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THURSDAY, APRIL 29, 1999 <br />the Audit Report, to be produced in September or October. Vice-Mayor Teague suggested that this element <br />of the budget process be discussed during Council's next retreat, and Mr. Reynolds agreed, but also stated <br />that the recommended new Financial Plan and Investment Strategy would also address this issue. <br /> <br /> Mr. Dyches next presented information on the budget for Sewer operations. He noted reductions in <br />revenue similar to those in the Water Fund. Vice-Mayor Teague observed fhat there was no transfer from <br />this fund and that a contribution shown from the General Fund showed that this fund was not really paying <br />its own expenses. Mayor Crabtree noted that the core question for this fund was when would the Council <br />agree to raise sewer rates. Mr. Reynolds agreed, stating that the fund revenues were not adequate to cover <br />operations, depreciation and cost of sludge disposal in the future, and a rate increase would have to be <br />considered. Vice-Mayor Teague observed that to make the fund self sustaining there would probably need to <br />be a rate increase of 40%, but also noted that it would be unwise to raise rates to cover the total shortfall at <br />one time. Mr. Dyches contimed this observation, stating that although operations costs only represented 8% <br />of such an increase depreciation costs and other issues made up the balance of increase needed. In closing <br />the discussion Vice-Mayor Teague asked for a current comparison sheet of combined water and sewer rates <br />for other jurisdictions in the State, such as had been provided in the past, and Mr. Bartlett stated he would <br />prepare this report. Mayor Crabtree observed that it was clear that the cost to process waste water in the City <br />was greater than the revenues generated at this time. <br /> <br /> Council next heard information on the budget for the Electric Department. Mr. Eugene Richardson, <br />Electric Division Manager, began the presentation with a list of the current year's accomplishments, which <br />included several successful legislative efforts and replacement of infrastructure elements. Mr. Richardson <br />promised a future work session briefing for Council on the details of several legislative issues. Two <br />outcomes of this legislative activity noted were the permanent acquisition of current out-of-City customers <br />at'cer July 1, 1999, and the restriction of power sales outs~e the City's designated service area to wholesale <br /> <br /> <br />