Laserfiche WebLink
Regular Council Meeting <br />September 8, 2014 <br />Page 9 <br />revenue that was through the residential and commercial section, because everything else was <br />determined by contract. Mr. Anderson recommended that Council adopt the rate in the study, <br />because it was done by an independent outside firm that had no stake in the matter. He said if <br />they did not, the City would not have the needed cash flow. Mr. Anderson also said they need to <br />follow the City's rate maintenance policy that was adopted some years ago, which basically <br />states the City will set the rates where they need to be and the rate study determines that. Mr. <br />Anderson said they also have to maintain a certain reserve based on outstanding debt and <br />referenced the reserve policy. He reminded City Council that the operating reserve policy is to <br />maintain four months of operating money in the water and sewer fund. <br />Council Member Grossnickle said everything Mr. Anderson said was true. He said <br />several years back reserves were far more dangerously low and part of the charter was adopted <br />just to safe guard against this same thing happening. He said he knew it wasn't popular but was <br />necessary for operation of the City. He also said he would like to see if they could renegotiate <br />some of the contracts with higher volume customers, because it did not seem fair that that the <br />public had to pay this. Mr. Anderson said when delayed earlier in the year, it cost the City <br />approximately $275,000. Mayor Frierson inquired if it was financially feasible to not increase <br />the rate and Mr. Anderson told him he did not think so and thought it would be financially <br />irresponsible to not increase the rate. Council Member Lancaster asked if the City had ever been <br />able to lower the rate. Mr. Anderson said yes, but it had been a number of years ago. Council <br />Member Pickle said this was a plan and plans were needed. He said if they pay for it now, it <br />would be easier than years from now. <br />A Motion to adopt the rate increase was made by Council Member Pickle and seconded <br />by Council Member Grossnickle. Motion carried 3 ayes -1 nay, with Council Member Plata <br />casting the dissenting vote. Council Member Hashmi and Council Member Lancaster abstained <br />from voting on this item. <br />19. Discuss and act on ORDINANCE NO. 2014 -018: AN ORDINANCE OF THE CITY <br />COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SUBSECTION 16- 28(b), <br />ARTICLE II CHAPTER 16, OF THE CODE OR ORDINANCES OF THE CITY OF <br />PARIS, TEXAS TO PROVIDE FOR AN ADDITIONAL .70 (SEVENTY CENTS) FEE <br />FOR RESIDENTIAL ACCOUNTS WITH REVENUES BEING USED TO FUND THE <br />PURCHASE OF SANITATION EQUIPMENT; MAKING OTHER FINDINGS AND <br />PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, <br />A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND <br />PROVIDING AN EFFECTIVE DATE. <br />Mr. Godwin said this item was discussed during budget discussions and he recommended <br />replacement trucks be funded by a charge of an additional $0.70 per customer per month. He <br />further said this fee would generate about $70,000 per year allowing the City to purchase a new <br />garbage truck every two years. <br />