt another Resolution like the one before the Council tonight and the question would go back on the ballot. Councilmember Oliver Davis questioned that it would not go back on the ballot until 2010. Mr. Kile stated that is correct. Councilmember Kirsits questioned that if they should opt out and it is approved by the voters, what happens to the pending cases before the IURC? Mr. Kile stated that they would become mute. Councilmember Kirsits stated that it does put a big burden on the Council and have another study, but the one thing that he likes to see is comparative rates of other communities and sees where South Bend is, and usually there are right in the middle of the pack, not the highest, not the lowest, but right where it should be. A Public Hearing was held on the Resolution at this time. 26