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HomeMy WebLinkAbout11/24/1997JOINT COUNCIL/WATER WORKS BOARD WORK SESSION November 24, 1997 5:30 p.m Large Conference Room Members present: Mayor Rooff, Getty, Jordan, Krizek, Murphy, Anders, Collier, Mollenhoff. Also present: Arnold Becker, Leon Mosley and Reed Craft. Moved by Jordan, seconded by Mollenhoff that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. The Calendar Year 1998 Water Works Budget was reviewed. Councilperson Mollenhoff asked for the projected ending fund balance and what is necessary for the Water Works for a good cash flow. Reed Craft, General Manager for Water Works, reported $300,000 to $600,000 is needed, and that the total cost for proposed 1998 capital improvements projects is $629,700.00, which includes Phase II and Phase III of the Reservoir. Mayor Rooff stated that the Water Works wanted the council to hold a public hearing on the 1998 calendar year budget with a proposed 6.6 percent increase in fees. Mr. Reed stated that the Water Works Board of Trustees will have to hold a public hearing on the 6.6 percent increase in fees after the budget has been approved. Mayor Rooff stated that the public hearing by the council is only a formality and that the council has no control over the Water Works rate increase. Mr. Reed stated that he has been informed by his attorney that the council should hold a public hearing. Councilperson Krizek requested additional information on the proposed budget. Mr. Reed reported that a bond payment in the amount of $236,000 must be made four days before the end of the year. Mr. Reed stated that the Water Works cannot anticipate the number of water main extensions, the cost, location or whether a 6" or 8" main will be installed. The cost for health insurance is going up 12 percent for next year, along with a 2.3 percent salary increase. Arnold Becker stated that costs have increased since the last fee increase three years ago. Mr. Reed stated that the Waterloo Water Works has the lowest water rates in the state. The council requested a copy of the complete budget. Councilperson Mollenhoff stated that the Water Works auditors should be able to suggest a safe level of cash flow. Mr. Reed stated that although the Water Works Board has approved the budget, the rate increase issue has not been discussed specifically. A public hearing will be held three months before it goes into effect. With no further business before the council, it was moved by Getty, seconded by Murphy that the meeting be adjourned at 6:15 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk