RES 2006-42 - 00014151RESOLUTION NO. 2006 - 42
A RESOLUTION DECLARING THE NECESSITY TO INCREASE THE WATER, STORM WATER AND
SANITARY SEWER RATES IN EXCESS OF THE INFLATIONARY INDEX OR THE 5 %, WHICHEVER
IS LESS, AS REQUIRED BY SECTION 7.02 OF THE FRIDLEY CITY CHARTER
WHEREAS, the Fridley voters approved a referendum amendment to Chapter 7 of the City Charter in
November of 2000 requiring the City Council to submit to the voters any increase in taxes and other fees
over the rate of inflation or 5 %, whichever is less; and
WHEREAS, Ordinance No. 1152 amended the referendum amendment and defined utility rates as a fee;
and
WHEREAS, the City Council has adopted an annual resolution increasing water, storm water and sanitary
sewer rates by the rate of inflation since 2001; and
WHEREAS, the rate of inflation has not kept up with the cost of providing water, storm water and
sanitary sewer services and the City Council has had to approve the use of reserve funds to pay for the
cost of providing and maintaining the utility services; and
WHEREAS, the annual maintenance and operating costs of the water, sanitary sewer and stormwater
utility operations has grown from an annual deficit of ($250,000) in 2002 to an estimated deficit of
($627,596) for 2007; and
WHEREAS, the absence of positive net revenues has made the sale of Utility Revenue Bonds impossible;
and
WHEREAS, Chapter Seven, Section 7.02.3 of the Charter of the City of Fridley, states that any other fees
increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in
subsection 2; and
WHEREAS, Chapter Seven, Section 7.02.2, Subd. A, states that the City Council shall adopt a resolution
declaring the necessity for an additional increase and specifying the purposes for which such additional
increase is required; and
WHEREAS, Chapter Seven, Section 7.02.2, Subd. B, states that a public hearing shall be held pursuant to
three weeks published notice in the official newspaper setting forth the contents of the resolution
described in Section 702.02.2, Subd. A.; and
WHEREAS, the City of Fridley needs to increase utility rates to bring the revenues even with the
expenses.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Fridley hereby schedules a
public hearing for August 14, 2006, and directs the City Clerk to publish a Notice of Public hearing for
three weeks prior to the public hearing for the purpose of establishing a ballot question that allows the
City Council of the City of Fridley to increase the utility rates over the rate of inflation or 5% whichever
is less, as outlined in Section 7.02.01 of the Fridley City Charter.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 10TH DAY
OF JULY 2006.
'X
colt J. Lund, Mayor
ATTEST:
"9402011)
Debra A. Skogen, City ClelU