Laserfiche WebLink
DRAFT <br /> <br />Page 2 <br />Regular meeting of the Elk River Utilities Commission <br />February 10, 1998 <br /> <br />5.3 Review Eastern Area Development Proposals <br /> <br />Pat Klaers, Terry Maurer and Lori Johnson took part in the discussion with the <br />Utilities Commission regarding the Eastern Area Expansion. The city has <br />suggested the Utilities finance the trunk water system for the development. Among <br />points discussed were, up-front costs, assessable costs, shortfalls, time frames, and <br />possible TIF financing may be available for the water and electric utility installation. <br />George Zabee commented that this arrangement should be considered, but to proceed <br />carefully. No formal action initiated, but Staff was directed to pursue options. <br />Bryan Adams pointed out that the development will have a significant impact on the <br />Electric side of the Utilities. Estimated project costs for the electric trunk system is in <br />the $2,676,000.00 range. The Springstead Study indicated the water utility may be <br />able to finance the water production facilities for the expansion. Possible alternatives <br />of financing were presented and reviewed. <br /> <br />As a related issue, Bryan Adams advised the Commission of the City of Otsego's <br />intention of installing sewer and water on Pardsh Avenue, which will effect the <br />development of area within our service territory, and also have financial ramifications <br />that need to be 'addressed. <br /> <br />5.4 Review and consider Springstead Final Report <br /> <br />The Springstead report encompasses current and projected rates, charges, and debt <br />capacity for the Water Utility. The analysis includes projections for repaying existing <br />and future debt service for planned capital improvements. The Commission and Staff <br />discussed aspects of the report, especially regarding the financing of the future growth <br />of our service areas. It was the concensus of the Commission that rates be raised <br />gradually, on an annual basis, rather than having a disproportionate raise in one future <br />year. <br /> <br />George Zabee moved to receive and file the Springstead report. John Dietz seconded <br />the motion. Motion carried 2-0. <br /> <br />5.5 Review Senior Citizen Water Rate <br /> <br />The current Senior Citizen Water Rate is applicable for anyone over the age <br />of 62, who applies. Bryan Adams questioned the Utilities obligation for advertising <br />and administering the rate. Staff is directed to include information on the rate in the <br />Current, the Connect, and with future bill stuffers. <br /> <br /> <br />