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HomeMy WebLinkAbout09/04/1990 City Council MINUTES OF THE CITY COUNCIL MEETING HELD ON SEPTEMBER 4, 1990 The Special Session of the City Council of the City of The Colony, Texas was called to order at 7:00 p.m. on the 4th day of September, 1990 at City Hall with the following Council roll call: Bill Manning, Mayor Present. Steve Withers, Councilman Arrived 7:05 p.m. Mike Alianell, Councilman Present. Rob Burchard, Councilman Arrived 7:05 p.m. Lou Gomez, Councilman Present Joel Marks, Councilman Present and with four present, a quorum was established and the following items were addressed: 1. WORK SESSION REGARDING THE WATER AND SEWER RATE Mr. James England, Finance Director used handouts and overhead transparencies (see Attachment "A") to explain to the council the various studies he and his staff had conducted to come up with an alternate sewer rate. The bar graphs indicated the number of connections at each level of usage. Mr. England noted that the largest number of connections use between 5000 to 8000 gallons, with the most using 5000. 7:05 At this time, Councilmen Withers and Burchard arrived. Mr. England's sewer rate analysis gave 3 different, minimum charges and 3 minimum usages, showing monthly and annual revenue each will generate. Mr. England had prepared 8 computer models of exact figures for council's information to see what the difference rates would generate in revenue. He noted that there are few variables in these figures, stating they are within $1000.00 of the actual amounts. Councilman Marks asked if the City's use was included in these figures and Mr. England advised no, that the city's water is metered for consumption but there is no monetary value place on that usage. There was a general discussion regarding how the rates were determined, winter months' average, etc. Mr. Bill Hall explained that he had figured how one customer's account (Rooney) would change using 4 different rates and the most. it would reduce would be $3.16 per month (from $21.66 to $18.50), using a $9.00 minimum and $1.50 per 1000 gallons over the minimum. There followed a discussion regarding revenue generated with each different. proposal versus what would be generated from the old rate. The Council discussed the impact the various rate proposals would ~-. have on customer's bills. Mayor Manning said the committee's 2 00373d original intent, was to raise the rates from 24% to 24% and that the water rates hit the mark but the sewer rates were way off, stating that a rate needs to be selected that will bring the sewer rate in line with the proposed 24% - 25%. Councilman Marks asked why the needed revenue has to come out of people's pockets, why not somewhere else, such as putting pressure on staff and council to cut the budget. Councilman Withers said there is not much fat in the Utility Fund, but maybe the General Fund and asked where he would suggest cutting. There was a general discussion regarding cutting the budget.. 2. ANY APPROPRIATE ACTION TO BE TAKEN AS A RESULT OF THE WORK SESSION Mayor Manning said something must be done tonight on the rates and the budget can be addressed in the budget process, also stating that the rates can be reviewed in December for any necessary revisions. After more discussion, Councilman Gomez moved to adopt, a minimum charge of $8.00 (2000 gallon minimum) and $1.50 per 1000 over the minimum until aft. er the budget is done and then look at the rates again. Councilman Gomez said this will generate about $98,000 a month and that. this is a happy medium. Councilman Burchard said this will save approximately $1,00 per household and generate approximately $1.2 million annually. Mayor Manning said this would be based on the same 3 months winter average for all. Councilman Gomez re-stated his motion to adopt, a new sewer rate of $8.00 minimum charge, 2000 gallon minimum usage and $1.50 per 1000 for all over 2000. Councilman Burchard seconded the motion. Mr. Hall explained that there is no budget short, fall this year and the increase had been to make up the necessary difference in a 16 month time period, going on to say this to cover a proposed short, fall in the 1991/92 budget year. Mr. Hall also referred to a newspaper article from Plano in which citizens where voicing the same complaints regarding high water usage as those in The Colony, noting that people have used more water than they realize. Mayor Manning said he believes the readings were correct and Mr. Hall said we do everything we can to ensure they are. At. this time the vote was taken and the motion carried with a unanimous roll call vote. Mayor Manning adjourned the meeting at 8:15 p.m. William W. Mahning, Mayor\ Patti A. Hicks, City Secretary 3