At the November council meeting, the City of Fountain heard the results of an analysis by Minnesota Rural Water Association. The city was provided with four scenarios aimed at making gains on the backwards trending sewer and water utility funds.
Wednesday, December 6, the council met and further discussed the options, which ranged from maintaining the annual $30 base rate, increasing the base rate to $50 or $75, nearly or more than doubling the current rate, and imposing a break-even increase of $86 per connection annually. The amount represents an $80 increase to the sewer rate and a $34 increase to water rates. All options would reduce the minimum gallon usage from 3,000 to 1,000.
Councilor David Gudmundson stated he’d heard plenty about the proposed changes. “Wow. My ears are still ringing,” he joked.
The council is keenly aware what a substantial impact the increase could have and stepped increases were considered. “Step by step; the longer it takes you to get there the further behind it is,” cautioned Councilor Jim Schott.
A hearing was set for Wednesday, January 10, at 7:30 p.m., at city hall. Prior to it, the council has directed City Clerk Rhonda Flattum to review all costs related to sewer and water. The council is hoping that a review of expenses might yield some items that will not be part of annual costs in 2018 and beyond. In 2016, costs largely related to engineering, design of plans and specs, treatment chemicals to maintain wastewater treatment plant compliance, and an agreement with PeopleService, on top of standard operational costs. WSB Engineer Richard Parr was present at the meeting and indicated some of those costs should decrease.
The outright cost of chemical treatments is never going to decrease, but now that the plant is in compliance and the stipulation agreement from the state is off, the city may be able to use less or alternate treatments which will cost less overall. Additionally, Public Works Director John Hanson may begin classes aimed at getting state licensure, which would reduce the city’s need to rely on their agreement with PeopleService, also lowering costs in the long run. It’s expected no changes on either will take place before March as the cold months are the critical time of compliance for the plant.
The council is hoping that prior to the January hearing, they might identify an increase amount which would not hit property owners as hard, but make gains on the fund deficits.
Parr also addressed the standing of plans for the wastewater treatment plant. “If you asked me today, I’d say go ahead with some of the improvements. It’s money well spent,” said Parr. He also indicated the removal of the stipulation agreement with the state removes a lot of stress and allows for more flexibility with timing of improvements, rather than being mandated making upgrades to continue compliance. “With the agreement closed, the pressure is off.”
One part of the state’s suggestions that Parr cautioned the council on was a reclassification of the plant. “It’s something we want to avoid at all costs,” urged Parr. Changing the classification would impose a much stricter and costly set of guidelines on the city and the cost to maintain someone with appropriate licensure to operate the plant would also skyrocket.
“This past year we did a lot of work. It was a very unusual year and I don’t see that continuing,” said Parr. “Going forward, I’m hands off, unless there’s an issue. The plans are done and it’s pretty easy to modify and take things out. The bulk of the design and analysis is done.”
Being the last meeting of the year, the council also unanimously approved the final 2018 levy. Review of the budget led Clerk Flattum to identify two line items which needed amending. The changes represented a $1,500 decrease in operational costs. In light of this, the council voted to approve the levy at $184,785, an increase of 4.33% over 2017.
The next regularly scheduled meeting is Wednesday, January 3 at 7:30 p.m., at city hall. The public is encouraged to attend.
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