The Canton City Council once again discussed the need to increase water rates within the city of Canton at its october 13 meeting. Utility Committee members, Josh Nordsving and Cindy Shanks, outlined a proposal to raise rates on an average of $5.64 a month for each residential water user.
Since the city is looking at a large utility project in the next couple of years, and the water fund is operating in the red with no reserves, the committee is recommending an increase of $5.64 to the base service charge.
Clerk Brock Bergey told the council the water fund will finish the year with a negative fund balance, which would have been even greater had the city not increased rates in January of this year. A transfer of funds from a CD into the water fund this year also helped limit the deficit.
“The truth is,” Bergey said, “We are playing catchup and not building our reserves in any way.”
With the future utility project in the works, part of that process includes a rate study in which the engineers look at Canton’s utility rates and suggest where they need to be in order for the city to repay any financing it receives for the project. Bergey anticipates the engineer’s recommendation will be for a significant rate increase in a year or two. If the city is charging its residents appropriately compared to project costs, the city may also become more eligible for grant funds.
Knowing that a significant rate increase may be looming, the utility committee recommended implementing a smaller increase at the beginning of 2022 so the next increase isn’t so drastic.
“The current rates do not let us build up any reserves,” Bergey reiterated. “The $40,000 well project really hurt us. Our options are limited. The tough part is that it is going to take a long time to rebuild the funds. We are not saving for future repairs, future replacement costs. We got by a number of years without a rate increase, unfortunately now, we’re playing catchup.”
Shanks asked the council members if they would support a small increase for the city to “break even” or if the city should raise the rates enough to start building the reserves again.
Councilman Randy Gossman said, “I think most people would be OK building a small buffer in to help cover unexpected conditions.”
Considering an unexpected expense to replace mixers at the wastewater treatment plant, Nordsving said, “We were trying to only increase water rates, but do we now need to look at increasing the sewer rates too?”
The consensus was to limit the impact to residents at this time and focus on the water fund. The council will look at specific numbers and ways to implement the increase at its November meeting. While there will not be a formal public hearing, the council would welcome public comment on the matter. The next meeting is November 10 at 6 p.m.
Land use request
Jamie Knutson, owner of the Canton Pub Building, asked the city council to consider allowing Brenda Janvrin, owner of True Smoke BBQ, to park her mobile food service trailer on his residential property temporarily. He explained that she is working to install a smoker inside the pub building, but electrical delays and other roadblocks are preventing her from opening. If she could park her food truck nearby, she would be able to smoke her meat in the trailer, transport it to the restaurant and serve it from there. All other food would be prepared within the restaurant.
Knutson said he had discussed the matter with Bergey and learned that ordinances would prevent Janvrin from parking a commercial vehicle in a residential area if she did not own that property.
“As a city, we need to work together to get her opened up,” Knutson added.
Again, he stressed it would be a temporary arrangement.
Bergey interjected that because it is not permissible by ordinance, making this exception could create a precedent. “We want to be hospitable and accommodating,” he said, but cautioned the council about possible risks for the city.
Ernst said, “If this is a temporary deal, to get a business up and running, we can tolerate it for a brief time.”
Gossman agreed, but stated the city should specify a certain amount of time that would be allowed and suggested 60 days at the most.
The council also discussed other options for parking the trailer and suggested the grassy spot behind the restaurant. While there was some concern as to if the trailer would fit or extend out into the alley, the city council felt this may still be the best option. The city agreed to this option for up to 60 days. Gossman said if there are still delays in getting her smoker in the restaurant, the council could readdress it at that time.
Other business
In other business, the council approved the purchase of two signs, outlining the playground rules, for the park. The cost was $70 total. The rules included on the sign were: Use equipment at own risk; children under the age of 12 must be accompanied by an adult at all times; equipment is not sanitized; no smoking, glass bottles or alcoholic beverages; proper footwear required; improper use of equipment prohibited; and the city of Canton is not responsible for accidents.
The council accepted a $1,700 quote from Four Season Asphalt Maintenance for pavement repairs in front of the town hall.
The council agreed to waive the town hall rental fee for the Canton American Legion when it holds the annual pancake breakfast on November 7.
During the public works report, Jon Nordsving noted two mixers needed replacement at the wastewater treatment plant because parts to repair them are “obsolete.” The total cost for replacement would be about $11,000. It was also noted, in preparation of the preliminary engineering report for the future water and sewer utility project, the city will be televising the sewer lines.
The fire department was awarded a $15,000 grant to help replace turnout gear from the Carl and Verna Schmidt Foundation and another $900 from MiEnergy Cooperative’s Operation Round Up program to help replace outdated pagers. Mayor Nick Prestby commended Fire Chief Bill Richardson for working so diligently to secure funds for the city.
The council approved a building permit for Jamie and Holly Knutson to replace the home they lost in a fire. Jamie told the council that the insurance adjuster would be visiting the site within the next few days so the cleanup can begin on the old house.
The council approved a five-year extension to the Canton Historical Society’s promissory note from the Bike Trail Fund. The loan was for expenses associated with the Canton Depot repairs.
The city will be buffing and coating the wood floor in the town hall for $2,500.
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