4.0 ERMUSR 11-14-1994 - Laserfiche WebLink

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Memo to Mayor, City Council&Utilities Commission Page 2 November 4, 1994 • contribution for a specific item; (2.) asking for an increase in the $72,000 contribution and tying this into a percentage for future years; and (3.) not asking for any change in our existing financial relationship. A number of Councilmembers stated that the Commission preferred a contribution to the City for specific items rather than a general increase. At the 10/24/94 City Council meeting, a motion was approved which balanced the budget with the assumption that the Utilities Commission would split the cost of the $110,000 street department front-end loader. This is in addition to the $72,000 contribution. This results in a Council request to the Commission for an additional $55,000 to help finance the front-end loader in 1995. CITY/UTILITIES RELATIONSHIP The Utilities is part of and a division of the City. This relationship has most recently been noted in the electric utility lawsuit settlement and its effect on our City and Utilities insurance rates. Likewise, this relationship has been identified in (1.) the Utilities required compliance to the comparable worth law; (2.) the Utilities required compliance to the open meeting law; (3.) the Utilities required compliance to the City ethics ordinance; (4.) the fact that the Utilities are governed by the City Council approved utility ordinance; (5.) • the fact that the Commission is appointed by the City Council; (6.) the requirement that the Utilities are part of the City audit; and (7.) the fact that the City is responsible for the Utilities compliance to State laws as they relate to public employees (i.e., employee contracts). There are many other activities and issues that identify the Utilities as part of the City. The City and the Utilities have a special relationship. We are partners in our urban growth. Without the water utility being extended with the sewer utility, then there is no urban growth. This growth is necessary to improve our employment and tax base. While this growth provides additional revenues and profits for the electric utilities, it also requires additional expenses for the City in providing services. As we are partners in growth, the City should be able to benefit financially from some of this growth. CONTRIBUTIONS Attached for your information is some material from the Minnesota Municipal Utilities Association that shows the contributions from electric utilities to their host communities. I have highlighted the larger cities and the cities that make large contributions to their host communities and have added the population of these communities on the side. I do not know what • the relationship is between these host communities and the utilities, nor do I s:council:utilcomm