The meeting’s central topic was the proposed adjustment to the water rate structure, which is necessary to support the rehabilitation of the city’s water treatment plant. The project requires an annual debt payment of approximately $850,000. The proposed rate would include a flat fee of $17 per month for in-town residents, with additional charges for exceeding specific usage volumes. Out-of-town users would face a 20% higher fee than in-town residents. Galvin detailed the impact on different users, noting increases for both residential and commercial users based on their water consumption. A residential user consuming 2,000 gallons monthly would see their bill rise from $26.19 to $43.19, while a commercial user consuming 50,000 gallons would see an increase from $546.99 to $669.74. The necessity of these adjustments seeks to secure a resolution from the city council for finalizing the loan for the plant’s rehabilitation.

The urgency of implementing the new rates was a point of discussion, with council members agreeing that annual reviews of the rates would be essential to ensure they generate sufficient revenue. The proposed structure would be sent to the financial management company, Northland, for further refinement before the next council meeting.

In addition to the water rate discussion, the council examined a draft space agreement for relocating the police department to a new facility. The lease proposal included a 50-year term with an initial annual rent of $50,000, adjustable based on the Consumer Price Index (CPI) after the first two years. The council expressed concerns regarding the unpredictability of future costs, the division of maintenance responsibilities, and the absence of rent contributions towards a potential purchase of the property. The city would be responsible for interior maintenance, while the county would handle structural issues. Concerns were raised about the lack of clarity in maintenance responsibilities and the financial implications of the lease terms.

Members of the council also questioned the lease’s termination clauses, which allowed the city a year’s notice for termination while the county could terminate with as little as 60 days’ notice. There were also discussions about the condition of the property, with requests for an inspection report on environmental hazards, such as asbestos or mold, remaining unfulfilled. The council emphasized the need for a thorough inspection before committing to the lease.

The specifics of the lease’s refurbishment costs were also debated, with an estimated $160,000 required for the space’s renovations, potentially split between the city and county. Additional concerns arose over a newly introduced “freeze cost” of $50,000 and visible plumbing issues. The council considered capping CPI increases to a maximum of 3% to mitigate future financial unpredictability.

In other business, reports from various boards and commissions included updates from the Airport Commission, which recommended establishing a separate checking account for the airport, postponing runway work for an additional year due to funding constraints. The HR Committee prepared for an upcoming director’s retirement by drafting new job descriptions and scheduling advertisements for a part-time position. The Ambulance Taxing District was discussed, with a public hearing planned for individuals within the proposed boundaries to ensure strong community representation. The establishment of this district aims to generate sufficient revenue to sustain the ambulance service, with considerations around fee structures and contractual agreements.