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HomeMy WebLinkAboutMinutes - Finance Committee - 07/20/2009 -_____C.Finance Administration_____~~I 0 215N Mason —7.~2~dFIoorF-Ort CoLLins Fort Collins CC 80522 970.221.6788 970.22t6782-fax Council Finance Committee Minutes 07/20/09 10:30 a.m.12:00 p.m. Council Attendees:Mayor Doug Hutchinson,Mayor Pro Tern KelLy Ohtson,Councitmember Ben ManveL City Staff Attendees:Darin Atteberry,Mike Freeman,Chuck Seest,Tern Bryant,Brian Janonis,Kraig Ecton,Heather Shepherd Others:Todd Chnistiano,Red Oak ConsuLting.Ann Hutchison,Chamber of Commerce. Approval of the Minutes from the June meeting. Kelly Ohlson moved approval of the June 1 5th minutes and Ben Manvel seconded the motion. The minutes were approved. Consultant Presentation of Utility Rate Adiustments Todd Chnistiano from Red Oak Consulting presented information on the impact of increasing Utility rates including Water,Waste Water,Light and Power.The following options were suggested: 1.Implement full cost of service (COS) 2.Implement modified COS a.Transition COS Adjustments over 2-year period b.Spreads COS impact over longer period c.Responsive to current economic environment 3.Apply 10%rate increase uniformly to all classes with no COS adjustment Brian Janonis advised the Committee that ‘option 2’is the preferable approach so that it is a gradual implementation as opposed to a one-time significant increase for the customer. Brian Janonis stated that after conducting the cost of service study,City policy will be to review utility rates and respond with necessary ajustments,no less than every 5 years. Cof Kelly Ohlson noted that the City should make sure to investigate the impact of rate increases on low-income customers who may already be paying too much for Utilities,and explore a way to mitigate the impact Kelly Ohlson stated that during the presentation of this informatiom to the City Council,staff should make special note that any utility rate increases will not be be used to fund police,fire, parks maintenance,etc.Kelly also suggested a thorough explanation of the rate increases focusing on what would and would not be affected by the increases. Doug Hutchinson stated that this Committee is supportive of ‘option 2’and of bringing it forward to the whole City Council in September. Tern Bryant reviewed proposed rate increases for light and power portion of the utilites,and gave the following reasons for the necessity of the increase: •Wholesale increases from power provider —Platte River Power Authority •Additional Energy Services Programs to Meet Energy Policy Goals •Advanced Metering Infrastructure Terry Bryant advised the Committee that 75%of City’s Utility Budget currently goes toward items we have to purchase. The Council Finance Committee supports the overall data,and the presentation of this information to the entire City Council.